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May 6, 2002

MARTINEZ PROMOTES AMERICAN DREAM DOWNPAYMENT FUND IN DETROIT - MICHIGAN WOULD RECEIVE $11 MILLION

DETROIT - President Bush's American Dream Down payment Fund would provide more than $11 million to Michigan communities to help approximately 2,200 low-income families in the state purchase their first home. That was the message Housing and Urban Development Secretary Mel Martinez delivered today during a news conference to celebrate the 100th home built by Habitat for Humanity Detroit.

Rep. Mike Rogers joined Martinez to promote the down payment assistance program. Last month, Rep. Rogers introduced legislation to establish the American Dream Down payment Fund, which will provide $200 million nationwide in fiscal year 2003 to assist low-income families meet the upfront expenses associated with buying a home. In addition, $50 million has already been appropriated for this fund and awaits Congressional approval to authorize the program.

"The down payment can be the single greatest obstacle to homeownership," said Martinez. "With just a little help, President Bush and I believe hundreds of thousands of families can cross that threshold and share in the American Dream."

Rep. Rogers said, "Across America, there are thousands of families who just can't overcome the major financial hurdle to owning a home of their own- the down payment. That's our focus with the American Dream Down payment Act. To create the opportunity for families to achieve that dream."

President Bush's Fiscal Year 2003 budget request includes $200 million to help an estimated 40,000 families buy their first home. Qualifying families will receive an average of $5,000 to be used toward down payment and closing cost assistance.

The American Dream Down payment Fund will be administered under HUD's HOME Investment Partnerships Program (HOME). Since its inception in 1992, the HOME Program has played a vital role in addressing the shortages of affordable rental housing and homeownership in communities nationwide.

Should the Congress approve the measure, the American Dream Down payment Fund would impact 19 Michigan communities.

For more information about the American Dream Down payment Fund, visit here.

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