Nonprofit’s Sue HUD for Barring Them From Providing Down Payment Assistance

Reaction was swift to the HUD ruling yesterday to bar nonprofit’s from helping homeowners with down payment assistance on the FHA program. AmeriDream and Nehemiah Corp. of America have filed a suit.  Below is a section about Nehemiah’s complaint reported at the Sacramento Bee:

Nehemiah, which says its down-payment program has helped some 230,000 low-income and minority homebuyers, sued the U.S. Department of Housing and Urban Development on Sunday in U.S. District Court in Sacramento, seeking a court order overturning the ban. A Maryland nonprofit that offers a similar program announced its own suit against HUD.

Below is a section of the press release from AmeriDream:

Gaithersburg, MD — AmeriDream, Inc., a 501(c)(3) charitable entity dedicated to helping low and moderate income families purchase their own homes, announced today that it has filed suit to block a regulation issued by the Department of Housing and Urban Development (HUD) which seeks to terminate successful down payment assistance (DPA) programs sponsored by AmeriDream and other charities.

We’ll see how this develops.

Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.

Related posts brought to you by Yet Another Related Posts Plugin.