Washington, Oct 2, 2003 - Congressman Steve Pearce (R-NM) today joined House Republicans in approving the American Dream Down payment Act, a plan to provide $200 million to forty thousand, low-income, first time homebuyers, to assist the families with down payments and closing costs.

"Homeownership is a key part of the American Dream. It fosters stability and creates revenue in a community," Pearce said. "This homeownership plan will positively impact communities all over the U.S. Families will know the promise and prosperity that homeownership brings."

The $200 million in homeownership grants would be distributed through the Housing and Urban Development's (HUD) HOME Investment Program. HOME helps communities expand the supply of decent, affordable housing. For years, HOME has been widely successful in helping states and local governments distribute homeownership assistance.

"Increasing all Americans' ability to buy their own home has many benefits," said Pearce. "Homeowners have a vested financial interest in their community and work to improve the quality of life in their community. This translates into greater participation in the political process, a more keen awareness of community environmental concerns and a more active involvement in community safety."

Despite an exceptionally strong housing market and the best financing conditions in decades, millions will never be able to afford the down payment for a home. Less than fifty percent of African American and Hispanic American families own their home. President George W. Bush and this Congress are dedicated to minority homeownership.

HUD studies show that over the next decade, the initiative to help more low-income and minority families become homeowners will create 4.09 million full-time jobs in construction and construction-related industries. This increase in jobs represents more than $150 billion in new wages. Additionally, retail stores that sell home improvement products and other housing related goods will benefit economically.

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