HUD Archives: News Releases

HUD No. 11-66
Adam Glantz
(212) 264-1100
For Release
August 23, 2011


NEW YORK - Regional Administrator Adolfo Carrión joined Islip Public Housing Authority (PHA) Chairman Ronald F Devine, Jr., Town of Islip Supervisor Phil Nolan, Peter Elkowitz, President of the Long Island Housing Partnership, and other local officials to celebrate 18 families moving from renters to homeowners under a unique government program that allows conversion from rental public housing units for residents and other eligible applicants to homeownership.

"In good times or bad, the dream of homeownership remains a goal for many American families," said Carrión. "HUD strives to strengthen communities and improve people's lives, and our Section 32 program fulfills this very mission by allowing eligible individuals or families to become homeowners.  I applaud these eighteen families on becoming first-time homeowners and wish to thank the Islip Public Housing Authority and especially its executive director, Richard Wankel, for making their dreams comes true."

"All of the Housing Authority staff work hard to assist families in need of affordable housing, and I am fortunate to have the opportunity to be part of these efforts," said Wankel.

Under Section 32 of the U.S. Housing Act of 1937, a public housing authority may sell all or a portion of a public housing development to eligible public or non-public housing residents under a plan approved by HUD. To assist the purchase, grants may be provided to eligible participants.  After 10 years, the family owns the house outright, and may remain or sell the unit if they wish with no repayment.

Tudor Lane was a public housing complex in Bay Shore, and part of the Islip Public Housing Authority. It served as a perfect vehicle for the Islip PHA to implement the Section 32 program back in 2006. The plan converted nine two-family, public housing rental units, comprising 2, 3 and 4 bedroom units, into homeownership properties. Under the provisions of the plan, the units were first offered to Islip public housing residents, then, via lotteries, to current Section 8 program Family Self-Sufficiency program participants, Section 8 subsidy recipients, unsubsidized applicants and then to all applicants through public notice.

"Home ownership builds strong communities. I applaud these first-time homeowners on their accomplishment and commend the Islip Public Housing Authority and their partners for their involvement," said Rep. Steve Israel.

"Home ownership remains a hallmark of the American dream, and so we're excited to see these residents achieve what they have worked toward for so long," said Nolan.

The new homeowners consisted of five families who were in-house public housing residents and able to secure mortgages; four families were Section 8 subsidy recipients; and, nine families were selected through the lottery.

The Long Island Housing Partnership, a nonprofit, housing advocacy group, partnered with the Islip Public Housing Authority, to oversee the lottery selection process, mortgage eligibility, and counseling and program eligibility requirements. As part of the approved housing authority plan, eligible applicants are enrolled in the Section 8 Voucher Home Ownership program to assist them for a period of up to 10 years. Homeowners are required to purchase and utilize the residence as their primary domicile for ten years before being eligible to sell the unit and realize any potential sale proceeds.

"This program was a true public private partnership with the Town of Islip, Town of Islip's Housing Authority, HUD and the Long Island Housing Partnership working together to allow the dream of homeownership to become a reality for these families," said Elkowitz.

To prevent "flipping" of the units, mortgages for the full appraised value are recorded, and during the initial five (5) year period, no potential sales proceeds can be realized. The units were offered at affordable prices, ranging from $90,000 up to $110,000, depending upon size.  All purchasers were required to provide 3 percent of their own funds for initial down payment and qualify for a mortgage on their own. An additional $10,000 down payment assistance grant was provided through the Islip Housing Development Corp., subject to the same 10 year ownership and domicile requirements for the unit.


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and You can also follow HUD on Twitter at @HUDnews or on Facebook at, or sign up for news alerts on HUD's News Listserv.


Content Archived: October 17, 2013