**Absolute to the Highest Bidder** DC Government Orders the Sale of 18 Properties
The DC Department of Housing and Community Development (DHCD) is pleased to announce a real estate auction of DC Government-owned vacant property. Eighteen properties, including single-family and multi-family buildings and vacant lots, will be offered for sale to home owners, non-profits, and District of Columbia Certified Business Entities. The properties will be sold absolute to the highest bidder for the purpose of redeveloping the properties into habitable residences and adding those residences to the District of Columbia's tax rolls. The properties are located in Wards 1, 2, 5, 6, 7 and 8.
NOTICE TO AUCTION PARTICIPANTS
REGISTERING AS HOMEOWNERS:
If you plan to participate in the auction as a homeowner and your proposed development budget including both acquisition and development costs exceeds $500,000, you will be required to enter into a Certified Business Entity agreement with the District of Columbia Department of Small and Local Business Development.
This agreement will require you to partner with a District of Columbia Certified Business Entity (CBE) and to provide the partner CBE with a 20% equity and development participation role in your development project. Please contact Tabitha McQueen, General Counsel of the District of Columbia Department of Small and Local Business Development with any questions you may have about the Certified Business Entity agreement requirement. Ms. McQueen can be reached by e mail at Tabitha.McQueen@dc.gov or by phone at 202-727-3900. Please go to the District of Columbia Department of Small and Local Business Development website at the following address http://dslbd.dc.gov to obtain additional information about Certified Business Entities generally.
 Click here for more photos Barry Farms, Square 5889, Lot 0815
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 Click here for more photos Woodridge, Square 4355, Lot 0058
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 Click here for more photos Lily Ponds, Square 5116, Lot 0115
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 Click here for more photos Columbia Heights, Square 2665, Lot 0032
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 Click here for more photos Congress Heights, Square 6240, Lot 0054
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Congress Heights, Square 6240, Lot 0060
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 Click here for more photos Congress Heights, Square 6240, Lot 0063
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 Click here for more photos Old City 2, Square 0363, Lot 0034
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 Click here for more photos Congress Heights, Square 6239, Lot 0082
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 Click here for more photos Deanwood, Square 5093, Lot 0140
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 Click here for more photos Columbia Heights, Square 3041, Lot 0012
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 Click here for more photos Old City 2, Square 0507, Lot 0016
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 Click here for more photos Old City 2, Square 0475S, Lot 0033
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Old City 1, Square 0889, Lot 0015. Existing dwelling will be demolished prior to closing and the property will be delivered as a vacant lot.
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The auction will be administered by DHCD's Property Acquisition and Disposition Division (PADD) and will be conducted by Alex Cooper Auctioneers, Inc. PADD was established at the beginning of fiscal year 2008 and consolidates the Homestead Housing Preservation Program, the Home Again Program, the Land and Housing Development Opportunities Program and other property acquisition and disposition functions into one division. The goal of PADD is to stabilize neighborhoods by (1) decreasing the number of vacant and abandoned residential properties in the District, and (2) transforming vacant and/or deteriorated properties into homeownership opportunities for District of Columbia residents at all income levels.
In January 2009, PADD held the Department's first auction. Since the first auction, PADD has closed on the sale of 17 properties, returning those properties to the tax rolls and generating over $3.7 million in revenue for the District. PADD hopes to duplicate the success of its first auction at the June 2010 auction.
The proposed transactions for the purchase and sale of property owned by the District of Columbia ("District"), acting by and through the Department of Housing and Community Development, shall be governed exclusively by the Property Disposition Agreement ("PDA"). We strongly encourage and recommend that all interested bidders review the PDA, the Declaration of Covenants, and the Auction Participation Agreement and consult with legal counsel prior to participating in the auction. All auction participants will be required to sign the Auction Participation Agreement in order to register to participate in the auction. Winning bidders will be required to sign the PDA prior to the end of the auction. In addition, winning bidders will be required to sign the Declaration of Covenants at the property closing. The Declaration of Covenants requires completion of construction on the property within eighteen (18) months of closing.
1) Who Can Participate in the Auction?
Participation in the auction is limited to the following participants:
A) Homeowners who intend to purchase the property and reside in the property as their principal place of residence
B) Business entities which are active certified business enterprises ("CBE") registered with the District of Columbia Department of Small and Local Business Development
C) Not For Profit Corporations
All participants will be required to sign an Auction Participation Agreement and certify that they meet one of the outlined participation requirements. A qualified auction participant may bid on any and all properties; however, a certified home owner may only purchase and be deemed a winning bidder for one (1) property and CBE's and non-profits may only purchase and be deemed a winning bidder for a maximum of two (2) properties.
2) Bidder Registration Requirements.
On the day of the auction, all auction participants must register to receive a bid paddle. Each participant will be required to present a bidder registration fee in the amount of Fifteen Thousand Dollars ($15,000) for each property that they intend to bid on and purchase. The bidder registration fee must be paid in the form of a cashier's check or a certified check payable to the auction participant. NO CASH WILL BE ACCEPTED. In the event that the auction participant is declared the winning bidder on a property, the Fifteen Thousand Dollars ($15,000) bidder registration fee will be collected and held by the auctioneer.
A buyer's premium in the amount of five percent (5%) of the bid price shall be charged for each property purchased at the auction. The buyer's premium will be added to the winning bid price to arrive at the total contract purchase price for each property. The total contract price shall be paid by the purchaser at closing (i.e. if the winning bid price is $100,000 a 5% buyer's premium of $5,000 is added to the winning bid price to arrive at a total contract purchase price of $105,000). NOTE: The buyer's premium is not a separate fee paid by the purchaser on the day of the auction.
4) Deposit Requirement.
Within three (3) business days of the auction, for each property purchased, the winning bidder shall deliver to the auctioneer a deposit in the amount of ten percent (10%) of the total contract purchase price. The bidder registration fee shall be credited towards the ten percent (10%) deposit amount. The winning bidder shall pay any additional sums required to equal the ten percent (10%) deposit amount within three (3) business days of the PADD Auction. The deposit funds may be paid in the form of a cashiers check or certified check payable to Alex Cooper Auctioneers, Inc. All deposits will be held in a non-interest bearing account by the auctioneer as set forth in the PDA. The deposit shall be credited to the purchase price at closing.
In the event the winning bidder fails to pay the deposit within the proscribed period, the winning bidder shall be declared in default and shall forfeit all bidder registration fees to District as liquidated damages.
5) Documents to be Signed by Winning Bidder(s) on Day of Auction.
Each auction participant shall be required to pay the bidder's registration fee and sign the PDA immediately after being declared the winning bidder. The executed PDA shall control all terms and conditions of the sale. NO CHANGES TO THE TERMS OF THE PDA WILL BE PERMITTED. All auction properties shall be subject to the terms of the District's Declaration of Covenants, which requires the winning bidder to develop or rehabilitate the property according to specific guidelines and restrictions. The Declaration of Covenants will be executed by the winning bidder at closing.
6) Auction to be Sold ABSOLUTE TO THE HIGHEST BIDDER.
Properties offered will be sold without a minimum reserve price.
7) "AS IS" "WHERE IS" Disclaimer.
DISTRICT SHALL CONVEY THE PROPERTY TO THE WINNING BIDDER IN "AS IS," "WHERE IS" CONDITION WITH ALL FAULTS AND DISTRICT MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE PROPERTY, AS TO THE SUITABILITY OR FITNESS OF THE PROPERTY, AS TO ANY LAW, OR ANY OTHER MATTER AFFECTING THE USE, VALUE, OCCUPANCY, OR ENJOYMENT OF THE PROPERTY, OR, EXCEPT AS SET OUT IN SECTION 3.1 OF THE PDA, AS TO ANY OTHER MATTER WHATSOEVER. DISTRICT SHALL HAVE NO RESPONSIBILITY TO PREPARE THE PROPERTY IN ANY WAY FOR DEVELOPMENT AT ANY TIME. THE WINNING BIDDER ACKNOWLEDGES THAT NEITHER DISTRICT NOR ANY EMPLOYEE, REPRESENTATIVE, OR AGENT OF DISTRICT HAS MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY.
8) Property Inspection & Conditions.
Please note that the properties are not available for inspection prior to the auction and are subject to the District's trespassing laws. The District has posted no trespassing signs on each property.
All information contained in the catalog and on the auctioneer's website or any other promotional materials including, but not limited to, photographs, directions, lot & square, zoning and taxes have been provided by the District and is believed to be correct. However, neither District nor the auction company makes any guarantee or warranty as to the accuracy or completeness of such information.
9) Closing.
All closings shall be in accordance with the conditions set forth in the PDA. The winning bidder will be granted possession of the property at closing and will be subject to the terms of the District's Declaration of Covenants. All auction properties must be fully developed within eighteen (18) months of the date of closing. Said development obligations are outlined in the Declaration of Covenants.
10) Default.
In the event the winning bidder fails to close per the terms stated in the PDA, said winning bidder shall be declared in default and all funds paid will be forfeited to the District as liquidated damages.
11) Rights of District and Auctioneer at the Auction Event.
The District reserves the right to add to or delete from the auction any property by oral or written announcement prior to or during the course of the auction. All such announcements shall take precedence over all promotional materials including, but not limited to, advertisements, catalogues and the auctioneer's website.
All decisions of the auctioneer are final as to sale order, the methods of bidding, disputes among bidders, increments of bidding, priority of bidders and any other matters that may arise before, during or after the auction. The District reserves the right to expel anyone who in any way disrupts or attempts to disrupt the auction event.
12) Auctioneer's Notice of Relationship to District.
The auctioneer is acting as a contractor for the District in this transaction. The auctioneer is not acting as agent for the auction participant in this transaction. Any buyer or broker is acting as an agent for the auction participant and is not a subagent of the auctioneer.
13) 120-Day Lower Tax Grace Period to Obtain Building
Permits.
All auction properties shall receive a one hundred twenty (120) day grace period (the "Grace Period") from the Department of Consumer and Regulatory Affairs ("DCRA") during which all auction properties shall be subject to the Residential Class 1 tax rate of eighty-five cents ($0.85) per one hundred dollars $100.00 of the assessed value to allow for application to DCRA to obtain the required building permits necessary for commencement of construction. Upon expiration of the Grace Period, said auction properties may be subject to the new Class 3 tax rate of five dollars ($5.00) per one hundred dollars ($100.00) of the assessed value, if applicable.
14) Broker COOP
The auctioneer is offering a 2% broker COOP to licensed District of Columbia real estate brokers/agents. All broker participation agreements must be submitted a minimum of 48 hours before the auction sale. Please click here to download the form. Please submit the signed agreement to matt@alexcooper.com or fax to 443-470-1440.
