Second Chance

Partner with a Non Profit!

Non-Profit Guidelines for Purchasing Milwaukee City Houses for $1

The city will sell to non-profit organizations at a reduced price of $1 (plus closing costs) if the property listed for sale is $20,000 or less OR if the assessed value of an in rem property is ≤50K.

  • Q: Where do we find potential properties?
  • Property has been marketed for at least 60 days OR we select from the in rem list.      All
  • Q: What qualifications are necessary to actuate the purchase?
  • Must provide IRS 501(c)(3) letter                                                                                  2nd Chance
  • Must be registered with Wisconsin Department of Financial Institutions 2nd Chance
  • Must exist for at least 12 months; AND/OR,                                                           Case by case
  • Must have extensive rehab experience.                                                                         Affiliate
  • Q: What is the exit strategy after closing?
  • Must sell to an owner-occupant; OR,                                                                         2nd Chance
  • Keep as an investment property: OR                                                                         2nd Chance
  • Must sell to an investor who agrees to sell to an owner occupant; OR,         All
  • Must sell to an investor who agrees fully rehab and keep for 2 years. (Property must be have a certificate of code compliance before the investor can transfer)                                                        All
  • Q: Is an exit strategy plan required?
  • Yes, a marketing plan must accompany the offer to purchase for properties being sold to owner occupant.
  • The renovation team has to submit their “resume/portfolio”. Affiliate
  • The marketing team has to submit their “resume/portfolio”. 2nd Chance
  • Yes, a renovation plan must accompany the offer to purchase for properties being held as rentals.
  • The renovation team has to submit their “resume/portfolio”. Affiliate
  • A landlord training certificate must be submitted. (I believe it is wise to seek a management firm that does not own City of Milwaukee properties) All
  • A portfolio of properties currently being managed must be submitted. All
  • Q: Is the property subject to real estate taxes?
    • Yes, taxes are exempt for the purchase year; AND, in some cases for the following year.

The following are the steps you need to take to secure such a purchase:

  1. Choose a vacant property identified on theExtended Listing ( Eligible for Community Based Organization [CBO] $1 sale) with a sales price equal to or less than $20,000
  2. Provide letter stating the intent of the purchase, as stated above
  3. Examine the scope of work for the repairs (provided by the City)
  4. Provide a timetable for the completion of the work
  5. Provide evidence of financing for the rehabilitation of the property (no gift letters)Buyers are required to show proof of financing for renovation work prior to closing.
    1. Such proof may include a commitment letter from a lender;
    2. a commitment letter from the City of Milwaukee for a loan or grant made through a City housing finance program and bank statements.
    3. Buyers must complete renovation work within 90 days of property acquisition.
    4. Buyers are subject to a deed restriction that prohibits resale within two years of acquisition, unless that sale is to an owner-occupant.
    5. In the case of buyers who use an acquisition/rehabilitation/resale program model, the deed restrictions outlined above will apply to the buyer who purchases the renovated property from the developer.
  6. Provide IRS Non-Profit 501(c)(3) letter
  7. Must be registered withWisconsin Department of Financial Institutions
  8. Offers to purchase shall be made directly to the City real estate office on City forms:City of Milwaukee – Offer to Purchase
  9. A $50.00 earnest money deposit made payable to the City of Milwaukee (cashier’s check or money order and is non-refundable if offer is accepted)
  10. Buyers must conform to standard City buyer policies

If a buyer seeks to purchase multiple properties, it is preferable that properties be clustered geographically. Offers to purchase properties in bulk will be evaluated based on the buyer’s previous track record and level of proposed investment in the properties.

For buyers that have not previously purchased property from the City of Milwaukee, the City reserves the right to require proof of successful performance on the first property sold before accepting additional offers to purchase from the buyer.

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One thought on “Partner with a Non Profit!

  1. Hello my name is carnell blake and I’m interested in owning my own home..I’m a carpenter/roofer so slot of the work I can do myself. So to whom it may concern please give me a call at 4145528416 thank you

    Like

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