CBS Atlanta 46New federal housing program could have big impact in Atlanta

A new Federal Housing Finance Agency program could have a significant impact on the Atlanta housing market. The federal government owns more homes in the Atlanta area than any other city in the nation.

The REO (Real Estate Owned) Initiative will offer incentives for nonprofit organizations and other development companies to invest in federally-owned foreclosed homes. Organizations, like the Atlanta Neighborhood Development Partnership, would then renovate the homes and rent them to tenants to help re-populate neighborhoods.

"It is better to have a good family renting the home in a neighborhood rather than have it vacant," said John O'Callaghan, president of the Atlanta Neighborhood Development Partnership.

"It is better to have a good family renting the home in a neighborhood rather than have it vacant," he said. "We have more federally-owned vacant homes for sale than any other place in the country.  So this program is really going to impact Atlanta more than any other place."

He said his organization, if approved for the federal program, plans to invest in about 125 homes in the Atlanta area and bring in renters, with the goal of having those renters own the home within three years.

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