www.housingfinance.com/ahf/articles/2009/mar/0309-regio -
[Cached Version]
Published on: 3/1/2009
Last Visited: 3/10/2009
This latest twist on the housing crisis sounds horribly familiar to Ann Cass, executive director of affordable housing developer Proyecto Azteca.
Since 1991, the nonprofit has worked to repair the damage done by colonia developers in the early 1990s, who sold overpriced lots in hastily built subdivisions to families earning as little as $6,000 a year without actually giving them legal ownership of the lots, leading to a wave of foreclosures, says Cass.
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"We thought we had it settled," says Cass.
However, the problem seems to have returned.
Locals call a strip of about 20 new subdivisions along Highway 107 here "Colonia Row."
"If you're not looking at the road you're driving on, these subdivisions look similar to the old colonias, because they are loaded with substandard housing," says Cass.
Housing advocates and state officials are struggling to assess how many homeowners in these new colonias signed deed in lieu of foreclosure documents-there could be thousands.
Exploitation by developers is just a symptom of the broader shortage of housing affordable to very low-income people along the border, says Cass.
It's this shortage that motivates such families to pay as much as $30,000 for a lot with real market values probably closer to $10,000, she adds.
With assistance from state and federal programs, affordable housing developers like Proyecto can help families build a safe house with a total development cost of about $33,500, plus the cost of the land, says Cass.
So far, Proyecto has built 500 affordable homes on lots owned by very-low income residents living in the colonias.
"In the last two years, we have not had to foreclose on anyone," says Cass.