§ 160A-457.2. Urban homesteading programs.
§ 160A‑457.2. Urban homesteading programs.
A city may establish a program of urban homesteading, in whichresidential property of little or no value is conveyed to persons who agree torehabilitate the property and use it, for a minimum number of years, as theirprincipal place of residence. Residential property is considered of little orno value if the cost of bringing the property into compliance with the city'shousing code exceeds sixty percent (60%) of the property's appraised value onthe county tax records. In undertaking such a program a city may:
(1) Acquire by purchase, gift or otherwise, but not eminentdomain, residential property specifically for the purpose of reconveyance inthe urban homesteading program or may transfer to the program residentialproperty acquired for other purposes, including property purchased at a taxforeclosure sale.
(2) Under procedures and standards established by the city,convey residential property by private sale under G.S. 160A‑267 and fornominal monetary consideration to persons who qualify as grantees.
(3) Convey property subject to conditions that:
a. Require the grantee to use the property as his or herprincipal place of residence for a minimum number of years,
b. Require the grantee to rehabilitate the property so that itmeets or exceeds minimum code standards,
c. Require the grantee to maintain insurance on the property,
d. Set out any other specific conditions (including, but notlimited to, design standards) or actions that the city may require, and
e. Provide for the termination of the grantee's interest in theproperty and its reversion to the city upon the grantee's failure to meet anycondition so established.
(4) Subordinate the city's interest in the property to anysecurity interest granted by the grantee to a lender of funds to purchase orrehabilitate the property. (1987, c. 464, s. 8; 1997‑456, s. 27.)