urban homesteading

[forestdale]

This is from: http://www.lakelandgov.net/news/122704urbanhome.html

URBAN HOMESTEADING

BUYER PAYS ONLY $1,000 PER LOT WITH BALANCE IN THE FORM OF A DEFERRED LIEN

LAKELAND, FL (December 27, 2004) -- In October 2004, the City Commission approved an Urban Homesteading Program. The City of Lakeland maintains a list of City owned vacant residential lots suitable for single family construction where the property has marketable title and all back taxes have been paid in full. These lots are available for Urban Homesteading. City owned vacant lots will be offered for sale to households that will construct single family housing and maintain same as their principal residence. Purchasers can be of any income range. The program is intended to create a better mix of incomes in inner city neighborhoods where most vacant lots are located. Should there be sufficient interest in the program that more than one entity expresses interest in purchasing a particular lot or there are more participants than lots available, preference will be given in the following order: First: Homeowners displaced by road projects or natural disasters and who have financing* in place; Second: Households with financing and construction plans in place; Third: Experienced non-profit or for-profit builder/developers; Fourth: Non-profit or for-profit builder/developers as initial affordable housing venture. *Applicants are responsible for their own financing arrangements to be made with third party lenders, meeting the lender’s credit and income requirements. Lots available under the “Urban Homesteading” program are signed with sufficient information to draw attention to the program and direct prospective buyers/homesteaders to the appropriate offices to make application. Applications shall be made by the prospective buyer which shall contain information as to availability of construction financing, contractor information, building design, etc. Buyers pay only $1,000 per lot with the balance in the form of a deferred lien. Lots will be sold for the appraised value. Buyer shall pay a deposit of $500.00 toward the purchase at the time a Contract For Sale and Purchase is entered into with the City of Lakeland. An additional $500.00 shall be paid by the Buyer at the time of closing. The balance remaining due on the purchase price (represented by the appraised value less $1,000.00 paid) shall be secured against the property in the form of a 5 year deferred payment lien. This deferred payment lien shall be forgiven at the rate of 20% per full year of owner occupancy. The City’s 5 year Urban Homestead Lien shall take subordinate position behind the purchase money first mortgage. Any balance remaining on the 5 Year Urban Homesteading Lien shall immediately be due and payable upon the event of any of the following: 1) death of recipient or recipients; 2) selling or transfer of title to the property; 3) property is no longer maintained as recipient’s principal residence (such as renting or leasing of property with or without consideration); and 4) property not maintained to a minimum housing standard. For more information contact the City of Lakeland Housing Division at 863-834-3360.

[PrairieRose]

Sounds pretty good but I would have hoped they'd give a break on the appraissed value as well. I mean, it's sounding a little like one of those no interest for ____ deals, isn't it?