Property Disposition Demonstration Data Gathering, Analysis, and Evaluation Program: Simonds Gardens and Bosegate, New Castle County, Delaware: Case Study

摘要

After many failed attempts, HUD was able to devise a successful property disposition program for Simonds Gardens and Rosegate, two subdivisions in New Castle County, Del., near Wilmington. Both subdivisions were experiencing defaults and foreclosures as the areas deteriorated. To save the subdivisions, The Wilmington Housing Authority agreed with HUD to lease the acquired properties to qualified families who would be given purchase options on their units. The program failed since no leased units were ever purchased by tenants. In 1973, the county agreed to purchase and rehabilitate vacant units from HUD and other agencies using a combination of revenue - sharing funds, Community Development Block Grant funds, and private mortgage money supplied by a consortium of local lending institutions. The program's goal was to purchase and rehabilitate 50 to 100 units and lease them to qualified tenants for 1 to 5 years. After 1 year, qualified tenants could buy their units. HUD and the county agreed that the county would be given 'right of first refusal' on all properties HUD would dispose. Thus, the county could exercise maximum coverage over the HUD - acquired housing stock. The program is geared toward moderate - and middle - income families. Minimum family income must be $7,200. Tenants pay no more than 25 percent of their income toward rent. The program is run on a 'break - even' basis, with profits deposited in escrow accounts for tenants to be applied toward down payments. The county instituted several housing and social service programs to complement the rehabilitation effort. A Home Management Bureau was set up, parks were built, a road - widening project was funded, a code enforcement program was administered, and police protection was increased. As of January 1978, 56 properties have been fully rehabilitated and occupied, and 12 more units have been purchased. One tenant has purchased a unit at $11,000; properties have been appraised at $12,500. The county expects 15 tenants to buy their units in 1978. Data tables and footnotes are supplied. Appendixes present the home ownership program and the home management course. (Author abstract modified).