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Real Estate Owned (RED) Property Donation Program Frequently Asked Questions Q. What is the RED Property Donation Program? A. The Real Estate Owned Property Donation Program facilitates the transfer
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For Potential Cities and the 2018 Red Donation Form. If you would like to support your local Red Community, download the application and then fill it out. You may also download and fill out the RED Property Donation Form. Q. Is there a fee for donating RED? A. No. RED donations are tax-deductible. As a charitable gift, the community will reimburse Wells Fargo for the charitable contribution. Q. Does any portion of any donation go toward the RED Property Donation program? A. Some Red program revenues is allocated to charitable contributions. Most Red program revenues go toward the development of community development partnerships. Please see our Community Development Partners page for further information and to view the current list. Q. Does my city or neighborhood get paid in connection with the donation? A. No. The city will receive an amount that does not exceed its allocated amount of income tax revenue for the fiscal year for which its portion of the RED Program is made available. This allocation is not an entry and exit fee which is typically charged by charities. We also have no way of controlling how the other Red program revenues may be utilized by the city. Q. How can I contact my city or neighborhood about the donation opportunity? A. The Housing Foundation will work with potential cities to reach out to local leaders and public officials to learn about the opportunity. We will provide the city with further information about our program and to facilitate the review process. Q. What are the potential benefits if the RED program is successful in my community? A. Housing for low and moderate income families – The average homeownership rate for neighborhoods that are eligible for the RED program is just under 70 percent, while the overall percentage is just under 50 percent for neighborhoods that are not eligible for the RED program. Economic development in the neighborhood – Red communities tend to become economically vibrant when homes can be rented at below 30 percent of market rate (RPM). The neighborhoods are less likely to experience declines in property values and are less likely to experience an influx of new residents from other areas that are not eligible for the program. In many cities that are eligible for the RED program, community leaders have identified specific areas where there are opportunities to enhance the economic vitality of their areas. We encourage the city government to actively seek community partners interested in strengthening our communities. We believe that the RED program can be a catalyst for building up other local economic development efforts in our communities.
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