This report is a 3-year evaluation of the HOPE for Homeownership of Single Family Homes Program (HOPE 3). This program was launched by the U.S. Department of Housing and Urban Development in 1992 to aid nonprofit and public agencies in acquiring, rehabilitating, and reselling single-family homes to low-income families. The report found that HOPE 3 has served its intended population of low-income homebuyers but has produced fewer homes than grantees originally anticipated. All beneficiaries of HOPE 3 were low-income households, and one-third were very low-income. As of August 1995, low- income buyers were in possession of 1,234 HOPE 3 homes, averaging $56,000 in value. However, grantee organizations had acquired only about two-thirds of the 3,651 units originally anticipated in their plans. While some of this shortfall can be attributed to a typical underestimation of program start-up delays, the predominant barrier to implementation of HOPE 3 has been locating suitable units for acquisition. Grantees were successful in tapping new funding sources for affordable homeownership activities, the report found, but the results of HOPE 3 have been somewhat more modest in enhancing nonprofit capacity.