HUD to sell homes at a discount to disaster victims
HUD News Release 06-046
In an effort to assist families displaced by the Gulf Coast Hurricanes attain homeownership, the Department of Housing and Urban Development will give evacuees the opportunity to buy HUD-owned properties at a discount.
These families will be offered the opportunity to purchase the homes they are currently occupying at a discount of ten percent off the property's fair market value.
Additionally, HUD will help current tenants pay for property repairs by funding a repair escrow equal to15% of the contract price.
In addition to making homeownership opportunities available to evacuees already occupying HUD owned properties, the Department is establishing a nationwide sales initiative providing discounts and preferences for Gulf area hurricane evacuees seeking housing anywhere in any of the 50 states.
Effective the week of May 1, almost all new properties listed for sale by HUD will be offered exclusively to hurricane evacuees for a period of five days at a price that is ten percent below fair market value.
All prospective buyers will be encouraged to participate in a homebuyer education program, especially if they are first time buyers.
Finally, to be eligible for the discount, (and in the case of current occupants only, the 15% repair fund) the buyer must agree to occupy the property as a primary residence for at least 12 months.
