[Adopted 6-3-2015 by L.L. No. 4-2018]
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.) 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.
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.
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.