Industry NewsMarkets & Economy

HUD redefines ‘foreclosed,’ ‘abandoned’

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The U.S. Department of Housing and Urban Development (HUD) has expanded the definitions of "foreclosed" and "abandoned" properties in order to speed up their purchase and rehabilitation, the housing agency announced Friday. The agency's $5.9 billion Neighborhood Stabilization Program grants funds to selected nonprofits and state and local governments for activities that will benefit low- and moderate-income people who don't make more than 120 percent of an area's median income. The Housing and Economic Recovery Act of 2008 established the program, which was further expanded with the American Recovery and Reinvestment Act of 2009. Grantees must use at least 25 percent of the monies to buy and redevelop abandoned or foreclosed homes that will ultimately house people who make less than half of the area's median income, according to the agency's Web site. Grantees can also use funds to put financing mechanisms in place for that purchase and redev...