President Bush yesterday signed into law The American Dream Downpayment Act, which will provide downpayment assistance and upfront closing costs to enable some 40,000 low-income families become new homeowners.

Acting Secretary Jackson introduces President Bush during the signing ceremony at HUD Headquarters

The President signed the bill at HUD Headquarters, flanked by Acting Secretary Alphonso Jackson, former Secretary Mel Martinez and a host of supporters from Congress.

High downpayment and closing costs are the biggest barrier to homeownership for first-time homebuyers. The American Dream Downpayment Act, which will be part of the Department's HOME program, will provide a maximum downpayment assistance grant of either $10,000 or six percent of the purchase price of the home, whichever is greater.

The President also applauded Congress for authorizing the annual $200 million program, which will help meet the Administration's "Homeownership Challenge" to increase minority homeownership by 5.5 million families by the end of the decade.

Watching President Bush sign into law the American Dream Downpayment Act are, from left to right, Delegate Madeleine Bordallo, Guam; former HUD Secretary Mel Martinez; Rep. Michael Oxley, Ohio; Sen. Wayne Allard, Colorado; Rep. Katherine Harris, Florida; Acting HUD Secretary Jackson; and Rep. Jim Leach, Iowa

More information about the American Dream Downpayment Act is available on the Internet.