3-1: American Dream Downpayment Initiative (ADDI)

Appendix 3-1

American Dream Downpayment Initiative (ADDI)—Side-By-Side Comparison of Downpayment Assistance Requirements—By Source of Funds

 

ADDI FY 2003 Funds (2003 HUD Appropriations Act)¹

     
 

ADDI FY 2004-2007 Funds (ADDI Legislation)¹

   

HOME Allocation (NAHA)¹

   
     
 

FORMULA

 

Need² for, and prior commitment to, assistance to homebuyers

Need² by state; then, by local PJ. Funds to local PJs w/populations of more than 150,000 or allocation greater than $50,000 only

HOME Formula

 
 
 

INELIGIBLE PJs³

   

The Commonwealth of Puerto Rico and local PJs in Puerto Rico

   
 

ELIGIBLE HOMEBUYERS

Must be “first-time” homebuyer

Must be “first-time” homebuyer

No “first-time” homebuyer requirement

 
 

ELIGIBLE USES OF FUNDS

 

Downpayment assistance

Downpayment assistance and rehabilitation. Rehabilitation must be completed within one year of purchase

All HOME eligible activities. Rehabilitation property standards must be met within 2 years of purchase

 
 
 

USE OF FUNDS FOR ADMIN COSTS4

 

Not eligible to pay admin costs; included in calculating HOME 10% admin limit

Not eligible to pay admin costs; not included in calculating 10% HOME admin limit

10% of HOME funds may be used for HOME admin, and the costs of administering ADDI

 
 
 

ASSISTANCE CAPS

 

Subject to HOME maximum per-unit subsidy

Per-family limit: The greater of $10,000 or 6% of purchase price; Also subject to HOME maximum per-unit subsidy when used in combination with HOME

Subject to HOME maximum per-unit subsidy

 
 
 

MATCH

 

Match requirement

No match

Match requirement

 

URA

Subject to URA

Not subject to URA

Subject to URA

 
 

PROGRAM INCOME

 

Program income generated under ADDI treated as HOME program income

Program income generated under ADDI treated as HOME program income

HOME program income requirements

 
 
   

ADDI FY 2003 Funds (2003 HUD Appropriations Act)¹

     
 

ADDI FY 2004-2007 Funds (ADDI Legislation)¹

   

HOME Allocation (NAHA)¹

   
   

REALLOCATIONS

 

No reallocation of funds is possible since the 3-year statutory limit on availability of appropriations will result in any funds recaptured after 24 months for failure to meet the commitment deadline being returned to Treasury

Funds reallocated as part of the next fiscal year’s ADDI formula distribution

HOME reallocation requirements

 
 
 

CHDO

 

Not subject to CHDO set-aside; not an eligible use of set-aside funds

Not subject to CHDO set-aside; not an eligible use of set-aside funds

15 percent of HOME allocation set aside for CHDO projects; downpayment assistance not an eligible CHDO set-aside activity

 
 
 

CONSOLIDATED PLAN

 

2004 Action Plan must address the use of these FY 2003 ADDI funds

Two new narratives (“outreach” and “suitability”) required beginning with the 2004 Action Plan in order to be eligible for ADDI funding; the Action Plan must also address the use of ADDI funds

No change

 
 
                       

1 Statutory source of requirements.

2 “Need”: The percentage of low-income households residing in rental housing based on U.S. Census data.

3 NOTE: Insular Areas are not included in the definition of PJ in the HOME Program. Therefore, Insular Areas will not receive ADDI funding in FY 2004 and subsequent allocations. Funds allocated to Insular Areas in FY 2003 were 0.2% of the combined HOME/ADDI appropriation.

4 NOTE: Project soft-costs for the delivery of ADDI-funded downpayment assistance and (except for FY 2003 ADDI funding) rehabilitation are an eligible use of ADDI funds.



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