Money spent on rehabilitation of housing more than pays for itself in added value to neighboring homes, according to a study of a local program.
Investment of $2.3 million raised the value of surrounding homes by $14.6 million, according to an analysis of work done by Atlanta Neighborhood Development Partnership, Inc.
The study, which was done on behalf of ANDP, adds to the argument that one of the most cost-effective ways to help an area hit by foreclosures and dilapidated housing is to rehabilitate some of it. If the study’s conclusions are correct and can be applied elsewhere, it would mean that market forces can amplify work done by a non-profit.
The study, conducted on behalf of the partnership, tracked the results of work done to renovate single-family homes that were sold through the federal Neighborhood Stabilization Program in Douglas County from 2010 through 2013.
“This study confirms our belief that an investment in single-family acquisition (and) rehab programs provides critically needed affordable homeownership for families while lifting values for the surrounding neighborhood,” said John O’Callaghan, chief executive of Atlanta Neighborhood Partnership.
The report was conducted by Epic Intentions, which was described as “an interdisciplinary team of students at Georgia Tech who volunteer to assist nonprofits with research and other service-oriented projects.”
The data used was supplied by the Douglas County Appraisal Department and its chief appraiser and the ANDP.
ANDP has acquired and “rehabbed” 427 homes since 2008, the group said. The report focused on 53 of the homes in Douglas County.