June 8 competitive bid sale of approximately 1,450 vacant property notes furthers Biden-Harris Administration objectives to return more properties to future owner-occupancy.
The U.S. Department of Housing and Urban Development’s Office of Asset Sales announced on Tuesday that it will conduct a competitive bid HUD-held vacant note sale (HVLS 2022-2) on June 8, 2022. The sale will include approximately 1,450 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 September 1, 2021, announcement that more HUD-owned properties should be returned to future owner-occupancy, participation in this sale will be limited to eligible, mission-driven non-profit organizations and units of state and local government – the first competitive bid sale exclusively for these entities.
“This sale reinforces our dedication to expanding the opportunities for non-profits and units of state and local government to purchase HUD-held assets that can be revitalized and returned to the housing market at a time when inventory is extremely low,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri. “We have structured this sale for exclusive participation by those organizations who share our mission of expanding affordable rental and homeownership opportunities for underserved communities.”
The sale further expands on HUD’s previous work through its December 2021 vacant property note sale (HVLS 2022-1) where 50 percent of the mortgage notes in multi-loan pools were reserved for priority bidding by non-profit organizations and units of state and local government. 23 mission-driven non-profit organizations and joint ventures successfully participated in, and 11 were awarded pools in, that sale. Collectively, these entities successfully won bids on 814 mortgage notes – the entire volume of notes eligible for priority bidding.
As with the December 2021 sale, the June 8, 2022, sale seeks to increase affordable housing supply, expand opportunities for homeownership and rental housing, and revitalize communities through encouraging the disposition of these notes in a manner that achieves mission outcomes, including:
- Selling properties to low- to moderate-income homebuyers at a price affordable to households earning less than 120 percent of the Area Median Family Income; and
- Leasing properties at rents affordable to households earning less than or equal to 80 percent of the Area Median Family Income.
Registration Now Open for Non-Profit Virtual Note Sale Training Conference
To encourage more non-profit organizations and state and local governments to participate in this and future sales, HUD is hosting a virtual training conference for such organizations on April 27, 2022. 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 June 8 sale. Attendees must register for this conference.
About HUD’s Office of Asset Sales
HUD’s Office of Asset Sales is part of the Office of Finance and Budget in HUD’s Office of Housing. Learn more about asset sales programs and past sales at its newly updated web page.