The Enterprise Foundation Launches Program to Acquire, Rehab and Sell Foreclosed Properties in Dallas

Business Wire, June 22, 2005

DALLAS -- HUD Secretary Alphonso Jackson Made Announcement on Doorstep of 5,000th Dallas Family to Achieve Homeownership Through Enterprise and City of Dallas MAP Program

The Enterprise Foundation today announced the Dallas launch of the U.S. Department of Housing and Urban Development's (HUD) Asset Control Area (ACA) program. The Honorable Alphonso Jackson, U.S. Secretary of HUD, made the announcement at the home of the 5,000th Dallas family to achieve homeownership through Enterprise Dallas' management of the Mortgage Assistance Program (MAP).

"Although the nation is experiencing a record high homeownership rate of nearly 70 percent, Dallas continues to lag behind at 44 percent," said Secretary Jackson. "The ACA program is another way that government, business and community leaders can ensure that more low-income and minority families get on the path to homeownership."

Over the next two years, Enterprise Dallas will acquire, repair and sell formerly foreclosed homes in neighborhoods throughout Dallas. The homes will be sold to more than 120 low-income families, enabling them to become homebuyers.

"Enterprise Dallas is committed to helping Dallas residents with limited incomes access the resources that will help them achieve homeownership," said Lorenzo Littles, Enterprise Dallas director. "Sustainable homeownership, meaning families are able to thrive in the home for many years, results in tangible financial progress so they can save, invest and plan for their futures."

Enterprise Dallas will purchase HUD-owned, foreclosed homes at a discount and repair them to spare the homebuyer any major costs after investing their savings to purchase the home. The rehabilitation costs will average between $5,000 and $40,000 for each home. Sale prices will range from $70,000 to $90,000. Enterprise Dallas will target the sale of the homes to families making half of the average median income for Dallas, or $33,250 for a family of four.

"After families invest their hard-earned resources in a home and in their future, they feel more engaged in the health of their community. They embrace the opportunity to voice concerns and make decisions about the quality of life and the quality of education," said S. Dean Lesiak, managing director of Countrywide Bank. "Housing is the essential platform for combating poverty, providing a safe and healthy place to raise a family. Countrywide Bank is proud to be a partner in this important program."

HUD awarded Enterprise Dallas the management of the ACA program due to its national experience with similar ACA programs in Los Angeles and Rochester, N.Y., and its local track record with the City of Dallas MAP program. The announcement was made as Enterprise celebrated the 5,000th family to become a first-time homeowner through MAP.

Lawanda Strahn and her three children, Chris, Corey and Courtney, became the 5,000th family to achieve homeownership when they purchased their new, 1,500 sq. ft. home in South Dallas. The four-bedroom, two-bath structure is valued at $94,000.

"My kids and I have really worked to make this happen -- I work while they are at school and we work together in my Mom's restaurant on the weekends. Because we have done this as a family, getting the home was that much more exciting," said Strahn, who works as a senior administrative assistant at the Dallas Urban League. "I want to tell the next 5,000 families that with hard work, determination, faith in yourself and your family, and a willingness to get educated, you can achieve your dreams and reach the ultimate goal -- homeownership."

Enterprise Dallas championed MAP, a program that provides down payment and closing-cost assistance to first-time homebuyers earning less than 80 percent of the area median income -- or $53,200 for a family of four. The program requires mandatory homeownership education classes that teach families to save for the future and the importance of wealth building.

MAP has been successful because of the support of Enterprise Dallas' many corporate partners, including Washington Mutual, Guaranty Bank, Wells Fargo Home Mortgage, Summit Mortgage Corporation, Bank of America, Inwood National Bank, Casas Modernas, Countrywide Bank and Sims Moore Hill & Gannon LLP.

The Enterprise Foundation helps America's low-income families with their struggle out of poverty by providing decent homes, access to steady employment, quality child care and safer streets. Working with a network of 2,500 community organizations nationwide and through its 17 offices, Enterprise has leveraged close to $6 billion in investments and donations to help build almost 175,000 affordable homes. Visit us at www.enterprisefoundation.org.