HUD, MIAMI-DADE COUNTY SIGN AGREEMENT TO WORK TOGETHER ON A PATH-BREAKING COMMUNITY REVITALIZATION EFFORT

MIAMI - Housing and Urban Development Assistant Secretary for Housing William Apgar and Miami-Dade Mayor Alex Penelas signed an agreement today that will allow the county to purchase all HUD-owned homes in designated revitalization areas as part of an overall redevelopment strategy for the community.

The HUD-Miami-Dade County agreement is one of the first of its kind in the nation. HUD expects to enter into more of these agreements with local governments in 2000.

Apgar, who also serves as the Federal Housing Administration (FHA) Commissioner, made the announcement with Mayor Penelas. "Under this pilot program, HUD will for the first time sell properties at discounts up to 50 percent of the appraised value. For the average FHA home, a fifty percent discount equals $30,000."Apgar said. "Secretary Cuomo and I are happy to support Miami-Dade County's and Greater Miami Neighborhood's commitment to rehabilitate these homes and sell them to new home owners."

In return, Miami-Dade County will make an investment in the selected areas in an amount equal to the amount of the discount HUD provided off the purchase price of the HUD homes. Mayor Penelas said: "This agreement will allow Miami-Dade County in partnership with HUD and our local partners to provide additional homeownership opportunities for our residents, in turn redeveloping our communities."

Miami Dade County is teaming up with the Miami-Dade Housing Agency (MDHA) and Greater Miami Neighborhoods (GMN) to rehabilitate the homes and provide housing counseling to the new owners. MDHA will purchase all HUD-owned single-family homes at a discount within certain zip codes in neighborhoods that have been designated for revitalization. Greater Miami Neighborhoods, acting as the county's trustee, will rehabilitate the homes and prepare low- and moderate-income families to become homeowners. GMN will work with additional nonprofits that have experience in homebuyer education or housing rehabilitation to ensure that the houses are ready for a family to move into as quickly as possible.

MDHA will first purchase all the HUD-owned homes in the 33168 zip code - approximately 20 homes - at a discount. Additional homes in the 33168 zip code (the North Miami area) will be added as they come into the HUD inventory through foreclosure on FHA-insured mortgages. The program is expected to be expanded into additional zip codes.

FHA, which is part of HUD, insures home mortgages. When a homeowner defaults on an FHA-insured mortgages, FHA takes possession of the home and works to sell it to another homebuyer.

Content Archived: January 20, 2009