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Dime Auction Sales Program

Program (?) Dime Auction Sales Program
Alternative Name(s) Harlem Auction Sales Program; Small Homes Auction Program
Program Description

The Dime Auction Sales Program consisted of a public-private partnership between Dime Savings Bank and HPD. The program provided financing to rehabilitate vacant, city-owned properties that had been recently auctioned to homeowners. HPD auctioned the buildings, half of which were one- to four-family buildings, the other half of which were five- to ten-unit buildings, and then provided a 7.5 percent, 20-year fixed-rate mortgage to finance the sale. After purchasing the previously vacant city-owned properties, borrowers became eligible for 100 percent financing to gut rehabilitate the home from Dime Savings Bank. The 30-year BMIR loan, subsidized by HPD funds, set the interest rate based on the borrower’s annual income. HPD made funds available through two separate programs: the Harlem Rehab Program, which consisted of subsidies up to $60,000, and the Small Homes Auction Program, which consisted of subsidies up to $30,000 per borrower. Dime Savings Bank only made gut rehab loans available for one- to four-unit family homes, but Section 312 funds financed five- to ten-unit properties. Borrowers who were ineligible for the rehabilitation loan took loans at market interest rates.

Benefit Classification (?)  
Supply or Demand Supply
One-Time or Ongoing One-Time, Ongoing
Benefit Type (?) Financing
Government Agency (?) NYC Dept of Housing Preservation and Development
Program Information (?)  
Scale Small Scale (between 1 and 999 units produced)
Timeframe 1985-1989
Developer/Owners (?) Government, Tenant
Property Information (?)  
Property Occupancy Vacant
Property Type Building, City-Owned
Building Type Multi-family, One- to Four-family
Construction Type Rehabilitation
Occupant Tenure (?) Homeownership
Occupant Income Restrictions (?) No Restrictions
More Information NY Times
Available on CoreData.nyc? No

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