PILOT RESIDENTIAL REHAB PROGRAM

Available Properties

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Ready to Renovate a House?

The Pittsburgh Land Bank’s Pilot Residential Rehab Program lists for sale homes in need of renovation to qualified buyers who intend to occupy the house as their primary residence once renovations are complete. Buyers will need to demonstrate that they are ready to take on a significant rehab project. 

 APPLICATION CHECKLIST:

  • Complete a tour of the house before submitting an application 
  • Provide proof of financing to cover the cost of purchasing and rehabilitating the home
  • Provide an approved rehab plan for the complete rehabilitation of the home
  • Pass the Land Bank’s Qualified Buyer Check (be up to date on all taxes and water bills, no open property violations) 
  • A deed restriction will be placed on all properties, requiring buyers to own and occupy the home for five years post-renovation

The Land Bank will also take the following factors into account when selecting a buyer:

  • Having an identified Contractor
  • Demonstrating a clear intention to own and occupy the home
  • Buyer’s home rehabilitation and/or construction experience

Scheduling a Tour

If you are working with a realtor, have your realtor contact the listing agent to schedule a tour. 

Otherwise, visit the property’s info page on the Land Bank’s website for contact information, or schedule a tour via the website where the property is listed (like zillow).  

Please sign and submit a hold harmless form before visiting the property. 

Visit the property’s info page on the Land Bank’s website, for contact information to schedule a tour of the property. 

Buyer Requirements - "Qualified Buyer Check"

To purchase a house from the Land Bank, buyers cannot own property that:

  • Has any un-remediated property code violations 
  • Is tax delinquent
  • Was subject to a judgment in a tax foreclosure proceeding in the past five (5) years
  • Has a delinquent water account with the City of Pittsburgh’s Water and Sewer Authority, or any other local water utility

Financial Requirements for Buyers

The following are acceptable forms to demonstrate proof of funding immediately available to purchase and renovate the property:

  • Bank statements
  • Pre-approval letter from Lender
  • Lines of credit
  • A bank statement from a family member/friend (along with a letter detailing approval of applicant’s use)
  • Proof of funds letter from Bank
  • Other forms of proof of funding are accepted on a case-by-case basis
Look for the minimum budget on the property’s listing page. Buyers will need to demonstrate they are able to access funding to cover the minimum budgeted amount, or make the case in their application why they will be able to complete the rehab for less than the minimum budget amount. 

MORTGAGE REHAB LOANS

The Pittsburgh Land Bank will give preference to buyers using a Mortgage-Rehab loan product. The Land Bank recommends that all interested buyers research the loan programs that may be available to them to see which programs best suit their needs. You can review the below contact information for banks that offer this type of programming.

S&T Bank
David McGowan
412-915-7997
DavidMcGowan@s&tbank.com

WesBanco
Don Wargo
412-902-3127
dwargo@wesbanco.com

Dollar Bank
Steve Kaminski
412-261-4219
SKaminski205@dollarbank.com

Slovak Savings and Loan (SSB)
Heather Dieckmann
412-837-6955
hdieckmann@ssbpgh.com 

How does the Land Bank ensure that buyers will successfully rehab homes?

The Land Bank will use one of the below post-closing requirements to ensure that buyers can successfully rehabilitate a home. Click on each option below to read more.

A mortgage that is recorded against the property at the time of closing and is not satisfied until the renovation work has been satisfactorily completed. This mortgage doesn’t require the buyer to make any payments, nor does it accrue interest; it is a safeguard to make sure that the property conveyed is renovated in accordance with the specifications provided to the PLB and consistent with what the buyer wrote in their application to the PLB. This option is not recommended if a buyer is taking a mortgage from a construction lender at closing.

This is an agreement, not a mortgage, that requires the buyer to renovate the property in accordance with the specifications provided to the PLB in the buyer’s application and consistent with what was approved by the PLB Board. The Agreement is not recorded but a covenant is included in a deed stating that the Reverter Agreement exists and that the PLB has a reversion right. If the buyer does not improve the property within the agreed upon timeline and those improvements are not in accordance with the plan submitted to the PLB, then they will be in in default under the agreement, and a remedy under the agreement is the property reverts to the PLB. If that were to happen, the PLB could take the property back subject to any construction mortgage approved by the PLB, assuming that the Buyer ever began the project and took out a construction mortgage to complete the same. Once the project is completed, the PLB records a declaration in the record removing the deed reference to the Reverter Agreement and terminating the Reverter Agreement. 

In some cases, the Land Bank may use Deed Restrictions to further ensure that homes will be lived in by qualified owner-occupants for a certain number of years.

A Deed Restriction is a clause on the home’s deed that limits the use of the property. 

What does closing with the Land Bank look like?

CLOSING TIMELINE

(Estimated Timeline: 1 month)
  1. Buyer selects a Title company to handle the sale. 
  2. Buyer will receive a draft purchase and sale agreement, special warranty deed, and  enforcement mechanism documentation (reverter agreement and enforcement mortgage) to review.  
  3. Buyer approves the legal documents. 
  4. Sign purchase and sales agreement and pay good faith deposit:  
    1. The deposit will be $1,000 or 3% of purchase price (whatever is higher). 
    2. The deposit will be paid to the title company and credited to the purchase price at closing.  
  5. Buyer and Seller will select a closing date and coordinate with a title Company. 
    1. The PLB does not attend closings in-person and will sign closing documents in advance. 
    2. Select a closing date at least a week in advance for PLB staff to prepare for closing. 
  6. Title company will provide the settlement statement and owner’s affidavit to the PLB 2-3 days prior to closing.  
    1. Any sales with the Pittsburgh Land Bank are exempt from real estate transfer taxes per 68 Pa.C.S. 2121.   
    2. PLB legal counsel will review the owner’s affidavit. 
  7. Closing date: 
    1. Buyer executes all closing documents. 
    2. Title company sends proof of wire transfer to the PLB. 
  8. Congratulations! You have successfully acquired a property through the PLB. 

Ready to get started? Contact Pittsburgh Land Bank staff to request an application!

Email: staff@pghlandbank.org | Call: 412-255-6566