HUD Defeated By Penobscot Indian Nation Over Down Payment Assistance Program

GAITHERSBURG, MARYLAND -- On October 31st, the Penobscot Indian Nation Grant America program was granted an injunction which prohibits HUD from enforcing the rule banning downpayment assistance. HUD had previously granted extensions to both Ameridream and Nehemiah. This has led to broad confusion that they are the only two downpayment programs allowed to continue operating. It is simply not true.

Judge Freidman, Federal District Court of DC, ruled that HUD is prohibited from enforcing the rule until the court has decided on the full outcome of several pending lawsuits, including the Penobscot Indian Nation vs. H.U.D. which was originally filed July 12, 2007. 

According to the complaint, HUD originally violated the law by informing lenders that Tribal Governments were not eligible to provide downpayments on FHA loans. The complaint was later amended to include HUD's violations of rulemaking procedures with regards to Tribal Governments, when attempting to adopt a new rule that would ban certain downpayment programs.

The Penobscot Indian Nation's, Grant America Program is confident of a successful outcome in its pending lawsuit.

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