The Department of Housing and Urban Development (HUD) is a branch of the Federal government dedicated to overseeing the market for homes and property. It understands that homeownership is part of the American dream, and makes its goal to ensure that all Americans have access to equal housing opportunities. For this reason, it fights strongly for housing opportunities for ethnic minorities, the elderly, the disabled, homeless persons, and those living with HIV/AIDS.

To achieve this goal, HUD issues grants devoted to specific causes in places where their assistance is needed the most. Oftentimes, HUD assistance takes the form of homeownership counseling, affirmative action, and financial assistance for downpayments on new homes. In addition, HUD sponsors construction projects in many different areas, aiming to revitalize downtrodden areas, or to provide affordable housing for families.

When HUD builds single family homes, it does not hold the ownership of these buildings, but instead sells the property to the tenant. Oftentimes, this property is significantly discounted for those who qualify, but HUD tries not to hold ownership of property units.

If a HUD homeowner does not make payments on his mortgage in a timely fashion, he can be evicted and his home foreclosed upon. In this instance, the ownership of the home returns to HUD. In these cases, HUD tries to sell the properties off as quickly as possible. Properties sold like this are often sold at a significant discount, and are auctioned off through real estate agents.