Improved Property Rehabilitation Program
Not all abandoned and dilapidated houses are beyond repair. The Jefferson County Land Bank will at times offer certain residential improved properties to potential buyers who agree to rehabilitate the improved property according to the terms and conditions set by the Land Bank.
The Land Bank may acquire improved properties at the request of a potential end user or may elect to acquire an improved property with the intention of rehabilitating the property for future sale. The Land Bank will work with community groups, qualified contractors, and individuals seeking to purchase and rehab a home in order to return that home to private ownership or as a productive rental as soon as possible.
If you are interested in purchasing a house owned by the Land Bank, you must meet eligibility requirements:
- The Applicant should be able to demonstrate that they have the financial resources and construction experience to do rehabs.
- The Applicant must not have issued code violations from the local building and zoning authority for their primary residence and/or other properties owned in Jefferson County.
- The Applicant must be current on all real estate taxes and assessments for their primary residence and/or any rental properties and other real estate owned in Jefferson County.
- The Applicant must not be a prior owner of real property in Jefferson County that was transferred as a result of tax foreclosure proceedings.
- The Applicant must commit to maintaining the lot in accordance with all local building, housing, and zoning codes.
- The Applicant must commit to a repair plan, period to complete, and inspection conducted by the Land Bank.
An important part of this process is ensuring that properties in need of rehabilitation are brought up to code, at minimum, or to quality housing standards, as established by the Land Bank. An independent housing code and repair expert is hired by the Land Bank to inspect the rehab property, identify housing code issues, assess and estimate repair costs, and present those findings to the Land Bank.
In addition, the reclaimed value of the property must be determined to ensure a fair purchase price for the property. While the Land Bank wishes to create investment attractive “win-wins” for both parties and recognizes the risks borne by the rehabber, the Land Bank also bears risks and costs to acquire and hold the improved property and deserves to share in any windfall. The estimated reclaimed value is determined net house repair costs and property price and purchase costs borne by the rehabber.
Deed in Escrow
During the rehab period and until final property inspection is passed and certificate of occupancy is gained, title to the rehab property is held in escrow. In the event that the rehabber fails to meet their obligations under the rehab agreement, the rehabber forfeits the purchase price, all property costs borne by the rehabber, and all investments in materials and services made on the rehab property.
Apply Here for a Land Bank
If you are a qualified rehabber and eligible to purchase a Land Bank property under the Improved Property Rehabilitation Program, please download a copy of the Jefferson County Land Bank Rehab Application by clicking here. Fill out the form and contact the Land Bank Administration for further guidance.