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Shelley Osterloh ReportingThe Community Development Corporation of Utah has reached a milestone in its efforts to help first time home buyers purchase a house. The CDC sold its 59th home and passed the 1-million dollar mark in cumulative equity it has been able to transfer to homeowners.
Amber and Justin Duran says they never dreamed they could afford a home like this. Justin is a plumber and Amber cares for their three children. This young middle income family qualified for the CDC's Asset Control Area Homeownership program -- a unique partnership with the US Dept of Housing and Urban Development, known as HUD. It is one of only 15 such programs in the country.
The CDC buys HUD homes at half their appraised value and remodels them. It sells them to homeowners for 115% of what the CDC paid to remodel and fix them up, which is far lower than the market value.
Kristie Thorp, Project Mngr., Community Development Corp.: "Sometimes there is a gap between what we spend on the house and what the appraised value is when we've done the work on it. So that equity in that home is available within three years after they've purchased the home. So it's a really important wealth-building program for low and moderate income families as well."
Within two blocks there are four homes that have been fixed up as part of the program. That's good for the neighborhood and good families like the Durans.
Because of this program, there are 59 families who own homes and average about 17-thousand dollars in equity.
If you are interested in this program, you may have to wait a while because there is a waiting list. School teachers and police officers get priority, but anyone can take the Homebuyers education class.
