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ADDI
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City of Madison American Dream Downpayment Initiative The City of Madison Community Development Office promotes and facilitates homeownership opportunities for lower income households. The Madison American Dream Downpayment Initiative (ADDI), funded by the Federal Department of Housing and Urban Development (HUD), is one method the Community Development Office uses to achieve this goal. The Madison American Dream Downpayment Initiative provides qualified first-time homebuyers, displaced homemakers, and single parents with a long-term deferred loan to assist with purchasing a home located within the City of Madison. The program offers loan assistance ranging from a minimum of $1,000 to a maximum amount of 6% of the purchase price not exceeding $10,000, based on need. The assistance is used to cover the down payment on a home and eligible closing costs. The down payment assistance is a second mortgage loan which will become due and payable to the City of Madison when the property is sold, transferred or ceases to be the primary residence of the homebuyer. The Madison American Dream loan will be allowed as a third mortgage in the case of Inclusionary Zoning Units or when used in conjunction with other Community Development Office funds where the total limit of assistance does not exceed the limit specified in the annual Program Framework. The loan repayment includes the initial loan amount plus a proportional share of appreciation based on the percentage of assistance provided. To ensure the loans are consistently originated and processed, Madison American Dream Downpayment Initiative eligibility requirements have been established and approved by the City of Madison CDBG Commission and the Common Council. The links in this section of our web site will detail the program eligibility requirements. |
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