While at an all-time high level, homeownership remains out of reach for many Americans, especially low-income families and minorities. In 2003, Pub. L. No. 108-186 created the American Dream Downpayment Initiative (ADDI) to help low-income, first-time homebuyers cover the up-front costs of buying a home (up to the greater of $10,000 or 6 percent of the purchase price) and authorized funding through fiscal year 2007. The Department of Housing and Urban Development (HUD) allocates ADDI funds to over 400 jurisdictions (e.g., states, cities, and counties). Pub. L. No. 108-86 directed GAO to perform a state-by-state analysis of ADDI's impact. This report discusses (1) HUD-reported information on ADDI expenditures and assisted households, and the limitations on the quality of these data and (2) the views of officials from selected jurisdictions on factors that affected their ability to use their funds and on the program's impact.
Recommendations for Executive Action
|Department of Housing and Urban Development||1. To ensure that ADDI expenditures and accomplishments are accurately reported, if Congress authorizes ADDI beyond fiscal year 2007, the Secretary of HUD should develop and implement a discrete control in IDIS that distinguishes ADDI projects from non-ADDI HUD Home Investment Partnership Program projects, seeking funds to do so if necessary.|
|Department of Housing and Urban Development||2. To ensure that ADDI expenditures and accomplishments are accurately reported, if Congress authorizes ADDI beyond fiscal year 2007, the Secretary of HUD should issue guidance to participating jurisdictions on how to use this control to enter consistent data on ADDI projects into IDIS.|