Competitive bid sale provide priority bidding to non-profit organizations, units of state and local government
The U.S. Department of Housing and Urban Development’s Office of Asset Sales will conduct a competitive bid HUD-held vacant note sale (HVLS 2022-1) on Nov. 10, 2021.
The sale will include approximately 1,730 reverse mortgage notes secured by properties where the borrower is deceased and not survived by a non-borrowing spouse. Consistent with the Biden-Harris Administration’s Sept. 1 announcement that more HUD-owned properties should be returned to future owner-occupancy, HUD will offer up to 50% of the notes in the multi-loan pools for bids first by eligible non-profit organizations and units of state and local government. Previous sales prioritized approximately 10% of the mortgage notes for this purpose.
“This sale provides greater opportunities for non-profits and local governments to purchase properties that can then be made available for affordable homeownership and support neighborhood revitalization,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri.
The sale seeks to increase affordable housing supply, expand opportunities for homeownership and rental housing, and revitalize communities through the disposition of these notes, including:
Selling properties to low- to moderate-income homebuyers at a price affordable to households earning less than 120% of the Area Median Family Income; and
Leasing properties at rents affordable to households earning less than or equal to 80% of the Area Median Family Income.
To encourage more non-profit organizations and local governments to participate in this and future sales, HUD is hosting a virtual training conference for such organizations on Sept. 29. The conference, “Expanded Opportunities for Participation,” will include presentations on the note sale process, technical considerations, and an overview of the mortgage notes and processes for the November sale.
HUD’s Office of Asset Sales is part of the Office of Finance and Budget in HUD’s Office of Housing. All mortgage notes to be sold through the Nov. 10 sale are for vacant and abandoned properties secured by Home Equity Conversion Mortgages assigned to HUD following the death of the borrower and any non-borrowing spouse where the time for heirs to come forward has elapsed.
