Groups Stress Importance of Program and Pledge Continued Support to Reinstate Downpayment Assistance
Washington, D.C. October 1, 2008 – On July 30, 2008 President Bush enacted the Housing and Economic Recovery Act of 2008 which included a provision that eliminates downpayment assistance (DPA) programs, such as The Nehemiah Program. Today, the ban on these programs goes into effect, removing the one remaining lifeline for working class Americans pursuing homeownership. The National Urban League, U.S. Conference of Mayors and National Association of Black Mortgage Brokers, each an avid supporter of DPA, expressed their disapproval of the elimination of these programs which have successfully aided more than one million families on the road to homeownership without the use of taxpayer dollars.
"For many of our families and generations before, home ownership has been the stepping stone to building wealth and generating stability and opportunity for the next generation. By letting October 1 come and go without reinstating seller-funded downpayment assistance, Congress and the President have let down minority families in this country,” said President and CEO of The National Urban League, Marc Morial. “Without these programs, an enormous cross section of minority families will never be able to own a home, build wealth or someday use the equity in their home to send their kids to college. Credit continues to tighten, loans are nearly impossible to come by and everyday purchases such as a $5 gallon of milk make for a financial environment that is far from conducive to saving for a downpayment. These programs are more necessary now than ever."
Tom Cochran, CEO and Executive Director of The U.S. Conference of Mayors added, “Community officials across America are bracing for the backlash that will come from the elimination of downpayment assistance. These programs inarguably support our local housing markets and have been the differentiating factor between homeownership and renting for low-to-middle income Americans. It is a shame to see them disappear and we will do what we can to support the reinstatement of these programs under a new Administration.”
Acknowledging the important role DPA programs play in creating homeowners, members of Congress including Representatives Al Green, Maxine Waters, Gary Miller and Christopher Shays introduced a bi-partisan bill, H.R. 6694, to reinstate DPA. Having passed the House Financial Services Committee on a voice vote last week, the Bill was slated to be put to vote in the House of Representatives but was side-stepped as the $700 billion bill to bail out financial institutions took priority among Congressional leaders.
"Over the last year, there has been uncertainty and turmoil in the housing industry but tools like downpayment assistance inspired confidence among industry professionals and potential homeowners alike because they allow deserving, hardworking Americans, particularly minorities, to attain homeownership. The National Association of Black Mortgage Brokers continues to support downpayment assistance programs - as they have helped support our industry and working class families,” said the Association’s President, Joy Jamison. “If Main Street truly is priority for Congress, these programs absolutely must be reinstated and viewed as part of the solution in the homeownership equation."
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