"It's been appraised at $141,000," Manager Dennis Collison said.
"We can sell it and use the proceeds for community development."
The latest asking price for the 1,491 square foot home was $87,164. It was built in 1957.
Collison said he is still investigating the process but expects it will entail "lots of paperwork."
According to the program's facilator's Web site, local governments must identify their purpose and goals for the property, affirm that all proceeds will go on to support local housing or community development initiatives and agree to submit reports to HUD's Homeownership Center.
As the number of foreclosures and bankruptcies continues to rise, it's possible other local governments could follow Capac's lead. Currently, a home in Imlay City, 405 W. First St., is also eligible for the Dollar Homes Initiative.
According to hudhouses.com, there are at least 16 houses for sale under foreclosure or bankruptcy in Attica, 15 in Capac, 12 in Imlay City, eight in Allenton, five in Dryden and three in Almont.