Does the net development guidelines apply to all HUD Homes?
Net development guidelines apply to all Hud homes purchased at a discount. Appendix A of Mortgagee Letter 2001-30 provides a detailed list of the costs allowed in the Net Development Cost calculation. in addition, Mortgagee Letter 2002-01 also states: “With the issuance of this Mortgagee Letter, non-profit will be required to include in their annual reports information on all REO properties purchased at a discount – 10% or higher. These reports are due each February to the Homeownership Center Director and provide information about the nonprofit’s program accomplishments over the past calendar year (See Mortgagee Letter 2000-08, Attachment 3). Previously, only nonprofits that purchased REO properties at a 30% discount were required to submit this annual report.
