AmeriDream Sues HUD Again Over DPA

While some in the industry are calling seller- and nonprofit-supported downpayment assistance "a lost battle," a new lawsuit has been filed against the Department of Housing and Urban Development by AmeriDream Inc., Gaithersburg, Md., to resist HUD's effort to eliminate private DPA.It is the second lawsuit filed this month by AmeriDream, an affordable housing nonprofit organization, as part of a wider effort to fight HUD's decision to eliminate privately sponsored DPA options for low-income borrowers. The new action seeks a temporary restraining order and preliminary injunction to stop HUD from enforcing its final rule on Oct. 31 that would eliminate DPA programs sponsored by nonprofit organizations, AmeriDream said. "HUD's actions reveal its rulemaking for what it really is: a desired result in search of a justification," AmeriDream president Ann Ashburn said in a company release. "We will continue to fight HUD's arbitrary and capricious decision to eliminate valuable assistance to individuals and families who deserve to become homeowners." On Oct. 1, both AmeriDream and DPA industry pioneer Nehemiah Corporation of America, Sacramento, Calif., filed lawsuits against HUD. AmeriDream can be found on the Web at http://www.ameridream.org.