Bloomberg Línea — The City Council of Newark, New Jersey’s largest city, has approved the Homeownership Revitalization Program, so that small residential properties seized for non-payment of taxes, utilities and other debts, are sold at minimal prices.
The program seeks to use the properties to meet housing needs in the city, allowing up to 12 potential buyers to bid for a home or land provided by the City Council.
How can you buy a $1 home in Newark?
One of the main conditions set by the City Council is that people bidding for one of these homes must have resided for five years or more in the city, or have been displaced by gentrification in other New Jersey cities.
In addition, prospective buyers must commit to living in these residences for a minimum term of 10 years.
Allison Ladd, Newark’s deputy mayor and director of housing and economic development, said in her presentation to the council that the initiative also establishes a homebuyer counseling program, seeking to have informed homeowners with knowledge on how to successfully rebuild their properties.
Program participants will also be able to obtain loans for housing and home maintenance needs, as well as family budgeting.
City Mayor Ras Baraka said in a statement that in Newark only one in four residents owns a home, and that this Revitalization Program is a key strategy to expandi homeownership and promote stability and wealth creation.
“Across the United States, Limited Liability Companies (LLCs), are buying up owner-occupied homes and converting them into expensive corporate-owned rental units,” Baraka explained, saying the strategy was created to do everything possible to counter this dangerous trend.