11-A-1 Homestead Program - Laserfiche WebLink

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DRAFT PROCEDURE, HOMESTEAD PROGRAM Obtain copy of all properties located within the city limits of the City of Paris that have been foreclosed on for delinquent taxes. Incorporate location information on lot inventory into the City's GIS system to enable us to identify the location of the properties. Identify properties which appear to be suitably located adjacent to or with access for utility services of all kind, including sewer, water, electricity, gas, etc., and other criteria as designated by the committee for consideration as candidates for including in the homestead program. The taxing entities must now be prepared to convey the property by general warranty deed in their respective interest of the property (perhaps as determined by the relative amount of taxes owed on the property at the time it was foreclosed) to make the property suitable as collateral for a home construction loan. This is a risk item; it will entail a certain level of risk (although relatively small) on the part of the taxing entities m be prepared to convey their interest by general warranty deed. There are also constitutional implications in this step, dealing with the gift of public funds (Artide III, Section 51) and extending of public credit to a private entity (Article III, Section 52), but it is believed that under current law these considerations are manageable. There must be a screening process established to identify potential participants in the homestead program. Perhaps the current programs administered by the city or others could identify qualified potential home buyers based on the criteria established through this process. Moderate income would obviously be one consideration. This program would also lend itself very will to individual housing for the elderly. There would have to be a process to match up qualified candidates for participation in the program with the preferred housing and an available lot. This would be the time when the financial institutions would have to be involved, as the candidates would have to have a sufficient available income to qualify them for a reasonable loan for construction of the new house. The warranty deed provided by the taxing entities would serve as the collateral and down payment of the loan for construction of the house. The full involvement and participation of the various financial institutions would be an absolute necessity at this point, from the perspective of interest rates, qualifications for loans, ability to pay, etc. There would also be the questions of closing costs and how those closing costs could be minimized and still satisfy the requirements of the lending institutions. As in any other circumstance, the construction loan would be linked to a mechanics and materialman's lien contract for the construction of a new house. This would require the