Competitive bid sale provided priority bidding on 50 percent of mortgage notes in multi-loan pools by non-profit organizations and units of state and local government.
The U.S. Department of Housing and Urban Development’s Office of Asset Sales announced on Thursday that 23 mission-driven non-profit organizations successfully participated – and 11 were awarded pools – in its December 1, 2021, competitive bid HUD-held Vacant Loan Sale (HVLS 2022-1). Collectively, these organizations successfully won bids on 814 mortgage notes – the entire volume of notes eligible for priority bidding.
Consistent with the Biden-Harris Administration’s September 1, 2021, announcement that more HUD-owned properties should be returned to future owner-occupancy, HUD offered up to 50 percent 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 percent of the mortgage notes for this purpose.
“The success of this sale is the foundation upon which we will continue to build on this Administration’s efforts to provide more opportunities for affordable homeownership and neighborhood revitalization,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri. “We had a record number of interested non-profit organizations who participated in this most recent sale, and we look forward to providing more note sale opportunities for non-profit organizations going forward.”
The goal of the sale was to sell mortgage notes that have gone through foreclosure or deeds-in-lieu of foreclosure to purchasers whose mission is to increase affordable housing, expand opportunities for homeownership and rental housing, and revitalize communities by:
- Selling properties to low- to moderate-income homebuyers at a price affordable to households earning less than 120 percent of the Area Family Income; and
- Leasing properties at rents affordable to households earning less than or equal to 80 percent of the American Median Family Income.
HUD’s Office of Asset Sales is part of the Office of Finance and Budget in HUD’s Office of Housing. Multi-loan pools of mortgage notes sold through the December 1, 2021, sale were secured by 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.
The list of non-profit organizations who were awarded mortgage notes through the sale is available in our sale report.