Assessment of the 602 non-profit disposition program: Final Report
Temkin, K., Turner, M., & Davis, L. Bethesda, MD: Buron, L., & Rodda, D.
The U.S. Department of Housing and Urban Development (HUD) contracted with Optimal Solutions Group, LLC, and Abt Associates, Inc., to evaluate a newly initiated iteration of the 602 Non-Profit Disposition Program (602 Program). This final report describes that evaluative research.
The research at hand is unusual because it seeks, in large part, to identify appropriate baseline information and an associated analytic structure for future evaluations of the 602 Program. The revamped program sells HUD-held single-family homes at deep discounts to units of general local government (UGLs) and non-profit organizations (NPs) for rehabilitation and resale. The program’s purpose is to provide homeownership opportunities to low- and moderate-income households and to revitalize economically troubled urban spaces.
Under the 602 Program, UGLs and NPs establish an Asset Control Area (ACA) within a larger economically depressed zone that has already been designated for assistance as a HUD Revitalization Area. The participating agency contracts to purchase all HUD-owned single-family homes in the ACA tract. These homes, which were acquired by HUD after borrowers defaulted on HUD-insured mortgage loans, tend to need major repairs. The 602 Program provides guidelines for determining purchase prices paid by UGLs and NPs and provides timeframes for disposal of the properties. Because ACAs play a crucial role in the new iteration of the 602 Program, the program also is known as the Asset Control Area Program (ACA Program).
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