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SB 506

HOUSING: Creates the Dream Starter Act. (gov sig) (OR +$542,635 GF EX See Note)

2026 Regular Session Introduced by Sidney Barthelemy

Creates a forgivable-loan program for first-generation, first-time homebuyers in Louisiana, with down payment, closing costs, and related support via the Louisiana Housing Corporat

Read second time by title and referred to the Committee on Finance.
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Bill Summary · SB 506

Summary — Louisiana SB 506 (2026 Session): Dream Starter Act

What the bill aims to do

  • Creates the Dream Starter Act to expand access to first-generation homeownership for Louisiana residents.
  • Establishes a dedicated fund and program to provide forgivable down payment assistance and related costs to eligible applicants.
  • Seeks to address workforce stability, local tax bases, and long-term household wealth by helping households that lack generational wealth or prior homeownership experience.

Key provisions

Establishment

  • Enacts Part 1 of Chapter 3-G of Title 40, creating new R.S. 40:600.121–600.126 (The Dream Starter Act).

Definitions

  • First-time homebuyer: An individual who has not owned an interest in residential real property within the previous three years.
  • First-generation homebuyer: A first-time homebuyer who has not previously held sole ownership of residential real property and who meets additional criteria set by the Act or rule.
  • Principal residence: An owner-occupied residential dwelling (including single-family homes and other owner-occupied structures as recognized by rule).

Fund and administration

  • Creates the First-Generation Home Buyer Assistance Fund in the state treasury.
  • Administered by the Louisiana Housing Corporation (LHC).
  • Fund sources may include: legislative appropriations, federal funds, grants, gifts, donations, repayments, interest earnings, and other lawful sources.
  • The LHC may coordinate with existing state/local homeownership programs and partner with private lenders, nonprofit organizations, and housing counselors.

Assistance and eligibility

  • The program provides forgivable loans for:
    • Down payment assistance
    • Closing costs
    • Mortgage insurance
    • Interest-rate buy-downs
    • Other allowable costs as determined by rule
  • Applicants must complete approved homebuyer education and financial counseling.
  • Applicants must occupy the property as their principal residence for the required period as defined by the Act or rule, and other eligibility criteria apply.

Accountability and reporting

  • The LHC must submit an annual report to the Legislature detailing:
    • Participation and geographic distribution
    • Loan performance
    • Program outcomes
  • The program must include safeguards, including:
    • Income verification
    • Occupancy verification
    • Recapture provisions for noncompliance

Who is affected

  • Targeted beneficiaries: first-generation, first-time homebuyers who meet the defined eligibility criteria.
  • Potential indirect beneficiaries: communities and local governments through increased homeownership, neighborhood stability, and tax base effects.
  • Implementing entity: Louisiana Housing Corporation, with coordination possible with private lenders, nonprofit groups, and housing counselors.

Timelines and effective date

  • Effective date: Upon the governor’s signature or, if not signed, upon lapse of time for gubernatorial action per constitutional provisions.
  • Ongoing reporting: Annual legislative reports on program participation, geography, loan performance, and outcomes.

Financial impact

  • The bill authorizes creation and funding of a new state program and fund. The “OR +$542,635 GF EX See Note” note in the bill header suggests an ongoing state general fund impact may be anticipated, but the specific appropriation level is not set in the text provided. Funding would come from a mix of appropriations, federal funds, grants, gifts, repayments, and interest earnings.

Net takeaway

SB 506 creates a targeted, forgivable-loan program to assist first-generation and first-time homebuyers with down payment and related costs, administered by the Louisiana Housing Corporation, with annual reporting and safeguards to ensure program integrity and measurable outcomes.

Compiled from official sources — confirm details with the bill’s official record.

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