Friday, April 29, 2011

What does $1 buy you in housing - hang onto your hats - HUD to the rescue

IMAGE: HUDPhoto: Row of houses

After searching for homes and talking in person to the people at HUD about foreclosures and recovery, I learned a few things. HUD Secretary Donovan Announces 2.1 Million in New Grants for Seven Homeless Programs in Arizona.  Grants are to assist the situationally homeless and not chronically homeless. Grants are administered by the states through local progams.

Here is the link for Arizona resources.  If you live in another state just click on this link to find information. 


 HUD has many programs such as the Good Neighbor program designed to help firefighters, teachers and other public service workers substantial discounts in housing.  We are talking 50% discounts.  There are also discounts for Hurricane Evacuees. Programs exist for Indian (section 134), Aids, and for Public Housing residents. In addition each state has programs available such as the information found on HUD's Arizona homeownership page.  There is also the new EHLP program but it is not taking applications. But the program that seems the most exciting is the $1.00 program. 

Hang onto your hats it is not as good as it sounds. After a cursory reading on the program I determined to find some homes that fit the criteria. If you are low income,  and can find a home that has sat on HUD's site for over 6 months, it appeared that you could buy it for $1.00.  I can no longer find that wording and have included the official wording found today on the HUD website, at the end of this posting. 

After talking to HUD officials it seems that only government agencies such as the city of Phoenix or the counties or states can buy these homes for $1.00.  The government then rehabs the homes and sells them on the market.  Yup government helping the low income again (not). 

Here is the information if you are wanting to learn about this program and address your local administrators.  The wording might make you think it is available to homeowners for $1.00 but the revisions clarify a bit that only governmental agencies can buy these $1.00 homes. 

HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each.
Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.
By selling vacant homes for $1 after six months on the market, HUD makes 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 can partner with local nonprofit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.
To find out if properties are available for sale in your community, visit HUD Homes and click on your state.
 Recovery Act Grants:  

HUD AWARDS $118 MILLION IN RECOVERY ACT GRANTS  (AZ). Special grants were awarded on April 28th to help states combat rural homelessness. $2.1 Million was awarded to Arizona and are accessed through 7 existing homeless programs.

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