Contractors Cash in on HUD Program, Not Poor

LOS ANGELES (AP) - A federal program has failed to help poor families buy affordable homes.

A Los Angeles Times investigation has found that the Department of Housing and Urban Development's Dollar Homes program has actually been more beneficial to contractors and investors.

The program allows local governments to buy homes for $1 to fix and resell them at a discount to poor families, in the hopes of helping them put down roots.

More than 2,300 homes have been sold through the program nationally.

Of the 326 sold in California, 62 homes were bought by the city of San Bernardino. The city doesn't track what happened to them, but the Times investigation found that at least 43 were sold to contractors and investors, and often resold for three times the original sales price.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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