HMK Owner Has Change Of Heart, Will Sell Homes To Tenants

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DALLAS (CBS11) - After 27 years, the Correa family has gone from tenants to owners of their West Dallas house.

"It's very exciting. We grew up here. It's more than just a home to us, it's memories," said Jocelyn Correa.

At a news conference Monday, some neighbors cheered the news, "Yes, affordable housing."

The Correas became the first family to buy the house they've rented from HMK and its owner Khraish Khraish.

He said he had a change of heart and decided to sell many of his houses to between 120 and 130 tenants for $65,000 each.

They'll pay a 20-year mortgage at a fixed interest rate of 4.75 percent with zero cash down.

Their monthly payment $575, including property taxes.

The announcement came after Judge Ken Molberg extended a temporary injunction until October 2, which in effect will allow tenants to stay in their homes until then without fear they'll be evicted.

Families who buy the homes from HMK will also have time to make repairs to the houses so they meet the city's new code enforcement standard.

Also under the deal, they must give HMK the first option to buy the house back from them -- if anyone makes them an offer -- for the first ten years of the contract.

"I don't think the new homeowner is hurt by having an additional dollar," said Khraish.

When asked if they'd be required to sell the house back to him Khraish said, "At that price. I don't see why they wouldn't want to sell to me if I'm offering them a dollar more."

Khraish said he doesn't want people to flip their homes to investors, who are rapidly buying properties in this West Dallas neighborhood near Sylvan Avenue and Singleton Boulevard.

In a statement Monday afternoon, Dallas Mayor Mike Rawlings said, "I'm encouraged that Mr. Khraish has decided to do what we asked him to consider nearly two years ago: sell some of his homes to his tenants. We have long felt that increasing homeownership will help lift up our neighborhoods in part by providing a sense of pride among our residents."

But some residents and activists including HIlda Duarte, President of the LULAC Council 4782, an ally of Khraish's, accused the Mayor of turning "their backs on this community in the name of economic development."

Some of HMK's tenants aren't smiling on this day.

When asked if she sees this as a happy day, Stephanie Hanson replied, "No."

Hanson said she's one of the tenants HMK is trying to evict.

She acknowledged she paid her rent a day late, but says she spoke up for herself and other tenants. "He's pushed out so many people already, he's trying to evict several others because they were standing up, truly standing up for the people."

Khraish strongly denied that. "That's never been our policy. I stand by saying we've never done that."

A hearing will be held Thursday afternoon by Judge Molberg where he will consider the case involving tenants HMK seeks to evict.

For the Correa family though, it is a new day.

Kimberly Correa, who grew up in her house along with her sister said, "It's an incredible moment for us because we've never actually owned anything."