The Department of Housing and Urban Development (HUD) has unveiled a “first look” or right-of-first-refusal program for select state and local governments and nonprofit organizations to purchase foreclosed homes.
The National First Look Program is the first public-private partnership agreement between HUD and the National Community Stabilization Trust.
The program aims to give communities participating in HUD’s Neighborhood Stabilization Program (NSP) a brief exclusive opportunity to buy bank-owned properties in certain neighborhoods so the homes can be rehabilitated, rented, resold, or demolished.
“This groundbreaking agreement will help rebuild neighborhoods that have been struggling with blight and declining home values due to foreclosures,” said HUD Secretary Shaun Donovan in a statement. “Local communities will now get an exclusive option to buy foreclosed properties in targeted neighborhoods so they can turn the homes into affordable housing or, in some cases, tear them down. This agreement helps us level the playing field to give communities a better chance to stabilize these neighborhoods.”
HUD and the Stabilization Trust, working with different financial servicers, will standardize the acquisition process for NSP grantees, giving them an exclusive option to purchase homes in targeted neighborhoods.
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