American Dream Downpayment Act

The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorizes up to $200 million annually for fiscal years 2004 - 2007. ADDI will provide funds to all fifty states and to local participating jurisdictions that have a population of at least 150,000 or will receive an allocation of at least $50,000 under the ADDI formula. ADDI will be administered as a part of the HOME Investment Partnerships Program, a formula grant program.

Though the American Dream Downpayment Act is now in effect, National Association of Realtors reports that funds for homebuyers may not be available until the spring. The initiative provides a maximum downpayment assistance grant of either $10,000 or 6% of the purchase price of home, whichever is greater. HUD expects the program will enable 40,000 Americans to buy a home.

For more info, visit: www.hug.gov