Cincinnati City Council has passed an emergency ordinance to sell a City-owned house at its Walnut Woods development without competitive bidding.
The prospective owner will purchase for $143,000, less than its appraised value of $165,000. Similar houses in the neighborhood have been selling for a median price of $130,000.
As a condition of the sale, the new owner will be required to join the development's homeowners association, remaining as the primary resident and agreeing not to demolish the property for five years. The City will use the sale proceeds to pay 3 percent commission to the owner's realtor and will invest $20,000 in basement waterproofing and $3,000 in new appliances.
The prospective owner was the only person to make an offer on the property and, in an October memo to council, city manager Milton Dohoney Jr. supported the idea of selling the house without competitive bidding because it would boost homeownership in the City.
Councilmembers Chris Bortz, Chris Monzel, and Leslie Ghiz voted against the ordinance.
The City has controlled the 12-unit Walnut Woods project since a private development failed and has invested nearly $2.6 million on the project so far.
Previous reading on BC:
To boost homeownership, Cincinnati may sell Walnut Hills house for less (10/6/09)
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1 comments:
Given the current economic climate and the state of the housing market this move makes sense. Getting a homeowner into the property improves the value of all of the properties and it will encourage others to come in and buy any remaining properties as some "value" has been established and a viable "current comparable sale" will exist for appraisal purposes for future sales.
City government, really doesnt need to be involved in the business of real estate redevelopment(particularly with historic property) however well intentioned and under the original circumstances unavoidable.
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