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10/05

City of Muskegon
Policy for Sale of City-Owned Residential Property
Objective
The City of Muskegon (the City) wishes to expand its residential tax base while simultaneously
alleviating itself of the significant cost burden associated with year-round maintenance of vacant lots.
The City reserves the right to join and split lots to assist with this process. All property will be sold as
is. All sales are subject to City Commission approval.
Pursuant to the above, the City will periodically implement neighborhood marketing strategies.
Elements of this policy may be superceded by a marketing strategy, if said strategy is approved by the
City Commission as an exception to this policy, and only while said strategy is being utilized to market
properties identified by the strategy.
Non-Buildable Lots/Marginal Lots
* Non-Buildable lots are defined as lots that are insufficient in size or configuration for new
construction under the Zoning Ordinance. Marginal lots are defined as residential lots that are
between 50 and 60 feet of frontage, however it would not be in the best interest of the
neighborhood to create increased density, or would create buildable lots for adjoining property
owners. These lots may only be sold to adjacent property owners; neighborhood organizations; or
valid non-profit agencies, to expand/improve or beautify existing property. In the event that both
adjacent owners seek to purchase a property, the City shall divide the property in the most
equitable manner. Factors considered before approvals of property sales include but are not limited
to the following:
* Amount of existing property owned by interested parties
* Current upkeep of existing property owned by interested parties
* Evidence of unresolved zoning issues.
* Unpaid environmental invoices or delinquent property taxes.

These lots will be sold for $1.
Buildable Lots
Buildable lots are defined as lots of legal record which are suitable in size and configuration under the
Zoning Ordinance, for the construction of single-family homes, and may only be sold for such a
purpose. As a condition of sale, structures built on these properties must be owner occupied for a
minimum of 5 years. The buyer must 1commence construction within 18 months of the date of
purchase, or the property will revert back to the City's ownership, free and clear of any claim of the
buyer. Buyers requiring frontage of 130' or more must build homes with a minimum of 2,500 square

1 "Commence Construction" means that a buyer has been issued a residential building permit by the
City of Muskegon and also (in the sole opinion of the City of Muskegon's Building Official) that at least
seventy-five percent (75%) of the dwelling has been completed.

O:\Planning\COMMON\Property\Policy and Procedures\Policy\Property Sale Policy Oct 05.doc

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feet of living space and go before the Land Reutilization Committee (LRC) for a recommendation. All
structures must conform to all City building and zoning requirements. These lots shall be sold for
market value.
Home Design

Any person wishing to purchase land from the City for the purposes of constructing a single
family or duplex structure (in areas zoned for duplexes) shall adhere to the following standards:

1. The structure shall have a minimum of 1,260 square feet of usable living space per unit
(excluding all basement area).
2. The roof of the structure shall have a minimum pitch of 5/12, that is, for every twelve
inches (12") of lateral run, the roof shall rise five inches (5").
3. A single-story home shall have a variable roof line on the front elevation (e.g. gable,
dormer or offset).
4. The building design shall be approved by the City and shall include at least two of the
following:

a. A covered front porch with design amenities (e.g., decorative railing). (potential
$300 lot credit)
b. A picture or bay window in the front elevation. (potential $500 lot credit)
c. A starburst or other siding design features in roof gables or over doorways or
windows. (potential $200 lot credit)
d. Shutters or other acceptable outdoor window treatments (potential $100 lot
credit)
e. Brick or stone accents in the front elevation (potential $1,000 lot credit)
f. Decorative windows (potential $200 lot credit)

5. A second story may be a potential $2,000 lot credit but may not be included as one of
the two required design elements.
6. A "stick-built" home may be a potential $2,000 lot credit but may not be included as
one of the two required design elements.
7. In no case shall the total number of credits amount to more than $2,500.
8. The house shall have a garage or at least an 8 foot x 8 foot painted or vinyl covered
wood storage shed constructed as per City requirements for sheds.
9. All bedrooms shall have at least one hundred (100) square feet of livable floor area.

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10. At the time the building permit application is submitted, the plot plan and building
design will be reviewed to determine compliance with all requirements of this policy.

11. Removal of existing trees shall be approved by zoning staff prior to lot clearing. Trees
shall only be taken to accommodate the structure and driveway. A performance
guarantee may be required of the owner or contractor for tree protection.
12. At least two (2) shade trees shall be provided on site of at least two and one-half (2.5")
inches in diameter four feet from the ground. Preservation of existing trees may be
considered in lieu of this requirement.
13. The lot shall be established with appropriate grass, ground cover or other plantings
within one year of occupancy or the city may arrange for such planting and bill the
owner.
The aforementioned conditions and credits shall be incorporated into a sales contract between
the city and the buyer.
Large Blocks of Land
This type of lot is defined as contiguous property that would allow for the construction of a minimum
of 3 single-family residential structures. It is the preference of the City that these lots be sold as a
single parcel to individuals with the means to develop the land for multiple single family units or
multi-family units such as townhouses, site condos; and the like. Development must conform to either
Single Family or Multiple Family building/zoning requirements. All interested parties must comply
with preliminary site review requirements as determined by the Zoning Administrator.
Process for Purchasing Land
The procedure for purchasing city-owned property can be found in a brochure produced by the
Planning Department, entitled "Purchase of City-Owned Residential Property".
Recording of the Deed
All property sales must be recorded with the Muskegon County Register of Deeds. This is the sole
responsibility of the buyer. All sales will be handled as quit claim deeds.
Closing Costs
All closing costs will be split between the buyer and the seller.
Property Survey
All costs and activities associated with a survey are the sole responsibility of the buyer.
Environmental
Properties will be sold as is. Any environmental analysis is the sole responsibility of the buyer.

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Title Evidence/Insurance
Quitting title of tax reverted properties sold and properties spit for minimal amounts such as non-
buildable lots, shall be the responsibility of the buyer.
Financing
Financing the acquisition of City-owned property and subsequent construction (if applicable) is the
sole responsibility of the buyer. Failure to provide proof of adequate financing may be used as a basis
for denial of a sale.
Appeal Procedure
Any denial of a sale can be appealed to the LRC using the appeals procedure as defined by the LRC.
All sales whether appealed or not go before the City Commission for approval before a sale can be
initiated.