Thursday, November 15, 2007

HUD’s Ban on FHA Down Payment Assistance Programs on Hold

I recently wrote about HUD’s new rule that would eliminate the use of third-party down payment assistance programs to help people purchase a home.

On October 31, in AmeriDream, Inc. v HUD, the US District Court for the District of Columbia said that HUD acted against the wishes of the House of Representatives who had just passed a law in support of the program in July. The judge also ruled that HUD acted without supplying a reasoned analysis from its departure from its long-standing policy and failed to consider proposed alternatives. The court ordered a temporary injunction against the new rule.

Both sides will be presenting their arguments and the judge approved an agreement by both sides that they will try to end the case by February 29, 2008.

I will update this blog as the case progresses. This has been a great program that has allowed thousands of families to purchase a home. Please contact your US Representatives and Senators in support of this program.

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