FEDERAL AGENCY:

OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

HUD Notice 00-7, dated April 28, 2000 (and extension notices).

To expand HUD's partnership with local governments in helping to foster housing opportunities for low- to moderate-income families and address specific community needs.

TYPES OF ASSISTANCE:

Sale, Exchange, or Donation of Property and Goods. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

Single family homes that are acquired in foreclosure actions by the Federal Housing Administration will be eligible for sale to local governments around the nation for $1 when the homes have been listed for sale for at least six months and remain unsold. Local governments buying HUD homes for $1 can sell or rent them to low- and moderate-income families, to first-time homebuyers, or to groups that will use the homes to provide services such as child care centers or job training centers.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Local governments must identify the intended disposition strategies and clear public purpose goals and objectives it will pursue with properties purchased through this program.

Beneficiary Eligibility:   Low- to moderate-income families and communities.

Credentials/Documentation:   None.

Pr-eapplication Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Properties are made available to local governments on a weekly basis with new properties being added as they reach at least six months of marketing exposure. The properties remain available exclusively for purchase by local governments for 10 calendar days. A form HUD-9548, Sales Contract, must be received within this period of time for consideration for the $1 sale.

Award Procedure:   Submission of form HUD-9548, Sales Contract.

Deadlines:   Local governments have 10 calendar days from the time the properties are made available to submit the form HUD-9548.

Range of Approval/Disapproval Time:   If local government does not submit a sales contract within 10 calendar days, single unit properties will then be offered to the Officer Next Door/Teacher Next Door participants for an additional 10-day period.

Appeals:   None.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Local governments must agree to provide the applicable HUD Homeownership Center (HOC) Program Support Staff Director with an annual report that provides the status and details on all properties purchased under this program. The report must include information on the ultimate purchaser, the amount of profit realized on the final sale and where the profit was put back into local housing/community development.

Audits:   In accordance with the provisions of OMB Circular No. A- 133, "Audits of State and Local Governments and Non-Profit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program- specific audit conducted that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:   All annual reports submitted by local governments will be maintained by HOC Program Support Staff Director.

FINANCIAL INFORMATION:

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

Obligations:   Reported under Program 14.311.

Range and Average of Financial Assistance:  
The average market value of the homes is approximately $50,000.

As of February, 2002, there have been 1,000 $1 homes sold nationwide. It is estimated that an additional 250 homes will be sold under this program by the end of fiscal year 2002.

REGULATIONS, GUIDELINES, AND LITERATURE:

HUD Regulations will be in 24 CFR Part 291. Program information is available on HUD's website at www.hud.gov.

INFORMATION CONTACTS:

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

Headquarters Office:   For policy questions not covered on HUD's website, contact the Asset Management and Disposition Division in Washington, D.C.: by mail to 451 7th Street, S.W., Washington, D.C. 20410; or by phone: (202)708-1672 (this is not a toll free number).

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

EXAMPLES OF FUNDED PROJECTS:

None. New program.

CRITERIA FOR SELECTING PROPOSALS:

None.