Creates Partnerships Between Land Banks and Minority Investors
The Syracuse Land Bank is looking to partner with minority contractors and real estate investors to apply to the NYS Homes and Community Renewal’s Legacy Cities Access Program! This program creates partnerships between land banks and minority investors to:
- Help minority real estate developers generate return on investment and expand capacity
- Renovate vacant and abandoned buildings, improving our neighborhoods
- Sell high quality, low-maintenance, move-in ready homes to first-time, minority, low-income homebuyers, helping them grow wealth through home equity
How it works:
1. The Land Bank will sell clusters of distressed vacant properties to local minority developers. We have identified three clusters of five homes each for sale – click the links below to see the available clusters. The developer/buyer must live in Onondaga County; preference shown for buyers who reside in the City of Syracuse.
2. The developer will fully renovate the homes and sell them to low-income homebuyers, with a preference for minority, first-time buyers with incomes below 80% of area median income.
- Construction financing is available! Construction financing and grant funds will be administered by Community Preservation Corporation. Estimated total redevelopment costs (including construction, acquisition, and soft costs) are $1 – 1.3 million per cluster. Developer needs to show 6.25% equity. Feel free to contact us with questions about this. If needed, 2-3 contractors can pool their resources and form an LLC to tackle one cluster.
- Developers will earn a 12% fee built into the total project budget, and HCR grant funding will supplement your construction loan and enable the developers to complete high-quality renovations, save properties that otherwise would not be financially viable renovation projects, and provide first-time homebuyers with affordable, high quality, low maintenance homes. For example, you might have a total project cost of $210,000, but sell the home for $130,000 using $80,000 of grant money to fill the gap, while earning $22,500 as a developer’s fee.
- The Land Bank will provide Technical Assistance for project management and grant compliance. You bring your construction expertise to the table and we can help with the rest!
