Resources for
Affordable
Housing
Using HOME
Lynwood Park Homeownership Program,
Decatur, Georgia
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| Affordable single-family homes are the first new development in Lynwood Park in many years. |
Lynwood Park is a historically African-American community northeast of Atlanta, with origins dating back to the Civil War. When the community was first developed, large tracts of land within this more than 180-acre area were deeded to African Americans. Over the years, most of those tracts were subdivided into smaller parcels. The community is now composed of approximately 494 individual lots, ranging from less than one-tenth of an acre to more than 3 1/2 acres. The average lot is about one-third acre.
Most Lynwood Park households are made up of long-term residents with low or moderate incomes. Little investment had been made in the community in recent years, and there had been a decline in homeownership--many properties were owned by absentee landlords. No new housing had been developed in Lynwood Park in many years, and there were few opportunities for households wishing to move into the area.
By the late 1990s, significant upscale development had taken place in areas immediately adjacent to Lynwood Park. New homes in these areas sold for $300,000 to $750,000. The community began to experience development pressure as long-term residents were urged to sell their homes to permit new development of their lots. Vacant properties were targeted for acquisition, with the prospect of future upscale development.
Concerned about this pressure and the possibility of radical change in the character of the community, a neighborhood-based organization--the Lynwood Park Community Project, Inc.--asked the DeKalb County Department of Human and Community Development for assistance. The county and the community formed a partnership with the Housing Authority of the County of DeKalb and several local lenders. The authority developed a HOME-eligible program to construct single-family homes and make them available to lower income, first-time home buyers. This effort was intended not only to preserve and revitalize the community but also to expand the supply of affordable housing in an area with excellent access to jobs, services, transit, and schools.
Homes were developed on scattered sites throughout the neighborhood. The housing authority acquired the sites and served as developer. While the homes were being built, the local nonprofit was responsible for marketing: soliciting potential buyers, prequalifying them, and ensuring that they attended the required counseling sessions offered by participating lenders. Once buyers were qualified, they were referred to the housing authority for processing and verification and, if they were deemed eligible, to execute a sales contract. Several local lenders provided priority mortgages. The housing authority provided second mortgage assistance.
The housing authority began acquiring property in 1997. Construction began in 1998, and by late 2000, nine houses had been built and sold to eligible first-time home buyers. A second phase was initiated in 2000, with construction of an additional six houses completed by September 2001.
The houses were designed to be low maintenance and energy efficient. Each house has three bedrooms and at least two full baths. They are equipped with air-conditioning, heat pumps, double-paned windows, and high-grade insulation. The houses have vinyl siding and single-car garages. The average value at the time of completion was $97,666; they were constructed and sold for an average price of $70,878, based on the purchasers' financial capacity.
All nine houses in the first phase were sold to eligible first-time home buyers. The average income of the buyers was $34,000, approximately 54 percent of the area median income. Because of the availability of second mortgage assistance, monthly mortgage payments range from $450 to $675, well within the affordable range for the households. To improve the likelihood of successful homeownership, all buyers were required to participate in credit and homeownership counseling.
The Lynwood Park Homeownership Program is the result of a successful partnership among the housing authority, the county government, local lenders, and the neighborhood. The program has had a significant impact in stabilizing and revitalizing a deteriorating neighborhood and in providing residents with affordable homeownership opportunities that would not otherwise have been available.
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Contact: B.J. Voller, Deputy Director of Affordable Housing,
Housing Authority of the County of DeKalb,
404-377-0425, bjv@ddha.org