Posted by scott (tx) on July 03, 2001 at 13:49:52:
We have been operating a ‘nonprofit’ (misnomer) here in Texas for some time. We bid exclusively on HUD and VA properties. If you go to the HUD website, you will see there are extremely strict regs that you must follow in order to keep your status. HUD will grant a discount of up to 15% off the list price of one of their properties. However, as I said there are very strict rules and regs to follow, and you must clearly document a percentage of the discount as returned to the owner-occupant/homebuyer in the form of prepaids, closing costs, grants, downpayment assistance, etc… HUD does not give approved non-profit status without careful consideration and frequently audits to ensure compliance.
They can shut you down instantly and prevent you from submitting any bids which in essence puts you out of business. There is a lot to consider with a venture like this and although I certainly applaud you for trying to provide a community service, it is not for the faint of heart.