Sponsor
Aldermen McCarthy and Wisneski
Title
Ordinance No. 16-09
To create Chapter 19, Article I. of the Municipal Code of the City of Racine, Wisconsin relating to Purchase Incentive Program for Municipal Employees Who are Non-Residents or Renters.
The Common Council of the City of Racine do ordain as follows:
Part 1:
Chapter 19, Article I of the Municipal Code of the City of Racine is hereby created to read as follows:
“Chapter 19
Purchase Incentive Program for Municipal Employees Who are Non-Residents or Renters
Article I. In General
Sec. 19-1. Purpose.
The primary purpose of this ordinance is to improve existing neighborhoods in greatest need within the City of Racine, by encouraging City, County and RUSD employees to build homes in the City. Other purposes include increasing the value of properties eligible to participate in the program offered by this ordinance and increasing the value of other properties in the neighborhoods where participating properties are located.
Sec.19-2. Definitions.
The following words, terms and phrases, when used in this article, shall have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:
The term Eligible Real Estate as used in this ordinance shall be defined to mean real property acquired by the City of Racine by means of foreclosure or nuisance action and subsequently cleared of all structures, and which meets the following qualifications:
(1) Be purchased from the City of Racine in a good faith transaction after the effective date of this ordinance;
(2) Acquired by the owner as the owner’s primary residence after the effective date of this ordinance:
Residence means:
(1) A house that is:
a. Occupied as the principal residence of the homeowner; and
b. Actually occupied (resided at) or expected to be actually occupied by the owner for more than 9 months of the 12-month period beginning with the later of the date of closing or the occupancy, unless the homeowner does not actually reside in a dwelling for the required time period because of illness or need of special care; and
(2) The lot on which the house is erected.
Applicant means prospective owner(s) of a qualified residence who (has) (have) lived at least one year continuously at current address and who enters a contract of sale for a qualified property and applies for the incentives described herein.
Qualifying employee means any regular full-time or part-time employee of the City of Racine, County of Racine or Racine Unified School District who is currently renting or who currently lives outside the City of Racine.
Sec. 19-3. Process.
(1) Upon the receipt of a proper application, and certification by the Director of Finance of eligibility, the City shall deed the real estate to the qualifying employee at no cost and shall absorb any closing fees.
(2) For the first five years the City of Racine will not assess its share of the property taxes on said real property, excluding buildings or improvements.
Section 19-4. Dates.
(1) The effective date of this ordinance shall be the date it is passed for a 5 year period, after which it should be reconsidered by the City Council for continuation;
(2) The real estate incentive authorized by this ordinance shall be available on a first come first served basis after the effective date of the ordinance as long as properties are available and the program is in place;
(3) For purposes of this ordinance, real estate shall be deemed to have been purchased on the date title was conveyed to the buyer from the City; and
(4) This ordinance shall apply only to property purchased after the date of ordinance approval.
Sec. 19-5. Conditions of Eligibility.
(1) The qualifying employee shall build and occupy a single family residence (i.e., one residential structure) on the real property within one year of purchase, said residence being of a square footage equal to or greater than the average for the houses on that block, with at least the average number of bedrooms and bathrooms for the houses on that block and satisfying all City of Racine codes and inspections.
(2) An owner may be an individual holding title as sole owner, a joint tenancy, tenancy by the entireties, tenants in common, or a trust, provided the primary beneficiaries of the trust and all members of other forms of tenancy or ownership occupy the property as a primary residency;
(3) Evidence of an owner’s primary residence shall be established as the residence shown on county tax records after the incentive is received;
(4) An owner must continue to reside at the property for the full five years during which then taxes are abated, unless one or more owners occupying the property shall die or become confined to a long-term residential health care facility before the end of a the five year period;
(5) The total number of properties which can participate in the program authorized by this ordinance shall be limited by the availability of funds and property.
(6) This program is limited to one property per direct family.
(7) No portion of this property may be rented out.
(8) The property owner shall not be cited by the Racine Unified Inspection Team or by the Racine Police for any negligence or activity deemed detrimental to the neighborhood that was the result of the previous owner's actions or omissions.
Sec. 19-6. Recapture.
(1) As a further condition to participating in the programs authorized by this ordinance, an owner of real estate shall agree to permit the City to recapture the full amount of property taxes abated under this Ordinance if the owner:
a. Ceases residing at the property as the owner’s primary residence within five years of the date when the owner first became eligible to participate in the program (unless the homeowner does not actually reside in the primary residence for the required time period because of illness or need of special care).
b. Violates any of the Conditions of Eligibility
The owner shall further agree to permit the City to assess the amount of the full amount of the reimbursed taxes as a lien on the real estate.”
Part 2:
This ordinance shall take effect upon passage and the day after publication.
Passed by the Common Council:
__________________________
Approved: ______________
__________________________
Mayor
Attest:
__________________________
City Clerk
Fiscal Note: N/A