I am proud to say as a member and Past President of the Mainstreet Organization of Realtors serving the Chicago, Illinois area, presently serving on the Board of Directors of the Illinois Association of Realtors, and a member of the National Association of Realtors, our daily focus is on protecting the private property rights of all Valued Homeowners in our great nation.
In doing so we work to restore vibrant housing markets and neighborhoods across the country. One of our numerous goals is for Vacant, dilapidated homes renewed, providing safe, comfortable homes for families. Investors, allowed to access credit unavailable because of the current economic crisis. Importantly, people put to work fixing these homes. Finally, neighborhoods stabilized and previously vacant homes contributing to the local property tax base.
Below is a letter sent from Maurice "Moe" Vessi, our 2012 NAR President to the Secretary of Housing and Urban Development expressing our desire for a partnership in accomplishing the above mission through opening the door to allowing Investors to use the Hud-203k financing program to purchase the more than 500,000 inventory of Real Estate Owned vacant homes flooding the marketplace.
You can help by sharing this letter with anyone you know who can help influence this decision making process. Your efforts will help stabilize real estate and create additional employment and small business opportunities.
January 6, 2012
The Honorable Shaun Donovan
Secretary of Housing and Urban Development
Washington, DC 20410
Dear Secretary Donovan:
On behalf of the 1.1 million members of National Association of R
EALTORS® (NAR), I am writing to request that investors be permitted to participate in the Federal Housing Administration’s (FHA) Section 203(k) Rehabilitation Mortgage Insurance Program. The National Association of REALTORS® is America’s largest trade association, including NAR’s five commercial real estate institutes and its societies and councils. REALTORS® are involved in all aspects of the residential and commercial real estate industries and belong to one or more of some 1,400 local associations or boards, and 54 state and territory associations of REALTORS®.
NAR recommends permitting investors to participate in the 203(k) Program to purchase vacant and foreclosed properties in need of significant rehabilitation. According to the Federal Reserve
1, approximately 500,000 of 2,000,000 vacant homes for sale in the second quarter of 2011 may have been real estate owned (REO). An additional two million REO properties could flood the market in 2012 and 2013. Many foreclosed properties are severely damaged after they are vacated making them difficult to sell. Investors utilizing the 203(k) Program could purchase dilapidated, foreclosed properties for rehabilitation and resale or conversion into rental units.
Any enhancements to the 203(k) Program should include appropriate measures to ensure protection of the taxpayer and FHA’s Mutual Mortgage Insurance Fund (MMIF). NAR believes, for example, that higher risk transactions identified by the HUD Inspector General in the 1990s should be excluded from this new initiative for the program.
Amending the 203(k) Program will help restore vibrant housing markets and neighborhoods across the country. Vacant, dilapidated homes will be renewed and provide safe, comfortable homes for families. Investors will be able to access credit that is unavailable because of the current economic crisis. People will be put to work fixing these homes. Finally, neighborhoods will be stabilized and previously vacant homes will contribute to the local property tax base.
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