Non-Profit Organization Guidelines for Purchasing City Houses for $1,000

The city will sell to non-profit organizations at a reduced price of $1,000 if the property listed for sale is $15,000 or less.

  • Must have been in operation for at least 12 months
     
  • Must have housing rehab experience and the intent of the purchase must be to rehabilitate the property
     
  • After rehabilitation is complete the property must be sold to an owner-occupant

 

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

  1. Choose a vacant property on the Extended Listing with a sales price equal to or less than $15,000
     
  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)
     
  6. Provide IRS Non-Profit 501(c)(3) letter
     
  7. Must be registered with Wisconsin Department of Financial Institutions
     
  8. Complete offer using city form: 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)

 

Non-Profit Organization Guidelines for Purchasing 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.

  • The property has been on the market for at least 60 days
     
  • Non-profit must have been in operation for at least 12 months
     
  • After rehabilitation is complete the property may be sold to an owner-occupant or can be kept as an investment property
     
  • Must demonstrate experience in residential renovation

    For homeownership projects, the organization must provide documentation of experience in the acquisition and rehabilitation of residential properties for homeownership and prepare a marketing strategy/plan for sale of the property to an owner-occupant. Members of the team that will be involved in renovation and marketing must be identified.

    For rental projects, the organization must provide documentation of experience in the acquisition and rehabilitation of residential properties for rental, including property management experience. Members of the team that will be involved in renovation and management must be identified.
    If the non-profit organization intends to hold properties as an investor, the property shall be subject to real estate taxes.

    If the buyer does not have previous experience in residential renovation, the buyer must submit information that demonstrates that team members (general contractor, real estate agent, property manager, etc.) have previous relevant experience that will ensure the project’s success.

     

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

  1. Choose a vacant property identified for sale for $1 on the Extended Listing 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. Such proof may include a commitment letter from a lender; a commitment letter from the City of Milwaukee for a loan or grant made through a City housing finance program and bank statements. Buyers must complete renovation work within 90 days of property acquisition. Buyers are subject to a deed restriction that prohibits resale within two years of acquisition, unless that sale is to an owner-occupant. Buyers who utilize City, CDBG or HOME funds to complete renovation are subject to a deed restriction that prevents resale within five years of acquisition. 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 with Wisconsin 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
     
  11. Broker commissions will not be paid on the sale of properties through the $1 program

 

ADDITIONAL NOTES: 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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Real Estate
809 North Broadway
Milwaukee, WI 53202 

(414) 286-5730

 



Residential Properties
Keith Bailey
(414) 286-5805
kbaile@milwaukee.gov


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