Number
100508
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. HINES, HAMILTON, MURPHY, BAUMAN, WADE, KOVAC, WITKOWSKI, DAVIS, COGGS, AND PUENTE
Title
Substitute resolution authorizing the Department of City Development to implement a pilot program for sales of improved neighborhood properties to City homeowners whose homes are to be demolished due to the July 22, 2010 flood.
Analysis
This resolution authorizes the Department of City Development to implement a pilot program for sales of improved neighborhood properties to City homeowners whose homes are to be demolished due to the July 22, 2010 flood. This pilot program will gauge the effectiveness of a City program to provide neighborhood properties that were acquired through tax foreclosure for sale at a low price as replacement housing for homeowners displaced by substantial natural disasters. The commissioner of the Department of City Development shall report to the Common Council concerning the efficacy of the pilot program and its success by December 31, 2010.
Body
Whereas, The flooding that occurred on July 22, 2010, in the City of Milwaukee, resulted in the Department of Neighborhood Services (“DNS”) issuing raze or placard orders for several owner-occupied residences; and
Whereas, The DNS orders have resulted in significant hardship for these property owners for which no assistance is available from the federal government; and
Whereas, The Common Council is considering several remedies to improve City response to natural disaster occurrences that have substantial impacts on neighborhoods and this pilot program will be used to gauge the effectiveness of one such approach; and
Whereas, The City owns a number of houses that were acquired through tax foreclosure that may be suitable as replacement housing for these displaced Milwaukee homeowners; and
Whereas, Department of City Development (“DCD”) staff will identify potential replacement houses and qualify displaced homeowners to determine whether the acquisition of tax-deed homes would be feasible; and
Whereas, DCD will coordinate these sales with established mortgage counseling agencies to help resolve outstanding mortgages and other issues that may interfere with property conveyance; and
Whereas, Section 304-49-7 of the Code of Ordinances allows the City to accept unsolicited offers to purchase property when the City receives fair compensation, whether monetary or non-monetary; and
Whereas, Conveyance of the improved neighborhood properties to qualified City homeowners for $1, with consideration given to insurance proceeds, represents fair compensation to the City by providing assistance to homeowners who have suffered greatly as a result of a natural disaster and maintaining owner-occupancy rates; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that DCD is authorized to sell neighborhood properties to qualified City homeowners whose homes have been issued DNS raze or placard orders as a result of the July 22nd flood for $1, with consideration given to insurance proceeds, upon consent of the local member of the Common Council; and, be it
Further Resolved, That this pilot program shall be governed under the terms set forth in Exhibit A, a copy of which is attached to this file; and, be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to execute offers to purchase and deeds for identified homes and to close the sales with qualified homeowners; and, be it
Further Resolved, Upon conveyance of neighborhood properties to qualified buyers, the buyers would be required to release any claims they may have against the City for damage related to the recent flooding; and, be it
Further Resolved, Upon demolition of the homeowners’ existing houses, the City may accept titles to resulting vacant lots when clear titles can be provided to the City; and, be it
Further Resolved, That the sale proceeds shall be credited to the Reserve For Tax Deficit Fund Account No. 0001-334106; and, be it
Further Resolved, That the Commissioner of the Department of City Development shall provide a report to the Common Council by December 31, 2010, concerning the efficacy of the pilot program and its success in placing these displaced families into new homes.
Requestor
Drafter
LRB120990-2
RTW
08/30/10