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Court Enters Injunction Against HUD Regulation

Gaithersburg, MD -- United States Federal District Court Judge Paul L. Friedman today ruled in the case of AmeriDream v. Jackson that the Department of Housing and Urban Development cannot implement its regulation on downpayment assistance, which had been scheduled to go into effect today. AmeriDream, Incorporated, a 501(c)(3) charitable entity dedicated to helping low and moderate income families purchase their own homes through the provision of downpayment assistance and other services, had brought suit against HUD Secretary Alphonso Jackson challenging the regulation, which would have reversed prior HUD policies regarding downpayment assistance.

Judge Friedman agreed with AmeriDream’s position that there was a “substantial likelihood” that the regulation violated applicable law. Judge Friedman further stated that the regulation lacked a “reasoned analysis” and was based on “flimsy” support. Judge Friedman also questioned whether HUD acted appropriately in issuing the regulation in view of a published report that Secretary Jackson was committed to that course of action regardless of whatever public comments HUD would later receive. In view of those shortcomings and other considerations, Judge Friedman issued an injunction, effective immediately, preventing the regulation from taking effect.


About AmeriDream
AmeriDream, Inc. is a 501(c)(3), publicly supported non-profit organization founded in 1999. AmeriDream is one of the first nonprofit organizations to pioneer providing down payment assistance to low-and-moderate income individuals and families to help them become homeowners. AmeriDream also provides free homebuyer education and loss mitigation programs that help families keep their homes and prevent foreclosure. These programs have helped thousands of individuals and families become successful homeowners. To learn more about AmeriDream, please go to www.ameridream.org.