Title
Sale of City Owned Properties (NB)
Explanation
In Phase III of the Cedar Grove II development, one home was built as a model center and three homes were built for resale to eligible first time homebuyers that could not qualify for an affordable construction permanent loan, but could qualify for a permanent loan with affordable payments. Phase I, II and III are completed, and Phase IV is approximately 95% completed. Since the Cedar Grove II development is approximately 98% completed and the vacant lots located at 1103 Northeast 21st Court South and 1129 Northeast 21st Court South are the only unsold lots, the Housing Division is proposing to sell the model home in Phase III and the three homes built for resale and use the net sale proceeds to construct two homes on the two remaining vacant lots in Phase IV for resale. Construction of these two homes and completion of the homes currently under contract will complete the Cedar Grove II development.
At the September 9, 2002 City Commission meeting, the City Commission also approved establishing a Cedar Grove II foreclosure acquisition reserve fund to set aside monies that can be used to acquire foreclosed Cedar Grove II properties if any are foreclosed, at public sale. This fund guarantees that the Housing Division has funds available that it can use to protect the Cedar Grove II development from investors. Any houses purchased at public sale must be sold to eligible homebuyers under the existing approved Cedar Grove II program. The Housing Division is proposing that any available net sale proceeds from the sale of 1129 Northeast 21st Court South, and 1103 Northeast 21st Court South be deposited into this fund.
Fiscal Note
The net sale proceeds will be used to build new homes at 1129 Northeast 21st Court South, and 1103 Northeast 21st Court South; and to maintain the Cedar Grove II acquisition reserve fund.
Recommendation
The City Commission: 1) declare the properties located at 1212 ...
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