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June 30, 2011

Baltimore offers $10,000 incentive to buyers of formerly vacant rehabs

The $8,000 federal homebuyer tax credit pushed up sales in 2009 and part of 2010. Now Baltimore's housing department is hoping $10,000 toward closing costs and downpayment will drum up as much interest in vacant homes, the city's perennial problem.

The agency plans to officially announce the incentive today -- a total of $500,000 available for the first 50 buyers of Vacants to Value properties. Homeowners can qualify either by finding a recently rehabbed home that the city considers a Vacants to Value property or by purchasing a still-vacant home with a rehab loan such as a 203(k).

Ken Strong, assistant commissioner for green, healthy and sustainable homes at Baltimore Housing, said the city is putting together a list of eligible homes. The program will launch July 1, he said.

The money comes from bond funds intended for homeownership incentives.

"We've had such a slow year -- the housing market has been so depressed -- that some of the money we've set aside for homeownership incentives in the past year have been unspent," Strong said. "Now we want to target them to get real stimulus into Vacants to Value."

The city's Office of Homeownership, 410-396-3124, will handle questions about the program. The money can be used with other incentives, such as Live Near Your Work and Buying into Baltimore.

Buyers, do these sorts of incentives make a difference? I'm curious whether they get people off the fence or change buying patterns. The now-gone federal tax credit was widely seen as encouraging people who would have bought a bit later to speed things up -- at a multi-billion-dollar cost.

UPDATE: Here are more specifics from the city about which homes are eligible:

1. A city-owned vacant house sold since July 1, 2010 and rehabbed for homeownership

2. A city-cited property with a "vacant house" notice since July 1, 2010

3. Any property that has been vacant for a year, as long as the evidence of that -- from the seller and/or buyer -- is acceptable to the city

Comments

If I move out of my house (currently for sale), can I get it considered a vacant so someone will have some incentive to buy it?

Here's a better idea that would really help encourage people to buy homes in the city: lower the property tax rate.

As you were writing your comment, I was updating the post with more specifics from the city about which sorts of vacant properties would be eligible -- we were crossing in the night, so to speak. But the answer is no. Unless you're willing to let your home sit empty for a year in hopes that some of the incentive money will still be around and a buyer will use it on your place.

Lots of chatter about lower property-tax rates in this election, of course.

can we get a link to the list of vacant homes that are city owned? Is this program city wide?
lower property tax would deff. be a better way to get more home buyers. You can burn thru 10,000 in no time with baltimore city taxes.

The first link in the post sends you to the Vacants to Value landing page, which lists VtV properties. It looks like the city hasn't yet put up the list of homes eligible for incentives -- rehabbed former vacants, for instance -- but that's where they should appear at some point.

This is entirly anectdotal.But i do interior demolition work for at least 6 different investors/contractors.And i have been very busy this year.But i do notice that they arent doing much work in Canton or Fed Hill.Those areas are mostly rehabbed already

.They are focusing on Highlandtown and Riverside.And they are taking on houses with serious structual problems in Fells Point.


But they arent going North of Baltimore Street. Maybe its just the guys that i deal with.But i think that its interesting that they would rather buy houses with serious structual problems then buy houses north of Baltimore Street.

My point being that many of the houses being sold by the City are in good shape.Its the neighborhoods that they are in thats causing them to not be sold.

Thats just my humble view. I would be interested to hear the vviews of any contractors and/or investors

They haven't made the vacants to value too home buyer user friendly. The websight doesn't offer too much infomation, they show the presentation that is 31 pages, but it doesn't give you a full how to for Sally Homebuyer. Goodness, looks like my house would have qualified for this about a year ago.

is there another way to contact an owner of vacant city house other than the SDAT website? it's been sitting for years and I want to buy it but have no idea how to contact the person? All sdat gives is name and same address as the vacant property

I agree with Mr. Curious, there are several homes on my block that are vacant and I would love to buy, but can't get in touch with owners.

Mr. Curious and dma, you may have already tried these avenues, but just in case:

1. Try looking up the deed and/or mortgage on mdlandrec.net (requires a sign-in, but registration is free). You might find better identifying information there. Especially useful if the name on SDAT is an LLC.

2. If the name isn't especially common, there's always telephone directories. Worth a shot.

3. Perhaps the owner visits occasionally to check up on the house? If there's a place you could slip a note -- like between the door and storm door -- then that's a possibility, too. Or send a letter to the property address. The mail might be forwarded.

Any other suggestions, folks?

According to my contact at Baltimore Housing, a neighborhood or community association can obtain the landlord contact info for any non-owner occupied property if they send a written request to Baltimore Housing. I've submitted many written requests, via e-mail, to Baltimore Housing whenever I'm investigating nuisance properties or homestead credit scofflaws.

Of course, the rental or vacant property may not be registered. In that case, the landlord can be fined for failure to register a vacant or rental property.

For Mr. Curious & dma,

If you're trying to find someone's whos name is on the property records, sometimes they list the mailing address for the owner.
Part of my job is finding people & sometimes its easier to just google someone's name. If the name is more common, I've learned to put "Maryland" after the name or put the name in quotation marks if the name is something like John Beach and add the city or state after the name. You'd be surprised what comes up. You can usually get their more recent address, a relative or two & sometimes their place of employment. Usually their facebook or some kind of internet profile comes up so you would be able to email & some of this information may cost $$.
I google myself & family members regularly & I remove any info I don't want up, but some of it I can't help. Make sure you check the Maryland Judicary case search, sometimes you can find a more recent address from a ticket or a foreclosure.

Good suggestions, guys! Thanks.

I've recently been turned down for this $10,000 incentive even though I am buying a former vacant that meets the eligibility requirements. The city says I'm not eligible because I have a co-borrower (my father) who will not be living in the property. Were you aware of this eligibility requirement? I've looked through the Baltimore Housing site but haven't found anything on it. Any information you could provide would be much appreciated. Thank you.

Hmm, Rebeka, I wasn't aware of that. Did you speak directly to the housing department?

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
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