$1 Home Sales (Local Governments Only)

Good Neighbor Program

In an effort to expand its partnership with local governments in helping to foster housing opportunities for low to moderate income families and address specific community needs, HUD has introduced the Good Neighbor Program. This program facilitates the sale of aged HUD inventory of single family homes to local governments for ONE DOLLAR ($1.00).

Properties that have been offered to the public for sale for six or more months and that are not under a sales contract will be removed from the market and offered exclusively to local governments for a period of ten days for the price of one dollar ($1.00). The property must have been available to the public for a total of six months (180 days). In order to participate in this program, local governments must meet certain requirements including:

  • Identify the intended disposition strategy and clear public purpose goals and objectives it will pursue with properties purchased through this program;
  • Affirm that all profits/proceeds of sales of HUD homes will go to support local housing/community development initiatives;
  • Identify what specific programs or uses these profits/proceeds will support; and
  • Agree to provide HUD's Homeownership Center (HOC) Program Support Staff Director with an annual report on all properties purchased under this program. The report must include information on the ultimate property purchaser, the amount of profit realized on the final sale and where the profit was put back into local housing/community development.

The local government may, as part of its disposition strategy, indicate that it intends to purchase the property and convey it to a nonprofit organization for rehabilitation and resale to first time homebuyers, low to moderate income buyers or some other public purpose objective. This is an acceptable approach, however, local governments should be reminded that all information pertaining to the purchase and subsequent resale must be included in the annual report provided to HUD's Program Support Staff Director. Failure of the local governments to comply with any of the above requirements may result in their removal from participation in this program.

Nonprofit organizations and entities such as housing authorities are not permitted to directly purchase properties under this sales program. They are, however, encouraged to partner with local governments in reaching the disposition goals and strategies for these homes.

To learn more about the $1 Home Sales Program, please click on the link below:
http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm