Disclaimer: This is a third-party source and some information may have changed. Please consult Kansas City, Missouri Homesteading Authority directly for the most recent information and review its policies and procedures: KCHMA

If you’ve bought property from the Land Bank of Kansas City, Missouri, then this process will be familiar to you. The staff for both organizations are the same and the application process is similar.

 

Property Search 

Start by searching for available properties on the KCMHA website.  Then drive by the properties to see what they looks like in person.  Take time to look around the neighborhood and get a feel for what your neighbors are like.  Additional information about the adjacent properties can be found on the City’s website as well. As you visit each property, consider potential issues that may come up depending on your intended use: zoning restrictions, impact on the community, neighborhood approval, environmental issues, floodplains, or special permits or licenses. Also consider potential incentives that might be available depending on your use and location, this could include some level of tax abatement or access to resources in a Community Improvement District.

Next, schedule a time to view the property.  Contact Homesteading Authority directly via telephone or in person.

4900 Swope Parkway, 2nd Floor
Kansas City, MO 64130

(816) 513-9020

Pay careful attention! Take pictures and/or notes to create your plan for rehabilitation.  This will be your only opportunity to view the inside of the property to create your Scope of Repairs. Bring this form with you on your inspection and use it as a checklist. If you will not be doing the work on your own, bring your contractor or whoever can assist with putting together the Scope of Repairs.

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Next Step: Put Together Your Offer:

Part 1: Price

  • The purchase price is 2/3 of the Jackson County Assessor’s market value, but this does not need to all be paid in cash. The amount of money you plan to spend on the rehabilitation counts toward your purchase price. So, if the market value is $30,000, you could spend $1,000 on a cash purchase, and then put $29,000 into making repairs.

Part 2: Figure out the  Scope of Repairs

  • This is an itemized list of repairs–what all needs to be done and how much will it cost? Generally assume that all houses will need new HVAC and roof, along with things that come with longterm vacancy, such as trash from dumping and break-ins, stolen plumbing and electrical wires, and stolen or broken appliances. Include how long you think it will take to complete the renovations (the maximum time is 120 days). This will become part of the Deed of Trust [link to definition – a deed of trust is a security instrument recorded on the property’s title to secure the performance of work. Mortgages are often secured by deeds of trust to ensure that the debts are repaid. In the event that work is not performed on the property, the Land Bank can foreclose on the property and regain ownership. The deed of trust will automatically expire in three (3) years from the date it is signed.]

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Submit Your Application – Apply in person and bring the following:

  • Proof of funds – you can show this with a bank statement, a line of credit, or some other way showing that you can afford to make the repairs.
  • Application fee – $25 plus $10 per additional applicant (your spouse or another person who will own the property with you).  This must be paid with a money order or cashier’s check
  • State or federal photo ID
  • Completed scope of repairs (see above).
    A description of what you plan to do with the property (Are you going to live in it? Will a family member live in it? Do you plan to rent it out? Are you planning on selling it?)
  • Background check form
  • Application may be found here: Houses for Sale
  • You will need to have your charter number and verify that your organization is in good standing with the Missouri Secretary of State. If you are registered to do business in Missouri, that information can be found here.
  • If you are a corporation, you may need to submit a resolution from your board of directors, establishing that the organization has voted to approve this purchase.Are you a business or nonprofit organization?

The KCMHA Board will vote to approve or deny your purchase. You may want to attend this meeting to discuss your plans for the property. Depending on the volume of applications at the time you submit yours, this may take a few weeks to a few months. Please inquire with KCMHA  for additional details on this time frame.
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Purchase Approved? Next Step: Research the Title
If you are approved to purchase, consider order a title report or consulting a title company. Some Kansas City, Missouri Homesteading Authority properties go through the tax sale process, which can make getting title insurance difficult. To learn more about researching title on your own, view our basic property research guide. [link to property research guide] This is only for education purposes and is not intended to replace a title report or title insurance.

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KCMHA will contact you to schedule a closing.
They will provide you with the following documents:

  • Special Warranty Deed – A special warranty deed is a deed in which the grantor warrants the title against defects in clear title occurring only during their ownership of the property. The grantor of a special warranty deed does not provide a warranty or guarantee against any defects in clear title that existed before their ownership.
  • Real estate sale contract
  • Deed of Trust [link to definition – a deed of trust is a security instrument recorded on the property’s title to secure the performance of work. Mortgages are often secured by deeds of trust to ensure that the debts are repaid. In the event that work is not performed on the property, the Land Bank can foreclose on the property and regain ownership. The deed of trust will automatically expire in three (3) years from the date it is signed.]
  • Some financers may require their own deed of trust. Ask KCHMA about a subordination agreement.

You will be responsible for paying for recording fees.(Fees are determined by the number of pages of each document. See a complete breakdown here.)
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Carry out scope of repairs
Complete repairs within 120 days or within the time period set forth in your Deed of Trust. Contact KCMHA if you need additional time. The Deed of Trust will expire three years from the date of closing. Contact the KCHMA if you plan to sell the property during this period. If you sell the property before the expiration of the three years, the new purchaser can potentially assume the Deed of Trust.

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