August 16, 2004
HUD DELIVERS $4.2 MILLION IN DOWNPAYMENT AND
CLOSING COST ASSISTANCE FOR FIRST-TIME HOMEBUYERS IN TEXAS
American Dream funding to benefit hundreds of lower income homebuyers
DALLAS - Hundreds of low-income families living in Texas will be able to realize the 'American Dream' and purchase their first home because of $4.2 million in federal funding to the State of Texas, Housing and Urban Development Assistant Secretary Steven Nesmith today announced. The HUD funding will help first-time homebuyers overcome
the single greatest obstacle to homeownership�the downpayment and closing costs.
Assistant Secretary Nesmith and Congressman Pete Sessions (R-TX) presented a check for $4,252,098 to Dallas County Judge Margaret Keliher and a representative of the Texas Department of Housing and Community Affairs
during a ceremony at a the Dallas County Home Loan Counseling Center (DCHLCC).
"During the Bush Administration, a record number of new homeowners, specifically minority families, have achieved their American Dream," said AS Nesmith. "This funding provides direct assistance to first-time homebuyers and will open the door of homeownership to hundreds of lower income families throughout Texas."
Shannon Washington, who attended today's ceremony, is a perfect example of how downpayment assistance can change lives. This divorced mother of two young children wanted a stable home environment for them, but never thought she could afford her own home. But with downpayment assistance from the DCHLCC, she was able to purchase a three bedroom, two-bath home in Cedar Hill and achieve her American Dream.
Rep. Sessions said, "I share President Bush's passion for homeownership, an enormous step towards the American Dream. Dallas County will benefit greatly from the American Dream Downpayment Initiative, and it will positively change the lives of many Texans."
The American Dream Downpayment Initiative (ADDI) will enable many first-time homebuyers earning less than 80 percent of their community's median income to purchase their first home. President Bush signed the American
Dream Downpayment Act into law last December. This new federal program will give first-time homebuyers grants worth up to $10,000 or six percent of the home's purchase price, whichever is greater. These grants help to defray the upfront costs of purchasing a first home and can also be used to offset the costs of rehabilitating the property. President Bush is seeking an additional $200 million in funding next year.
To be eligible for this assistance, individuals must be first-time homebuyers interested in purchasing a one- to four-family home, condominium unit, cooperative unit or manufactured housing. If you are interested in obtaining downpayment assistance through this program, please contact the Texas Department of Housing and Community Affairs in Austin or your local unit of government.
The American Dream Downpayment Act is administered under HUD's HOME Investment Partnerships Program
(HOME). Since its inception, the HOME Program has assisted more than 300,000 families to become homeowners, 55 percent of which are minorities. Information about The American Dream Downpayment Initiative is available on the Internet.
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.