The U.S. Department of Housing and Urban Development (HUD) on Friday announced significant changes to its Distressed Asset Stabilization (DASP) program meant to offer more protections to borrowers facing foreclosure and increase non-profit participation in purchasing distressed loans. This enhancements for HUD’s Distressed Asset Program will provide borrowers more Protection.
Under the new rules, loan servicers are required to delay foreclosure on a home for a year and evaluate all borrowers facing foreclosure for participation in the government’s Home Affordable Modification Program (HAMP) or a similar loss mitigation program. Loan servicers could previously foreclose on a home six months after they received the loan and were not required to evaluate borrowers for loss mitigation programs, though they were encouraged to do so.
The U.S. Department of Housing and Urban Development – HUD announced Wednesday that it is awarding $10 million in grants to four non-profit organizations that will create homes for hundreds of families.
These grants are known as “Sweat Equity” grants, which combine efforts and labor from volunteers and homebuyers themselves. The non-profit organizations recipients of these grants are: Community Frameworks ($540,000), Habitat for Humanity International ($6.21 million), Housing Assistance Council ($1.56 million), and Tierra del Sol (Western States Housing Consortium, $1.68 million).
Homebuyers are required to contribute a minimum number of “Sweat Equity” hours toward the building and development of their own homes as participation for this self-help homeownership programs, according to HUD. The minimum sweat equity requirement is 100 hours for a household consisting of two or more persons and 50 hours for a household consisting of one person.
Community volunteers labor participation is also required. Sweat equity and volunteer labor includes any number of activities related to the construction of a home such as painting, carpentry, foundation work, drywall, trim work, roofing, or siding, among others.
The U.S. Department of Housing and Urban Development (HUD) and Washington, D.C. based non-profit alliance National League of Cities (NLC) have taken another step in the Fight against Veteran homelessness by issuing a Memorandum of Understanding (MOU) in several U.S. Cities, however still is not enough!
What is the MOU? Is just a memorandum that calls for the development and execution of regional forms as part of a joint effort by HUD and HLC in order to raise awareness and understanding of the benefits of joining the Mayors Challenge to End Veteran Homelessness, at least a good start.
As directed by the MOU, HUD’s resources will be made available to:
- Make it a priority to assist those veterans who are most vulnerable to homelessness or suffering from chronic homelessness;
- Focus outreach efforts on identifying and engaging those veterans who are homeless;
- Target veterans who are in need of short-term rent services in order to be integrated back into communities and assist them through re-housing interventions;
- Utilize resources to help veterans who are ineligible for the VA’s programs to attain housing;
- Increase preventative measures through early detection of at-risk veterans to help them get and sustain stable housing; and
- Closely monitor progress toward the goal of ending veteran homelessness, which includes tracking the progress of goals aimed at finding permanent housing for veterans.
A louder message should be sent to end Veterans homelessness, this is for real not a dream. It should be our goal to reach out for more veterans and their families, to make this a reality.
Thank You for protecting us, and our country. God Bless America!