Final answer:
HUD Homes offered on a 'priority basis' means that preferential treatment is given to certain groups during the initial sales phase, often aligned with social goals. While HUD's past included exclusionary 'redlining' practices, they now focus on federal housing assistance to counteract ongoing market discrimination.
Step-by-step explanation:
When HUD Homes are offered on a "priority basis," it means that certain groups are given preferential treatment in the initial phase of the sale process. This often applies to buyers who intend to make the property their primary residence or to entities that fulfill a social purpose, such as non-profit organizations or governmental entities. The history of the Federal Housing Administration (FHA) reveals a shift from practices that excluded non-white, particularly black families from homeownership through policies known as "redlining" to more inclusive approaches. Federal housing assistance is now aimed to alleviate this past discrimination.
However, studies indicate that housing market discrimination is still prevalent, with a 2012 study by HUD highlighting that black, Asian, and Hispanic homebuyers and renters still face significant barriers compared to white buyers and renters. HUD Homes being offered initially on a priority basis can be seen as a step towards rectifying the inequalities evident in the housing market.