Homeownership Zones Outcomes

• Completed HOZ Projects

In March 2007, HUD issued the results of an interim evaluation of the Homeownership Zone demonstration program. This evaluation had three goals:

1. Collect baseline data for a final Homeownership Zone evaluation that will be undertaken at the completion of the demonstration program.
2. Assess how well each HOZ city has been able to implement its approved Homeownership Zone proposal so far.
3. Identify best practices or guidelines that other communities can use to transform their deteriorated neighborhoods by using mixed-income homeownership development.

The evaluation found that the Homeownership Zone initiative has successfully demonstrated that cities can use mixed-income homeownership housing to transform their blighted areas. Today, many of the HOZ demonstration sites have become, or are becoming, viable homeownership communities. Increasingly, public policy recognizes the importance of careful planning, geographic targeting, and long-term commitment to the economic transformation of distressed areas, as measured in "outcomes" instead of "outputs". Clear evidence exists that the Homeownership Zone approach has improved the quality of life in the Homeownership Zone communities. Perhaps the most important policy lesson learned from HUD's study is that transforming a severely distressed neighborhood into a successful homeownership community takes time, but it can be done with sufficient commitment, vision, and concentration of resources.

HUD has issued a related HOME Model Program Guide, "HOME and Neighborhoods: A Guide to Comprehensive Revitalization Techniques" (HUD-2003-20-CPD, April 2004). Copies of this guide can be downloaded here or ordered by calling Community Connections.