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ExpectMore.govExpectMore.gov home pageEXPECT FEDERAL PROGRAMS TO PERFORM WELL, AND BETTER EVERY YEAR.
 
Program Assessment

Program

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American Dream Downpayment Initiative

The American Dream Downpayment Assistance program helps low-income households become first-time homeowners. Funds are allocated by formula to State and local governments to provide low-income households with assistance for downpayment and closing costs, and for rehabilitation work related with a home purchase.

Rating

What This Rating Means

PERFORMING
Adequate

This rating describes a program that needs to set more ambitious goals, achieve better results, improve accountability or strengthen its management practices.
  • The program has strengths and serves a purpose, but is duplicative. It addresses a significant barrier to homeownership and its design allows for local government flexibility and encourages leveraging. However, there are many other public and private programs that adopt a similar approach.
  • Program planning and management are strong. The program recognizes that there are inherent weaknesses in data collection, but uses the best available data to improve the program. Long-term goals have been established this year and management will track the data to assess the sustainability of the homebuyers.
  • The program's impact and effectiveness have yet to be determined due to data credibility concerns and the newness of the program. However, recent research identifies downpayment assistance as one of several effective tools to help increase homeownership.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Completing an evaluation that will assess the default rates of ADDI- and HOME-assisted homebuyers compared to FHA-insured homebuyers as a proxy for a long-term outcome performance measure.
  • Establishing a discrete program data element in HUD's reporting if the program is re-authorized after FY07, and if resources are available, to better assess program performance, policy, and impact.

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