KINGSTON CITY LAND BANK DISPOSITION POLICY AT A GLANCE
This policy explains what happens after the KCLB acquires a property. It is meant to be consistent with our mission of expanding opportunity to housing in the City of Kingston, while also putting these properties back into productive use. We hope to support the creation of accessible housing, green space, and other proposed uses with significant community benefits. We believe we can help revitalize neighborhoods, minimize blight, and expand the city’s tax base in a socially-conscious way that prioritizes the needs of Kingston residents and discourages real estate speculation.
HERE’S HOW THE PROCESS WORKS:
The Land Bank will acquire tax-foreclosed properties from the City of Kingston. Once the Land Bank becomes the legal owners, we will be immediately responsible for all property maintenance, security, insurance, etc. The Land Bank will post details of the acquisition online for the public.
The Land Bank will create a plan for “disposing” of the property—in other words, conveying it to new owners. This may or may not include full or partial rehabilitation of the property. Disposal can be done in a variety of ways:
- Request for Proposals (RFP): If the Land Bank has targeted the property for a specific potential use, we will publish an RFP to give interested buyers an opportunity to apply and create proposals. Proposals will include the purchase price offered, the planned use, the scope of the redevelopment plan, and the buyer’s qualifications and capacity to complete the project. This allows for more time for potential buyers to develop their offers and figure out financing. Contracts will be awarded based on price and the applicant’s proposal—in other words, the highest bid may not be awarded the contract if other proposals have more community benefit.
- Competitive Listing: the property will be listed with a licensed broker and available to take qualifying offers.
- Through Non-Competitive Sale, when the Land Bank may sell a property without listing and marketing it if the buyer’s proposal has significant community benefit.
Application forms in Spanish and English are being developed. The standard application fee is a $500 good faith deposit (applied at closing), or a $25 fee for a residential side-lot or community garden. These fees may be waived depending on financial constraints. The Land Bank is available to provide assistance and guidance with the application.
While certain conditions may disqualify an applicant (including owing past due taxes, bills, fines, and fees, a history of code violations, nuisance complaints, or the inability to remain tax-current), the Land Bank hopes to welcome applications from a broad and diverse field.
We are developing a series of discount and preference programs available to eligible applicants. Not every property will be eligible for all programs. When multiple offers are being considered, an offer made using a discount program will be treated as if the applicant is offering the full asking price. These programs include:
- Residential Preference Program: To first favor existing Kingston residents, former and adjacent Kingston residents, and lastly hopeful Kingston residents when considering applications.
- Tenant to Homeowner Program: Provides preference for applicants who are already occupying the property as tenants at the time of the Land Bank’s acquisition.
- Homeowner Choice Program: Gives preference to applicants who plan to occupy the property as their Principal Residence or who will renovate the property and sell to a buyer who will occupy the property as their Principal Residence for at least 5 years.
- Rent to Own Program: Available to income-eligible applicants, allows for greater financial flexibility while still providing a path to homeownership.