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Governance

AmeriDream is the Gold Standard for down payment gift programs, and has long been the program by which all other gift programs are matched. As the industry leader, AmeriDream has championed efforts to set best practices, codes of ethics and standards by which all down payment gift organizations must follow.

You may know that there are many down payment gift programs, but when it’s something as important as your home at stake, you don’t want to mess around with a second-rate organization. That is why AmeriDream is committed to providing homebuyers, sellers, mortgage professionals, real estate professionals, governing agencies and Congress with a clear understanding of its non-profit governance practices.

AmeriDream’s non-profit governance practices include:

  1. A Code of Ethics and Best Practices for Down Payment Assistance Organizations. Among these best practices to which AmeriDream adheres, and expects the same from other down payment assistance programs:
    1. In addition to complying with all federal, state and local laws and acting in accordance with all HUD Mortgagee letters that are applicable to down payment assistance, AmeriDream also voluntarily complies with the Sarbanes-Oxley Act and industry regulations such as the Real Estate Settlement Procedures Act (RESPA).
    2. AmeriDream has received its Final Determination Letter from the Internal Revenue Service, which states that AmeriDream has been confirmed as a 501(c)3 non-profit organization. To receive such a critically important designation, organizations must have been serving their mission for at least five years and must meet specific requirements of the IRS.
    3. AmeriDream will never make misleading statements about the tax deductibility of service fees, nor will it condone the practice of improper inflation of list prices and appraisals.
    4. AmeriDream will encourage homeowners to participate in, and will provide, homebuyer education before and after the purchase of the home.

  2. AmeriDream expects certain standards to be upheld by other down payment gift programs, but it also encourages all homebuyers and sellers to hold their down payment gift provider to the highest standards as well, regardless of whether AmeriDream is the chosen provider. These standards exist for the protection and peace of mind of the homebuyer or seller. Insist on the organization adhering to a Code of Ethics and Conduct.

  3. Codes of conduct by which all AmeriDream board members officers, management, employees and representatives of the organization must agree as a term of their employment.

If you suspect potential abuse by down payment assistance providers, please send a notification to compliance@ahaanow.org

Additional Information

IRS Revenue Ruling Requires AmeriDream To Review Its Operating Procedures

AmeriDream recognizes that the IRS has issued a revenue ruling which provides guidance on how a non profit organization should provide down payment assistance.  AmeriDream remains committed to providing homeownership opportunities to those most in need.  However, in light of the ruling, we are reviewing our operations to determine what changes are required for AmeriDream to be in compliance with the IRS's new rules.
 
Presently, AmeriDream is waiting to receive communication from the IRS with regards to its plan to implement the ruling for non profits that provide down payment assistance.  For clarification about IRS procedure, please contact the IRS directly.  Mortgage industry professionals who are alarmed about the 75,000 homebuyers annually that will be effected by the revenue ruling should contact the Treasury Department and share concerns about the adverse effects of the IRS Revenue Ruling 2006-27.  The contact information is Treasury Secretary John Snow at 202-622-2000.
 
In addition, it is AmeriDream's understanding that HUD will continue to honor all contracts from lenders with down payment assistance as long as the charity is in good standing with the IRS and is recognized as exempt under section 501(c)(3). 

HUD is accepting telephone calls on this issue. You can call the local HUD office or the HUD National Office. HUD telephone numbers are listed below.

  • HUD National Office: 202-708-1112
  • HUD Atlanta HOC: 404-331-5110
  • HUD Philadelphia HOC: 215-656-0503
  • HUD Santa Ana HOC: 714-955-0821
  • HUD Denver HOC: 303-672-5440


AmeriDream's IRS Non-Profit 501(c)(3) Letter (PDF)