Council reviews homestead plan to sell vacant residential lots for $1,000 to nonprofits or adjacent homeowners; public hearing set

City staff presented a homestead plan to allow nonprofits and adjacent homeowners to acquire certain vacant residential lots at a $1,000 transfer price, subject to approval processes and conditions.

Staff said current practice allows a single organization (named in the discussion as Dunlick) to receive transfers at $1, but the proposed homestead plan would set a $1,000 price for eligible nonprofits that meet the same regulatory requirements (approved plans, financing, developer agreements) and for adjacent residential homeowners who would combine the lot into their parcel. Staff emphasized the protections intended to prevent speculative purchases, including existing developer‑agreement requirements and common council approval for each transfer.

The administration said the goal is to remove blighted lots from city inventory, return them to productive use, and lower maintenance and liability costs for the city. Staff said this would not cover commercially zoned lots on commercial corridors, and would be limited to residentially zoned lots; side‑lot specifications would follow the Unified Development Ordinance (UDO) for maximum lot width.

Staff said Habitat for Humanity and other nonprofit builders have used discounted lots in the past to lower construction costs for homebuyers; the plan was described as a tool to increase homeownership and reuse blighted properties. Council members raised concerns about potential tax increases for homeowners who combine lots and asked staff to ensure purchasers have no outstanding city tax liabilities; staff said the city would not sell to anyone owing outstanding taxes and would explain tax implications to prospective buyers.

Staff said the homestead plan is scheduled for a public hearing before the Community Development Committee on Nov. 5.