HOMEOWNERSHIP MONTH CEREMONY HIGHLIGHTS FEDERAL ASSISTANCE PROGRAMS TO HELP ACHIEVE AMERICAN DREAM

BREWER, ME - Today federal, state and local officials gathered to recognize a first-time homebuyer who purchased her home through a federal program designed to move families from public assistance to self-sufficiency.

Gail Lane, a single mother of three teenagers and a younger child, purchased her Brewer home in March, 2005, after overcoming a number of obstacles and receiving assistance through the Section 8 Homeownership Program. She
also received $5,000 in downpayment assistance through HUD's American Dream Downpayment Initiative.

The Section 8 Homeownership Program, funded by the U.S. Department of Housing and Urban Development (HUD)
and administered by the Brewer Housing Authority, is designed to support first time homebuyers previously receiving rental assistance through the Section 8 voucher program. Under this initiative, public housing authorities (PHAs)
make homeownership assistance payments to help with monthly expenses instead of making monthly payments to assist with rent. Monthly expenses include principal and interest on mortgage debt, real estate taxes and insurance, and the PHA-established allowances for utilities, routine maintenance, and major repairs and replacements. To date, 34 homeowners in Maine have purchased their home through the Section 8 Homeownership Program.

"Homeownership is such an important key to success and stability, and we are pleased that housing authorities are playing a part in this important program that will help bring homeownership to more families," said William Burney, HUD's acting Maine state director.

The amount of the subsidy is the same under the homeownership option as it would be if the family used the
Section 8 voucher for rental assistance. As is the case under the rental program, the family must always pay at
least 30 percent of monthly-adjusted income or the PHA-established minimum rent toward homeownership expenses. The family must pay for expenses higher than those covered by the PHA. To keep families from purchasing a home that will result in a payment the family cannot afford, the PHA sets an affordability limit.

The American Dream Downpayment Initiative (ADDI), funded by HUD and administered by the Maine State Housing Authority, is a federal program that helps first-time homebuyers with the largest hurdle to homeownership - downpayment and closing costs. To be eligible for this assistance, individuals must be first-time homebuyers and
must have incomes not exceeding 80 percent of area median income. In the greater Bangor area, the median income is $54,350. Ms. Lane received a $5,000 ADDI grant. In fiscal year 2005, $218,555 was awarded by HUD to the state of Maine in ADDI funding.

"Many families area able to make monthly mortgage payments, which in many cases are lower than rental payments, but are not able to save enough for downpayment and closing costs. With a little assistance, purchasing a home
may be much easier than people think," Burney said.

Ms. Lane received financing in part through the U.S. Department of Agriculture Rural Development through the
Single Family Section 502 Direct Program.

Rural Development State Director Michael W. Aube said, "Rural Development is proud to make the dream of homeownership a reality for rural Maine residents. The assistance we provide not only provides a home made of
wood or brick, but a strong foundation on which to build family values and a better life." In Fiscal Year 2005, Rural Development assisted 826 Maine families obtain the dream of homeowership.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov or telephone (207) 990-9160. USDA Rural Development is an Equal Opportunity Lender, Provider and Employer.

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