Judge Friedman February 28th Ruling puts HUD on Hold!






February 28th 2008

Gaithersburg, MD - AmeriDream's programs including down payment assistance will continue.  On October 31, 2007 United States Federal District Court Judge Paul L. Friedman ruled in the case of AmeriDream v. Jackson that the Department of Housing and Urban Development could not implement its regulation on downpayment assistance. As a result of that ruling, the HUD regulation will never be effective at any date, or with respect to any downpayment assistance provider, unless the ruling blocking the regulation is withdrawn.  Judge Paul L. Friedman, the United States District Court Judge who issued the ruling blocking the HUD regulation, confirmed today in an oral statement that the regulation is, and will remain, of no force or effect with respect to any downpayment assistance provider until such time as a decision is made to the contrary by the court.

Furthermore, please be advised that while the judge said that he expected to issue a ruling on or before February 29, 2008, the injunction will remain in place until that ruling is issued - regardless of whether it comes before or after February 29. HUD issued a notice on November 1, 2007 stating that AmeriDream and other downpayment assistance providers are allowed to continue providing down payment assistance because of an injunction issued by a federal judge.

In issuing the injunction, Judge Friedman agreed with AmeriDream's position that there was a "substantial likelihood" that the regulation violated applicable law." Judge Friedman further stated that the regulation lacked a "reasoned analysis" and was based on "flimsy" support. Judge Friedman also questioned whether HUD acted appropriately in issuing the regulation in view of a published report that Secretary Jackson was committed to that course of action regardless of whatever public comments HUD would later receive. In view of those shortcomings and other considerations, Judge Friedman issued an injunction, effective immediately, preventing the regulation from taking effect.

As we all await Judge Friedman's final ruling, we encourage you to continue working with us to help low and moderate income individuals and families purchase their own homes through the provision of downpayment assistance.

Check back often for updates.