What is Net Development?
Net Development Cost is a calculation applied to HUD properties sold at a discount of 10 percent or more. It applies to government entities and qualified nonprofit organizations that have been pre-approved by HUD to purchase HUD Homes. Non-profit organizations and government entities must pass on the discount received from HUD to increase homeownership opportunities for low- and moderate-income families and individuals. Appendix A of Mortgagee Letter 2001-30 provides a detailed list of the costs allowed in the Net Development Cost calculation.
