Purpose

HOPE Community Services, Inc. acquired properties under two Federal programs to strengthen the agency’s delivery of homeless assistance services, and to provide suitable housing to a recipient of homeless assistance services.

Description

HOPE Community Services, Inc. acquired properties through two separate Federal programs:

• Title V of the McKinney-Vento Homeless Assistance Act for a former Federal Building that previously served as the U.S. Post Office.  This property was vacated and became Federal Surplus Property upon construction of a new post office building on another parcel of land.  The property includes a two-story building plus basement with a total of over 8,000 square feet situated on 0.265 acres of land.
• HUD’s Dollar Homes Initiative for a single-family residence situated on 11.45 acres of land.  This property was classified as HUD Surplus Property due to foreclosure of a HUD-financed home.

Federal Surplus Property

The full provisions of Title V of the McKinney-Vento Act are available through the HUD web site, including the application process.  The Rural Assistance Center (RAC) provides a brief outline of the process of acquiring Federal surplus property.  Technical assistance is available through the National Law Center on Homelessness and Poverty (NLCHP) along with the following material:

• Surplus Federal Property - Fact Sheet
• Surplus Federal Property Presentation
• Using Federal Property to Serve Homeless Veterans: A Guidebook

The former Federal Building was granted by HHS to HOPE Community Services, Inc. (formerly the Central Piedmont Action Council) through a Quitclaim Deed that specifies the terms and conditions of the conveyance.  Specifically, Hope Community Services was awarded use of the property for a period of thirty years for the purposes specified in the agency’s approved program of utilization as specified in its application to the Department of Health and Human Services.  Thereafter, HOPE Community Services will fully own the property contingent upon compliance with the usage requirements during the full 30-year period. 

Acquisition of the property was at no cost except for any renovation work that was necessary.  Most of the renovation work was completed through the use of volunteers and donated materials.  Consequently, the agency will realize substantial savings in annual expenses since the new location enables consolidation of three former facilities that required both rental and utility payments. 

HUD Surplus Property

The single-family residence and related acreage became available under HUD’s Good Neighbor Program.  This arrangement allows local governments to purchase qualified HUD-owned homes for $1 each to create housing for families in need and to benefit neighborhoods.

HUD-owned homes are first offered for purchase to the general public, nonprofit and government agencies prior to being available under the Dollar Homes initiative.  State-by-state listings of HUD properties that are available for purchase can be accessed through the HUD web site.

Properties that have been offered to the public for sale for at least 180 days and are not under a sales contract are removed from the market and become available exclusively to local governments for a period of ten-days at a price of $1 plus closing costs.  Local governments can partner with local non-profit organizations to resell the homes to low- and moderate-income residents of the community.  The National Association of Counties issued information about HUD’s Good Neighbor Program to encourage local government involvement with the initiative.

Contact the HUD Dollar Homes Initiative for additional information at (202) 708-1672.

HOPE Community Services was granted the HUD-property through a Deed of Transfer from the Prince Edward County Board of Supervisors.  Excess acreage that is part of the property can be developed by the agency to create additional housing/community development initiatives.

Outcomes

Hope Community Services has realized substantial financial benefits through acquisition of Federal and HUD Surplus Properties, including:

• Annual savings of over $27,000 in costs previously associated with office space rental (nearly $15,000) and reduced staff travel due to a more centralized location (nearly $13,000)
• Improved financial standing through assets that created equity for the agency and enabled establishment of a line-of-credit to help with cash flow needs

The HUD Surplus Property is being rented to a low-income family with an option to purchase the home and three acres of the land.  Assistance is being provided in identifying resources that can support the purchase. 

The remaining eight acres will be developed to accommodate two additional low-income single-family homes and a shelter for homeless adults.