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ATTACHMENT #6 Do Housing Rehabs Pay Their Way? A National Case Study A u t h o r s Robert A. Simons, A. J. Magner and Esmail Baku A b s t r a c t This research focuses on if housing rehabilitation by community development corporations pays its own way. The recent experience of ten local housing organizations in the Neighborhood Reinvestment Corporation network is examined. These organizations assist homeowners in rehabbing existing units and acquire, rehab and transfer units to new occupants. The findings indicate that rehabbed housing units provide substantial benefits to the local economy. Tlie reliaabbal units return $0.55, on average, for every local government dollar invested. lei addition, economic benefits stich as increased property values dial tan, base, and coansirmli n ,jobs and porn iaancnt gobs were created and sustained. Introduction Many private sector market participants and not-for-profit groups participate in the rehabilitation of housing. In some inner-city markets, these groups are the only developers active in producing housing. Community Development Corporations (CDCs) have become one of the main producers of affordable housing and community development. Recycling iwusing through rehabilitation (relub) is important for many re<ascnas. in wk-lition to providing safe, decent and aal ordable housing to personas of modest means, rehabs allow many first -bine lk-to buyers the opportunity to get on the equity ladder of homeownership. lionteowiwi-ship is in turn related to higher levels of personal, residential alrid life satisfaction, improved self-esteem, and psychological and physical) health. Other alesiraable aiaitcartaes benefiting society are greater neighborhood stability aattributaable to !onager tenitnre in the house; more social involvement such as voting partieilraation; higher levels of house, maintenance activities; and other sovi;aliv d sirible behaviors (Rolle, McCarthy and Van "7aandt. "oo() ). The benefits of homeownership from housing rehabs may also lead to greater utilization of city infrastructure and retail services. Newly revitalized housing makes a much higher financial contribution in the form of taxes than a dilapidated or boarded up unit, which may instead be a burden on the local economy and property markets by contributing to blight and lower property values. J R E R I Vol. 25 I No. 4 - 2003 11