siqnated purchaser of the property shall
sd for eligibility for a low-interest rehabi­
n through eith a Federal, State, or local
I provide th financial assistance necessary
the repairs to the property. I f a 10calJy
san is used th interest rate of the loan
er thr perc nt or up to nine percent with
usehold incom of the applicant's
_ °detennining factor. No rehabilitation
I be provided to the purchaser of the
)
c
To reduce the potential financial burden, each
homesteader shall be encouraged to perform some
of the work. In the even II t equity" is being
performed, neighbOrhood o�nizatjons shall be
encouraged to seek out, on behalf of the home­
steader, technical' expertise in various aspects of the
rehabilitation. The Board will dev op a working
arrangement with the City of Benton Harbor
Inspections Department or oth appropriate
agency(s) to assist homesteaders in making correct
and sound repairs.
p
OG
Prior to purchasing any property for the program
Board shall ha e determined that rehabilitation of
property is structurally and financially feasible.
Board shall prepare a rehabilitation analysis
:h details the nature of the work to be performed,
ell as estimates the cost increases wh ich may take
(due 0 inflation) during the course of the
biJitation. That analysis shall be .available to aU
rested appl ieants. -
�s conditions for participation in urban home­
�ing, the following requirements exist:
1. The homesteader must agree to complete all
required rehabilitation work within a specifi­
ed period of time. This period of time shall be
negotiated betWeen the Board and the home­
steader, but in no ca Shall that ttime exceed
eighteen (18) months from the date on which
the property is occupied b�' the homesteader.
. As a general guideline, particularly in cases
where all the repairs are being performed
under contract(s), all work must be complet-
ed with in six months of the execution of the
"Homesteader's Agreement." Extensions to
this six-month period shall be granted depend­
ing on the extent of the purchaser's personal -
involvement In the rehabilitation of the
property through "s at equity."
2.. Work shall begin ithin 30 days of the
execution of "Homest 's Agreemen "
To further reduce the po ential financial burden
to the homesteader, the first pay,ment on a loan being
provided through the City's H6using Rehabilitation
Program shall not be required until the second month
following the date on which the.aoard certifies that
the structure is ready for occupancy or as a maximum
six months after the execution of the "Homesteader's
Agreement." .
A
(6) The . homesteader shall be encouraged to
occupy the property for a period of three
years after obtaining fee simple title.
- .'
(7) Because this pro am is in nded to provide
homeownership opportunities, the home­
steader may not vacate the property and
retain ownership of the property and utilize
it to produce income.
(8) In the event the homesteader sefts the proper-.
ty within three years from the date on which
the homestead . shall pay to the City a per­
centage of any' creased value the homestead­
er may receive upon th sale of that property.
The amount to, which that percentage would
be applied would be derived by subtracting
the indebtedness which the homesteader
originally incurred at the time of property
purchase (total of mortgage principal, if
any, and rehabilitation loan principal) plus
any expenses incurred by the homesteader to
market the property. from the price at wh ich
the homesteader sold the property. The per­
centage paid to the City shall be based upon
the following schedule:
a. If sold within first year since obtaining
title, 9<Rt:
b. If sold during second year since obtaining
title, 60..;
c. If sold during third year since obtaining
title,3a-..
3. Major code items such a plum bing, heating,
and electrical shall be corrected with in 90
days from ttie date of work commencement. I n the event of a hardsh ip, the City!Board may
Occupancy may not cOl'!)mence until those waive the repayment provision upon the recommen­
items relating to the health and safety of the dation of the Board.
purchaser have been corrected and an occu­
pancy c ificate issued by the City.
II. The property' shall be exempt from the
forcement of the City's Housing Main­
ce Code (except for items relating to
Plumbing, heating. el�trical and environ-
m tal conditions once occupancy has
commenced) until a certificate of com pie­
.tion is ussued. The homeSteader must agree
to permit periodic inspections at mutually
agreed upon times by City Inspectors and!
or City R abilitation Counselors for the
purpose of determining the quality and
progress of the work.
5. After completion ..of the scheduled rehabili­
tation work in accordance with the "Home­
steader's Agreement", the homesteader shall
be issued a certificate of completion and
granted fee simple titl to the property from
the City for $1.00. '
(9) In the even the homesteader should be
required to vacate the property prior to
btaining fet! simple title, the City/BOard shall
make every effort to ensure that the home­
steader is able to recover expenses encounter­
ed relating to th progress that the home­
steader ach' tow rd r�abilitating the
structure.
( 10) I n cases where properties are received by the
Benton Harbor Housing Commission through
Section 810 of the Housing and Community
Development Act of 1974, provisions No.8
and No. 9 as cited above shall not apply. In
these 'cases the homesteader shall be required
to occupy the property for a period of three
(3) years commencing with the date on which
the property is occupied by the homesteader,
subject to the following conditions:
a. I f the homesteader vacates the property
prior to rece' i title, the Boa d shall
then either (1) re-m rke the property
through urban homesteading and the
subsequent homesteader shall be proces­
sed for assumption of the initial rehabili­
tation 10 n or (2) complete the rehabilita­
tion work, re-market the property ith
permanent mortgage financing and repay
the remaining balance of the initial rehabi-
litation loan. .
b. I f the homesteader vacates t e property
after receiving title, but prior to the
expiration of the three-year occupancy
period, title to the property shall revert
to the City. The Bo rd shall then either
(1) re-mark the property through urban
homesteading and the subsequent home­
steader shall be processed for assumption
of the initial rehabilitation loan or (2)
re-market the property with perm ent
mortgage financing and repay the remain­
ing balance of the initial rehabilitation
loan.
(ll)The homestead shall a ee to maintain the
d ling after comp etion of rehabilitation so
as to satisfy all electrical, plumbing. building,
fire prevention, and related codes.
(12)D�ring the rehabilitation 'period, the- City
shall maintain adequate "all perils" insurance
on the property. Once receiving title to the
property, the homesteader shall agree to carry
adequate perils and liability insurance on the
structure at all times. The City shall be
named as co-insured on such coverage as long
1S the City is maintained as the mortgagee.
(13)ln the event the homesteader is an owner­
occupant of the property in which the home­
steader cu rrently resides, the homesteader .
shall be required to sell the previously occu­
pied property after assuming occupancy of
the homestead property in order to relieve
the potential burden of owning and maintain­
ing both properties.
(14)The homesteade shall a ee to comply with
such addition I reasonable terms as the Board
may designate in ord to insure that the
rehabilitation of the property is successfully
completed.
(15) If, during any time while the agreed upon
rehabilitation is being performed, an inspec­
tion reveals the homesteader's inabil ity or
unwillingness to complete the re uired work,
the homesteader may be required to contract
the work- (either with a contractor or a
neighborhood group) or to vaca the proper­
ty under the remedies provided in the "Home­
steader's Agreement."
•
