$1 HOME SALES (LOCAL GOVERNMENTS ONLY)
GOOD NEIGHBOR PROGRAM
In an effort to expand its partnership with local governments in helping to foster housing opportunities for low to moderate income families and address specific community needs, HUD is introducing its Good Neighbor Program. This program facilitates the sale of aged HUD inventory of single family homes to local governments for ONE DOLLAR ($1.00).
TO LEARN MORE ABOUT THE $1 HOME SALE PROGRAM, click on the link below:
http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm
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PURPOSE AND ELIGIBILITY SUMMARY
PROGRAM AND PROCEDURE
CLOSING PROCEDURES
SPECIAL CONSIDERATIONS
Charlotte Regional Office
FOR NORTH CAROLINA AND
SOUTH CAROLINA
HMBI
5350 77 Center Drive, Suite 200
Charlotte, NC 28217
Office: (704) 522-3590
Toll-free (866) 337-HMBI (4624)
Fax: (704) 565-6852
Charlotte Regional Office
FOR NORTH CAROLINA AND
SOUTH CAROLINA
HMBI 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 • 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 the required special addendum your
regional office listed to the right. The
Sales Contract Form and Addendum are multi-part forms and are
available at HMBI offices as well as
here.
ORIGINAL SALES CONTRACTS WITH THE REQUIRED ADDENDUM
MUST BE RECEIVED BEFORE 4:30 PM ON THE DATE INDICATED AS THE "DEADLINE".
You will see this date on the property list for each property
exclusively available to local governments. Late contracts will not be
considered. Please note that there is no other way of indicating your
interest in or intention to purchase the property. We are not able to
accept telephonic, fax, or electronic indications of interest. To the extent that more than one local government
(e.g., city and county) wish to purchase the same property, the first
complete contract package received will be awarded the property. If sales contracts are received within the required
time period but contain errors requiring correction, HMBI will notify
the local governments of the required changes and allow five days for
the submission of a corrected sales contract. Failure to submit
corrected documents within these five days will result in contract
cancellation. Upon
review and analysis of the contract package, HMBI will sign the contract
(as Attorney-in-Fact for the Secretary of HUD) and forward the contract
to HUD's Closing Agent. You will receive a copy of the signed contract
and the local government will be responsible for contacting the Closing
Agent to arrange the closing. The local government will be responsible
for all closing costs incurred in the transaction other than the Closing
Agent's fee and wire transfer expenses, if any. Restatement of HUD's "AS-IS" Sales Policy:
Local governments are reminded that all HUD properties are sold "as is". HUD
believes that an "as is" sale is the fairest, most straight forward sales
method. However, even though HUD sells its properties "as is," it is HUD's
policy, as a good neighbor, to keep the properties safe and secure, and to
preserve and protect the property while it is being marketed. Liens and Assessments: In those
instances where a local government has assessed liens against the properties
and/or fines have been assessed by a unit of local government, the local
government must take the necessary steps to remove these liens at no cost to
HUD prior to closing the sale. Demolitions: It should be noted that the
local government may recommend the demolition of any property which is
currently available for purchase by that entity. To consider demolition, the
following criteria must be met: • HUD's last listed price, plus the cost of rehabilitating the
property to meet HUD's Minimum Property Standards (MPS) is more than 130
percent of the after rehabilitation value. The determination of
rehabilitation cost and the after rehabilitation value may require HMBI
to procure the services of a structural engineer, appraiser, and/or
special inspectors. The appraisal must include the fair market value of
the land. • The cost of demolition may not exceed the cost of rehabilitating
the property to meet MPS. • Review the Environmental Compliance Record to determine whether the
property is listed on the National Register of Historic Places or
located in a Historic District. If the property is classified as
"historic", review any conditions on the disposition of the property to
determine whether demolition is permitted. If so, follow any conditions
imposed in conjunction with the demolition. In the event that the HMBI and HUD are in agreement that
the above criteria have been satisfied, demolition of the property will be
completed by HMBI. HUD will pay for the demolition and clearing of the
debris. Following demolition, the land will be listed for sale to
the general public for 10 calendar days at its fair market value. Should no
acceptable offers be received from the general public, the land will then be
offered to the local governments for $1 for 10 calendar days. In the event
the local governments have no interest in the land, the property would be re
listed on the general listing until the property is sold.
5350 77 Center Drive, Suite 200
Charlotte, NC 28217
Office: (704) 522-3590
Toll-free (866) 337-HMBI (4624)
Fax: (704) 565-6852
PURPOSE AND ELIGIBILITY SUMMARY
PROGRAM AND PROCEDURE
CLOSING PROCEDURES
SPECIAL CONSIDERATIONS
