Class applies learning to renovate old house

This Old House has come to the University. At least that is the hope of William Zucker and Hanley Bodek. Emeritus Professor Zucker and Lecturer Bodek teach Entrepreneurial Intercity Housing Markets, a class designed to bring University students in contact with the community while teaching them about the various aspects of real estate development. The class includes a standard lecture, but students then don work gloves and an old pair of jeans and travel out to West Philadelphia to do some dirty work. Aside from a seven page paper requirement and a weekly one-and-one-half hour long lecture, students must contribute six hours of their time each week at an off-campus renovation site. The house, on Peach Street in West Philadelphia, is in the final stages of the renovation process and has been renovated by students for the past two years, according to Zucker. Zucker, who is a retired Wharton management professor, said during that time he and his students have renovated three houses including the project currently being finished. But students will not be given a break after this house is completed, because Zucker, with the money made from the Peach Street house, purchased a fourth house just this week on 32nd Street. Zucker, who calls himself a "social activist," said, when creating the class, he thought it would be valuable because "anybody who is interested in real estate, ought to know the important ingredients about" real estate development. The class, originally a Wharton program, is now in the masters program Dynamics of Organization in the School of Arts and Sciences and is taken by seniors and graduate students from across the University. Zucker said normally many people work on various parts of renovating and selling a house, but generally they are isolated from each other. This class, he said, enables students to work on the nuts-and-bolts of renovation while being able to understand the financial, legal and real estate angles of the business. Zucker, armed with $35,000 raised from real estate developers, bought the first house in South Philadelphia for just $1700. And local businesses have helped the program by contributing materials and discounting prices on other equipment the class purchases. The remaining $33,000 was used to purchase materials for the house. "I went around and got a number of real estate developers to ante up about $35,000 and then this money was used to acquire the house and buy the various equipment and resources," Zucker said. Zucker said after finishing the first house, he used the proceeds to by a second house on the same street for $2500. The street, which he said was terrible condition, is being rejuvenated with the help of the class because other homeowners on the block have begun renovations on their houses. There are over 25,000 homes which have fallen into decay in West Philadelphia and, although it takes the class over two years to complete a project, every effort helps, Zucker said. Bodek, a local real estate developer, has been hired by the University to help students' coordinate their weekly projects at the site. Bodek, who is president of the Philadelphia Construction Company, said the proof of students' commitment "is in the pudding." The 40 students in the class are broken down into groups and during the weekly lectures, they coordinate their efforts for the next week. The "trial-and-error method" of teaching is one of the reasons for the class' success, Bodek said. "Students actually learn by devising solutions on their own and implementing those solutions," he said, adding that if the solution works, it is used on later projects as well. Bodek said "as long as there is an abandoned house Philadelphia," he would like to continue the project. Although the class has hired a carpenter to help students work out problems at the site, students generally come up with solutions on their own. And Bodek occassionally travels to the West Philadelphia site when he is needed. The class must also hire a plumber and electrician because of city regulations which require such workers to have licenses. Usually a project takes at least two years to complete, but Hanley said this current project, which is "95 percent complete," will before that. The house is then sold to a needy member of the community who qualifies for a mortgage and can pay the $2000 or $3000 downpayment. The houses are sold at cost, which for the latest house is $41,000, and the money is used to purchase the next house and the materials required to renovate it. The buyer for the Peach Street house has already been selected and Zucker and Bodek have provided a favorable mortgage agreement. The class is open to undergraduate seniors and graduate students. Wharton senior Jessica Kostner, who spends eight hours a week at the work site, said the class talks about all aspects of real estate renovations. "We discuss rehabilitation process issues, insurance issues [and] legal issues," she said. Kostner said, that while the class requires a lot of time and commitment, the satisfaction of creating a house is well worth it. Zucker said work on the next house will begin after spring break and that, because it is a bigger project than previous sites, he hopes to have about 40 students in next semesters' class. Before work can begin, stairs must be built and a door must be put on the house, Zucker said.

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