What You Need to Know About HUD

What You Need to Know About HUD

1. Community Planning and Development
Provide grants to communities for economic development and neighborhood revitalization
Provides grants to communities for housing and rental assistance for the homeless, disabled and those with HIV/AIDS

Provides grants to state governments to implement plans to increase home ownership and affordable housing for low income residents (HOME).
Provides grants to assist properties with environmental contamination (BEDI).
And offers tax incentives to businesses to hire workers from, areas of high poverty.

The main purpose is to watch over the Federal Housing Administration (FHA), which is responsible for insuring mortgages. The Office of Housing operates in three main sectors:
Single Family Housing:
Insures mortgage loans for low income families and victims of disaster.
Insures loans for manufactured homes, property improvements and property rehabilitation.
Sells HUD foreclosures to eligible buyers.
Helps buyers avoid foreclosure through loss mitigation (mortgage modification, partial claim).

Assists the elderly (over 62) with reverse mortgages (allows them to turn equity in their homes into a monthly income stream or a line of credit).
Allows law enforcement officers, firefighters, emergency medical technicians and teachers to purchase homes located in HUD revitalized areas at great discount, usually 50% from the list price (Good Neighbor Next Door).

Provides counseling for buyers, sellers and tenants.
Multifamily Housing:
Shares the risk and insurance premium on multi-families with Fannie Mae and Freddie Mac.
Sells multifamily foreclosures to eligible buyers.
Provides grants to housing developments that provide housing for low income elderly and the disabled.
Grants for emergency repairs on multi-family properties with elderly tenants.
Insures mortgage loans for manufactured home parks, to finance cooperative housing projects and for housing and housing repairs in urban renewal designated areas.
Mortgage insurance for construction or rehabilitation of multi-families for moderate income families.
Loan insurance for healthcare facilities.
Regulatory Programs:

Establishes standards for manufactured home construction and safety.
3. Public and Indian Housing
Provides annual funds to the Public Housing Authority’s (PHA’s) to be used for management and operations.
Provides rental assistance for very low income families to choose their housing and for families who live in specific housing developments (Housing Choice (Section Cool, and Project Based Voucher Programs).
Helps Section 8 and low income families buy homes of their choice and public housing homes (Section 8 Voucher Assistance, and Public Housing Homeowner-ship).
Aims to transform neighborhoods of extreme poverty and eradicate severely distressed public housing (HOPE VI, Choice Neighborhood Program).
Provides resources to help individuals become self-sufficient, including education, job training, and counseling (ROSS).
Issues block grants and provides housing assistance to develop Indian tribal, native Alaskan and Native Hawaiians communities.

4. Fair Housing and Equal Opportunity
Enforces the Fair Housing Act, which prohibits discrimination in any housing related activities (buying, selling, renting, obtaining mortgages).
Provides funding to states to enforce their local fair housing laws.
States everyone has an equal opportunity to benefit from HUD programs.

5. Policy Development and Research (PD&R)
Analyzes current HUD policies and current housing market conditions to determine what policies are working, what areas need improvement and what the current housing needs are in the country.
Their research directly influences HUD’s strategic plan (including their budget and legislative proposals).

6. Government National Mortgage Association (Ginnie Mae)
Ginnie Mae works with issuers and investors of mortgage-backed securities (MBS).
Banks or other institutions pool their government insured mortgages (FHA or otherwise) and sell them as a bond to investors, usually institutions, who package them in a mutual fund. Ginnie Mae insures these bonds for a fee.
Even if a bank or borrower defaults on the loan, the investors would still be guaranteed their money because Ginnie Mae MBS’s are the only securities that have the “full faith and credit guarantee of the U.S. Government”.

7. Healthy Homes and Lead Hazard Control
Eliminates lead based paint hazards in American housing.
Provides grants to state and local governments to develop programs to reduce lead and other health hazards.
Enforces lead based paint disclosure regulations for rental or sale of homes built before 1978.

8. Office of Sustainable Communities
Their goal is to locate affordable housing near job centers and accessible transportation and to lower energy costs. They aim to do this by integrated community planning in transportation, energy, and land use.
It is broken down into the Sustainable Communities Initiative and the Energy Innovation Fund. HUD

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