The HOPE III Program-A Summary

  By Hemant G.

In HOPE III the low income group or the people buying a house forth first time are provided HOPE homeownership opportunities through providing HOPE planning grants and other implementation grants by way of rehabilitation of properties publicly held in Federal or local inventories if necessary. Under HOPE III properties which can be purchased are the homes basically mend for a single family owned by HUD, Federal, RTC, DOD, GSA or any other Agency or any state or local government. Such homes also include those owned by the Public or Indian Housing Authority but it does not include public or India housing under the US housing act 1937.

A private non profit organization, any cooperative association or any public agency which is in cooperation with a private non profit organization can be an applicant for the grants under HOPE III.

Families who can take advantage of the HOPE III grants include single families or other individuals income is less than or equal to 80 percent of the median income and also who are looking to buy a home for the first time.

The HOPE III program was launched by HUD in 1992 so as to enable the non profit organizations to acquire and resell homes mend for single family use to people with a low income. A recent report has found that although the program has provided good services to people with a low income who are looking o buy a home but they actually produced lesser homes than what the people expected from it. The beneficiaries of HOPE 3 program include all people with a low income and about one thirds include people with a very low income. In August 1995 the people with a low income were in possession of around 1234 HOPE III homes which valued around 56000 dollars.

However, only 2/3rd of the 3651 anticipated units were acquired by the grantee organizations. This shortage could have been occurred because of mistakes in estimation during the initial stages of the program but the absence of suitable units for acquisition was the major reason for this shortage. However as per the report, new sources for funds for affordable home ownership were successfully tapped by the grantees but the outcomes of the HOPE III are considered more modest in increasing the capacity of the nonprofit organizations.

No additional funding has been requested since the financial year 1995 and also no funding is anticipated in future. All funds have already been awarded.