NSP FAQ
Q

If an NSP designee (e.g., a subrecipient or developer) is acquiring a foreclosed property with NSP funds, is the designee required to provide a written notice to the owner under the voluntary acquisition provisions of the URA?

Date Published: October 2012

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A

Yes, the designee is required to provide a written "Notice to Owner." The URA voluntary acquisition requirements (49 CFR 24.101(b)(1)-(5)) apply to anyone who uses NSP funds (or any Federal financial assistance) to acquire property, including any agency, nonprofit, or individual homebuyer who uses federally-funded down payment or other financial assistance. The Notice contains specific provisions related to the property's market value, a declaration that the acquisition is voluntary, and that the seller is not therefore entitle to relocation assistance. A sample Notice is available in the Guideform for NSP Voluntary Acquisition of Foreclosed Property-Agencies without Eminent Domain Authority.          

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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FAQ ID:

891