Secretary Donovan traveled up to Southeastern Massachusetts yesterday to see firsthand how HUD federal dollars can help the local communities.

Making his first stop in Fall River, Congressman Barney Frank, and Fall River Mayor, Robert Correia, gave Secretary Donovan a tour of several properties throughout the city.  One home in particular was purchased before it went into foreclosure and then opened as the city’s first Veterans Housing.  This tour gave Secretary Donovan a chance to see how foreclosures are affecting Fall River and how HUD resources are helping to rehabilitate foreclosed properties by giving residents decent, affordable housing opportunities.

Later in the day, Secretary Donovan and Congressman Frank were joined by Massachusetts Governor, Deval Patrick, and Mayor Scott Lang, to sneak a glimpse of the clean energy future in New Bedford.  Under the Recovery Act Public Housing Capital Fund Grants, the New Bedford Housing Authority was awarded over $1.5 million to improve energy efficiency at the Bay Village Development.  This grant will allow the Bay Village Development to reduce their carbon footprint of electric consumption and help New Bedford move closer to their goal of alternative energy.

Whether you work in the housing industry or not, you may have heard the phrase “HUD home” thrown around once or twice.  It’s usually the same questions that come up. What makes it a HUD home? How can I purchase a HUD home?

Whenever an FHA-insured mortgage goes into foreclosure, HUD becomes the property owner and will offer it for sale to recover from the loss on the foreclosure claim.  Potential buyers can search online listings for HUD homes in their area and then work with their real estate broker to submit an offer and a contract.  Once a buyer’s offer is accepted, a home inspection is recommended since HUD homes are sold as-is and without warranty. 

Read more about buying a HUD home

Our guest blogger today is John Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity

Ensuring that every person has a safe and affordable place to live is an important part of what HUD does.  But it is just as crucial that people are able to find work in order to create sustainable, strong communities.  HUD’s Section 3 program promotes the employment of local low income workers and public housing residents in projects built with HUD funds.  If you are a public housing resident or a low income/very low income worker, you may be able to find job or training opportunities available to you by contacting your local housing authority.

Enacted in 1968, the Section 3 program promotes new employment, training, and contracting opportunities for low-income residents to work on federal HUD-funded projects.

Last month, HUD announced that a new campaign is being launched to increase the training and hiring of local low-income individuals and public housing residents by state and local governments that receive HUD funds.  We are working with states, counties, and cities around the country to help them understand and implement Section 3 requirements.

Read about the Recovery Act’s funding for HUD’s Section 3 program

There is a laundry list of things you must take into consideration when you are buying a home or looking for that perfect rental such as good schools, proximity to work, and the surrounding community.  Well, here is another thing to add to that list – lead-based paint.  You are probably thinking, “lead-based paint isn’t something I thought would be a consideration.”  But if you’re about to move into a home that was built before 1978, it should be number one on the list.

It is important for renters and buyers to know their rights about lead-based paint.  Before you sign on the dotted line, ensure that the seller or landlord provides you with a Disclosure of Information on Lead-Based Paint or Paint Hazards.  Contact the National Lead Information Center if you were never provided with a disclosure.

Passed in 1992, the Residential Lead-Based Paint Hazard Reduction Act protects families from exposure to lead from paint, dust, and soil.  Section 1018 of this law directs HUD and the Environmental Protection Agency to require the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built from 1978.

Read more about how to protect your family

Last night, the Association of Energy Engineers awarded its coveted Leadership in Federal Energy Management Award to HUD employee Richard Santangelo.  As program manager for Public Housing Management and Energy Conservation, Dick spearheaded HUD’s efforts to reduce energy consumption in thousands of public housing units nationwide.

His leadership of HUD’s Public Housing Environmental and Conservation Clearinghouse program encouraged public housing authorities to make energy efficiency improvements and reduce energy consumption.  Housing authorities that take part in this program will undergo a comprehensive energy audit on its developments.  These audits reveal how much the housing authority will save when they make upgrades such as including compact fluorescent lighting, kitchen and bathroom appliances, heating and cooling systems, insulation, and weatherproofing.

The Long Term Disaster Recovery Working Group held their first of five planned meetings at the University of New Orleans today.  The forum which was hosted by HUD, the Department of Homeland Security, and the Federal Emergency Management Agency included stakeholders, the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness, the Louisiana Recovery Authority, and the City of New Orleans.  This meeting follows last week’s launch of DisasterRecoveryWorkingGroup.gov.

Participants sat down to discuss disaster recovery management issues and opportunities by working through the Questionnaire to Strengthen Disaster Recovery in Our Nation. 

Other stakeholder meetings will follow in New York City, Los Angeles, Salt Lake City, and Memphis through the month of November.

This afternoon, Secretary Donovan visited Baltimore Gas and Electric (BGE) in Baltimore, MD to highlight HUD's clean energy plans to create jobs and save American taxpayers money. Joining Secretary Donovan on his visit was Senator Ben Cardin, Congressman Elijah Cummings, Congressman John Sarbanes, BGE President Ken DeFontas, and Mayo Shattuck, chairman, President, and CEO of Constellation Energy.

In order to promote energy efficiency, HUD is proposing an Energy Efficient Mortgage product for homeowners which could provide incentives to those that invest in clean energy improvements.

HUD is also encouraging all federally-assisted housing agencies to go green. Through $250 million from the Recovery Act and $600 million in Capital Fund competitive grants, agencies are able to increase energy efficiency in their properties which will save money, protect the environment, and create jobs.

This visit follows President Obama's announcement on Tuesday to award 100 grants totaling $3.4 billion to private companies, utilities, cities, and other partners to help build a nationwide smart energy grid. As part of the American Recovery and Reinvestment Act, BGE will receive $200 million to install two-million residential and commercial smart meters. These meters will reduce peak electricity usage by as much as one-third and save customers approximately $2.6 billion.

The Smart Grid will allow consumers to have real-time information on the costs of their energy use, and the ability to manage their energy consumption and save money.

In collaboration with the Department of Homeland Security (DHS), HUD has launched the DisasterRecoveryWorkingGroup.gov website.  Announced today by Secretary Donovan and Secretary Napolitano, this website will give federal disaster recovery officials the opportunity to solicit public comments from state, local and tribal partners, as well as the public.

As co-chairs of the newly formed Long Term Disaster Recovery Working Group, Secretaries Donovan and Napolitano will be able to view ideas submitted by stakeholders; articulate objectives for recovery assistance going forward; identify examples of best practices; raise challenges and obstacles to success; and share thoughts, experiences and lessons learned.

The Secretaries will provide the President with recommendations to improve long-term catastrophic disaster recovery and will help develop a National Disaster Recovery Framework that provides more detailed operational guidance to recovery organizations under existing authorities.

Last night, Secretary Donovan delivered the 10th annual John T. Dunlop Lecture at Harvard's Graduate School of Design. He addressed housing, place, and the new federalism.

The lecture series commemorates the life and work of the late John T. Dunlop, Lamont University Professor Emeritus of Harvard University from 1985 to 2003, and U.S. Secretary of Labor during the Ford Administration.

Read Secretary Donovan's entire remarks

Last night in Boston, Secretary Donovan spoke at the Citizens' Housing and Planning Association (CHAPA) dinner about HUD's response to the housing crisis and how we are using this unique moment to lay the groundwork for a more resilient, sustainable future in Massachusetts and throughout the country.

Read Secretary Donovan's entire remarks

Yesterday, Secretary Donovan announced a series of proposals to ensure that HUD's core housing programs are open to all, regardless of sexual orientation or gender identity.

HUD will commission the first-ever national study of discrimination against members of the lesbian, gay, bi-sexual or transgender (LGBT) community in renting and sale of housing. In a state study, Michigan's Fair Housing Centers found that nearly 30 percent of same-sex couples were treated differently when attempting to buy or rent a home.

The initiatives announced yesterday will:

• clarify that the term "family" as used to describe eligible beneficiaries of our public housing and Housing Choice Voucher programs include otherwise eligible lesbian, gay, bi-sexual or transgender (LGBT) individuals and couples
  
  
• require grantees and those who participate in the Department's programs to comply with local and state non-discrimination laws that cover sexual orientation or gender identity; and
  
  
• specify that any FHA-insured mortgage loan must be based on the credit-worthiness of a borrower and not on unrelated factors or characteristics such as sexual orientation or gender identity.

Secretary Donovan joined Enterprise Green Communities at the Newseum in Washington D.C. today to applaud their $4 billion commitment to create, preserve or retrofit 75,000 green, affordable homes and buildings within the next 5 years.

Enterprise’s efforts will not only bring the affordable housing and community development into the 21st century, it will save consumers money and create millions of new green jobs.

HUD has invested around a third of our $14 billion in Recovery Act funds for the greening of our nation’s public and assisted housing stock. For example the Department has also encouraged public housing authorities to go green through $600 million in Capital Fund competitive grants. These grants were awarded to increase energy efficiency in their properties, to save money, to protect the environment, and to create jobs.

Secretary Donovan joined President Obama today for his first trip to New Orleans since his election.

He joined the President along with Department of Homeland Security Secretary Janet Napolitano and Department of Education Secretary Arne Duncan at a town hall meeting at the University of New Orleans. This town hall meeting allowed the people of New Orleans to express their thoughts, challenges, and feedback directly to the President.

Earlier in the day, Secretary Donovan broke ground with Senator Mary Landrieu, Assistant Secretary for Public and Indian Housing Sandra Henriquez, and New Orleans Mayor Ray Nagin for the B.W. Cooper Housing Development. Once redevelopment is complete, B.W. Cooper will consist of a total of 740 units. There will be 660 units of mixed-income rental housing onsite which includes 220 public housing units and 80 off-site homeownership units located throughout the nearby neighborhood. Residents of B.W. Cooper will have access to greater economic opportunities and new community anchors such as a business center, day care center, and playgrounds for children.

Read Secretary Donovan's remarks at the ground breaking ceremony

Yesterday, Secretary Donovan stopped in Orlando for the first leg of his trip to the Sunshine State.  Joined by Congressman Alan Grayson and Orlando Mayor Buddy Dyer, Secretary Donovan toured a foreclosed neighborhood and a home that will be renovated through the Neighborhood Stabilization Program (NSP).

Using NSP funds, the home was purchased by the City of Orlando for $125,000 and will invest another $20,000 for repairs and renovation.  The NSP which has already invested $561 million in Florida alone seeks to address neighborhood blight and decreasing home values, while also creating jobs and affordable housing.

Also joining Secretary Donovan, Congressman Grayson, and Mayor Dyer on the tour was Orlando homeowner Juanita Roberts.  Roberts is just one of the American families that have taken advantage of the Making Home Affordable Program.  Two months behind on her mortgage payments, the program allowed Roberts to modify her mortgage which reduced her monthly payment significantly.

This year, for the first time ever, the United States hosted the UN-World Habitat Day at the National Building Museum in Washington DC. World Habitat Day which is celebrated the first Monday in October every year is an international event sponsored by the United Nations General Assembly to promote innovations in affordable housing and sustainable urban development. The theme for this year’s events-- Planning Our Urban Future -- is intended to raise awareness for the need to improve urban planning to deal with new major challenges of the 21st century.

HUD Secretary Donovan co-hosted today’s opening ceremony with UN-Habitat Executive Director, Dr. Anna Tibaijuka. Also in attendance at today’s event; Susan Rice, U.N. Ambassador; Melody Barnes, Director of the White House Domestic Policy Council; Dr. Judith Rodin, President, The Rockefeller Foundation, and Jon Bon Jovi, Member of the U.S. World Habitat Day Honorary Committee.

During his remarks, Secretary Donovan spoke of HUD’s commitment to sustainability. Renewing HUD’s commitment to urban policy, strong, sustainable, inclusive growth in America’s communities is one of the guiding principles of the Recovery Act. Proposing a Sustainable Communities Initiative, HUD will partner for the first time with the Department of Transportation and the Environmental Protection Agency. This partnership will make $140 million in our budget available to localities to better coordinate government efforts to incorporate transportation, housing and land use planning.

Read Secretary Donovanand Dr. Rodin’s Op-Ed “Meeting Our Metropolitan Challenge” in the Huffington Post

Today, Secretary Donovan spoke to the US Conference of Mayors 2009 Fall Leadership Meeting in Seattle to outline HUD’s relationship with America’s cities - to encourage innovation at the local level and to help meet the challenges cities may face.

In order to meet those challenges, Secretary Donovan recognized that a different kind of HUD is needed to make it possible. A partner who invests in cities, encourages local innovation, recognizes that one size doesn’t all and who helps cities build the capacity they need to realize those innovations is required.

Secretary Donovan also spoke of the new relationship in action through the Recovery Act. Since the Recovery Act was enacted HUD has obligated $10 billion Recovery funds to communities across the country. Funds are being used to create jobs where they are needed the most, making homes more energy efficient and strengthening neighborhoods.

Deputy Secretary Ron Sims went home yesterday to spread some good news. Speaking at the 16th Annual Affordable Housing Conference in Spokane, he announced that HUD will make $14.6 million in grants available to local housing authorities across the country.

The grants which are provided through HUD’s Family Unification Program will help housing authorities reunite thousands of children with their parents. The funding will support 1,940 vouchers to provide rental assistance to families whose lack adequate housing is a primary cause of parents being separated or near-separated from their children.

During his announcement, Deputy Secretary Sims stated that “Building strong, engaging families must first begin with a stable home. This funding will provide families the opportunity to safe, decent affordable housing for them and their children.”

Read the full text of the funding notice

Did you know that HUD offers an in-depth view of housing in the United States through research, data, and reports? You can download over a 1,000 publication and data sets published by HUD's Office of Policy Development and Research (PD&R). Most reports can also be ordered in a hard copy format from the HUD User Web Storefor a small fee.

The publications span a wide range of topics in the fields of housing and urban development. Topics will range anywhere from Community Development to Fair Housing and Housing Financeto Urban Affairs and Planning.

If you can't find what you need, you can perform a more advanced search to help you narrow it down.

Read more about HUD User programs and activities

Last week, Secretary Donovan announced $1.43 billion in homeless assistance grants to help the thousands of local projects that house and serve homeless persons and families across the country.

The grants which are offered through HUD’s Continuum of Care (CoC) homeless assistance programs reduce the incidence of homelessness in CoC communities. They assist homeless individuals and families to move to self-sufficiency and permanent housing.

Read more about HUD’s Notice of Funding Availability for CoC Homeless Program

Soon to be first-time home buyers have a very important date to remember:  November 30, 2009.  This is when the First-Time Homebuyer Tax Credit is set to expire.  The American Recovery and Reinvestment Act of 2009 is providing qualified first-time homebuyers with a tax credit of up to $8,000 when they close on their home after April 8, 2008 and before December 1, 2009.

In May, Secretary Donovan announced that first-time homebuyers will be allowed to use the tax credit toward the purchase costs of an FHA insured home.  FHA approved lenders are able to monetize the tax credit for use as an additional down payment or for closing costs.

Read more about using the First-Time Homebuyer Tax Credit

April Tey Brown

When I tell people I work at HUD they immediately start to rattle off questions about FHA, public housing, and HUD Homes. I am sure they aren’t the only ones who have these questions so I’ve compiled a list of frequently asked questions to have at your fingers tips.

Renting: public housing, Section 8, and other rental assistance programs

Homebuying: low down payments, FHA mortgages, and homebuying options

Homeowning: refinancing, reverse mortgage for senior citizens, and home improvements

HUD Homes: HUD homes for sale and how to buy a HUD home

Relocation, Foreclosure, Eviction: avoiding foreclosure and responding to eviction notices

FHA Refunds: FHA premium refunds and “tracers”

Homeless: services for the homeless

Fair Housing: housing discrimination and HUD’s fair housing logo

Communities: how to get involved in your community and how HUD helps communities

Consumer Information: housing discrimination, health hazards, and other consumer information

Working with HUD: grants, contracts, and doing business with HUD

Complaints: how to file a housing discrimination complaint and report fraud in HUD programs

About HUD: HUD’s organization and jobs

Equal Treatment Regulations.

Working at the Department of Housing and Urban Development (HUD) you are bound to hear about various housing discrimination cases.  You will learn that although each case is different they all have one thing in common: the Fair Housing Act will protect anyone who is refused safe, decent, and affordable housing based on race, color, religion, sex, national origin, disability, and familial status.

A recent case resulted in a $100,000 settlement after a lender refused to make loans on row houses in Baltimore, Philadelphia, and Washington, D.C.

And that is why it is so vital that our fair housing professionals (and anyone else interested in learning about the Fair Housing Laws) who are out there enforcing the fair housing laws are properly trained.  The Patricia Roberts Harris National Fair Housing Training Academy (NFHTA) recently launched a new education initiative to address fraudulent, predatory, and unfair lending practices of some mortgage lenders.

The free seminars, which will be held in various major cities, will focus on

• Lending Discrimination: What you need to know
• Financial Aspects of Buying a Home
• Preventing Foreclosure
• Borrower/Buyer Beware

Visit NAFTA’s website to register or to find out if the training will be coming to a city near you.

Did you know HUD sponsors housing counselor agencies? Housing counseling agencies provide free advice on buying a home, renting, foreclosure avoidance, credit issues or reverse mortgages.

The foreclosure prevention counseling and homeless counseling services are available free of charge through HUD’s Housing Counseling Program.

You can search online for a housing counseling agency near you, or call HUD at 1-800-569-4287. If you are facing foreclosure and want the assistance of a housing counselor, search the list of Foreclosure Avoidance Counselors.

April Tey Brown

Whether you are a first time home buyer (or second, or third) navigating through the process of buying a home can be a bit overwhelming. Last year, I went through the process of buying a home for the very first time and I must admit I had no clue what I was doing. Luckily, I had a great host of mentors that guided me through the process from beginning to end.

If you are in the midst of purchasing a home or about to begin the process, never fear because HUD’s website is filled with information to help you navigate through this process from beginning to end.

HUD Approved Housing Counselors
Find a housing counselor near you. Housing counselors will help you manage money, learn about credit, and navigate the home buying process.

Buying vs. Renting
This calculator will allow you to compare the advantages and consideration of owning vs. renting a home.

How Much Can You Afford?
Sponsored by Ginnie Mae, this calculator will allow you to calculate how much you can afford to spend on a home.

Looking for the Best Mortgage?
Whether you are purchasing a home or refinancing, this booklet will guide you.

Ten Important Questions to Ask Your Home Inspector
Important questions to ask when choosing an inspector for your home inspection.

Buying Your Home: Settlement Costs and Information
This booklet will help you take the big financial step be describing the home buying, home financing, and settlement process.

Home-Shopping Checklist
When you go out to tour homes, make several copies of this checklist to take along with you.This checklist will allow you to compare homes later and make finding the right home for you and your family that much easier.

Wish List
What features are you looking for in your new home?This checklist will help you narrow that down.

On Friday, Federal Housing Administration (FHA) Commissioner David H. Stevens announced plans to implement a set of credit policy changes that will enhance the agency's risk management functions. These changes will strengthen FHA's reserves and better manage risk. If the changes are approved, they will be effective January 1, 2010.

The credit policy changes will primarily focus on ensuring responsible lending and risk management for FHA-approved lenders. These changes stem from lessons learned during the credit crisis and will align FHA with the Administration’s goal of regulatory reform. The credit changes will ensure that lenders in the mix have long-term interest in performance of the loans they originate.

Additionally, Commissioner Stevens will be hiring a Chief Risk Officer for the first time in FHA's 75-year history. The Chief Risk Officer will be responsible for overseeing the coordination of FHA’s efforts to concentrate risk management in a single division devoted solely to managing and mitigating risk to the FHA’s insurance fund across all of its programs.

Read more about Commissioner Stevens' proposed changes

Today is the third and final stop of the Sustainable Communities Tour. Secretary Shaun Donovan, Environmental Protection Agency (EPA) Administrator Lisa Jackson, Department of Transportation (DOT) Secretary Ray LaHood, and White House Director of Urban Affairs Adolfo Carrion officials were in Denver, Colorado. They were joined by Colorado Governor Bill Ritter and Denver Mayor John Hickenlooper for a tour of Denver’s Union Station and South Lincoln Park Homes. The South Lincoln Park Homes which are located next to a light rail stop has stimulated transit-oriented development in the community. Built on a formerly contaminated brownfield site this neighborhood will offer a range of housing and transportation options all while minimizing the environmental impact of its residents. During this stop, Secretary Donovan announced that HUD will be awarding $300 million in Recovery Act Public Housing Capital Fund competitive grants for 36 “green” public housing transformation projects across the country. $10 million of the Public Housing Capital Funds will be going to the Denver Housing Authority to continue their development of the South Lincoln Park Homes.

As part of the Sustainable Communities Tour, Secretary Shaun Donovan, Environmental Protection Agency (EPA) Administrator Lisa Jackson, Department of Transportation (DOT) Secretary Ray LaHood, and White House Director of Urban Affairs Adolfo Carrion continued their three-city Sustainable Communities tour with a stop in Dubuque, Iowa. They toured the historic Millwork District which is being transformed into a sustainable neighborhood focusing on mixed income housing, multiple transportation options and minimized environmental impact. Secretary Donovan also announced new steps HUD is taking toward achieving the goals of the Sustainable Communities Partnership during this stop. He announced new guidelines that will make it easier to recycle land and develop multifamily housing in communities across the country.

HUD Senior Advisor for Sustainable Communities Shelly Poticha joined Environmental Protection Agency (EPA) Administrator Lisa Jackson, Department of Transportation (DOT) Secretary Ray LaHood, and White House Director of Urban Affairs Adolfo Carrion in Chicago today for the first stop of the Sustainable Communities Tour. While in Chicago, administration officials joined Mayor Richard Daley to tour the Bethel Center in West Garfield Park. The community which is being redeveloped will focus on affordable energy-efficient homes, traffic reduction strategies, brownfield redevelopment, and close proximity to schools and jobs.

Fifteen public housing authorities across the country will be receiving $96 million in grants to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds which are awarded through the American Recovery and Reinvestment Act of 2009 will be specifically used for public housing transformation, to help redevelop public housing that is blighted and distressing to the surrounding community.

HUD reviewed applications from public housing authorities and awarded grants to public housing authorities that effectively addressed the requirements in the Notice of Funding Availability.

Read press release for a list of the winners.