Claremont House Lot Program

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1 Claremont House Lot Program The Claremont Development Program has been created to encourage the construction of single family residences in the Claremont Development. The City is the owner of 12 single-family lots that are available on a first-come, firstserved basis. Depending on income qualification, the lots are available for free or for purchase. Purchase of a lot apart from this program costs $28,637. The lots are available for free to families of 2 or less with gross income $84,200 or less, and to families of 3 or more with gross income of $96,830 or less. Each qualifying family/individual can only qualify for one free lot. Lots can be purchased for $9,500 by families/individuals that do not meet the income requirements, or for purchases of adjacent lots in addition to a first. Here is how the process works: Family of 2 or less Family of 3 or more $84,200 or less $84,201 or more $96,830 or less $96,831 or more Free Lot $9,500 Lot Free Lot $9,500 Lot 1. Provide proof of pre-approval and income qualification (if applicable). The City will require a letter from your lender showing that you are pre-approved for a loan to finance the cost of constructing your planned home (in the event you are not financing through a mortgage, we will require a bank statement within 30 days of application date showing sufficient funds to finance construction). If you are seeking a free lot, the City will also require proof of income as either one month of pay stubs, a W2, or a Federal Tax Return. 2. Select a lot and sign a purchase agreement. Upon selecting a lot, you will be required to sign a purchase agreement. At this point you will be required to pay the City $1,000 nonrefundable administrative fee, to be applied towards City administration and closing costs. The City will not require you to pay any additional administrative costs; you will be responsible for paying your own closing costs relating to the sale (i.e. title insurance premium and commitment, state deed tax, recording fees, title agent closing fees, etc.). 3. Obtain necessary approvals. The City Council must approve the purchase agreement at a City Council meeting. 4. Complete construction. If you receive or purchase a lot and construction of the home is not completed within 18 months of the date of purchase for single family lots, ownership of the property and any improvements will revert back to the City and/or lending institution. Extensions may be considered by the City Council by request. Building permit renewals and extensions are the buyer s responsibility.

2 RK&T Subdivision Restrictive Covenants Single Family Dwelling Restrictions 1. Each dwelling shall be used exclusively for private residential purposes. 2. All construction of single-family dwellings and accessory structures shall be new, or if moving a dwelling, less than 50 years old. All dwellings must comply, at a minimum, to the Minnesota State Building Code. 3. Dwellings may be manufactured homes if newer than 50 years old, properly inspected per submission of a letter of approval from city building inspector, and submission of moving permit in addition to all other covenant requirements. 4. Dwellings constructed may not be; HUD Code housing, trailers, or mobile homes on permanent or nonpermanent foundations. 5. All completed properties must contain a paved or cement driveway running from the garage door to the street. 6. No dwelling shall be erected which, exclusive of basements, porches, patios, decks, garage, and other storage area, has a gross livable floor area of less than 930 square feet. 7. Driveway curb cuts will be no greater than twenty-four feet (24 ) in width. 8. Dwellings, excluding porches, shall not be set back further than thirty feet (30 ) from the front property line. Property Appearance 9. After receipt of a Certificate of Occupancy for the dwelling, the Owner must have minimal landscaping completed within one growing season, weather permitting. Minimal landscaping shall include the installation of sod or the seeding of grass. 10. The exterior of all buildings or other structures must be completed within one (1) year after the commencement of construction except where such completion is impossible or would result in great hardship due to strikes, fires, or national emergency. If not so completed, the unfinished structure or unfinished portion thereof shall be deemed a nuisance and shall be removed forthwith by and at the cost of the owner. General Property Use 11. No building materials may be stored on any lot except temporarily during continuous construction of a building or its alteration or improvement. 12. No structure, trailer, tent, or similar temporary quarters may be used for living purposes any longer than 90 days. 13. No trees, landscaping (other than sod) or structures shall be allowed on any alleys or utility easements. Density and Quality Standards 14. All residential lots shall be required to have a minimum of a double stall garage of not less than 480 square feet, but not more than a three-car garage, attached. Any accessory building or structure shall harmonize in appearance. 15. No soil may be removed and there shall be no material change in grade levels, slope, pitch, or drainage patterns as they are at the issuance of the Certificate of Occupancy. Any such excavation or grading shall be maintained at all times so as to divert surface waters away from buildings but shall not be done in such a manner so as to unreasonably divert surface water onto the property of an adjoining lot. 16. Any changes to these covenants must be approved by City Hall before starting.

3 Claremont House Lot Program Application Name: Date: Current Address: Phone: Block/Lot: 1. Qualification: Family of 2 or less: $84,200 or less $84,201 or more (skip 2) Family of 3 or more: $96,830 or less $96,831 or more (skip 2) 2. Proof of Please attach documentation of proof of income (one month of pay stubs, W2, Federal Tax Return, etc.) 3. Proof of Financing Please attach a letter from your lender showing that you are pre-approved for a loan to finance the cost of construction. In the event you are not seeking a mortgage, please attach a bank statement less than 30 days old. 4. Next Steps Upon receiving all required information, the City will notify you of pre-approval. You will be required to sign a purchase agreement in Claremont City Hall and submit a nonrefundable administrative fee of $1,000. The purchase agreement must be approved at a City Council meeting. You will be notified within 1 business day of Council approval. If approved, please note you have 18 months to complete construction, or ownership of the lot and its improvements revert back to the City. I hereby declare that all of the above and attached information is true and correct to the best of my knowledge and belief, and I understand that I subject my application to rejection or compensation of the full assessed value of the lot in the event the above and attached facts are found to be falsified. Signature Date

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