Cities To Receive HUD Homes for One Dollar
By Eugene T. Lowe
On March 1, HUD Secretary Andrew Cuomo and Congressman John Kasich (OH) who is Chairman of the House Budget Committee, announced an initiative to sell local governments HUD-owned homes for $1 each. The initiative, which is called HUD Good Neighbor Policy got off to quick start, by selling the first home to Columbus (OH) Mayor Michael B. Coleman.
Initially, three thousand
homes are being offered for sale. They are single-family homes
acquired by HUD’s Federal Housing Administration through foreclosure
actions, and which the FHA has not been able to sell for six months.
Each month in the future, the FHA will sell additional homes to local
The Good Neighbor Policy will be flexible, giving local governments wide latitude in the public use of the homes. The local government may fix up the home for a first-time homebuyer, make it available to a group to provide services such as child care centers or job training centers, or in some cases use the vacant lots where a home has been demolished for a recreational park. HUD will demolish the homes when they are extremely deteriorated and sell the lots to local governments for $1.
“The Good Neighbor Policy will build better futures for hundreds of communities and thousands of families across our nation,” Cuomo said. “It will help reverse decades of decline in our cities by revitalizing neighborhoods, attracting new residents, and promoting homeownership.”
“I think this policy is going to provide huge benefits for America and America’s families,” said Kasich. “I hope there can be more instances when Members of Congress and officials from the Executive Branch can work together to develop and implement ideas like this one that achieve the common good.”