HUD Stalled by Penobscot Indian Nation Over Grant America
On October 31st, the Penobscot Indian Nation’s Grant America Program was granted an injunction, which prohibits the U.S. Dept. of Housing and Urban Development from enforcing the rule banning down payment assistance. HUD had previously granted extensions to both Ameridream and Nehemiah. 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 (Civil Action # 07-1282).
According to the lawsuit, 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 down payment programs. The Penobscot Indian Nation’s Grant America Program is confident of a successful outcome it its pending lawsuit, according to a spokesman for the Tribe.
About The Grant America Program
The Grant America Program (G.A.P.)™ is a government grant program that provides low to moderate-income homebuyers with a down payment grant to be used towards the purchase of a home. The Grant is provided by the Penobscot Indian Nation and is available to anyone purchasing a home that needs downpayment assistance.
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