Grant Community.com

Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

14.311:  Single Family Property Disposition

Objectives:  To reduce the inventory of HUD-acquired properties in a manner that expands home ownership opportunities, strengthens neighborhoods and communities, and ensures a maximum return to the FHA mortgage insurance fund.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS INFORMATION CONTACTS
RELATED PROGRAMS ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS


14.311 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Local Governments and Non-profit Organizations: HUD contractors in the specific area should be contacted regarding eligibility requirements. Contact HUD at the number shown below for a listing of nationwide HUD contractors. FHA Financing: Generally, anyone who has a satisfactory credit rating, enough cash to close the loan, sufficient, steady income to make the monthly payments without difficulty, and who will live in the home can be approved for an FHA insured mortgage. Income is only one of several factors that apply in the lending process. Interested buyers should contact their lender for more information.

Beneficiary Eligibility:  Local governments, public nonprofit institution/organizations, potential homeowners.

Credentials/Documentation:  Nonprofit Organizations must have IRS 501(c)(3) status.

14.311 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  None. This program is excluded from coverage under E.O. 12372.

Application Procedure:  HUD homes are managed and marketed by private contractors in different geographical areas. Contact HUD at the number shown below for a listing of HUD contractors nationwide. The contractors list all HUD homes for sale on their individual Internet website. Bids for a particular property can be submitted online. Purchasers should contact their lenders to obtain FHA loans. A list of HUD approved mortgage lenders is located at our website, www.hud.gov.

Award Procedure:  Depending on market conditions, Government agencies and Nonprofit Organizations sales may be on a direct basis to the entity upon acceptance of their sales contract, or may be on a competitive basis in which the winning bid is the one resulting in the highest net to HUD. Public sales are handled on a competitive basis.

Deadlines:  Bids must be submitted by the closing date indicated in the listings.

Range of Approval/Disapproval Time:  Varies.

Appeals:  None.

Renewals:  None.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  10 to 30 percent discount off list price for Local Governments and Nonprofit Organizations.

14.311 RELATED PROGRAMS:

  • 14.108 Rehabilitation Mortgage Insurance;
  • 14.117 Mortgage Insurance: Homes.

14.311 PROGRAM ACCOMPLISHMENTS:

Over 63,000 homes sold in fiscal year 1999.

14.311 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Sale, Exchange, or Donation of Property and Goods.

Obligations:  (Sales) FY 99 $3,759,000,000; FY 00 est $4,905,000,000; and FY 01 est $4,098,000,000.

Budget Account Number:  86-4070-0-1-371; 86-4072-0-1-371; 86-4077-0-1-371; 86-4587-0-1-371.

Authorization:  National Housing Act, as amended, 12 U.S.C 1710, Sections 203(b), 203(k), 204.

Regulations, Guidelines, and Literature:  Program brochures and website information at www.hud.gov.

14.311 INFO CONTACTS:

Regional or Local Office:  Contact the appropriate HUD Field Office listed in Appendix IV of the Catalog.

Headquarters Office:  Asset Management Division, Office of Single Family Housing, U.S. Department of Housing and Urban Development. Phone: (202) 708-1672, Ext. 2296.

(See Appendix IV for more contact info.)

14.311 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  None.

Length and Time Phasing of Assistance:  None.

Uses and Use Restrictions:  The Single Family Property Disposition Program includes initiatives which provide discounts of 30% off the list price to local government agencies and non-profit organizations that buy HUD homes located in revitalization areas. Homes located outside of revitalization areas are sold at 10% discount. Revitalization areas are geographical areas designated by HUD in consultation with local governments and interested nonprofit organizations which are either very low income areas, or have a high concentration of eligible HUD homes, or have a low home ownership rate. The purchaser enters a binding agreement that the housing assets will be used in conjunction with a home ownership plan with the primary purpose of expanding home ownership, and to meet specific home ownership performance goals, in the revitalization area in which the homes are situated. The home ownership plan must include rehabilitation standards that meet or exceed HUD's standards for housing quality. The purchaser also agrees that each home will be rehabilitated in accordance with those standards prior to sale to eligible purchasers. In addition, most HUD home sales are to members of the general public who may be eligible to obtain low down payment FHA insured financing to purchase their new home. FHA also has loan programs to enable new home owners to obtain FHA financing to repair and/or rehabilitate a HUD home. Under the Section 203(b) program, HUD insures the mortgage up to a maximum mortgage amount and borrowers generally will pay a low down payment. The homes may be new or existing one to four family homes in urban and rural areas. The homes also must meet HUD's minimum property standards. Under the 203(b) repair with escrow financing, an escrow account for up to $5,000 in repairs to bring the home up to minimum property standards is established with the lender making the FHA loan. The costs of repairs are included in the loan amount and are repaid by the borrower as part of the housing payment. This financing is only available with FHA loans. Section 203(k) loans enable a home buyer to purchase and rehabilitate a HUD home (in excess of $5,000 in costs) up to a maximum allowable mortgage amount with one loan. Investors must pay a higher down payment to participate in this loan program. Condominium and cooperative housing units are not eligible for these loans.

14.311 POST ASSISTANCE REQUIREMENTS:

Reports:  None.

Audits:  None.

Records:  None.

About    News     Grant Management Software     Federal Grant Programs    Audits    Studies    Expenditures     Links

Last Updated, November, 2000             Comments or Questions?           ©Grant Community.com 2000, All Rights Reserved