AMERICAN DREAM DOWNPAYMENT

INITIATIVE (ADDI) OVERVIEW

Purpose

The American Dream Downpayment Initiative funded under HUD's HOME Investment Partnership Program (HOME) is to provide assistance towards the purchase of single family housing by low-income families who are first-time homebuyers.  ADDI also allows up to 20 percent of the grant funds to be used for home repairs to ensure that units purchased through the ADDI meet local health and safety housing codes.

Eligibility

1.         Low-income household whose annual income does not exceed 80% of the median household income for Oahu, with adjustment for family size.

2.         First time homebuyer who have not owned a residential property within three years of application.  "First time homebuyer" includes an individual who is a "displaced homemaker" or "single parent".

General Terms and Conditions

1.         ADDI grant funds will be awarded to qualified homebuyers on a first come/first serve basis.

2.         The maximum ADDI grant assistance will be $5,000. 

3.         All ADDI grants will have a five-year recapture requirement.  Repayment of the outstanding grant will be reduced 1/5 per year.  If the property is sold during the first five years of the Grantee's ownership to a subsequent buyer who meets the ADDI qualifications, no grant funds need be repaid.

4.         ADDI grants will awarded only after approval of the homebuyer's mortgage application.  Grant applicants will be asked to have the mortgage lender provide the City with copies of documents from the mortgage application packet.