Regulatory: HUD Announces Emergency Foreclosure Fund Rules
HUD has published the Neighborhood Stabalization Program (NSP) rules for spending Emergency Foreclosure funds provided in the Housing and Economic Recovery Act.
This offers a range of opportunities to NAHB members, but those will vary depending on how the local or state government chooses to implement the NSP. Members should contact their local government, county or state to find out how the program will be implemented, and feel free to supply your input.
One important point: The law and rules clearly state that no profit may be earned from the sale of a foreclosed-upon or abandoned home that has been rehabilitated or redeveloped. But builders can earn development fees. This presents an opportunity for builders to take on rehabilitation work or build new residences on vacant properties or redeveloped lots.
Additionally, the Neighborhood Stabilization Program permits energy efficiency and conservation improvements as rehabilitation work, presenting an opportunity for members who specialize in “green” building.
Do not overlook partnering with a nonprofit organization. It is likely that some grantees will contract with non-profits as sub-recipients to administer a program of purchasing foreclosed-upon homes or properties. These nonprofits will need to contract with builders or remodelers to undertake the rehab or redevelopment work, presenting an opportunity for NAHB members.
View a summary of the program rules here.
 Register for HUD's Neighborhood
Stabalization Program Information Session
For more information, e-mail Claudia Kedda, or contact her at 800-368-5242 x8352.
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