WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) on Friday announced that it has completed a direct mortgage note sale with the State of New York and a non-profit partner to support the revitalization of vacant and abandoned properties and reduce neighborhood blight.
The sale, which was finalized on Thursday, included 70 mortgage notes for single family homes located in cities and towns throughout the State of New York that are vacant or abandoned, and with mortgages that were 90 or more days delinquent. The sale agreement includes provisions that the notes should be held and resolved in ways that promote affordable housing, reduce neighborhood blight, and align with HUD’s mission to strengthen neighborhoods.
“This week’s direct sale is a much welcomed outcome for everyone involved, and most importantly, the communities where these vacant properties are located,” said Lopa Kolluri, Principal Deputy Assistant Secretary for HUD’s Office of Housing. “Through this transaction, 70 properties throughout the State can once again be vibrant community assets and affordable homes for families.”
The transaction was completed with NJCC-NYS Community Restoration Fund II LLC (CRF), a limited liability company comprised of the State of New York Mortgage Agency and New Jersey Community Capital, a non-profit entity. CRF will be able to leverage its public-private partnership in a way that resolves the delinquent mortgages and revitalizes the vacant and abandoned mortgaged properties.
About the Transaction
- Transaction: Direct sale of 70 mortgage notes for vacant/abandoned single family properties in 54 cities and towns in New York State
- Combined Unpaid Principal Balance: $10.71 million
- Sale Price: $4.26 million
- Settlement Date: May 6, 2021
More information about the transaction can be found in the sale report issued today.
About Direct Note Sales
HUD’s Asset Sales Division conducts direct sales of mortgage notes with states or other local government entities. Most government entities choose to work with non-profit affordable housing organizations. A direct sale of defaulted mortgage notes on vacant and abandoned properties allows HUD and the purchaser to work together to source notes on properties in specific geographic areas or other criteria that match the affordable housing and community revitalization goals of the entity. For HUD, a note sale improves returns to the Mutual Mortgage Insurance Fund over returns realized by a real-estate owned sale. HUD’s Asset Sales Division is part of the Office of Finance and Budget in HUD’s Office of Housing.