How to Buy a House for as Little as $1 Through Baltimore’s Government Assistance Program

Overview of the Program

• Goal: Reduce the number of vacant buildings and lots by selling city-owned properties at fixed prices.
• Key Feature: Some properties may be sold for $1 when purchased by individual homeowners and specific Community Land Trusts, provided certain conditions are met.
• Phased Implementation: The program is rolled out in three distinct phases, each targeting different types of buyers and properties.

Phase One: Homeowner Priority (April 1 – July 1)

• Who Qualifies: Current Baltimore City residents committed to restoring and living in the home as their primary residence.
• Key Requirement: Buyers must have at least $90,000 available for rehabilitation costs.
• Cost to Purchase: $1 for a vacant building, plus a $100 application fee (refundable if the application is denied).
• Timeline Expectations:
  • Applications are prioritized if the property will be used as a primary residence.
  • Buyers must obtain a use and occupancy permit within 12 months of purchase and live in the home for at least five years.

Important Details

1. Proof of FundingBuyers need to show $90,000 in financing or assets per property to ensure the renovation can be completed.
2. Application Fee$100 that is credited to settlement if approved or refunded if denied.
3. Fast DecisionBaltimore’s Department of Housing and Community Development (DHCD) aims to render decisions within two weeks of application receipt.

Phase Two: Charm City Roots

• Focus: Applicants who have a familial or legacy connection to a vacant property that is not yet City-owned.
• Process: Interested individuals express their intent to purchase a property that has significance to them. The City determines whether the property is eligible for acquisition and prepares the applicant for homeownership if it moves forward.

Phase Three: Developers, Nonprofits, and Community Land Trusts (Beginning July 1)

• Who Qualifies:
  • For-Profit Developers
  • Nonprofits of various sizes
  • Community Land Trusts
• Pricing Examples:
  • $3,000 for a vacant building if an organization has more than 50 employees.
  • $1,000 for nonprofits with 50 or fewer employees buying a vacant building.
  • $1 for registered Community Land Trusts purchasing a vacant building or lot.
• Timeline: Properties applied for between April 1–July 1, 2024, by developers do not receive priority over homeowners in Phase One.

How Much Do Properties Cost?

Exact pricing depends on both the type of purchaser and the type of property. Below is the general breakdown without using a table format:

Vacant Buildings

• For-profit developers or nonprofits with more than 50 employees: $3,000
• Nonprofits with 50 or fewer employees: $1,000
• Community Land Trusts: $1
• Individual Homeowners: $1

Vacant Lots

• For-profit developers or nonprofits with more than 50 employees: $1,000
• Nonprofits with 50 or fewer employees: $500
• Community Land Trusts: $1
• Individual Homeowners: $1

Criteria for vacant buildings or lots may require a new residential use, a mixed-use project that includes residential units, or development into green space. Homeowners purchasing a building or lot for $1 must occupy the property as a primary residence for at least five years after an occupancy permit is issued. Occupancy permits should be obtained within 12 months of settlement.

Vetting Process

1. Rehabilitation BudgetApplicants must prove they can finance at least $90,000 for renovations. Many city-owned properties require substantial work, often exceeding $125–$150 per square foot.
2. Vacant Building InventoryDHCD checks whether applicants own additional vacant buildings without recent open/active permits, which may influence approval.
3. Legal ImpedimentsApplicants must not have unresolved legal matters that could prevent them from completing the project.
4. Lien and Judgment ChecksNo open federal or state liens or judgments should exist against the applicant.

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Concerns and Opposition

Baltimore’s Board of Estimates approved the program, but City Council President Nick Mosby voted against it, citing insufficient safeguards for current residents. Mosby argued it lacks explicit measures to ensure that Baltimore residents have priority and remain protected from displacement. Despite this concern, the board passed the new pricing structure in a four-to-one vote.

Key Takeaways for Baltimore Residents

• Opportunity for $1 Homes:City residents willing to rehabilitate a property and live there as a primary residence can acquire it for a nominal fee, subject to funding requirements.
• Community Land Trust Involvement:Community Land Trusts benefit from $1 pricing, aiming to foster stable, affordable homeownership opportunities.
• Nonprofit and Developer Participation:Fixed pricing and clear guidelines streamline the purchasing process, although the cost may be higher for large organizations.

Final Thoughts

By standardizing pricing and simplifying the purchasing process, Baltimore’s BuyIntoBmore Fixed Pricing Program attempts to address the city’s inventory of vacant properties. While it offers a promising avenue for affordable homeownership and revitalization, concerns about equitable implementation persist. The phased approach, rigorous vetting, and renovation requirements are intended to encourage responsible ownership and benefit a broad range of potential buyers.

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