Court Bars Enforcement of HUD DPA Rule

The U.S. District Court for the District of Columbia has issued a preliminary injunction barring the Department of Housing and Urban Development from enforcing its new regulation prohibiting downpayment assistance by charities if any part of the funds came from the real estate seller.The injunction will be in effect until the court decides whether the regulation is valid, the court said. The regulation was to take effect on Oct. 31. "We believe that the findings of the Court underscore the weakness of HUD's actions in developing and implementing its rule in the first place, particularly while Congress is still actively working on the subject, as well as HUD's failure to consider reasonable proposed alternatives," said Scott Syphax, president and chief executive officer of DPA pioneer Nehemiah Corporation of America. The plaintiffs in the case are: AmeriDream Inc., The Genesis Foundation, Home Downpayment Gift Foundation, The Sovereign Grant Alliance, The Future Home Assistance Program, and Partners in Charity Inc.