Hundreds of vacant homes in the District of Columbia will be renovated and sold to low- and moderate-income families under an agreement between a District faith-based organization and the Department.

HUD will sell approximately 300 homes within five DC zip codes to the Church Association for Community Service (CACS) at discounts up to 50 percent. CACS will rehabilitate the homes and sell them to families, in many cases at below-market prices.

"This is exactly what President Bush means when he points to faith that works," Secretary Martinez said. "This agreement is a powerful demonstration of a partnership that will not only put 300 families into homes, but will also breathe new life into these neighborhoods."

"I'm pleased that we have partnered to build and sustain healthy neighborhoods," DC Mayor Anthony Williams said. "The cornerstone of safe, stable neighborhoods is good housing."

To date, HUD has sold 24 homes to CACS and targeted another 124 homes to be sold to the faith-based organization. After it renovates the properties, CACS will market and sell them to eligible homebuyers through its network of more than 60 DC churches. The total appraised value of the homes involved in this agreement exceeds $14 million.

Under the terms of the agreement, HUD will sell FHA-foreclosed properties within five designated "revitalization zones" to CACS at a deep discount in order to help provide for renovation costs. In addition, CACS gets a zero interest grace period for three months to begin the process of renovation and sale of the property. Rehabilitation of a property must take place within six months of CACS taking possession of the property. The following zip codes are covered by this agreement: 20001, 20002, 20011, 20019 and 20032.

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