§ 54-83. Terms of agreement.

(a)

When the section 810 urban homesteader and the commissioner of housing and community development agree on a suitable dwelling for the homesteader, the homesteader shall enter into an agreement with the city on a form prepared by the city attorney's office. The agreement shall contain provisions whereby the homesteader to whom such property is conveyed agrees that the homesteader:

(1)

Use the property as a residence only;

(2)

Not assign the homesteader's interest to a third party without the consent of the city;

(3)

Not keep any explosives or highly inflammable substances on the premises, save only small quantities of combustibles such as cleaning fluid, gasoline, etc.;

(4)

Pay all utility services;

(5)

Be required to obtain and maintain comprehensive insurance on the premises in a face amount at least equal to the fair market value of the premises, as determined by the city, and also be required to obtain and maintain liability insurance in the sum of $25,000.00 per occurrence and $100,000.00 in the aggregate;

(6)

If the urban homesteader should either file bankruptcy or insolvency proceedings or have bankruptcy or insolvency proceedings filed against the homesteader, the city may, at its election, retake possession of the premises and void the conveyance;

(7)

Shall pay all applicable taxes due all appropriate taxing authorities imposed on the urban homesteading premises; and

(8)

Shall secure the necessary building permits, as applicable.

(b)

The urban homesteader shall assume such further obligations as shall be incorporated into a deed of conditional conveyance, prepared by the city attorney's office. The deed shall be subject to the terms and conditions that the homesteader shall:

(1)

Occupy the property as a principal residence for a period of no less than three years;

(2)

Make repairs required to meet minimum health and safety standards for occupancy prior to occupying the property;

(3)

Make such repairs and improvements to the property as may be necessary to meet the applicable standards of the city's housing code for decent, safe and sanitary housing within 18 months after occupying the property; and

(4)

Permit reasonable periodic inspections at reasonable times by employees of the city, the state or the United States government for the purpose of determining that the conditions set forth in this subsection have been met within the time periods prescribed in this subsection.

(c)

Any urban homesteader forced to abandon the homestead by circumstances beyond the homesteader's control shall have the authority, subject to the approval of the commissioner of housing and community development, to assign the homesteader's rights under the agreement and deed of conditional conveyance to any other eligible homesteader for any consideration that the homesteader can negotiate. Any property so assigned shall be reported to the commissioner of housing and community development by the urban homesteader. Should any property be so assigned, the new urban homesteader shall be bound by the terms and conditions of the agreement and the deed of conditional conveyance for the balance of the terms of such instruments. Any urban homesteader who has assigned such homesteader's rights under such instruments to another individual shall be deemed ineligible for any other urban homesteading structure.

(Code 1977, § 8-5034)