HUD Moves Evacuees to Front of Home-Buyers' Line

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The Department of Housing and Urban Development is offering a new program to help people displaced by last year's hurricanes along the Gulf Coast. The government is giving evacuees a chance to buy HUD homes anywhere in the country at a 10 percent discount before others even see that they're on the market.

NPR's Kathy Lohr reports from Atlanta.

KATHY LOHR reporting:

Homes that the government has in stock through foreclosure are now available for victims of hurricanes Katrina and Rita to buy at a discount. There are about 20,000 HUD homes in total, some in every state and in every price range. About 2000 homes are available in Louisiana and Mississippi.

Mr. JOE McCLUSKEY (Department Housing and Urban Development): We see this as a great opportunity for families.

LOHR: That's Joe McCluskey, director at HUD.

Mr. McCLUSKEY: Generally we sell our homes at a value that is about 98 percent of the appraised value on average. But a 10 percent reduction on the appraised value, you know, the housing market, which - although it's cooling down some -is still very strong throughout the country, is a pretty strong offer. And I think that most families would see that as a very attractive offer.

LOHR: Atlanta Realtor Angie Jackson is so excited about the program, she's taking out a newspaper ad to let evacuees know about it. She sits down with Shawn Williams-Evans, to talk about the possibility, but Williams-Evans has a lot of questions.

Ms. ANGIE JACKSON (Realtor): You can take advantage of this program.

Ms. SHAWN WILLIAMS-EVANS: It's not credit score driven or is it credit issues, you have to repair your credit and all to get into this program? How does that affect a person who may have a home that is now delinquent or facing foreclosure? How would that affect them?

LOHR: In order to buy a home at the reduced price, buyers must have a FEMA registration number and a copy of a letter from the agency stating their eligibility. Williams-Evans drove to Atlanta days after Katrina, when supplies ran out in a New Orleans hotel. She's renting a HUD house now, but is seriously considering buying in this city.

One daughter and a son live here in Atlanta, while her husband and her eldest son are back in New Orleans. Williams-Evans says she sees him about once a month and she still doesn't know what to do with her two New Orleans houses in the lower Ninth Ward that were flooded and still need so much work.

Ms. WILLIAMS-EVANS: I love where I was. I've been there all my life in the lower Ninth Ward but it has to be rebuilt. I don't think it can take another hit. And Louisiana is just like in a fish bowl. We're surrounded by water, so I have to think about that.

LOHR: The program requires only $50 down payment and provides other benefits. HUD pays up to five percent of the closing costs and the realtor's fee. It also gives people who've been renting HUD homes the first crack at buying them and settling in a new place. Williams-Evans says she's not sure, but she wants to talk to her husband about it.

Ms. WILLIAMS-EVANS: It's a lot to think about. I mean, so much is going on. I like Atlanta. I always wanted to, you know, purchase a house here because I have a son here. It's possible.

LOHR: Would that make you feel like you're out of, sort of harm's way?

Ms. WILLIAMS-EVANS: Yes, it would. That way, the house in Louisiana, I can go back and check on my son or whatever and then come here and, you know, live here or whatever.

LOHR: Williams-Evans says she doesn't want to live through another hurricane. Her husband's mother died in a shelter and her grandmother recently passed away after living through Katrina. The question, will this government program be enough incentive to get her and thousands of others to buy a home away from the Gulf Region that they called home?

Kathy Lohr, NPR News, Atlanta.

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