Title
Request To Release Lien 425 NE 3rd Street (B)
Explanation
This item is a request for the City Commission to consider a lien reduction or rescission for 425 NE 3rd St. The property was previously found in violation of various City ordinances dating back to 1996. Four liens were placed on the property in 2005 and as a result the property has accumulated fines of approximately $1,108,000.
In December of 2020, the City of Gainesville initiated steps to demolish the house consistent with the City’s dangerous building and hazardous land code, and prepared to initiate foreclosure proceedings against the property. Subsequent to these actions, the owner and potential buyer entered into a contract for sale. The potential buyer is seeking a release of the City’s liens on the property as a condition of the closing.
The buyer is obtaining a Fannie Mae Homestyle Renovation Loan in the amount of $486,076 to purchase and renovate the property. Per the mortgage document, the renovation portion of the loan is set at $320,159. The purchase and sale agreement for the house and property is $191,500.
With authorization from the existing owners, the potential buyer, acting as agent for the current property owner, developed renovation plans and has applied for and obtained a Certificate of Appropriateness from the Historic Preservation Board (5-4-21) as well as obtained the necessary building permits (6-28-21) to complete the renovation work. The buyer has also paid to have the property cleared of vegetative overgrowth.
At the Special Magistrate hearing on June 30, 2021, the Magistrate recommended a full rescission of the fines and release of the liens at the hearing based on the testimony provided by the buyer and others regarding the planned improvements to the property in the event the lien is rescinded.
Based on the lien total, the nature of the violations, and the length of time the violations remained unaddressed, staff does not recommend that the City Commis...
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