Thread: New plan gives government "grantees" first dibs on

It is one way of very quickly "changing America. Kill the jobs of the middle class, take their home and then give them to the folks that you want to live there. JMO"

New plan gives government first dibs on foreclosures
Kyle Clark
9WANTS TO KNOW

AURORA - A new program allows government agencies and their partners to have exclusive purchase rights on foreclosed homes before families, investors and the rest of the private market is allowed to bid.

9Wants to Know has learned the initiative, called First Look, is touted as a tool to maximize an effort funded with federal taxpayer dollars to fix-and-flip homes in distressed neighborhoods.

Critics argue First Look is government intrusion into the real estate marketplace that will impact families looking to purchase and live in a foreclosed house.

Charles Roberts, a Realtor with Your Castle Real Estate in Denver, called the recently-announced government initiative "appalling."

"They're changing the rules. They're tilting it in their favor," Roberts said. "They actually get an opportunity to buy a house before a homeowner, which doesn't make any sense to me at all."

First Look will be utilized by grantees in the Department of Housing and Urban Development's Neighborhood Stabilization Program (NSP).

Since 2008, the NSP has used billions in federal tax money with the aim of shoring up troubled neighborhoods plagued by foreclosures and abandoned homes. The homes are resold to low-income and moderate-income families at or below the cost to the government or participating non-profit.

First Look offers NSP grantees including state and local governments and non-profit organizations an exclusive one to two day window to express interest in a property. Those governments and nonprofits will have five to 12 days to close the deal before the property is opened to the private market.

The initiative is a partnership between HUD, the Stabilization Trust and financial institutions holding an estimated 75 percent of the bank-owned properties in the U.S.

An additional $1 billion in taxpayer money was recently infused into the NSP by a financial reform bill passed by Congress. At a Sept. 8 news conference in Aurora, HUD officials announced $17.3 million of that funding is designated for use in Colorado.

"This first look is really a game changing approach, market-oriented and cost-effective," Regional HUD Director Rick Garcia said.

Realtor Jude Sandvall laughed at that description.

"I don't understand how the government having the ability to purchase properties before individuals and families is a market-oriented approach," Sandvall said. "They're taking those families' taxpayer dollars and purchasing properties before those families even have an opportunity to look at those properties and purchase them."

At the HUD news conference, Garcia defended giving governments and their partner organizations exclusive first access as an issue of "who knows best."

"Who knows best but the local people running these programs, and particularly those in the City of Aurora, about how to get these properties back on the market?" Garcia said.

"I would ask the same question: 'Who do you think knows best?'" Roberts said. "I think the answer is exactly the opposite of what he would like you to think."

The latest $1 billion in NSP funding is expected to impact 14,000 foreclosed homes nationwide. Colorado alone had 20,437 foreclosures in 2009. HUD officials say sheer numbers mean the impact of First Look will be limited.

"There are still a tremendous number of foreclosed properties that are available on the market to the private sector," Garcia told 9Wants to Know investigator Kyle Clark.

HUD spokesman Brian Sullivan says the foreclosures purchased through First Look will only be in troubled neighborhoods, but acknowledged that local governments and nonprofits will determine which neighborhoods qualify.

"It's a preference that serves a larger public purpose," Sullivan said of First Look, calling it a "minor and highly temporary inconvenience" to those in the open market.

Critics say they're not concerned about local governments and their partners taking a large quantity of the foreclosed properties. Their concern is rooted in issued of principle and priority.

"The government has mandated they get the best properties," Roberts said. "It seems incredibly unfair."


(KUSA-TV © 2010 Multimedia Holdings Corporation)
http://www.9news.com/news/article.aspx? ... &catid=339

Neighborhood Stabilization Program Grants

HUD Announces Allocation of $1 billion in NSP3 Funding
Introduction
The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized. NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis. NSP2, a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. The Recovery Act also authorized HUD to establish NSP-TA, a $50 million allocation made available to national and local technical assistance providers to support NSP grantees.


NSP Resource Exchange
NSP Resource Exchange is a one-stop shop for the information and resources needed by NSP grantees, subrecipients and developers to purchase, rehabilitate, and resell foreclosed properties. There are three primary components to the Resource Exchange site including:

Find a Resource - a database of policy guidance, practitioner support tools and training materials developed by HUD and technical assistance providers who specialize in NSP-related activities. It can be browsed by topic, audience, or type of information.
Ask a Question a feature that can be used to direct users to previously asked questions based on the user’s questions. It also provides users with a question form that can be submitted electronically for those questions and answers that are not listed on the website.
Request TA a mechanism by which users can communicate with technical assistance providers and request support in implementing NSP activities
The NSP Resource Exchange can also be used to learn about upcoming events related to NSP and coming soon the site will feature tool kits for designing programs and implementing activities.



Nature of Program
NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements.

NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.

Eligible Uses
NSP funds may be used for activities which include, but are not limited to:


Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
Establish land banks for foreclosed homes;
Demolish blighted structures;
Redevelop demolished or vacant properties

Homebuyer Assistance
Homebuyers cannot receive assistance directly from HUD. NSP funds can be used to help homebuyers purchase homes, but they must contact an NSP grantee for application details. NSP operates on a national scale, but participation requirements may differ from one state or city to another. For information on how you may purchase a home with NSP assistance please contact an NSP grantee in your area. See NSP Grantee Contacts page for details.

Contact Us
If you would like additional information on the program please use this form to contact a HUD NSP Representative.
http://www.hud.gov/offices/cpd/communit ... orhoodspg/

NSP grantees get first chance to buy HUD Homes at 10 percent discountPosted by Laura Williams on July 14, 2010 at 9:35am in Neighborhood Stabilization
Back to Neighborhood Stabilization Discussions
In case you haven't seen the release:

FHA ANNOUNCES FIRST LOOK INITIATIVE TO HELP COMMUNITIES STABILIZE NEIGHBORHOODS HARD-HIT BY FORECLOSURE
NSP grantees get first chance to buy HUD Homes at 10 percent discount

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a new initiative that gives state and local governments, and
nonprofit organizations participating in HUD's Neighborhood Stabilization
Program (NSP) preference to acquire homes from the Department's inventory
of foreclosed properties, commonly known as "HUD homes." The
initiative was announced by HUD Secretary Shaun Donovan at the National Council
of La Raza annual conference in San Antonio, Texas.
http://forum.housingpolicy.org/group/ne ... e=activity

Now Obama wants another 15 Billion.

NSP grantees get first chance to buy HUD Homes at 10 percent discount

• Posted by Laura Williams on July 14, 2010 at 9:35am in Neighborhood Stabilization
• Back to Neighborhood Stabilization Discussions

In case you haven't seen the release:

FHA ANNOUNCES FIRST LOOK INITIATIVE TO HELP COMMUNITIES STABILIZE NEIGHBORHOODS HARD-HIT BY FORECLOSURE
NSP grantees get first chance to buy HUD Homes at 10 percent discount

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a new initiative that gives state and local governments, and
nonprofit organizations participating in HUD's Neighborhood Stabilization
Program (NSP) preference to acquire homes from the Department's inventory
of foreclosed properties, commonly known as "HUD homes." The
initiative was announced by HUD Secretary Shaun Donovan at the National Council
of La Raza annual conference in San Antonio, Texas.

A Notice outlining this temporary initiative will be published this week in the
Federal Register. This Notice details how the sale of HUD Homes under the Federal
Housing Administration's (FHA's) First Look Sales Method will align
NSP and FHA requirements to provide NSP grantees an exclusive option to
purchase HUD homes before they are marketed to other purchasers.

"This First Look initiative is a marriage of two programs to
accelerate our effort to confront property abandonment in communities
struggling to overcome the effects of the foreclosure crisis," said
Secretary Donovan. "By essentially giving our NSP grantees a first bite at
the apple, we hope to accelerate the sale of FHA's foreclosed properties while
supporting the Obama Administration's neighborhood stabilization efforts."

Through the FHA First Look Sales Method, HUD will offer NSP grantees a
preference ("First Look") to acquire available HUD homes within the
defined boundaries of NSP-designated areas. Furthermore, First Look
will provide NSP purchasers with the opportunity to purchase FHA properties at
a discount of 10 percent below their appraised value, less the cost of any
applicable listing and sales commissions.

The FHA-NSP First Look period will last approximately 14 days from the
conveyance of a property to FHA. Properties that remain unpurchased at the
expiration of the First Look period will be listed and sold according
to standard FHA procedures. Eligible NSP grantees may acquire these properties
with the assistance of NSP funds for any eligible use under NSP, including
rental or homeownership. This sales method becomes effective today and
continues through May 31, 2013.

HUD's Neighborhood
Stabilization Program was created to address the housing crisis,
create jobs, and grow local economies by providing communities with the
resources to purchase and rehabilitate vacant homes. NSP grants are helping
state and local governments, as well as non-profit developers, acquire land and
property; demolish or rehabilitate abandoned properties; and/or offer
downpayment and closing cost assistance to low- to middle-income homebuyers.
Grantees can also stabilize neighborhoods by creating "land banks" to
assemble, temporarily manage, and dispose of foreclosed homes.

FHA employs a variety of methods to sell its foreclosed properties in a manner
that expands homeownership opportunities, strengthens neighborhoods and
communities, and ensures a maximum return to the mortgage insurance fund.
Additional information about the sale and purchase of FHA single family
properties is available on HUD's website.

NSP grantees get first chance to buy HUD Homes at 10 percent discount - HousingPolicy.org Forum

Is this going on at HUD?

An interpretation:

The government is going to get first shot at buying foreclose' homes.

HUD, who had a hand in causing the problem of all the foreclosed homes, is going to partner with 'local organizations". Who could that be?

They are going to use taxpayer dollars to fix them up then decide who should get to 'purchase' these homes through HUD.

How many Americans will get that opportunity?

Does anyone see the possibility of some rampant inside deals between HUD officials, local 'organizations', realtors?