Single Family Property Disposition (14.311)

Program

14.311 Single Family Property Disposition

Federal Agency

Agency: Department of Housing and Urban Development
Office: Office Of Housing-federal Housing Commissioner

Authorization

national Housing Act, as amended 12 U.S.C. 1710, Sections 203(b), 203(k), 204, 24 CFR 200.

Program Number

14.311

Last Known Status

Active

Objectives

To sell 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.

Types of Assistance

SALE, EXCHANGE, OR DONATION OF PROPERTY OR GOODS

Uses and Use Restrictions

The Single Family Property Disposition Program is the marketing and sale of one to four unit properties acquired by HUD after foreclosure of an FHA-insured mortgage. Within the general program there are special disposition programs through which a portion of the property inventory is sold. These programs are referred to collectively as the Good Neighbor Initiatives and include Good Neighbor Next Door Sales program for law enforcement officer, pre-K through 12 teachers and firefighters/emergency medical technicians, Discount Sales to Nonprofits and Local Governments program and Dollar HOME Sales to Local Governments program. Information for each of these programs is covered separately. The majority of foreclosed one to four unit properties are sold through the general disposition program. HUD contracts with private companies to manage and market the properties. Properties are listed for sale by each company for the company's contract area; generally, a state. The listings may be viewed by going directly to the contractor's website or visiting HUD's website at http://www.hud.gov/momes, where you will be directed to the listings for your state. The listings provide the appraised value of the property, the property address, a brief description of the property and access to a Property Condition Report prepared by the contractor. Complete information explaining the sales process and earnest money requirements is also available. Bids must be submitted electronically by a real estate broker. An earnest money deposit is required with each bid submitted. Special opportunities are available for bidders who intend to occupy the purchased property as their personal residence. Properties not purchased during this Exclusive Listing Period are then available for the general public, including investors, during an Extended Listing Period. FHA financing may be available for purchasing many homes, including the FHA 203(k)and 203 Special (k) program providing a loan to purchase a property and pay for repairs or improvements as permitted by FHA rules. Interested persons should contact their FHA approved lender. Refer to http://www.hud.gov/ll/code/llplcrit.html for assistance in locating a lender.

Eligibility Requirements

Applicant Eligibility

Local Governments and Nonprofit Organizations: HUD contractors in the specific area should be contacted regarding eligibility requirements. Contact HUD at Tollfree: (800) CALLFHA or (800) 225-5342 for a listing of nationwide HUD contractors. FHA Insured 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

Individual, governmental and organizational homebuyers.

Credentials/Documentation

Nonprofit Organizations must have IRS 501(c)(3) status. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. HUD homes are managed and marketed by private contractors. A list of contractors and the areas each serves may be found at http://www.hud.gov/offices/hsg/sfh/reo/mm/mminfo.cfm. The contractors list all HUD homes for sale on their individual Internet websites . Bids for a particular property can be submitted online. Purchasers must secure financing of their choice. FHA financing may be available. A list of HUD approved mortgage lenders is located at our website, http://www.hud.gov/ll/code/llslcrit.cfm.

Award Procedure

Properties are generally sold awarded to the highest bidder. Direct sales may be made where permitted by regulations.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

Varies.

Appeals

Not Applicable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

quarterly. Method of awarding/releasing assistance: quarterly.

Post Assistance Requirements

Reports

Audits

Not Applicable.

Records

Nonprofit organizations purchasing homes at a discount must retain information about the acquisition, rehabilitation and resale of discounted properties. This includes copies of HUD-1 Settlement Statements for the resale and other documents (see http://www.hud.gov/groups/grantees.cfm).

Program Accomplishments

Fiscal Year 2008: 46333 homes were sold in fiscal year 2008, fiscal year 2009 YTD are 41,958. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

86-4587-0-1-371; 86-4077-0-1-371; 86-4072-0-1-371; 86-4070-0-1-371.

Obligations

(Sale, Exchange, or Donation of Property and Goods) FY 08 $3,047,029,435; FY 09 est $8,029,823,740; FY 10 est $9,540,683,500

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines and Literature

Not Applicable.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

None. Contact the appropriate HUD Homeownership Center (see http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm) or HUD Field Office listed in Appendix IV of the Catalog.

Headquarters Office

Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: wanda.sampedro@hud.gov Phone: (202) 402-2324.

Web Site Address

http://www.hud.gov/offices/hsg/sfh/reo/reo_home.cfm

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.