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Gaithersburg, MD (Jan. 20, 2002) -- We have been asked whether the two recent Mortgagee Letters from HUD, Nos. 2001-30 and 2002-01, have any effect on AmeriDream's Downpayment Gift Program. The simple answer is no, since neither Letter is applicable to down payment gift programs in any significant way.

Mortgagee Letter 2001-30 clarifies the calculation of "net development cost," and expands the use of the "net development cost" calculation to HUD properties sold to pre-approved government entities and qualified nonprofit organizations, at discounts of ten percent (10%) or more. Mortgagee Letter 2001-30 also expands the use of the "land use restriction addendum" to all HUD homes sold to nonprofit organizations and government entities at discounts of ten percent (10%) or greater. The discounts of ten percent or more are available to qualified entities through FHA's Single Family Housing Programs.

Mortgagee Letter 2002-01 clarifies the requirements that new nonprofit applicants must meet in order to participate in FHA's Single Family activities, which include purchasing discounted HUD Homes, serving as mortgagors, and offering secondary financing assistance.

Neither Mortgagee Letter contains any new or modified eligibility rules, restrictions, clarifications, definitions, or filing requirements for down payment gift programs.

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The mission of The AmeriDream Charity, Inc., headquartered in Gaithersburg, MD, is to expand homeownership opportunities for underserved groups through the direct provision of down payment assistance and through the restoration and development of communities. A 501(c)(3) organization, The AmeriDream Charity, Inc. meets HUD requirements for FHA insured loans as a charitable organization. In addition to The AmeriDream Downpayment Gift Program, the Charity also operates The AmeriDream Redevelopment Program in the Washington, DC, area, which focuses on rehabilitating properties and returning them to the market at affordable prices. The AmeriDream Charity, Inc. also donated over $600,000 in 2001 to a range of community organizations including Habitat for Humanity and the American Red Cross Disaster Relief Fund.