Tuesday, February 03, 2009

Auction Raises $4.5 Million for Washington, DC


Last Friday's auction of District-owned "nuisance properties" netted more than $4.5 million for the city, according to documentation obtained by DCmud (pictured). In total, 28 of 31 properties listed were snatched up by new owners and there were some bargains, too. A Southeast property at 2321 Highland Street went for only $35,000, while none of the listings exceeded $400,000. Per Department of Housing and Community Development (DHCD) guidelines for the auction, the majority of the funds raised will benefit the District’s affordable housing fund.

“The potential revenue from the January 30 auction could be as much as $4.85 million for the District however, there are conditions (outlined in the disposition agreement) that have to be met before sales are final,” said Angelita Col√≥n-Francia, DHCD’s Senior Public Information Officer. A public hearing will precede the settlements. We anticipate that closings will likely occur in early spring.”

Despite the disclosure of the District’s take from the sales, there’s still some question as to who actually purchased the properties. Some citizens at Mayor Fenty’s announcement of the auction expressed concerns that the derelict homes would immediately go to developers with deep pockets, rather than private citizens with a stake in the community. It can't be worse than the status quo ante.

7 comments:

IMGoph on Feb 3, 2009, 5:33:00 PM said...

if these houses are all refurbished and occupied by real, live people, it'll be worth more than just the money that the city nets.

if this really turns out to be this successful, and these houses all get rehabbed quickly, i'd be all for the city exercising eminent domain on a lot of other vacant properties to get them turned back into contributing neighborhood homes.

Steve on Feb 3, 2009, 5:42:00 PM said...

Has the District published the names of the successful bidders?

Anonymous said...

Oh no, the evil developers with "deep pockets" might actually renovate these derelict structures and make them livable while also making a profit. News flash citzens- it often takes deep pockets to make these projects possible and to ever be completed. How many half-completed mom and pop projects with Tyvec blowing in the wind does this city need?

Anonymous said...

I agree with anon.

DG-rad on Feb 4, 2009, 3:15:00 PM said...

are there requirements for when work needs to be done on the properties? or can they just sit on them?

Hunter on Feb 4, 2009, 4:02:00 PM said...

check out the original post...the properties have to be operable condition within 18 months.

Tom A. on Feb 9, 2009, 10:34:00 AM said...

This is great. I'm wondering if "normal" (non derelict, not bank-owned) homes will ever be sold at auction like this. It might be beneficial to both sellers and buyers.

 

DCmud - The Urban Real Estate Digest of Washington DC Copyright © 2008 Black Brown Pop Template by Ipiet's Blogger Template