ACA Program

HUD’s Asset Control Area (ACA) program is a partnership with communities to use FHA foreclosed inventory to strengthen neighborhoods. Units are acquired at a 50 percent discount and sold to low and moderate income homeowners.Communities struggling with high levels of FHA foreclosures may want to enroll in HUD’s Asset Control Area (ACA) program. ACA allows approved nonprofit organizations and local governments to buy foreclosed properties at a 50 percent discount. Once renovated, the properties must be sold to homeowners earning up to 115 percent of area median income. The nonprofit recoups its overhead and developer fee from the difference between the sale price and its costs, though it is limited to a maximum of 15% of development costs.

The program can be a powerful tool to build homeownership, upgrade the housing stock, and prevent foreclosed properties from being sold to investors. Managed correctly, it can easily cover expenses and provide a steady revenue stream. Operating within HUD’s program guidelines is tricky, however, and requires detailed knowledge of neighborhoods, local real estate markets, and scattered site single-family housing rehabilitation.

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