NSP FAQ
Q

How do URA regulations apply to short sale purchases under NSP?

Date Published: October 2012

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URA regulations governing real property acquisition, found at 49 CFR part 24, Subpart B, make a distinction between "voluntary acquisitions," which meet the criteria in 49 CFR 24.101(b)(1)-(5) and "involuntary acquisitions." NSP-assisted acquisitions of foreclosed and abandoned residential properties through a short sale are expected to be voluntary acquisitions and subject to the URA. However, there may be instances where such acquisitions cannot meet all criteria to qualify as "voluntary." In such cases, the acquisition should be treated as involuntary and is subject to full URA Real Property Acquisition requirements. The NSP Policy Alert Guidance on the Impact of New Definitions for NSP-Eligible Properties provides more information on short sales and URA requirements.

Note: Relocation and tenant protection can be a difficult subject for many grantees and mistakes can lead to costly findings. It is recommended that grantees contact their regional relocation specialist or HUD field office for guidance.


Tags: NSP Real Estate Acquisition and Relocation (URA and Other Requirements)

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