HUD Works to Support Housing Groups Efforts to Rebuild Atlanta Neighborhoods Affected by Foreclosure Crisis

The multi-day kickoff recently by housing groups working to rebuild local neighborhoods in Atlanta could not have been more successful. Just over 220 people participated in the event by housing groups as HUD joined them to encourage the purchase and renovation of 7,500 metro Atlanta homes over five years in an effort to rebuild neighborhoods after the foreclosure crisis. Included in the call to action were the Atlanta Neighborhood Development Partnership (www.andpi.org/) and Resources for Residents and Communities (http://rrc-atl.org/), both network members of NeighborWorks America (www.nw.org/network/index.asp), along with Invest Atlanta (www.investatlanta.com/) and Lifecycle Building Center (www.lifecyclebuildingcenter.org/).

Ed Jennings speaking

"It's encouraging to see such an impressive collaboration in support of this – all to help restore our neighborhoods," said HUD SE Regional Administrator Ed Jennings, Jr. "We agree that 203(k) loans can be an ideal solution for those who have their heart set on a specific home in a specific neighborhood, but also need money for restoration. HUD stands ready to work with these families and neighborhoods for continued recovery in the housing sector."

"We are thrilled at the initial response, which included 175 families who came out on a wet Saturday to tour homes at various stages of renovation," said Derrick Duckworth, leader of Committed to Communities (http://thebeltlineteam.com/home.asp), a group of REALTORS, lenders and non-profits. "The time is right for purchase and renovation. The rebound of the housing market has inventories at early 90s levels, and builders have returned. Competition is getting fierce. This option can expand the housing inventory by tens of thousands of homes."

One prospective homebuyer attending the kickoff was encouraged. "After the event, I felt hopeful about my ability to purchase a home in the city," said Courtney Martin. "As a teacher, I wasn't sure if that would be possible. Now with this helpful information, I will seriously consider purchasing a home that needs renovation."

The groups' two-day awareness and educational event in the Adair Park neighborhood took place on Friday August 16 and Saturday August 17. On Friday some 50 community leaders, including Atlanta City Council President Ceasar Mitchell and HUD SE Regional Administrator Jennings, had an opportunity to preview the progress there which was followed by the house tour on Saturday.

During both days homes in varying degrees of progress were viewed such as homes in the before, during and after phase of purchase and renovation.

"Purchase and renovation won't cost local governments a cent and it's badly needed," said John O'Callaghan (www.housingpartnership.net/about-us/bio/john_ocallaghan.php), President and CEO of Atlanta Neighborhood Development Partnership. "Despite a 40 percent improvement since the depth of the recession, Atlanta still has the dubious distinction of having the fifth highest vacancy rate among major cities, and Georgia was No. 5 in the nation in foreclosures last year."

The 203(k) loans provide an effective means to purchase and renovate homes. In essence with one mortgage, approved buyers can buy the home and obtain financing for renovation to meet their specific needs. The loan is usually simpler and often more affordable than separate purchase and construction loans.

Not only does the option revive homes, but it also creates the chance to reuse materials. Thus on both days the non-profit Lifecycle Building Center demonstrated the use of reclaimed building materials by setting up salvaged product displays in one home. The group's goal is to promote resource efficiency in buildings by salvaging and reusing materials instead of sending them to landfills, thus reducing environmental impact and providing substantial cost savings.

Said Jill Arrington, CEO of Resources for Residents and Communities, "Sustainability of our housing stock is another important reason to consider purchase and renovation. The loans may take a little more time, but with the federal guarantee and low down payment, and the chance to get exactly the home you want, they're worth it."

Frank George of Invest Atlanta noted other advantages. "Purchase and renovation will create badly needed jobs. Also, homebuyers in the city of Atlanta can use NeighborhoodLIFT money (http://demo.investatlanta.com/BusinessDevelopmentIA/neighborhood-lift) for purchase and renovation, with up to $15,000 available for each home and more than $2 million still available. We think homebuyers should expand their horizons by considering this."

They promised to continue their education efforts. They noted that Atlanta is already a leader in purchase and renovation across the country, but the area can do much more.

The groups chose Adair Park (http://adairpark.com/2011/03/23/committed-to-communities-this-saturday/) for the two-day event because of its recent rebound, using purchase-renovation. Adair Park is an intown Atlanta neighborhood with a leafy park that adjoins the Atlanta Beltline. At least seven houses have been purchased recently for renovation.

Go to Rehab a Home with HUD's 203(k) on HUD's website to learn more.

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