AZ Pilot Program Uses Unlikely Partners to Increase Valley Homeownership

Investors, who are typically not as welcome in neighborhoods compared to an owner occupant, might be the key to stabilizing neighborhoods and helping the dream of homeownership come true for many.

The program, through the Neighborhood Community Stabilization Trust , is working with investors who get first shot at buying the homes before they go on the open market. They then go in and rehab the homes to above-market value. The catch is they can’t rent them, and they can only sell them to owner occupants.

“Investors are a big part of the market whether they are strategic developers or not," said Sergio Barajas, community development manager for the trust. "We find if we can control the outcome of some of those investments it is of benefit to the entire community.”

The investors then become part of the on-going government and non-profit programs that use federal dollars to stabilize neighborhoods and assist people in becoming homeowners.

Gail Buck is the broker and owner of New Vista Realty and is the President of the Arizona Chapter of the National Association of Hispanic Real Estate Professionals.

She identifies and seeks out assistance for some of the hardest hit neighborhoods in the Valley.

“Homeownership does change communities. It changes our lives and our kids’ lives,” she said. “Right now it is kind of 50/50 as to whether an investor or an owner occupant is going to buy a property. What the investor is helping us do is tip the ratio in the owner occupancy playing field.”

There are about 30 homes that have been targeted so far for the strategic rehab program.