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HomeMy WebLinkAbout2001-11-14 02-29 ORDERCOUNCIL AMON SDSP®SioN OF amsS Item No. n2-za Date: 11/14/01 Item/Subject ORDER - purchase of 43 Division Street from U.S. Department of Mousing and Urban Development Under the $1 Home Sales to Local Governments Program Responsible Department: Community 9 Economic Development When HUD forecloses on a property, they offer it for sale to the public for 6 months at a minimum price of their mortgage amount. If that property tices not sell, HUD then offers it exclusively to the local municipality for $1.00 plus closing costs. fast year, the City purchased 61 Second Street and completely rehabilitated it using CDBG funds. It will be sold to a low -moderate income first-time homebuyer under the New Neighbors program. If the City does not accept the $1.00 purchase, HUD then auctions it off to the general public. By purchasing the property, the City will have control over the rehab process, insuring appropriate workmanship, and reuse, both of which are important to neighborhood revitalization. 43 Division Street is a 2 -unit property, and is in the New Neighbors Pored Area. This item has not previously been discussed by the BED Committee bemuse there Is only a 10 day period in which the City has to act. We expe¢ to he notified on November 9, and would have until November 19 to approve the purchase. HUD does not allow any leniency in this process. Therefore it Is critical that the November 14 Council Meeting consider this purchase. Department Head Manager's Comments: I would recommend Counal approval of this acquisition. It is In line with the Council's priority of protecting and improving Bangor's neighborhoods. Associated Information: City Manager Finance Directur City Solicitor Introduced for X Passage _ First Reading page _ of Referral SUSPENSION OF RIFLES 02-29 Assii;mdto Councilor Relaacci November 14. 2001 CITY OF BANGOR (TITLE.) Order, Purchase of 43 Division Street from U.S. Deparb M of Housing and Urban Development Under roe $1 Home Salea b Local Governments Program sy the 6ty Choral afthe City of Bargon ORDERED, THAT WHEREAS, properties foreclosed by the U.S. Department of Housing and Urban Development which have been offered to the public for sale for six or more months and are not presently under a sales contract are removed from the market and offered exclusively to local governments for $1 plus dosing costs; and WHEREAS, profits from resale must go to support local housing or community development initiatives; and WHEREAS, the property at 43 Division Street in Bangor has been foreclosed by the U.S. Department of Housing and Urban Development and has been offered an the public for sale for six or more months and is not presently under a sales contract; and WHEREAS, Me property at 43 Division Street has been removed from the market and offered exclusively, to local governments for $1 plus closing casts under the $1 Home Sales to Loral Governments Program; and WHEREAS, acquisition of the property for rehabilitation and reuse conforms to the goals of the Ob to improve its neighborhoods; NOW THEREFORE, BY THE CM COUNCIL OF THE C OF BANGOR, BE R ORDERED THAT, the City manager is hereby authorned M acquire the property located at 43 Division Street in Bangor, for $1 and closing costs, and to take such actions as approved by the Business and Economic Development Committee to ensure appropriate rehabilitation and reuse of the property, and to dispose of the property under such terns and conditions as approved by the Business and Economic Development CommRtee, in a forth or forms approved by the Oty Solicitor or Assistant City Solicitor. IR CITY WMUL November 16, 2001 Notfau Nade anal Seconded to Consider C.O. 102-29 Under Suspension of the Rules Rules Suspeaded Motion Made and Seconded for Passage Passed \1 II Mw # 02-29 (TITLE,) from V. S. Department of Rousing and Urban Developuent Dader the $1 Rome Sales to L