[Hpn] Fw: HUD selling homes to local governments at a price of only $1 each
- Starting May 1, 2000
- Starting May 1, 2000
Tue, 02 May 2000 07:57:14 -0500
Subject: HUD selling homes to local governments at a price of only $1 each -
Starting May 1, 2000
The Department of Housing and Urban Development began selling homes yesterday to
local governments at a price of only $1 each, to create housing for families in
need and to help revitalize neighborhoods.
"These $1 homes will unlock the door to homeownership for struggling families
and will help build better futures for neighborhoods," Secretary Cuomo said.
Under the $1 Home Initiative, single-family homes around the nation acquired in
foreclosure actions by HUD's Federal Housing Administration are eligible for
sale to local governments for $1 each whenever FHA is unable to sell the homes
for six months.
More than 1,000 homes are presently eligible for sale to local governments under
the initiative, and additional homes will become available for sale each month.
Hundreds of local governments have informed HUD they are interested in buying $1
homes. Newport News and Norfolk, VA; Pittsfield, MA; Rockford, IL; and San
Bernadino, CA have already agreed to purchase homes.
By selling vacant homes for $1 after six months on the market, HUD will make it
possible for communities to fix up the homes and put them to good use at a
considerable savings. The newly occupied homes can then act as catalysts for
neighborhood revitalization, attracting new residents and businesses to an area.
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. Homes in extremely deteriorated condition, where rehabilitation is not
feasible, will be demolished by HUD and the vacant lots will be offered for sale
to the local government for $1.
The initiative won't cost taxpayers a penny, Cuomo said. Because of improvements
in FHA management and because few FHA-insured home loans default, FHA's revenues
exceeded expenses and returned about $1.5 billion to the U.S. Treasury in 1999.
The $1 Home Initiative complements a system HUD instituted last year under which
contractors rather than HUD employees sell FHA-owned homes. Under this system,
the average time it takes to sell a home has dropped by 38 days and the amount
of money HUD recovers from each sale has increased by an average of $4,500 per
home. With more than 50,000 sales to date, the new system has saved HUD more
than $225 million.
H. C. Covington, Executive Director
I CAN! America, LLC
Homeless & Housing Resource Center
1.800.678.5774 Fax 1.505.209.2619