LOS ANGELES-The US Department of Housing and Urban Development, LA officials and the nonprofit Enterprise Foundation have launched a novel program to rehabilitate and then sell more than 500 houses and small apartments to moderate-income buyers and housing groups at cut-rate prices.

The program involves HUD-foreclosed properties in the Boyle Heights, Canoga Park, Highland Park, Pacoima and South Central sections of LA. Under the plan, a partnership of the city and the Enterprise Foundation will buy all of the 564 HUD-owned properties in those areas for as little as 50% of their appraised value.

The partnership will then rehabilitate the properties. The single-family houses will be sold to low- and moderate-income buyers, while the small apartments will be sold to nonprofit housing groups.

HUD will provide a $1-million grant to jump-start the program as part of its estimated $30-million commitment. The city Angeles will provide $7 million.

The nonprofit Enterprise Foundation, founded in 1982 by legendary developer James Rouse and his wife Patty, will contribute about $32 million from its loan fund. The fund represents contributions from about a half-dozen lenders, Fannie Mae and a handful of foundations.

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