(A) In order to be eligible for benefits, a member must follow the procedures set forth herein.
(B) When an insured residence is placed on the market with the intent to sell, the member shall submit verifiable evidence of the placement, including the date that the placement took place. Verifiable evidence may include copies of advertisements for sale, a contract with a licensed real estate broker or other evidence found satisfactory to a majority of the Community Relations Commission (CRC).
(C) Upon receipt of verifiable proof by the CRC of the act of placing the insured residence on the market, a 120-day waiting period shall commence from the date the insured residence is placed on the market. During the first 90 days of 120-day waiting period, no coverage is afforded under this chapter; during the last 30 days of the 120-day waiting period, coverage shall be afforded pursuant to division (F) hereof; at the expiration of the 120-day waiting period, coverage shall be afforded pursuant to division (H) hereof.
(D) A member may offer his or her insured residence for sale or may exclusively list the residence with a real estate broker for 60 days from the date the insured residence is placed on the market. Thereafter, a member must notify the CRC, in writing of his or her inability to obtain an offer for purchase at the appraised valuation or more and, further, must agree to list the insured residence with the West Town Board of Realtor’s Multiple Listing Service, or an agency with comparable sales coverage in the city, for not less than 60 additional days or until the insured residence is sold, whichever is sooner.
(E) Seventy-five days from the date the insured residence is placed on the market, an inspection of the insured residence shall be made. That inspection, by a certified appraiser, shall determine if the insured residence is currently in at least substantially the same state of repair as it was on the appraised valuation date. If the insured residence fails to meet this standard, the following procedure must be followed:
(1) The certified appraiser will determine the percentage of depreciation of the insured residence due to the failure of the owner to maintain the premises;
(2) This percentage figure shall be multiplied by the appraised valuation to determine the dollar depreciation due to failure to maintain the premises; and
(3) The dollar depreciation shall be subtracted from the appraised valuation to derive a lower appraised valuation to be used for the purpose of determining the amount of coverage afforded under this chapter.
(F) From 90 through 120 days from the date the insured residence is placed on the market, coverage shall be in effect as hereinafter set forth. During this period, a member shall immediately forward to the CRC all offers for purchase at less than the appraised valuation as determined pursuant to division (E) hereof. Within three working days from the receipt of the offer(s) for purchase, the CRC shall either:
(1) Approve the offer for purchase, whereupon the member must accept the offer and the CRC shall authorize payment of the amount of coverage afforded by § 1484.06, subject to the following conditions:
(a) Sales involving eminent domain shall be covered as set forth in division (I) hereof;
(b) Sales subsequent to an insured property and casualty loss shall be covered as determined by the appraised valuation in division (E) hereof; and
(c) Contract sales shall be covered as determined by the appraised valuation in division (E) hereof, but proceeds payable from the CRC shall be disbursed in equal annual installments over the life of the contract.
(2) Reject the offer, whereupon the member shall continue showing the insured residence to prospective purchasers; or
(3) Exercise the CRC’S (or its agent’s) option to purchase the insured residence at the offered purchase price, whereupon the CRC shall authorize the amount of coverage afforded by § 1484.06.
(G) Days used to satisfy real estate contract contingencies, including mortgage contingency provisions, shall not be used in computing the 120-day waiting period.
(H) If one or more offers have been made but not accepted, on the purchase of the insured residence between the ninetieth and one hundred twentieth day pursuant to the above provisions, the CRC shall purchase the insured residence at the highest offered purchase price and shall authorize the amount of coverage afforded by § 1484.06.
(I) Where an insured residence is to be acquired by use of eminent domain, the following procedures shall apply:
(1) If the member rejects an offer from the condemning body equal to or greater than the appraised value, there shall be no payment under this Program; and
(2) If the condemning body offers less than the appraised values, the CRC may either:
(a) Offer to pay 100% of the difference between the appraised value and the offering price if the member agrees to sell at the offered price. If the member does not agree to sell at the offered price, then in no event shall the member receive from the CRC any payment in excess of the payment set forth herein; or
(b) Advise the member that the offer is inadequate and should be refused. If the member, under these circumstances, desires to accept the offer, then the property shall be acquired from the member by the CRC at the offered price plus 100% of the difference between the offered price and the appraised value. If the member refuses the offer pursuant to this division and the court determination of the value of the property is less than the appraised value, then the CRC shall pay 100% of the difference between the judgment and the appraised value.
(Ord. 96-37, passed 10-8-1996)