Assessment of the 602 Non-Profit Disposition Program

The U.S. Department of Housing and Urban Development (KUD) contracted with
Optimal Solutions Group, LLC and Abt Associates, Inc. to conduct evaluative research on a
newly initiated iteration of the 602 Non-Profit Disposition Program (602 Program). The research
is somewhat unusual, in that its primary thrust was to identify appropriate baseline information
and an associated analytic structure for future evaluations of the 602 Program. In addition, the
report discusses the near-term progress of the 602 Program in three cities: Baltimore, Maryland;
Salt Lake City, Utah; and Rochester, New York.
HUD is committed to increasing homeownership among our nation's low- and moderate-
income families. In keeping with this goal, HUD' s 602 Nonprofit Property Disposition program
sells HUD-held single-family homes at deep discounts to units of general local government and
nonprofits. The homes are then rehabilitated and resold, providing homeownership opportunities
to low- and moderate-income households, with the concomitant benefit of revitalizing
economically troubled urban neighborhoods.
We in HUD's Office of Policy Development and Research (PD&R) hope that this report
will provide readers with a general understanding of the operations and potential benefits of the
602 Program. We also hope that the evaluation strategy and accompanying description of the
prospective statistical analysis will stimulate interest in HUD programs that foster and expand
homeownership, and will underscore PD&R's continuing efforts to study, document and
improve these programs.