Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Set Aside for the American Dream Downpayment Initiative (ADDI)

Signed into law on December 16, 2003, ADDI was created by Congress to help homebuyers with downpayment and closing cost assistance. The goal of ADDI is to increase homeownership rates, especially among lower income and minority households, and to revitalize and stabilize communities.

Nonprofit organizations, public housing authorities, and units of local government will be eligible to apply for this program. Successful applicants will, in turn, allocate these homebuyer funds on a local basis to qualifying households. It is important to note, individuals cannot apply to the Department directly for funding, and must seek assistance through an awarded entity. Many of the larger cities in Texas, such as Dallas, Houston, and San Antonio, receive ADDI funds directly. Potential homebuyers in such areas should contact their local housing departments, or visit the following website for more information: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/addi/index.cfm.

ADDI defines a first time homebuyer as an individual and his or her spouse who have not owned a home during the three year period prior to the purchase of a home with assistance under ADDI. The term first time homebuyer includes displaced homemakers and single parents. The amount of assistance available is $10,000 or 6 percent of the purchase price, whichever is greater. Eligible project costs under ADDI include acquisition costs, as well as any related reasonable and necessary soft costs.

For Program Year 2003, TDHCA has reserved approximately $2 million for downpayment assistance toward the purchase of single family housing by low income families purchasing their first home.

Approximately $2 million has been reserved for Program Year 2004 for downpayment assistance and may, at the discretion of the Department, include home rehabilitation funds for first time homebuyers in conjunction with home purchases assisted with ADDI. The rehabilitation may not exceed 20 percent of the annual ADDI allocation.

These funds will not be subject to the Regional Allocation Formula.

TDHCA will forward a notification of available funding to those on the Department’s mailing list and will post a similar notification on the Department’s web site. It is anticipated that such funding will become available late summer or early fall. Please contact the TDHCA Housing Resource Center at info@tdhca.state.tx.us or (512) 475-3976 if you wish to add your name to the mailing list.