Staff recommends the City Commission approve the contract to purchase the Housing & Urban Development (HUD) residential home for one dollar ($1) at 803 Georgia Avenue, Leesburg, Florida.
HUD has provided a unique opportunity for local governments to purchase HUD homes for one dollar ($1), known as the “$1 home sale,” which is one part of the HUD’s Good Neighbor programs. Under the guidelines, HUD allows local governments to purchase any property for the price of $1.00, after the property has been marketed for sale in the program for at least 180 days. We believe this unique opportunity to acquire a house and oversee rehabilitation for a good purpose that serves the community, at a substantial savings is quite a benefit. Once the property is acquired, the City has the authority to dispose of the property consistent with affordable housing guidelines.
Two of the primary goals of the Housing Services Division of Housing & Economic Development, is (1) neighborhood revitalization and (2) promote affordable housing opportunities for very-low to moderate income families. Purchasing the HUD home will help to address both goals and provide an opportunity for citizens of the City of Leesburg to own a home, and show our commitment to “affordable housing.”
Staff recommends the disposal of the property will be necessitated by selecting an individual who is working with the Housing Department program to purchase a home and who meets the federal guidelines as an affordable household.
1. Approve and accept the contract to purchase a HUD home for one dollar; or
2. Such alternative action as the Commission may deem appropriate
The City’s responsibility at closing is $376.70 for title expenses and $1 toward the purchase of the property. The City is receiving from HUD (Seller) $1,262.69 for real estate taxes from 1/1/09 to 10/14/09 (based on most current HUD statement which is attached). The net of $885.99 will go toward real estate taxes when property is transferred.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA APPROVING AN AGREEMENT WITH THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT BY EXECUTING A CONTRACT TO PURCHASE PROPERTY AND ACCEPT OWNERSHIP LOCATED AT 803 GEORGIA AVE, LEESBURG, FLORIDA, LAKE COUNTY SECTION 22, TOWNSHIP 19 RANGE 24 FOR THE AMOUNT OF ONE DOLLAR ($1); AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Secretary of Housing and Urban Development, whose address is 40 Marietta Street, Atlanta, Georgia 30303 for the purchase of the property located at 803 Georgia Ave. Leesburg, FL 34748.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _26th____ day of __October_______ 2009.