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AMERIDREAM’S DOWN PAYMENT ASSISTANCE WILL CONTINUE UNTIL FURTHER RULING

- October 31, 2007 Court Ordered Preliminary
Injunction Still in Effect -

 

GAITHERSBURG, Maryland (February 29, 2008) - U.S. District Court Judge Paul L. Friedman confirmed yesterday in an oral statement that a federal regulation that would restrict access to down payment assistance is, and will remain, of no force or effect with respect to any downpayment assistance provider until such time as a decision is made to the contrary by the Court.

On October 31, 2007, Judge Friedman ruled in the case of AmeriDream v. Jackson that the U.S. Department of Housing and Urban Development (HUD) could not implement its regulation on downpayment assistance. As a result of that ruling, the HUD regulation will never be effective at any date, or with respect to any downpayment assistance provider, unless the ruling blocking the regulation is withdrawn. 

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.

In addition to AmeriDream, opposition to the HUD rule includes members of Congress from both sides of the aisle, the Mortgage Bankers Association, the U.S. Conference of Mayors, the National Association of Counties, the National Association of Home Builders, the National Urban League, and over 14,000 concern citizens who sent comments into HUD, as well as others.

“AmeriDream will continue its efforts to expand homeownership while working in bipartisan fashion with HUD and members of Congress on FHA modernization,” said Ann Ashburn.

Charitable down payment assistance funded in part with seller participation has allowed homeownership to grow without using taxpayer dollars. To date, more than one million families and individuals have utilized this down payment assistance, generating nearly $10 billion in home equity between 2000 and 2005. AmeriDream has provided more than 200,000 gifts to aspiring homeowners, 80% of whom were first-time homebuyers. AmeriDream has helped educate 60,000 homebuyers through homebuyer education courses, and helped 1,200 homeowners retain their homes when confronted with mortgage difficulties, and has committed over $30 million to affordable housing development in local communities.

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