On May 29, 1998, HUD published for public comment a proposed rule that would amend HUD's regulations for the disposition of HUD- acquired single family properties. Among other amendments, the proposed rule would provide HUD with the necessary flexibility to use a variety of innovative, efficient, and cost-effective methods for selling its inventory of single family properties. HUD's goals are to reduce the inventory of single family properties while continuing to expand homeownership opportunities for American families and to ensure the stability of the Federal Housing Administration (FHA) Mortgage Insurance Fund. This final rule makes effective the amendments in the May 29, 1998 proposed rule and takes into consideration the public comments submitted on the proposed rule.