President Bush recently signed into law legislation that contained a
provision to eliminate charitable down payment assistance, effective October
1st, 2008;
which could prove itself to be the single greatest blow to the US
housing market during our current housing crisis.
The very next day, Congress introduced bipartisan legislation HR 6694 that would reauthorize
reform and save charitable down payment assistance. HR 6694 must be passed
by September 30th, 2008. 
Here are some statistics as to why charitable down payment assistance (DPA)
is so valuable:
-- Approximately 1 million constituents have benefited from DPA.
-- $130 billion of mortgages have been generated by DPA.
-- $11.7billion in real estate & loan commissions have been generated by
DPA.
-- $12.3 billion in tax revenue has been generated to State and local
governments by new home construction bought because of DPA.
-- Over 80% of AmeriDream (DPA provider) participants are minority, female, or
first time homebuyers.
-- DPA composes over 40% of FHA business and uses no tax-payer dollars to fund
their programs.
-- DPA programs helped to add over $24 billion to the economy from 2000 through
2005.
(Source: AmeriDream)
I understand the need to protect lenders. They are the lifeblood of the real estate market.
However, now is not the time to make it harder for first-time homeowners to buy real estate.
I do hope that HR 6694 passes. I think what would help would be stricter requirements for loan officers. Licensing is a start.
stricter lending requirements in terms of fico, income, assets, DTI, just not taking away a valuable program altogether
I hope that DPA's will stay around and that the government will see the need for such programs. These programs did not start the lending problems, this is just another example of over reacting.
I am aware of a revision to the plan to ban DPa proposed by 2 california congressman that is gaining traction. The new revised effort whould make more strict lending guidelines for those using DPA
I know there are heavy lobbying efforts by the NAHB and Ameridream to reverse this decision. However, I do not expect we will see them back anytime soon
I do hope that HR 6694 is passed. I agree that stricter loan requirements is needed. So many people are blaming DPA programs for the issues in the housing market, when loan companies are to blame because of the requirements to be approved for home loans.
Hey, for all those who support HR6694 you should check out this site, www.DPAgroundswell.org. You can speak out about the benefits to your state representatives.
Thanks Sue for the info, I was able to to check out the website.
Sue - great info, glad you are sharing the fact that a ban on these is a form of blockbusting