Property Disposition Demonstration Data Gathering, Analysis, and Evaluation Program

In early 1976, the Philadelphia Field Office of HUD was experiencing serious problems in reducing its inventory of single-family properties. The office was still recovering from a 1973 court decision requiring that HUD comply with the lead-based paint standards of the City of Philadelphia. This ruling had a dramatic effect on increasing the size of the inventory. After the litigation was over. HUD had employed the full range of conventional disposition techniques with heavy emphasis on "as-is" sales to reduce inventory. However, HUD was experiencing great difficulty in recruiting qualified contractors for its repair-and-sell and bulk repair programs. Community organizations were increasingly critical of HUD's inability to dispose of properties in an efficient and timely manner in order to maintain neighborhood stability and property values. These organizations were particularly opposed to the use of as-is sales where no guarantee existed that the properties would be repaired or reoccupied by the new owners.