#03 Authorize to sell property at 414 N Washington Street (File Res. #2011-861)
NEIGHBORHOOD SERVICES MEMORANDUM
December 2, 2011
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Proceed with the Sale of Property Located at 414 N Washington
Street through the Neighborhood Stabilization Program
(File Res. 2011-861)
Summary
The Neighborhood Services Department has completed the rehabilitation of the
property located at 414 N Washington Street through the Neighborhood
Stabilization Program. An interested party has submitted a valid offer to
purchase of $75,000 and City Council approval is necessary to finalize the sale.
Department Recommendation
The Neighborhood Services Department recommends that the City Council
support a motion to approve Resolution 2011-861 authorizing the sale of the
property located at 414 N Washington at a sales price of $75,000.00.
City Manager Recommendation
The City Manager concurs with the Neighborhood Services Department
recommendation.
Suggested Motion
I move to approve file resolution 2011-861 authorizing the City Manager to
proceed with the sale of 414 N Washington Street at a sales price of $75,000.00.
Background
In January 2009, the City Council authorized staff to apply for a Neighborhood
Stabilization Grant Program through the State of Wisconsin Department of
Commerce. The City of Janesville received an award of $1,003,743.
This program allows municipalities and qualified non-profit organizations to
acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or
demolition.
The goals of the Neighborhood Stabilization Program (NSP) are to reduce blight,
provide affordable single family homes, and stabilize and improve the real estate
market in those neighborhoods being hit the hardest by the foreclosure crisis.
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Sale of the NSP houses must be to owner occupied buyers fall who within the
income guidelines of the program. All buyers are required by the Neighborhood
Stabilization Program to have had at least 8 hours of home buyer education from
a HUD approved housing councilor prior to the purchase of any NSP home.
The property located at 414 N Washington was acquired on July 16, 2009 for the
purpose of rehabilitation and resale under the Neighborhood Stabilization
Program.
The property has been updated with energy efficient windows, doors, insulation,
a new kitchen and new baths. In addition, the property has passed a lead paint
clearance test. The buyer has provided the City of Janesville a copy of her
appraisal that lists the value of the home at $80,000.
The buyer is within the income guidelines as required by the Neighborhood
Stabilization Program. Neighborhood Services is providing the buyer with $2250
in a buyer’s credit for closing cost and prepaids as well as $2500 in NSP-Funded
Down Payment and Closing Cost. The down payment and closing cost
assistance will be forgiven over a period of 5 years based on the owner
occupying the property as their primary residence.
Analysis
A. The property was purchased by the City of Janesville through the
Neighborhood Stabilization Program.
B. City Council set the asking price during a closed session on August 11,
2011 and the sales price falls within the guidance provided by the Council.
C. The intended buyer meets the requirements of the Neighborhood
Stabilization Program.
cc: Eric Levitt, City Manager
Jay Winzenz, Dir. of Administrative Services/Assistant City Manager
Jennifer Petruzzello, Neighborhood Services Director
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RESOLUTION NO. 2011-861
A resolution authorizing the City Manager to proceed with the sale of property located at 414 N Washington.
WHEREAS,
the City of Janesville owns the following described parcel:
MITCHELL'S ADD. N.50'S.62.12'W.88.44'NW1/4 LOT 21 DAF:Pt NE1/4, Sec 35, T3N, R12E, 4th PM, City of Janesville,
Rock Co, WI JC5502986
WHEREAS
, The City of Janesville acquired the property located at 414 N Washington Street in the City of Janesville,
County of Rock, State of Wisconsin 53546, in June of 2009, through the Neighborhood Stabilization Program Grant; and
WHEREAS,
The City of Janesville has rehabilitated the property consistent with the Neighborhood Stabilization Program
requirements; and
WHEREAS
, The City of Janesville has negotiated an agreement to sell and convey the property to Ms. Heather Weiland
for a purchase price in the amount of $75,000.00 including a $2250.00 buyers credit for a total buyer purchase price in the
amount of $72,750.00; and
WHEREAS,
The City of Janesville has obtained a copy of an appraisal of the property listing its current fair market value
in the amount of $80,000; and
WHEREAS,
The City of Janesville has verified that Ms. Weiland satisfies the program criteria; and
WHEREAS,
The City of Janesville has provided $2,500 in down payment assistance: and,
WHEREAS
, the Plan Commission has reviewed the Neighborhood Stabilization Program at their June 1, 2009, meeting
and found the purchase, rehabilitation, and sale of these properties to be consistent with established City plans and
recommended that the Common Council proceed with the sales of such acquired properties as this, but further noted that
the Plan Commission had not reviewed the financial aspects of this transaction.
NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL
of the City of Janesville that they hereby authorize
and direct the City Manager and the City Clerk, on behalf of the City of Janesville, to execute and close upon the sale of
this property; and to negotiate, enter into, and execute such additional agreements, documents, papers, and forms as
may, from time to time, be necessary and/or desirable to effectuate this transaction and the intent of this resolution, as the
City Manager may decide; and
BE IT FURTHER RESOLVED
that the City Manager is hereby authorized to take whatever other actions or to make
whatever other minor changes that he may determine necessary and/or desirable concerning this sale and conveyance.
ADOPTED: Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Liebert
Eric J. Levitt, City Manager
McDonald
Rashkin
ATTEST:
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services
Prepared by: Neighborhood Development Specialist