2018 Niagara Falls Community Development Home Ownership Auction Auction Date Thursday, June 19, 2018 6:30 pm City Council Chambers Niagara Falls City Hall 745 Main Street Niagara Falls, New York Informational Sessions Monday, May 14, 2018 6 pm City Council Chambers Niagara Falls City Hall 745 Main Street Niagara Falls, New York Tuesday, May 15, 2018 1pm City Council Chambers Niagara Falls City Hall 745 Main Street Niagara Falls, New York THE GOAL: We want to help you become a Niagara Falls home owner, complete a successful renovation and to build equity through ownership. The 2018 Niagara Falls Community Development Home Ownership Auction seeks to provide home ownership opportunities in Niagara Falls while rethinking the traditional approach to vacant municipal property and tax foreclosure auctions. THE CONCEPT: The City of Niagara Falls is auctioning vacant, city owned houses on June 19, 2018, 6:30 pm, at Niagara Falls City Hall (Council Chambers). These homes became property of the City of Niagara Falls due to tax foreclosure. We are excited to connect people with feasible home renovation projects and welcome new homeowners to the City of Niagara Falls. The May 23 informational session will provide interested bidders with details about the available houses, the auction process, renovation standards as well as renovation and banking programs that may be of assistance. Please review the following ownership requirements that drive the purpose of the Niagara Falls Home Ownership Auction Program: -Successful bidders must agree to own and live in the home as prime occupant for no less than five years. -Successful bidders must submit a renovation plan, designating work to be completed by the owner and/or contractors, as well as financial ability to execute the renovation prior to completing the sale agreement with the City of Niagara Falls. Page 1
-Successful bidders must agree to renovate the property to municipal code compliance within 12 months of purchase, or whatever time period is agreed upon in the renovation plan. -Successful bidders will pay the 2018 city, county and school district taxes for the property at the time of purchase. -Successful bidders will be provided with an estimated amount due to the Niagara Falls Water Board for all Home Ownership Auction houses. These amounts are estimates due to the Niagara Falls Water Board as of April 12, 2018. These amounts are subject to change, and it the responsibility of successful bidders to contact the Niagara Falls Water Board immediately after closing, and pay any amount due and costs associated with reestablishing water service, if applicable. THE CITY OF NIAGARA FALLS IS NOT RESPONSBILE FOR ANY NIAGARA FALLS WATER BOARD FEES OR BILLS AT HOME OWNERSHIP AUCTION PROPERTIES -If the above terms are not met after the purchase of the property, ownership will revert back to the City of Niagara Falls. A sample sales agreement is included in this information packet. -Successful bidders understand that the property is being purchased as is. The City of Niagara Falls cannot guarantee clear title, and if the successful bidders orders a title search, they will be financially responsible for the cost. -If a successful bidder does not schedule a closing date with the Niagara Falls Community Development Department (CD) within 30 days of auction date, or cannot be reached, CD will contact the second, and then third, highest bidder to offer an opportunity to purchase the home. If none of these parties are interested in purchase, the property will be offered for sale at a later date via auction or request for proposal. -Parcels purchased at the Home Ownership Auction are eligible for, but not obligated to make, application to the United States Department of Housing and Urban Development deferred housing rehabilitation program, administered by the Niagara Falls Community Development Department. Successful bidders must fund and remedy the code violations necessary for a certificate of occupancy, prior to accessing deferred loan funds. The deferred loan will be dedicated to housing repairs, post certificate of occupancy. The selffunded portion of the rehabilitation project will be referred to as self-help. The five year prime occupancy term will begin when all repairs are completed. The properties are being sold, as is, by the City of Niagara Falls to highest bidder, subject to approval of the Niagara Falls City Council and execution of sales agreement with the City of Niagara Falls Legal Department. This auction is not specifically for first time home buyers. Anyone interested in purchasing and renovating the offered homes is welcomed to apply. Important condition of participation, as specified in the sale agreement: Successful bidders must be current with all City of Niagara Falls property taxes in order to purchase a home ownership auction house. Page 2
PRE-AUCTION We ask that interested bidders register for the auction by 4 pm on Monday, June 18, 2018, by completing attached Registration Form and submitting it to Paul Martell, Home Ownership Specialist, at paul.martell@niagarafallsny.gov or via mail: PO Box 69 Niagara Falls, NY 14302 or hand delivery: The Carnegie Building, 1022 Main Street, Niagara Falls, NY, Tuesdays through Thursdays 8 am 4 pm. While you can register on the date of the auction, pre-registration is preferred. INFORMATIONAL SESSION: The informational sessions on May 23 is designed to direct prospective bidders through both the auction and renovation processes. Auctions International, Inc. Staff will be present to answer any and all questions about the actual auction day. Niagara Falls Community Development Staff will be there to discuss the post auction process and to provide information on applicable banking and renovation programs. Informational packets are also available at The Niagara Falls Community Development Department offices (The Carnegie Building, 1022 Main Street, Niagara Falls, NY) and the following websites: www.nf-cd.org www.niagarafallsusa.org www.auctionsinternational.com/liveauctions PROPERTY DETAILS: Each auctioned house has a property attribute sheet with a photo, tax information and basic information. These sheets are attached to this informational packet and available online at the links listed above. PROPERTY WALK THROUGHS: Interested bidders can schedule property walk-throughs by Paul Martell, CD Home Ownership Specialist, at paul.martell@niagarafallsny.gov. AUCTION DAY HOW AUCTION DAY WORKS: This will be a live auction moderated by Auctions International, Inc. Registration will open at 5 pm. All participating bidders are asked to be at City Hall by 6 pm to fully register for the auction. Condition of registration: a $500 bidder bond, via certified check or money order, if the individual successfully bids on a property. The $500 will be held in an account and returned to the home owner upon the City of Niagara Falls final inspection of the renovation. If the sale and renovation does not move forward due to the successful bidder not completing the sale and/or renovation process, the $500 will not be returned. Upon registration, participants will be given a numbered paddle for the actual bidding. The auctioneer will begin bidding for each property at 85 percent of assessed value. The first bid will determine the actual scope of the bidding. Page 3
Successful bidders do not take ownership on the actual auction date, however a $500 bidder bond will be required for any successful bid, via certified check or money order, payable to: The City of Niagara Falls PO BOX 69 Niagara Falls, NY 14302-0069 Please do not plan to submit this payment in cash. All participating bidders will be required to show proof of the $500 bond prior to being registered on the day of the auction. On the auction date, successful bidders are also required to pay 10 percent of the bid amount to: Auctions International, Inc. 11167 Big Tree Rd East Aurora, NY 14052 This payment is an auction fee and not associated with the purchase price to the City of Niagara Falls at closing. Payments can be made via cash, certified check or money order to Auctions International. This payment is nonreimbursable. On the day of the auction, successful bidders will sign a commitment letter with Niagara Falls Community Development Staff and schedule a meeting to discuss the renovation plan and time line. To Restate: Please be prepared to have two separate methods of payment: 1. $500 bidder bond to the City of Niagara Falls 2. 10 percent of the successful auction price paid to Auctions International, Inc. POST AUCTION DAY CD Staff is blocking out time on the following days for meetings with successful bidders to ensure the process moves as quickly as possible. Please be prepared to schedule a meeting time of one hour. If you cannot meet during standard business hours, we will work to accommodate your schedule. Monday, June 25, 2018 9 am to 2:30 pm Tuesday, June 26, 2018 9 am to 2:30 pm Once the renovation plan is submitted and reviewed, the sale agreement will be presented to the Niagara Falls City Council for approval and executed by the Niagara Falls Legal Department. We expect the entire process to be completed within three months. WHAT IS EXPECTED AT THE TIME OF CLOSING? On the day that successful bidders sign the sale agreement with the city, the following payments are to be submitted, via check or money order, to the City of Niagara Falls: -The full purchase amount. -Property taxes for the full year (*Important Note: The new owner is NOT responsible for back taxes on the property, only 2018 city, county and school district taxes. The tax amount is not prorated. Regardless of the purchase date, the purchaser is responsible for the full 2018 tax amount). Page 4
-$39 recording fee -$125 RP-5217 fee -Transfer fee (rate is $2 per every $500 of consideration) Please also be prepared to have home owners insurance and to activate all utilities associated with the property at the time of transfer. THE PURPOSE OF THE APPROVED RENOVATION PLAN: CD wants new owners to be successful and to experience a straight forward home renovation. Niagara Falls Community Development renovation specialists have extensive experience and can guide successful bidders through the permitting, insurance, contracting and renovation process. We are here to help. RESOURCES FOR HOME OWNERS NIAGARA FALLS HOME OWNER RENOVATION PROGRAM: The City of Niagara Falls, through CD, can help add value to your home through a United States Department of Housing and Urban Development (HUD) funded renovation. How Does The Program Work? We offer a deferred loan, of up to $32,500, to fund housing renovations intended to: Eliminate health and safety concerns Correct code violations Increase household energy efficiency Remediate environmental issues Program staff is involved in every step of the process, working with the home owner on the renovation plan, reviewing contractor bids and overseeing the actual construction. What Does Assistance Mean? We offer a deferred renovation loan designed to help residents both remain, and build equity in, their homes. The Niagara Falls Home Owner Renovation Program will finance 100 percent of the renovations, up to $32,500, with no monthly payments. If the home owner occupies the home as his/her principal residence for five years, 100% of the loan amount is forgiven. Homes owners are also able to convert the home to rental property after five years. If the home is sold prior to the forgiveness dates, the owner must repay an applicable portion of the deferred loan. Who Is Eligible? Eligible applicants must: Live within the City of Niagara Falls Be able to provide proof of ownership of the home Occupy the home as his/her principal residence for a minimum of five years Be current on all property taxes and clear of any negative judgements Be able to show proof that household assets do not exceed $75,000 Be able to show proof that household gross annual income cannot exceed the following guidelines: Page 5
HUD 80% Median Income Limits Number of Persons Income Limit in Household 1 Person $41,850 2 Persons $47,800 3 Persons $53,800 4 Persons $59,750 5 Persons $64,550 6 Persons $69,350 7 Persons $74,100 8 Persons $78,900 Income is only tested at time of deferred loan approval, not throughout the 15 year time period How Do I Apply? Our team is here to walk you through the process. Step one is a consultation, to discuss eligibility, the application process and your renovation goals for the home. Please contact Paul Martell, Home Ownership Specialist, at paul.martell@niagarafallsny.gov to set up your first consultation. THE CAROLYN VAN SCHAIK HOME OWNERSHIP CENTER This program, conducted by Niagara Falls Neighborhood Housing Services, Inc., connects new homeowners to applicable bank and counseling programs that makes the transition to ownership much easier. For more information contact the Home Ownership Center at the Neighborhood Housing Services Office, (716) 285-7778. Page 6
HOME OWNERSHIP AUCTION REGISTRATION FORM Name: Current Address: Phone Number: Email: If you are a current residential or commercial property owner in the City of Niagara Falls, please list the addresses of your properties below: Condition of registration: a $500 bidder bond, via certified check or money order, to the City of Niagara Falls, if the individual successfully bids on a property. The $500 will be held in an account and returned to the home owner upon final inspection of the renovation. If the sale and renovation does not move forward due to the successful bidder not completing the process, the $500 will not be returned. On the auction date, successful bidders are also required to pay 10 percent of the bid amount to Auctions International, Inc. Certified checks, money orders and cash payments will be accepted by Auctions International, Inc. Page 7