Without an immediate, responsible and practical revitalization plan, the property's future looked bleak: HUD foreclosure on the property, dislocation for the low-income residents, and a major potential loss for the taxpayers.

But sometimes a visit to the "brink" and firm encouragement from the Department can open eyes and change outcomes, for individuals, communities, and housing developments. In the case of Daytona Garden Apartments, the threat of foreclosure was the final warning alarm. Facing its own significant individual loss of investment, the owner created a workable revitalization plan and aggressively worked to form a new partnership of existing owners and new investors. The new owner, Gardens of Daytona Ltd., invested the necessary capital and began restoration of the complex in April 2001. Rehab work was overseen by the DEC and the Jacksonville Hub.

In January, 2002, renovation of the first building was completed and two adjacent buildings were expected to be ready for occupancy by the end of the month. Rehabilitation will reduce overall density from 256 to 230 (larger) units and improve the quality of life for tenants and the neighborhood. Dislocation of existing residents was minimized, requiring only temporary relocation while their building was being rehabbed. Rehabilitation of the remaining 10 buildings is expected to be completed by July, 2002. Based on the initial results, the complex will be indistinguishable from a conventional market-rate rental project.

Using tax credits but without any additional financial assistance from the Department, the owners and HUD worked together and produced a solution that benefited everyone - including the American taxpayer. At a ribbon-cutting ceremony on January 4, 2002, Daytona Beach Mayor Bud Asher (above, center), Jacksonville Hub Director Ferdinand Juluke, project manager Bob Osterman, DEC staffer Florence Welch (left), and DEC team leader Dan Abel (right), joined with Daytona Garden residents, owners and management for a well-deserved celebration of the first rejuvenated building.