City authorities in Louisville, Kentucky, have launched a program to revitalize neighborhoods with dilapidated, vacant homes by selling these properties for $1.
Louisville’s Landbank Authority is handling the initiative, called “Landbank-A-Rama.” Between August 26 and 28, prospective buyers can attend open house events, giving them a chance to view the homes for sale in five west Louisville neighborhoods: Portland, Park Hill, Parkland, Chickasaw and Russell.
Newsweek contacted the Louisville city government for comment by email on Tuesday.
Which Homes Are for Sale?
The Louisville/Jefferson County Metro Government’s website shows 31 properties for sale for $1 under the Landbank-A-Rama program.
For those willing to take a chance on these homes, which were built between the end of the 19th century and the first half of the 20th century, there are options for various tastes. Some of the homes have one bedroom and one full bathroom. Others have as many as five bedrooms and two full bathrooms.
Many of the pictures in the listings show single-family homes with boarded-up windows surrounded by an overgrown lawn, as the properties have been vacant for a while and display signs of distress.
What Is the Catch?
While Louisville authorities are offering potential buyers cheap properties—at a price that is tens of thousands of dollars below market level—they require significant maintenance work and repairs to be inhabitable.
These properties will cost buyers $1 on paper, but the final cost of purchasing these homes may be above $100,000. According to the estimates provided by Louisville authorities, the estimated cost of repairs often exceeds the estimated value of the property.
In the case of the five-bedroom home at 2307 West Madison Street, the property was valued at $35,630. However, the necessary structural and exterior repairs were estimated at $62,750, almost double the cost.
Buyers who are not discouraged by these figures must prove that they have $62,750 in rehab funds and complete the structural and exterior repairs within 12 months from the date of sale. The total estimated projected costs to rehabilitate the entire structure is $168,500, according to city authorities.
The purchase of any of the 31 homes for sale across Louisville requires buyers to submit an itemized budget, construction plans, proof of funds for repairs and the intended end use. Finally, they must complete the necessary rehab work within 12 months of buying the home.
Not for Every Pocket
Some residents have expressed concerns that the Landbank-A-Rama program, with its estimated fix-up costs, will restrict access to these homes to those who can afford them and leave out many among the locals.
“Most of those homes, they already have them pre-assessed for up to $100,000 or even more,” Metro Councilwoman Tammy Hawkins said, per The Courier Journal. “If they can barely fix up their own home, the average person wouldn’t have that amount of money.”
City authorities say the initiative seeks to revitalize the neighborhoods involved, prioritizing prospective buyers who want to live in the community over sellers or lessors.
As reported by The Courier Journal, Office of Housing and Community Development Executive Administrator Tia Bowman said: “We want to revitalize the block. We don’t want to gentrify it. We want to create more affordable housing opportunities, and this is one way we can do that.”
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