Proposed Rules Issued To Promote Neighborhood Revitalization Through Disposition Of Hud-held Assets

摘要

HUD has issued proposed regulations to implement a program to promote neighborhood revitalization and encourage homeownership through the disposal of HUD-held single-family homes and mortgage assets. The regulations were published in the December 22 Federal Register, and comments are due February 20. The program for the disposition of eligible department assets in revitalization areas is authorized by Section 204(h) of the National Housing Act. Eligible assets include homes acquired by the department through the payment of an FHA insurance claim and HUD-held mortgages. The proposed regulations would define a revitalization area as a HUD-designated area with either: a median income below 60 percent of area median income for a metropolitan area or 60 percent of the statewide median income for a non-metro area; a disproportionately high concentration of eligible HUD-held assets resulting from a high rate of FHA foreclosures, or a detrimental impact from eligible assets in the vicinity; or a homeownership rate substantially below the rate for the metropolitan area or, for non-metro areas, the state.