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Builders Can Rehab Foreclosed Homes for HUD Program
Under the Neighborhood Stabilization Program (NSP) included in the Housing and Economic Recovery Act passed this summer, NAHB members may find opportunities to rehabilitate or redevelop homes that been foreclosed upon or abandoned.
The Department of Housing and Urban Development is distributing almost $4 billion to states and local communities to help them remove these properties from the market in a process aimed at stabilizing neighborhoods that have been hit hard by the current housing crisis. Following rules established by HUD, the homes can be purchased and rehabilitated, or if they are too deteriorated, they can be demolished and redeveloped.
The funds can also be used to provide financing for eligible households to purchase these properties, such as second loans. The properties will be sold to households earning up to 120% of area median income.
States and localities may choose to administer the NSP program directly or to contract with third parties.
The residential properties must be rehabilitated to comply with local health and safety standards. In addition, adding energy-efficiency and conservation improvements are considered eligible rehabilitation costs.
While the law does not permit any entity to make a profit on the sale of any of these homes, builders may earn developer fees as part of the rehabilitation or redevelopment costs. NAHB members should contact their local or state government to find out how the program will be implemented and what opportunities might be available for builders.
For an NAHB summary of the program rules, click here. For information about the program from HUD, click here.
For more information, e-mail Claudia Kedda at NAHB, or call her at 800-368-5242 x8352.
 Attend the NAHB Construction Forecast Conference
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry.
Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market.
Onsite registration is available the day of the conference.
To register for the Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
 Want to Know the Housing Forecast for the Top 100 Metros?
Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).
Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.
To learn more, visit www.HousingEconomics.com.
 Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.
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