HUD-Approved Nonprofit Organizations and Governmental Entities

Nonprofit Organizations and Governmental Entities Program Information:

• Application and Recertification Process and Requirements

  New Applicants

  The Federal Housing Administration (FHA) requires prospective Nonprofit Organizations to obtain approval and be placed on the HUD Nonprofit Roster to participate in FHA's Single Family Nonprofit Programs as detailed in FHA's Single Family Housing Policy Handbook 4000.1 (SF Handbook). Interested Nonprofit Organizations must contact HUD by sending an email to the FHA Resource Center at answers@hud.gov. The email must contain the following preliminary information:

  • Organization's legal name and physical address of the main office;
  • Name, phone number, and email address of the Executive Director;
  • Name, title, phone number, and email address for all staff members who will be requesting system access for the required application and ongoing reporting;
  • Effective date of the Nonprofit Organization's 501(c)(3) tax-exempt status (if applicable) as reflected in the Internal Revenue Service Letter of Determination;
  • Nonprofit Organization's Federal Employer Identification Number;
  • The FHA Single Family Nonprofit Program(s) for which the Nonprofit Organization is seeking approval;
  • An indication as to whether or not the Nonprofit Organization is an Instrumentality of Government; and
  • Confirmation that the Nonprofit Organization has two years of relevant housing experience within the last five years.

  HUD will evaluate the preliminary information provided to ensure an applicant meets baseline requirements before the applicant proceeds to the full application process. Applicants who provide acceptable preliminary information will be contacted by HUD and provided instructions for accessing FHA's Nonprofit Data Management System (NPDMS), including a logon ID and temporary password. NPDMS is a system used by HUD to receive and review Nonprofit application packages and recertification packages.

  After FHA deems the preliminary information acceptable, a Nonprofit Organization can proceed with the application process. The Nonprofit Organization Application Guide will help applicants ensure they have included all required application information. Nonprofit Organizations must submit a completed application within 30 days of receiving access to the NPDMS:

  • A completed application refers to an application that satisfies all general application requirements and all program-specific application requirements for the program(s) in which the Nonprofit Organization seeks approval.
  • HUD approval can take between 60 and 90 days. Approval may be delayed on incomplete applications.

  If the application is approved, the applicant will receive an approval letter and be placed on the HUD Nonprofit Roster. If approved for the HUD Homes program, the approval letter will provide instructions for obtaining a Name and Address Identification Number (NAID). The NAID is required as part of the purchase process for HUD real-estate owned homes.

  Recertification

  To retain HUD approval, Nonprofit Organizations must complete the recertification process prior to approval expiration. Recertification packages are due to HUD 90 days prior to approval expiration. Specific information about recertification, including the information that must be submitted as part of the recertification, can be found in the SF Handbook's Doing Business with FHA section for Nonprofit Organizations and Governmental Entities.

• Nonprofit Data Management System (NPDMS)

  The Nonprofit Data Management System (NPDMS) is the Federal Housing Administration’s (FHA) web-based data management system used by Nonprofit Organizations and Governmental Entities. Through NPDMS, Nonprofit Organizations and Governmental Entities can:

  • Submit their application for approval to participate in FHA Single Family Nonprofit Programs;
  • Submit the required recertification to FHA to continue participating in FHA Single Family Nonprofit Programs;
  • Track the inventory of HUD Real Estate Owned (REO) properties they have purchased;
  • Perform Net Development cost calculations;
  • Track the resale of HUD REO properties to qualified buyers;
  • Access training materials such as user guides, tutorial videos, and links to web-based training sessions.

  For help with the NPDMS, please contact the NPDMS Help Desk at (805) 699-2053 or your assigned HUD contact.

  To access the NPDMS, go to: P260 MM3 Sites - P260 Portal (hudp260.com)

• Program Guidelines

  The following identifies rules, Single Family Housing Policy Handbook 4000.1 (SF Handbook) citations, and other policies for the Federal Housing Administration’s (FHA) three Single Family Nonprofit and Government Entity Programs: HUD Homes; FHA Mortgagor; and Secondary Financing. FHA requires prospective Nonprofit Organizations to obtain approval and be placed on the HUD Nonprofit Roster to participate in FHA’s Single Family Nonprofit Programs, as detailed in FHA’s SF Handbook.

  HUD Homes Program

  HUD real-estate owned (REO) properties can be purchased by HUD-Approved Nonprofit Organizations and Governmental Entities at a discount and during the exclusive listing period. Individual property files must be maintained detailing the purchase and sale of properties. Net development cost calculations apply for properties purchased at a discount for which a Land Use Restriction Addendum must be used. For additional information, please refer to:

  • Individual Property Files (includes net development costs and the Land Use Restriction Addendum): SF Handbook section I.B.4.c.iii
  • Disposition: SF Handbook section IV.B

  FHA Mortgagor Program

  HUD-Approved Nonprofit Organizations and Governmental Entities may apply for the same FHA-insured financing as owner occupants. For additional information, please refer to:

  • Limit on 203(k) FHA-Insured Mortgages: SF Handbook section I.B.4.c.ii
  • Origination through Post-Closing/Endorsement: SF Handbook section II.A

  Secondary Financing Program

  HUD Approved Nonprofit Organizations and Governmental Entities provide secondary financing assistance to homebuyers utilizing FHA insurance on a first mortgage when that assistance is secured with a second mortgage or lien. Secondary financing requirements must be met by HUD-Approved Nonprofit Organizations and Governmental Entities as well as by mortgagees. For additional information, please refer to:

  • Origination through Post-Closing/Endorsement: SF Handbook section II.A
  • Interpretive Rule, Federal Housing Administration: Prohibited Sources of Minimum Cash Investment under the National Housing Act: /sites/documents/5679n01fhamincainvesinter.pdf

• HUD Nonprofit Organization Roster (searchable)

• Quality Control and Monitoring

  Quality Control

  A Nonprofit Organization’s application to participate in the Federal Housing Administration’s (FHA) Single Family Nonprofit Programs must include the submission of a Quality Control Plan (QC Plan). The QC Plan should explain the Nonprofit Organization’s internal and external auditing procedures and monitoring procedures.

  Once a Nonprofit Organization is approved to participate in FHA’s Single Family Nonprofit Programs, the QC Plan must be implemented. Nonprofit Organizations are required to communicate findings revealed under their plan immediately to HUD.

  See the Quality Control, Oversight, and Compliance section of the Single Family Housing Policy Handbook 4000.1 (SF Handbook) section V.B.2 for more information.

  Monitoring

  FHA monitors Governmental Entities and FHA-Approved Nonprofit Organizations participating in FHA’s Single Family Nonprofit Programs as part of its ongoing QC Plan activities to ensure compliance with FHA requirements. In addition, FHA’s Homeownership Centers conduct remote and on-site reviews for monitoring purposes.

  See the Quality Control, Oversight, and Compliance section V.D.3 of the SF Handbook for more information.

For more information, contact the FHA Resource Center.