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What is Restored Homes HDFC?

Restored Homes Housing Development Fund Corporation (Restored Homes) is a non-profit organization that partners with the New York City Department of Housing Preservation and Development (HPD) and two leading national non-profits - Local Initiatives Support Corporation (LISC) and Enterprise Community Partners, Inc. (Enterprise) - to revitalize New York City neighborhoods affected by the mortgage foreclosure crisis. Restored Homes purchases vacant 1-4 family homes in targeted neighborhoods, addresses their rehabilitation needs and re-sells them to low- and moderate-income families.

Homes are acquired from two sources: the United States Department of Housing and Urban Development (through its Asset Control Area Program) and from financial institutions (commonly called Real Estate Owned (REO) properties). Restored Homes works directly with non-profit and for-profit community-based organizations to rehabilitate foreclosed homes, identify potential homebuyers and provide the counseling necessary to prepare purchasers for the obligations of homeownership.

History

One of our recently rehabilitated
and sold properties in Brooklyn

In 1999, HPD approached LISC and Enterprise about administering HPD's Third Party Transfer program (which deals with properties foreclosed upon by the City), so LISC and Enterprise formed Neighborhood Restore HDFC. Six years later, HPD, addressing the looming foreclosure crisis, turned again to LISC and Enterprise to create a similar program. This led to the creation in 2005 of Restored Homes and an agreement with the United States Department of Housing and Urban Development (HUD) and HPD to administer the ACA Program in New York City. Through the ACA Program, Restored Homes is offered, at a discount, HUD-foreclosed homes that are located in targeted revitalization areas throughout New York City. Restored Homes acquires, rehabilitates and re-sells these properties to qualified owner-occupants at affordable prices. With a $15 million guaranty from HPD, Restored Homes was able to leverage $45 million in private financing for the redevelopment of up to 112 homes.

In 2008, Restored Homes was asked to expand its foreclosure efforts by launching a new initiative, the Real Estate Owned (REO) Program, that calls for the purchase of homes foreclosed by financial institutions. Through the REO Program, Restored Homes utilizes a variety of federal and city subsidies to leverage private financing to acquire, rehabilitate, and re-sell these properties. Restored Homes is working closely with HPD, LISC, Enterprise, the Center for New York City Neighborhoods, the National Community Stabilization Trust and community-based housing development organizations on this endeavor.