Just Released: Voucher Homeownership Program Assessment Volume 1: Cross-Site Analysis

The Quality Housing and Work Responsibility Act of 1998
and HUD's final rules for the voucher homeownership
program have enabled PHAs to offer low-income households
the option of using their vouchers for homeownership.

HUD's Office of Policy Development & Research recently
published the first assessment of this program in a
report entitled, "Voucher Homeownership Program
Assessment Volume 1: Cross-Site Analysis." The first
assessment of the program at this early stage of
implementation has just been released, as is available
from HUD USER. Focusing on programs in 12 locations
across the country, including Syracuse, NY, Toledo, OH,
and Green Bay, WI, the report examines factors such as
PHA staff capacity, the availability of local partners,
lender support for the program, and the local housing
market in terms of their influence on program design and
implementation.

As of September 2002, the voucher homeownership program
has helped approximately 500 low-income families become
homeowners. Family incomes ranged from $5,800 to $35,000,
and the purchase prices of the homes ranged from $32,500
to $167,300. In a sample of 84 of these purchasers, the
majority of homes purchased were two- or three-bedroom
single family properties, and one in five bought homes
that were less than two years old. Contributing to the
effort's overall success is the fact that HUD regulations
have given the PHAs a high degree of flexibility in
administering the program.

The five areas of program design and implementation are
provided below, along with some relevant findings.

o Targeting and Outreach - The sites took varied
approaches to identifying prospective homebuyers.

o Pre-Purchase Counseling - 10 of the 12 sites relied
on outside agencies to provide counseling.

o Home Search and Inspections - The program doesn't
require PHAs to provide search assistance and few
sites have done so.

o Home Purchase Financing - All of the PHAs in the
study have established basic policies to help prevent
program participants from obtaining financing that
will not be affordable over the long term, and all of
the study sites make additional subsidies (beyond the
basic voucher assistance) available.

o Post-Purchase Activities - Although all of the sites
provide pre-purchase support, few have developed post-
purchase counseling.


The study found that challenges to implementation include
the need to develop partnerships with local lenders and
to adequately prepare program participants for
homeownership. The researchers also predict that
supporting participants after they purchase their home is
going to be a key challenge for PHAs in their efforts to
not only help low-income families achieve homeownership,
but to sustain it over time.

Volume 2, the case studies, is also available on the web.

"Voucher Homeownership Program Assessment Volume 1:
Cross-Site Analysis" is available on the web at
https://www.huduser.gov/portal/publications/hsgfin/msd_vol1_vol2.html
or in printed form for a nominal charge by calling
HUD USER at 1-800-245-2691.
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Please contact HUD USER at:
HUD USER
P.O. Box 23268
Washington, DC 20026-3268
1-800-245-2691
1-800-927-7589 (TDD)
202-708-9981 (fax)
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