The first incarnation of the program launched on Sept. 1, through a partnership between the Department of Housing and Urban Development (HUD) and the National Community Stabilization Trust (NCST). In that program, groups that receive funds from the Neighborhood Stabilization Program (NSP) and/or are nonprofit groups working with NCST get the first shot at purchasing HUD, Fannie Mae and Freddie Mac REO properties before they’re listed on the open market, so the homes can either be rehabilitated, rented, resold as affordable housing or demolished when necessary. That first look happens five to 12 days before they are listed for sale.
So, Freddie Mac which 79.9% federally own is working with two government agencies (HUD and NSP) to help you purchase a home. Here is an overview of the program from NSP:
Nature of Program
NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements.
NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.
I think we should re-evaluate these programs to see if they are really needed.
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