American Dream Downpayment Initiative Program Fact Sheet

American Dream Proposal for Fiscal Year 2004

• Providing communities throughout America with $200 million in grants to help homebuyers with the downpayment and closing costs, the biggest hurdles to homeownership.
• We expect the program to assist 40,000 families

• Increase the overall homeownership rate, especially among minority groups who have lower rates of homeownership compared to the national average.
• More than two-thirds of all Americans own their home. Fewer than half of African-American and Hispanic families are homeowners.
• Revitalize, stabilize communities.

• The focus is on low-income families who are also first-time homebuyers. To participate recipients must have annual incomes that do not exceed 80 percent of the area median income.
• Based on current experience in the HOME program, it is anticipated that the initiative will help 40,000 families, with an average subsidy of $5,000.

• Will be administered as a part of HUD's existing HOME Investment Partnerships Program (HOME). HOME helps address the shortages of affordable rental housing and homeownership in communities nationwide.
• Families may use the subsidy for downpayment assistance, such as closing costs and interest reduction.
• More than 50 states and local governments will be eligible to receive the $200 million in grant funding.

• The program is expected to start in August 2003.