[HISTORY: Adopted by the Common Council of the City of Rensselaer as indicated in article histories. Amendments noted where applicable.]
[Adopted 6-3-2015 by L.L. No. 4-2018]
A. 
The City of Rensselaer is desirous of making changes to the way it gets rid of property. In an effort to spur more new development and more homeowners in the City, it is creating a pilot program to change the process in which property acquired by in rem tax foreclosure or any other property that the City has taken ownership of.
B. 
Current charter guidelines call for vacant properties (with no building on it) to be offered to the adjoining land owner and if only one adjoining land owner is interested then the property can be sold to them at fair market value (appraisal). The change to this is, if the vacant (City-owned) property borders another vacant (City-owned property) then the two properties will be merged to make one bigger property, making the property more valuable and more buildable according to current City zoning. In addition the Common Council of the City of Rensselaer can turn vacant property over to the City IDA, or allow the vacant property to be sold outright instead of at an auction. This does not prohibit a vacant piece of property from being sold to an adjoining landowner or at an auction, but offers another way to sell a vacant property in a manner that will best benefit the City.
Properties not turned over to the IDA can be sold in either of two ways: through a real estate agent or directly to a construction builder, herein referred to as a "contractor agent." Any property sold through this method must be sold to a person who will reside in that property for a period of five years from this point on referred to as "residency compliance." (See use agreement form.[1]) If it is a multi-unit property than the person purchasing the property must reside within one (not necessarily the same unit) of those units for a period of five consecutive years.
[1]
Editor's Note: The use agreement form is on file in the City offices.
A building permit must be obtained within 30 days of closing on the property. All properties must be brought up to code within a period of one year or must get an extension from the Building Department showing that they have made significant progress warranting the extension. At the completion of the work a certificate of occupancy must be obtained.
The new property owner, or contractor agent, may opt to demolish the building and construct a new residence building in accordance with all current City building and zoning regulations and owner-occupied criteria, residency compliance.
The property may be sold to another individual but the remainder of the owner-occupied agreement will need to be carried forward. In example, if the original purchaser stayed in the property for three years and wanted to sell the property they can, as long as the new owner will sign the agreement for the remainder of the term of the original use agreement form, in this case two years.
A. 
The real estate agent must be a documented listing agent by the City of Rensselaer. "Documented listed agent" is any licensed real estate agent that has signed an agreement to participate with the City and is on the approved City property realtor list. (Form for realtor to sign verifying that they will abide by the City sale to owner-occupied criteria.[1])
[1]
Editor's Note: Said form is on file in the City offices.
B. 
The real estate agent may list through any means they normally do to sell a property, but must sell the property to someone that will reside in said building on the property for a period of no less than five consecutive years, known as the "owner-occupied criteria." Failure to abide by this will be addressed in § 137-11 listed below titled "Residency compliance."
C. 
Real estate agent compensation. Each realtor selling a City-owned property will be compensated as follows: 5% of market value of any property over $100,001; 7% of market value of any property between $50,001 and $100,000; 15% of market value if market value is between $25,000 and $50,000; 25% of value if the market value is between $10,000 and $25,000; or a straight $5,000 for any property with a market value at less than $10,000.
D. 
Realtor pricing (selling amount) listed under § 137-9, Buyer purchase price.
A. 
The contractor agent must be a documented contractor agent by the City of Rensselaer. Documented listed agent is any licensed contractor agent that has signed an agreement to participate with the City and is on the approved City contractor agent list. (Form for contractor to sign verifying that they will abide by the City sale to owner-occupied criteria, residency compliance.[1])
[1]
Editor's Note: Said form is on file in the City offices.
B. 
The contractor agent may list through any means they normally do to sell a property, but must sell the property to someone that will reside in said building on the property for a period of no less than five consecutive years known as the "owner-occupied criteria." Failure to abide by this will be addressed in § 137-11 listed below titled "Residency compliance."
C. 
The contractor agent purchase price (selling amount) listed under § 137-9, Buyer purchase price.
D. 
The contractor agent may not hold onto the property and rent it.
Property value will be calculated by a realtor appraisal of market value. The City of Rensselaer Building and Zoning Department will compile a list of essential items needed to be done to bring the property up to code. A rough estimate will be calculated of each item by standard book dollar rate. Note: The estimated cost of repairs is meant solely as a tool and is an estimate only, and not meant to be all inclusive. Proposed homeowner and or contractor agents should us this only to help guide them in the decision as to purchase the property.
Each perspective buyer (including contractor agent) buying a City-owned property will be subject to the following purchase policy. The purchase price will be set at the market value minus a percentage as outlined below:
A. 
Any property with a market value of less than $5,000, the perspective buyer purchase price will be set at market value less 95% of market value. For example a house valued at $2,500 would sell for $2,500 minus $2,375 for a selling price of $125.
B. 
Any property with a market value of between $5,001 and $10,000, the perspective buyer purchase price will be set at market value less 80% of market value. For example a house valued at $7,500 would sell for $7,500 minus $6,000 for a selling price of $1,500.
C. 
Any property with a market value of between $10,001 and $20,000, the perspective buyer purchase price will be set at market value less 70% of market value. For example a house valued at $15,000 would sell for $15,000 minus $10,500 a selling price of $4,500.
D. 
Any property with a market value of between $20,001 and $30,000, the perspective buyer purchase price will be set at market value less 50% of appraised value. For example a house valued at $25,000 would sell for $25,000 minus $12,500 a selling price of $12,500.
E. 
Any property with a market value of between $30,001 and $40,000, the perspective buyer purchase price will be set at market value less 40% of appraised value. For example a house valued at $35,000 would sell for $35,000 minus $14,000 a selling price of $21,000.
F. 
Any property with a market value of between $40,001 and $50,000, the perspective buyer purchase price will be set at market value less 30% of appraised value. For example a house valued at $45,000 would sell for $45,000 minus $13,500 a selling price of $31,500.
G. 
Any property with a market value of between $50,001 and $60,000, the perspective buyer purchase price will be set at market value less 25% of appraised value. For example a house valued at $55,000 would sell for $55,000 minus $13,700 a selling price of $41,250.
H. 
Any property with a market value of between $60,001 and $70,000, the perspective buyer purchase price will be set at market value less 20% of appraised value. For example a house valued at $65,000 would sell for $65,000 minus $13,000 a selling price of $52,000.
I. 
Any property with a market value of between $70,001 and $80,000, the perspective buyer purchase price will be set at market value less 15% of appraised value. For example a house valued at $75,000 would sell for $75,000 minus $11,250 a selling price of $63,750.
J. 
Any property with a market value of between $80,001 and $90,000, the perspective buyer purchase price will be set at market value less 10% of appraised value. For example a house valued at $85,000 would sell for $85,000 minus $8,500 a selling price of $76,500.
K. 
Any property with a market value of between $90,001 and $100,000, the perspective buyer purchase price will be set at market value less 9% of appraised value. For example a house valued at $95,000 would sell for $95,000 minus $8,550 a selling price of $86,450.
L. 
Any property with a market value of between $100,001 and $110,000, the perspective buyer purchase price will be set at market value less 8% of appraised value. For example a house valued at $105,000 would sell for $105,000 minus $8,400 a selling price of $96,600.
M. 
Any property with a market value of between $110,001 and $125,000, the perspective buyer purchase price will be set at market value less 7% of appraised value. For example a house valued at $115,000 would sell for $115,000 minus $8,050 a selling price of $106,950.
N. 
Any property with a market value of between $125,001 and $150,000, the perspective buyer purchase price will be set at market value less 6% of appraised value. For example a house valued at $135,000 would sell for $135,000 minus $8,100 a selling price of $126,900.
O. 
Any property with a market value of between $150,001 and $200,000, the perspective buyer purchase price will be set at market value less 4% of appraised value. For example a house valued at $175,000 would sell for $175,000 minus $7,000 a selling price of $168,000.
P. 
Any property with a market value of above $200,001, the perspective buyer purchase price will be set at appraised value less 2% of market value. For example a house valued at $300,000 would sell for $300,000 minus $6,000 a selling price of $294,000.
The City of Rensselaer realizes that many of the houses sold under this policy are in need of numerous repairs and as an added incentive under the reduced costs, the City will give a tax incentive or discount as follows:
A. 
The year that the certificate of occupancy was acquired the tax value will 50% of the assessed value.
B. 
The year following, the tax value will be 75% of the assessed value.
C. 
The third year will be at the normal assessed value without any tax deduction incentive.
Residency compliance requires all buildings sold through the City-owned property or in rem process to a contractor agent or a realtor be sold to an individual(s) that will sign a use agreement that they will reside at that property for a period of no less than five consecutive years.
The purpose of this program is to bolster homeowner residency in the City of Rensselaer in exchange for discounted home purchases while at the same time removing and fixing up blighted buildings. As such there are penalties that will incur for noncompliance.
A. 
A primary mortgage of $20,000 will be placed on the property in the name of the City of Rensselaer. See use agreement Article 1, paragraph 7.
B. 
Penalty assessed if a contractor agent or realtor fails to sell the property to an individual who will sign the use agreement. The contractor agent will be removed from the City of Rensselaer documented list of contractor agents or realtors allowed to participate in this program and may not be reinstated to said list for a period of not less than five years.
Any exception to any part of this program must be submitted to the Common Council of the City of Rensselaer via the Council Alderperson or Common Council President for consideration. Any exception to any part of this program must be voted on by the Common Council of the City of Rensselaer at a regular scheduled meeting and receive a super majority of votes to be passed via resolution.