Banking committee passes down payment assistance

Northwestern Financial Review, Nov 15-Nov 30, 2003

The Senate Banking Committee has passed the American Dream Down Payment Act, which will provide $200 million in grants in each of the next two years to cover down payment and closing costs for first-time, low-income families. About 40,000 families with incomes below 80 percent of the area median income will receive grants averaging $5,000.

The grants will be administered as part of HUD's Home Investment Partnerships Program. An amendment to the bill would also increase limits for Federal Housing Administration multifamily housing loans in high-cost areas where affordable units are scarce. The House of Representatives has already passed the act.