Sustainable Home Ownership
The LISC-led multi-CDC coalition in Maricopa County has developed a three-part approach
for the re-use of vacant foreclosed properties as affordable housing
opportunities for qualified first time homebuyers. The coalition, comprised of 9
experienced non-profit agencies currently actively engaged in affordable
housing/counseling efforts, has set a goal of re-cycling 250 units over the next
24 months. This approach involves
short-term, mid-term and long-range strategies for these units.
The short-term strategy involves connecting qualified home buyers with foreclosed property information and down payment assistance as needed to make the purchase affordable. The mid-term strategy involves CDC purchase/rehabilitation of foreclosed properties and resale with down-payment assistance. A revolving loan fund will be developed to assist the participating CDC’s to acquire/rehabilitate houses and resell them quickly to qualified first time homebuyers. The long-term strategy is a lease-to-own program that would produce 50 housing units in the first year, whereby non-profits would acquire/rehabilitate properties and lease them for up to three years to families that need an extended period of time to clean up their credit and stabilize their income so that they will qualify for homeownership and down payment assistance.
LISC Phoenix has selected Housing Our Communities, Inc. to act as administrator for our foreclosure initiative. John Smith, Executive Director of HOC, will be working closely with Paul Harris to implement the strategies of this initiative to reach our stated goal of transferring 250 REO properties to first-time homebuyers over the next 2 years.
HOC has a 20 year history of successfully implementing a first-time homebuyer program for low and moderate income families in both Arizona and Nevada, using an acquisition/rehab model. We are very excited about launching this initiative and look forward to working with all members of our coalition to successfully implement this new program.