HUD Grants AmeriDream Extension through February 29

As we have reported in prior posts, AmeriDream, Inc., one of the largest non-profit downpayment assistance providers has been in a legal battle with HUD over the proposed rule, issued October 1, that would essentially stop these organizations from providing downpayments to low and moderate income homebuyers effective October 30, for all but one provider.   AmeriDream immediately filed a preliminary injunction to have the date extended, and was successful!.   AmeriDream will continue to provide downpayment gifts through February 29, 2008.  We congratulate AmeriDream on their commitment to helping low and moderate income American attain the dream of homeownership, and wish them success as the work continues to have the HUD rule ultimately overturned. 

A transcript of their press release follows.

At the request of AmeriDream, HUD has voluntarily agreed today that the HUD rule banning seller-funded down payment assistance will not be effective with respect to AmeriDream until February 29, 2008. HUD will recognize all applications that have a signed sales contract prior to the effective date according to Congressional testimony provided by HUD.

This agreement applies only to AmeriDream. AmeriDream will be able to fund gift applications received until February 29, 2008, and will be only one of two entities that may offer seller-funded down payment assistance after October 31, 2007.

This agreement will facilitate litigation on an orderly schedule, and provide the Court with ample time to consider the merits of this important dispute.

As the Gold Standard for down payment assistance, AmeriDream has led this legal fight alone. We will continue to be the source of credible, reliable and timely information regarding this rule as well as all other issues regarding down payment assistance. We will also continue to vigorously defend our ability to provide down payment assistance.

This is about to be a hectic time for some of you and we are fully prepared to meet your needs and assist you with any transition issues that may arise. Please contact your Outreach Representative or Customer Service (or call 1-866-263-7437) for timely and professional service. We look forward to continuing our partnership toward increasing homeownership opportunities for low to moderate income, minority, single parent and first-time homebuyers.

Again, thank you and we are grateful for your valuable support through this process.

This information was provided by Ameridream and permission was granted to be shared.   AHAA will continue to provide up-to-date information on the proceedings as they occur.   

Comments

[Ruth Long]

Please do not stop the Ameridream funds, you will critically affect all the people trying to buy there first home.

[jeaninebowers]

All of the buyersI have worked with that have utilized the down payment assistance programs have retained their homes.They did not cause the foreclosure problem.Many are paying less than their previous rent to own a home.