Properties which have been offered to the public for sale for six or more months and are not presently under a sales contract will be removed from the market and offered exclusively to local governments for a period of ten days at a sales price of $1.00 plus closing cost. The property must have been offered to the public for at least 180 days to be eligible. Days on which the property is held off market as a result of a pending sale or other reason do not count toward the 180 day total. To be eligible to participate in this new sales program, local governments must:
- Identify the intended disposition strategy and clear public purpose goals and objectives it will pursue with properties purchased through this program;
- Affirm that all profits/proceeds of sales of HUD homes will go to support local housing/community development initiatives;
- Identify what specific programs or uses these profits/proceeds will support; and
- Agree to provide HUD's Homeownership Center (HOC) Program Support Staff Director with an annual report on all properties purchased under this program. The report must include information on the ultimate property purchaser, the amount of profit realized on the final sale and where the profit was put back into local housing/community development.
As part of its disposition strategy, the local government may indicate that it intends to purchase the property and convey it to a nonprofit organization for rehabilitation and resale to first time homebuyers, low to moderate income buyers or some other public purpose objective. This is an acceptable approach, however, local governments should be reminded that all information pertaining to the purchase and subsequent resale must be included in the annual report provided to HUD's Program Support Staff Director. Failure of the local governments to comply with any of the above requirements may result in their removal from participation in this program.
Nonprofit organizations and entities such as housing authorities are not permitted to directly purchase properties under this sales program. They are, however, encouraged to partner with local governments in reaching the disposition goals and strategies for these homes.
Properties will be made available to local governments on a weekly basis with new properties being added as they reach six months of market exposure. Local governments should check this site each week to see what properties have become available in their jurisdiction. LOCAL GOVERNMENTS ARE ONLY ELIGIBLE TO PURCHASE HOMES WITHIN THEIR JURISDICTIONAL LIMITS. The listed properties will remain available exclusively for purchase by local governments for 10 calendar days.
To purchase an eligible home, the local government must execute and deliver the form HUD-9548 Sales Contract.with special addendum:
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