[Ord. No. 42-32 Preamble]
The City of Linden (the "City") has determined that certain
properties in the City are substandard, and have been acquired, or
in the future may be acquired by the City; and the City is desirous
of entering into contracts, executing deeds and other related legal
documents with qualified purchasers of such properties.
[Ord. No. 42-32 § 1]
There is hereby established a City of Linden Urban Homestead
Program (the "Program"), which shall be administered by the Construction
Code Department of the City, pursuant to the provisions of N.J.S.A.
40A:12-33 et seq. The selection criteria and regulations for participation
in the Program by qualifying purchasers shall be as set forth herein.
[Ord. No. 42-32 § 2]
For purposes of the Program, which shall be entitled "The City
of Linden Urban Homestead Program", the following minimum requirements
shall apply:
a. The purchase price per property shall be one thousand ($1,000.00)
dollars for all eligible applicants to be of low and moderate income
(i.e. the low and moderate income standards for Union County established
by the U.S. Department of Housing and Urban Development); and the
purchase price shall be ten thousand ($10,000.00) dollars for all
other applicants.
b. The purchase and rehabilitation of a home through the Program is
not limited to Linden residents, however, buyers must commit to reside
in the properties for a minimum of ten (10) years.
c. Rehabilitation of the property must commence within sixty (60) days
of execution of an agreement to purchase, and receipt of financing;
the work must not cease prior to completion for more than thirty (30)
consecutive days; and all work must be completed within one hundred
eighty (180) days following the receipt of financing.
d. The Program will be advertised by the City in accordance with the
requirements of N.J.S.A. 40A:12-33, et seq. Applicants can pre-qualify
for financing from the City of Linden Neighborhood Preservation Program,
based upon completion of an application and supporting documents,
minimum income and down payment requirements, acceptable credit and
other program and lending criteria established by the Program; pre-qualified
applicants will be eligible for participation in a lottery for each
property to be conducted by an independent auditor. For each property,
three (3) names will be drawn; the winner and two (2) back up applicants.
Applications are restricted to only one (1) property at a time.
e. The lottery winner shall submit three (3) general contractor cost
estimates (bids) for the scope of work/work write up prepared by the
City of Linden Neighborhood Preservation staff, which shall review
and approve the selection of the general contractor in accordance
with Neighborhood Preservation Program guidelines.
f. Title to the property shall revert back to the City of Linden in
the event the purchaser fails to close title, commence or complete
the rehabilitation within the time period, or meet the residence requirements.
g. All conveyances shall be accomplished through a contract of sale
and rehabilitation which contract shall be approved by the Municipal
Council.
h. The City Neighborhood Preservation staff shall be responsible for
construction monitoring. Construction completion will be determined
by issuance of a certificate of occupancy and certification of completion
by the Neighborhood Preservation staff and the City Housing Inspector.
The City Housing Inspector and the Neighborhood Preservation staff
shall have the responsibility for monitoring said properties to insure
compliance with all the provisions of this chapter.
[Ord. No. 42-32 § 4]
The Mayor is authorized to enter into contracts, execute deeds
and other related legal documents as necessary with lenders and purchasers
of City owned property under the Program upon their demonstration
of financial capabilities in compliance with all other terms and regulations
established by this chapter. The contracts shall be attested to by
the City Clerk and approved as to form by the City of Linden Law Department.
[Ord. No. 42-32 § 5]
City Council shall be provided with an annual report by December
31st of each year identifying:
a. The number of contracts entered into;
b. The amount of said contracts;
c. The property addresses for such contracts.
[Ord. No. 42-32 § 6]
By resolution, the City Council may, from time to time, designate
certain property owned by the City for inclusion in the Program.