Hale Empowerment and Revitalization Organization (HERO) to acquire and rehab former ‘HUD homes’
MOBILE, AL – November 16, 2010 – (RealEstateRama) — The U.S. Department of Housing and Urban Development and the National Community Stabilization Trust today announced they will invest more than $4 million to provide permanent homes to 37 Alabama families who were displaced from Hurricane Katrina in 2005. The program is part of a broader effort by HUD, with the Stabilization Trust, to offer financing to acquire and rehabilitate 500 HUD homes in 11 states valued at $40 million.
HUD Secretary Shaun Donovan made the announcement at the Dotch Community Center in Mobile. For a complete listing of the properties involved in today’s announcement, see attached chart.
“Today we offer 37 families in Alabama not only a new home but also a new sense of hope,” said Donovan. “Together, we’re turning foreclosed houses into homes again and helping to stabilize communities in the process. I have no doubt we will produce the results this region needs to not only rebuild, but rebuild stronger, better and faster. ”
“The Stabilization Trust is pleased to support HUD in their efforts to assist communities in need”, said Craig Nickerson, President of the National Community Stabilization Trust. “By improving access to flexible financing, we are helping to improve homeownership opportunity for deserving families and to renovate property in distressed communities; that’s a recipe for brighter days ahead.”
Shortly after Hurricane Katrina, HUD moved quickly to freeze the sale of 1,000 single-family HUD-owned properties (HUD homes) in 11 states to help house families displaced by the storm. These families were allowed to temporarily occupy these properties rent-free. Today, five years after Katrina, approximately 500 of these homes are still occupied. In an effort to find a permanent housing solution for these families, HUD and the Stabilization Trust entered into a partnership whereby HUD will sell the homes at a 50 percent discount while the Trust, in conjunction with Enterprise Community Partners, would provide financing to rehabilitate the properties.
In Alabama, HUD and the Stabilization Trust will invest a combined $4.07 million to allow the Hale Empowerment and Revitalization Organization (HERO), Inc., to rehabilitate 37 homes. A HUD-approved non-profit housing organization, HERO will sell the properties to Katrina evacuees under affordable conditions. If the family is unable to purchase the property, HERO can lease the home to the family. In addition, HERO will partner with local housing authorities to invoke a disaster preference in their administrative plan. This will allow local PHAs to provide the families with a public housing or Housing Choice Voucher unit, thereby allowing HERO to free up the property for sale or lease to another low-income family.
The average sales price for the 37 properties announced today is $85,000 with average rehab costs estimated at between $10,000 and $25,000. For more information about this program, visit HUD’s website.
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.