MEDIA ALERT: Organizations Join Together to Mobilize for Rally to Save Downpayment Assistance

Congressman Al Green and Others Call on Congress to Pass H.R. 6694 / Study Finds Ban on Seller-Funded Downpayment Assistance Disproportionately Hurts African American Families;

Sacramento, CA — September 11, 2008
By: Nehemiah Corporation of America

WASHINGTON D.C. – September 11– During a rally in Washington D.C. yesterday, Congressman Al Green, along with members from the National Association of Black Mortgage Brokers, National Urban League, National Association of Mortgage Brokers and Nehemiah Corporation of America, called on Congress to pass H.R. 6694, which would save seller-funded downpayment assistance from being eliminated October 1. Seller-funded downpayment assistance programs have played an integral role in the housing industry and the lives of more than one million families, particularly minorities and female-headed households.

“Homes are finally becoming affordable again, making it an ideal time for working class families to move from renting to owning their homes,” Congressman Green said. “Seller-funded downpayment assistance has helped more than one million Americans who are able to afford a monthly payment but do not have the downpayment needed to become homeowners. Seller-funded downpayment assistance helps hardworking Americans achieve the dream of homeownership with no cost to taxpayers. However, with the elimination of downpayment assistance, these families have lost a crucial path toward achieving the American dream.”

The October 1 ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. H.R. 6694 was introduced in the House of Representatives by Congressmen Green, Miller and Shays and Congresswoman Waters on July 31, 2008. If enacted into law, it will allow downpayment assistance to continue indefinitely.

“I strongly believe that we can mend the seller-funded downpayment assistance program rather than end the program, which is why I introduced a bill to save downpayment assistance, H.R. 6694. I ask that my fellow Members of Congress support these programs and pass this legislation, restoring hope for millions of Americans,” added Green, a member of the Congressional Black Caucus.

“By eliminating downpayment assistance programs this Administration has single-handedly managed to shut down the only effective, market-based program that is designed to assist African Americans in enjoying the benefits of homeownership. Led by the efforts of others, however, there is an opportunity to reinstate these programs by passing H.R. 6694, “said Jeff Johnson, Chief Correspondent for BET. “Seller-funded downpayment assistance has given African Americans and other minorities the ability to build equity, financial stability and a stronger future for their children through homeownership. There are still three weeks until the ban takes place on October 1 and each day should be dedicated to raising awareness and getting this bill passed to restore seller-funded downpayment assistance.” Recent analysis by Matrix Global Advisors, an independent research and consulting firm in Washington, D.C., shows minorities, particularly African Americans, will be disproportionately affected by the elimination of downpayment assistance (DPA).

"According to the analysis provided to us from the DPA firms, Congress has taken the extraordinary step of eliminating a widely used and effective tool for moderate and low income Americans to take part in the American Dream,” said Joy Jamison, National Association of Black Mortgage Brokers President. “Studies clearly show that home ownership is the cornerstone for strong communities and many of our citizens will be permanently locked out of home ownership if a mechanism for seller-funded assistance is eliminated. We urge Congress to re-evaluate and restore this critical tool that is being utilized to assist our citizens to fully participate in the American Dream."

The research, which analyzes public data provided by the Department of Housing and Urban Development on FHA-insured loans, finds that more than 40 percent of all African Americans who receive FHA loans rely upon seller-funded downpayment assistance. Further, 27 percent of Hispanics that secure these loans use DPA. The data also reveals that African Americans, when compared to other demographic groups, do not receive similar levels of down payments assistance through government, employers or family members.

“With the goal of helping underserved Americans become homeowners, downpayment assistance providers have aided more than 1 million families. Roughly 40 percent of the 300,000 families Nehemiah has directly served have been minorities,” said Scott Syphax, president and CEO of the Nehemiah Corporation of America, the largest and oldest provider of downpayment assistance. “We believe in working families and recognize that many of them do not have wealthy relatives to provide them with a downpayment. Nehemiah’s faith in these families has been reaffirmed by the fact that 90 percent of our homeowners have not faced foreclosure. This study clearly illustrates the impact that DPA has on homeownership opportunities for minorities. The Administration has an opportunity to right this wrong by supporting H.R. 6694 and reinstating DPA indefinitely.”

Joining the fight to reinstate DPA is the Hip-Hop Action Summit. Dr. Ben Chavez pledged support of the programs and H.R. 6694 on behalf of the Summit at yesterday's event.

“The Hip-Hop Action Summit knows seller-funded downpayment assistance has been instrumental in helping working Americans, especially minorities, become homeowners. Right now a million families have benefited from downpayment assistance and we want to double and triple that number in the future,” Dr. Ben Chavis, President and CEO of the Hip-Hop Action Summit said. “I believe in building equity; I believe in equal opportunity; and I believe H.R. 6694 can ensure that all Americans are guaranteed those rights through the power of homeownership.”

Those interested in backing H.R. 6694 should visit www.DPAGroundSwell.org.

The full analysis is available upon request.

Contact: Amanda Kiely (212) 446-1896 akiely@sloanepr.com Sloane & Company

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For additional information, please contact Shelley Mitchell, smitchell@nehemiahcorp.org, 916-231-1999.

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