BREWER – Federal, state and local officials gathered recently to recognize a first-time home buyer who purchased her home through a federal program designed to move families from public assistance to self-sufficiency.

Gail Lane, a single mother of three teenagers and a younger child, purchased her Brewer home this spring after overcoming a number of obstacles and receiving assistance through the Section 8 Homeownership Program. She also received $5,000 in down payment assistance through HUD’s American Dream Down-payment Initiative.

The Section 8 Homeownership Program, funded by the U.S. Department of Housing and Urban Development and administered by the Brewer Housing Authority, is designed to support first-time home buyers previously receiving rental assistance through the Section 8 voucher program. Public housing authorities make homeownership assistance payments to help with monthly expenses instead of making monthly payments to assist with rent.

Monthly expenses include principal and interest on mortgage debt, real estate taxes and insurance, and allowances for utilities, routine maintenance, and major repairs and replacements. As of this spring, 34 homeowners in Maine had purchased a home through the Section 8 Homeownership Program.

The amount of the subsidy is the same under the homeownership option as it would be if the family used the Section 8 voucher for rental assistance. As is the case under the rental program, the family must always pay at least 30 percent of monthly-adjusted income or the authority-established minimum rent toward homeownership expenses.

The family pays for expenses higher than those covered by the public housing authority. To keep families from purchasing a home that will result in a payment the family cannot afford, the authority sets an affordability limit.

The American Dream Down-payment Initiative, funded by HUD and administered by the Maine State Housing Authority, is a federal program that helps first-time homebuyers with the largest hurdle to homeownership – down payment and closing costs. To be eligible for assistance, individuals must be first-time home buyers and must have incomes not exceeding 80 percent of area median income. In the Bangor area, the median income is $54,350.

In fiscal year 2005, HUD awarded $218,555 to the state of Maine in ADDI funding.

Lane received financing in part through the U.S. Department of Agriculture Rural Development through the Single Family Section 502 Direct Program. In fiscal year 2005, Rural Development helped 826 Maine families obtain the dream of homeownership.

The ceremony was held in recognition of National Homeownership Month, a monthlong educational outreach effort designed to provide important home buying information and financial tools to American families. In addition, Gov. John E. Baldacci issued a proclamation declaring June Homeownership Month throughout the state of Maine, where the home ownership rate is 72 percent – among the highest in the nation. The national homeownership rate is 69 percent.

More information about HUD and its programs is available on the Internet at www.hud.gov. Further information about rural programs is available at a local USDA Rural Development office or by visiting www.rurdev.usda.gov or calling 990-9160.