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For Immediate Release: October 1, 2008 CONTACT: Henry Fawell (410) 545-5830

CBO report: downpayment assistance could generate
new revenue for U.S. Treasury

AmeriDream urges Congress to preserve DPA to stabilize housing market

GAITHERSBURG, MD – Downpayment assistance programs that expire today could generate sorely-needed revenues for the federal government if Congress preserves them by passing H.R. 6694, according to a new report from the Congressional Budget Office (CBO). Downpayment assistance programs funded in part by sellers (DPA) were eliminated, effective today, as part of the housing stimulus package signed into law in July.

“At a time when Congress considers saving Wall Street, we must not lose sight of the homeowner on Main Street,” said Ann Ashburn, President of AmeriDream. “Unlike the $700 billion rescue package under consideration in Congress, DPA programs do not cost the American taxpayer a dime. In fact, they could generate $13 million in revenues for the federal government if they are reauthorized by Congress, according to the CBO.

“The choice before Congress is simple: deny 25,000 qualified first-time homebuyers the FHA's homeownership opportunities every month, or preserve a program that can help stabilize the housing market, generate dollars for the government, and give homeowners on Main Street the same consideration being given to Wall Street. We urge Congress to pass H.R. 6694.”

The CBO Report can be found online here: http://www.cbo.gov/ftpdocs/98xx/doc9844/hr6694.pdf

H.R. 6694, sponsored by Congressman Al Green (TX-9), would reinstate FHA seller downpayment assistance for persons with certain credit scores. H.R. 6694 is co-sponsored by 25 members of Congress from both sides of the aisle and was passed by voice vote in September by the House Committee on Financial Services. The legislation is also supported by the National Association of Realtors, the National Association of Home Builders, the National Association of Mortgage Brokers, the Christian Community Development Association, the National Organization of African Americans in Housing (NOAAH), U.S. Hispanic Chamber of Commerce, National Caucus of Hispanic State Legislators, U.S. Conference of Mayors, U.S. Conference of Black Mayors, National Association of Black Mortgage Brokers, the National Council of State Finance Agencies, the Council of Large Public Housing Authorities, the Congressional Black Caucus, the Congressional Hispanic Caucus and the Congressional Asian Pacific American Caucus.

BACKGROUND: AmeriDream, a 501(c)(3) charity, was established in 1999 to provide housing-related programs throughout the United States. AmeriDream helps low and moderate income individuals and families, a disproportionate number of whom are first-time homebuyers, minorities, legal immigrants, women headed households, and single-parents, achieve homeownership. AmeriDream provides a wide range of programs, including homebuyer education, loss mitigation counseling, community development, and privately-funded down payment gift assistance. These programs are provided at no cost to the taxpayer. AmeriDream not only seeks to help families purchase homes, but also provide them with the education and other resources needed to be responsible homeowners. In turn, those responsible, committed homeowners help build safe, thriving communities. More than 250,000 families and individuals have utilized AmeriDream’s DPA program to become homeowners.