More Fees and Requirements on Vacant Saint Paul Homes

The City of Saint Paul has some of the most aggressive and rigorous vacant housing regulations in the Twin Cities area.  To review:

  1. Category 1-A homeowner must register a unoccupied home within 30 days or face a fine.  To remove it from the list requires only a $50 fee and any outstanding orders for legal occupancy (which may be as simple as shoveling the snow).
  2. Category 2-Homes can be moved to Category 2 within 30 days of hitting the Saint Paul vacant building list.  This is a typical state for most Saint Paul Foreclosures.  These properties are condemned or have multiple housing violations.  They are legally considered uninhabitable.  They will require a licensed contractor to submit a schedule and sworn construction statement to complete the work.  The buy may need to escrow money to complete some repairs.  If you jump through all the hoops, you can buy these properties and rehab them.
  3. Category 3-These properties are slated for demolishing.  Almost nothing can save them from the wrecking ball.

Previously, when you submitted a plan to renovate a Category 2 property, you would simply submit the proper paperwork to the city.  Maybe you would need to meet an inspector on-site to discuss certain issues.  Not a big deal.

Starting January 1, 2010, Saint Paul is adding a new fee called a “Sales Requirement Fee”.  This $275 fee is required at the time you submit your rehab plan for the Category 2 home.  It must be paid for the city to review how you are going to the repair the home you are buying.  This review process can take up to 4 weeks and the property can NOT be sold until the city approves the buyer’s plan.

Just one more way to get money out of Saint Paul Home buyers and slow down the process.  Keep this in mind!

I am a licensed Realtor in the State of Minnesota. This website is not a multiple listing service, but each Minnesota & Minneapolis real estate agent is a member of the Regional MLS of MN, inc., a provider of the Minnesota MLS.

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Comments

Unbelievable Scott! It is amazing to see some of the road blocks they are putting up here to keep the real estate market going here in St Paul.

Agent representation is so important when dealing with St. Paul and their Category buildings. I wrote a blog regarding a story on a home buyer dealing with the nightmare of a Category 3 home back in Feb of this year.

It’s so important to understand the rules to the game as a buyer for a category 1,2 or 3 property when you are looking to buy in St. Paul.

[...] more about it here at my Saint Paul Homes site. Related Posts:Saint Paul Proposes Required Landlord TrainingCYA Clause for my REO [...]

You are right. These regulations are quite strict and residents of this area have to be aware of these matters. A number of people end up paying fines because of lack of awareness. Articles like yours provide the information need to avoid these kind of problems. Thanks.

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