FREE LOT HOUSING PROGRAM

The following incentives
are offered to persons wishing to become new residents in Halstad
by establishing a new home structure in the City.

1.)  Free Lot
2.)  Free electric service
    *  Connection Fee waived 
    *  12 months minimum fee waived
    *  Construction to meter cost waived 
3.) Free water service
    *  free connection (included w/elec)
    *  12 months minimum fee waived 
    *  Construction to meter (materials and hookup; not including trenching)
4.)  Free sewer service
    *  free connection (included w/elec)
    *  12 months minimum fee waived
    *  Service line materials
5.)  Free standard refuse collection
    * One year
6.)  Tax Abatement (assumes $100,000 home) 
    *  Deferment of special assessments (2 Years)
    *  5 year tax abatement of City taxes
7.)      Waive building permit fee

OBJECTIVE:

The City of Halstad will give away a platted City lot to each qualified person / family for the purpose of owner occupied housing on the property. There will be financing alternatives included based on eligibility.

ELIGIBILITY:

A. Any person or family with head of household age 19 or over with an independent means of financial support who is either a resident or non-resident of Halstad.
B. Only one free lot per eligible family is allowed. a) Applicant has the opportunity to purchase a second adjoining lot if this can meet the criteria of the free lot program for a value of $15.00 per foot.
C. Speculation housing by special agreement.

REQUIREMENTS:

A. The City will transfer title to a lot ( or lots ) within six (6) months, when one of the following criteria is met:
    a) Closing of a construction loan, with a grant to the City of second mortgage with a provision that the house will be completed and occupied within six (6) months and all other terms will be complied with;
    b) Assignment of loan shall follow the following path, when conditions merit: Bank-Contractor-Mortgagee;
    c) Moving a house on the premises and signing a fixture agreement.

B. Taxes are paid for the current year. Tax liability becomes the responsibility of the lot recipient upon contract.
C. The house occupied on the recipients lot must have an assessed value of at least $70,000 ( including lot and building ) and meet all local zoning requirements.
D. Recipient must occupy the premises for three (3) years after completion and keep the real estate taxes current during this period of time.
E. At the time a lot is given to a party, a $5,000 value will be given to the lot and one-third of that value will be forgiven each year.
F. The recipient will be required to sign a mortgage that will be satisfied when all the conditions of the program have been met.
G. All lot recipients will be responsible for preparing the lot for proper grading and drainage, according to City guidelines.
H. The City of Halstad, assumes no liability for any consequences resulting from the recipients non-use of drainage and grading guidelines.
I. The drainage and grading guidelines are available from the City Administrator, at the City of Halstad.

NOTE:

FHA approval has been certified for all lots of the " FREE LOT " subdivisions and documentation is on file with the Red River State Bank, Halstad, MN. For more information, please call the city of Halstad at 218-456-2128

E-mail comments or questions to
rgotteberg@rrv.net