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
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