HUD: Communities Get First Look at Properties

State and local governments and nonprofit organizations will get a jump on investors as part of a new program announced Wednesday by the U.S. Department of Housing and Urban Development Secretary Shaun Donovan.

The National First Look Program is a partnership between lenders and communities to encourage neighborhood stabilization by giving public entities and community organizations the right of first refusal on properties that are likely candidates for renovation as affordable housing or targets for demolition to make way for new low-cost housing.

“This agreement helps us level the playing field to give communities a better chance to stabilize these neighborhoods,” Donovan says.

The First Look opportunity will last five to 12 business days. After that the financial institution will sell the home on the open market. Participating lenders represent 75 percent of the mortgage service companies, including Bank of America and Wells Fargo.

Source: U.S. Department of Housing and Urban Development (09/01/2010)