HUD WITHDRAWS PROPOSED RULE PROHIBITING GIFTS FROM NONPROFIT ORGANIZATIONS
WASHINGTON, DC (January 12, 2001) -- A notice was published in the January 12, 2001 issue of the Federal Register announcing the withdrawal of the proposed rule. The rule would have prohibited gifts from non-profit organizations, such as the AmeriDream Charity, that are used for the mortgagors investment if the organization received the funds for the gift either directly or indirectly from the seller. The notice reads as follows.
"On September 14, 1999, HUD published in the Federal Register a proposed rule to establish standards for the use of gifts provided by non-profit organizations as a source of the mortgagor's investment in the mortgaged property. The regulation would have permitted certain gifts by non-profit corporations for use as the mortgagor's investment, but would have prohibited them whenever they were directly or indirectly derived from the seller of the property, or if the seller paid other considerations or reimbursement to the non-profit for making the gift.
"The comment period closed on November 15, 1999. By the time of the close of the comment period, HUD received 1,871 comments. Only 21 of these comments favored the rule. The overwhelming majority of comments opposed the rule.
"Based on these public comments, HUD has determined to withdraw this proposed rule on sources of homeowner downpayment."
Vol. 66, No. 9
January 12, 2001
# # #
The mission of The AmeriDream Charity, Inc., is to expand homeownership opportunities for underserved groups through the direct provision of downpayment assistance and through the restoration and development of communities. A 501(c)(3) organization, The AmeriDream Charity, Inc. meets HUD requirements for FHA insured loans as a charitable organization. In addition to The AmeriDream Downpayment Gift Program, the Charity also operates The AmeriDream Redevelopment Program in the Washington, DC, area, which focuses on rehabilitating properties and returning them to the market at affordable prices; and is on track to donate over $600,000 by the end of 2001 to a range of community organizations including Habitat for Humanity and the American Red Cross.
Represents the Number of "Main Street" Americans Denied the Opportunity to Purchase a Home With the Help of AmeriDream, Since Congress Prohibited Such Programs On October 1, 2008.!
Since 1999, AmeriDream has helped
individuals and families achieve the American Dream of homeownership.
On average, every 17 minutes there was a new homeowner because of AmeriDream.