Dollar Home Sales
Program Objective
To expand HUD's partnership with local governments in helping to foster housing opportunities for low-to-moderate income families and address specific community needs.
The HUD Dollar Home Program is a federal initiative where the U.S. Department of Housing and Urban Development (HUD) allows local governments—not individuals—to purchase certain HUD‑owned homes for $1.
Eligibility
Eligible Applicants
- Municipality/Township Government
- County Government
Units of local government.
How to Apply
Award Procedure
Evaluation of the documentation required by the application procedure evidenced by HUD's execution of the Sales Agreement and approval of the purchaser's plan for use of the property.
Decision Timeline
- Approval: > 180 Days
Program details & compliance
Description
HUD’s Dollar Home program enables Government Agencies may have the opportunity to purchase qualified HUD-owned homes for $1 each after HUD has marketed for 180 days without receiving an adequate bid. HUD’s Dollar Homes iniative helps local governments provide housing for low-to-moderate income families and addresses specific community needs.
Mission Categories
Primary: Homebuying, Homeownership
Other categories:
Economic Development
Use of Funds
Allowed Uses
Single family homes with a current as-is market value of $25,000 or less that are acquired through foreclosure of Federal Housing Administration (FHA) insured loans will be available for purchase by local governments at a price of $1 plus closing costs, after the properties have been actively marketed for at least 6 months and remain unsold. The property must be located with the jurisdiction of the purchasing local government with the intent of using the property for a "clear public purpose". FHA Single Family Housing Policy Handbook 4000.1, Section IV.B.2.f.viii outlines the details of the program. The Handbook can be found at https://www.hud.gov/sites/documents/40001HSGH.PDF
Available properties are listed at HUD’s website located at http://www.hudhomestore.com/Home/Index.aspx where eligible governmental entities can search listings by location and buyer type.
Restrictions
The program imposes use restrictions on the property itself because HUD conveys the home for $1 to a local government for a public‑benefit purpose.
Dollar Homes must be used to foster housing opportunities for low‑ to moderate‑income families and address specific community needs.
The property cannot be used for:
speculative resale
private investment gain
unrelated municipal purposes
non‑housing commercial development (unless tied to revitalization)
Required Documentation
Governmental entities may purchase properties that are not under contract and have been listed for sale for at least 180 days and are valued at $25,000 or less.