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Highlights

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.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
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.
Closed - Not Implemented
The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorized up to $200 million annually for fiscal years 2004 through 2007. Additionally, Congress provided $10 million for the ADDI program in fiscal year 2008, effectively reauthorizing the program for that year. However, Congress has not subsequently funded the program and the Administration has not requested additional resources for it. As a result, HUD does not intend to implement the recommendation.
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.
Closed - Not Implemented
The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorized up to $200 million annually for fiscal years 2004 through 2007. Additionally, Congress provided $10 million for the ADDI program in fiscal year 2008, effectively reauthorizing the program for that year. However, Congress has not subsequently funded the program and the Administration has not requested additional resources for it. As a result, HUD does not intend to implement the recommendation.

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