Foundation Plans REO Rehab

An Enterprise Foundation subsidiary has agreed to buy and rehab 600 HUD-owned single-family properties in Los Angeles, according to the Department of Housing and Urban Development.The nonprofit Enterprise Home Ownership Partners Inc., Los Angeles, acquired the Federal Housing Administration-foreclosed properties at a deep discount with the understanding that the houses will be renovated and sold to low- and moderate-income families. It is the first sale under HUD's Asset Control Area program in 18 months. HUD froze the program in April 2002 after HUD's inspector general found that properties ended up in the hands of for-profit developers who sold them at prices that violated ACA requirements. "The stronger management controls we have implemented will ensure accountability by program participants and will produce more homes for some of the nation's neediest communities," HUD Assistant Secretary John Weicher said.