I would also separate the receipts by rehabilitation and operating expenses.

This is not working as the stock of housing they own is generally in bad condition and requires repair beyond the ability of the individual owner to fund.The Obama administration is stating two things:1) The government should not own individual properties that have been repossessed through foreclosure.2) They want to enact a program that encourages investors (as opposed to owner occupants HUD currently favors) to acquire these properties who can afford to rehabilitate them and then rent them or sell them.As an investor interested in acquiring a portfolio of rental properties, I'm curious to double-click into the details of the program and understand what exactly is being proposed.

Substantially rehabilitated one through three family dwellings are exempt for five years (if they were previously vacant for 18 months) or one year (if occupied), and if the rehabilitation exceeds 50% of the dwelling’s value.

When I wanted to learn another/different/better approach to rehabilitation of unloved properties as buy-n-hold investments, I networked to find out who were the reputable flippers and, from that list, the ones whose attitude to energy efficiency retrofits was closed to ours.    

Borrower further represents that the loan funds will be used solely for the purchase, refurbish, rehabilitation, remodel, service of, and to otherwise maintain such real property, and for no other purpose.

According the HUD website the loan can be used in the following ways:Eligible Activities:The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place.

Mostly the streets and areas that have changed so far have been tear down and rebuild as opposed to rehabilitating the older houses.  

Indianapolis under Mayor Joe Hogsett is attempting to tear down, rehab or otherwise rehabilitate vacant and problem homes throughout the city."

I am also working on a practicum at the Department of Rehabilitation doing psychological assessments.    

Rising costs and regulatory burdens at all levels of government depress apartment development and rehabilitation nationwide.