1b. The mission of HUD
1c. Where do HUD homes come from
1d. Who is qualified to buy HUD homes
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While the basics of the HUD mission has been discussed, it is important to further understand HUD’s mission, as well as how it affects consumers. This government division works to help revitalize neighborhoods across the country while expanding and increasing opportunities for homeownership. Congress has authorized HUD in the provisions found in the National Housing Act to focus on certain areas where revitalization is needed, which is done by offering more opportunities for homeownership.
In order for areas to be designated as a Revitalization Area, certain requirements must be met regarding the local homeownership rate, the activity of FHA-insured mortgage foreclosures in the area and average household income.
Various special programs are available in the Revitalization Areas that allow discounted sales of HUD-owned single family properties. These special programs include the following:
Asset Control Area Program (ACA)
This program allows local qualified non-profit developers and local governments within Revitalization Areas to acquire HUD homes at a discount if these organizations resell them to buyers in specific communities with lower homeownership and high foreclosure rates or used for local rehabilitation. The goal of the program is to invest in the future of local neighborhoods and help ensure long-term success for local homebuyers.
Neighborhood Stabilization Project (NSP)
The Neighborhood Stabilization Project gives government agencies and nonprofits that participate in NSP initiatives the “first look” at local HUD homes before they are made available to other consumers. Many of these programs offer down payment assistance and certain financial incentives for buyers eligible for the program.
Good Neighbor Next Door Program (GNND)
With this program, firefighters, teachers, police officers and emergency medical technicians are offered 50% discounts on HUD homes that are offered within areas that are specifically designated as Revitalization Areas. Further information on this helpful program is offered in Chapter 8 of this guide.