Fort Wayne is committed to revitalizing its neighborhoods by offering the a LOT to LOVE Initiative - an exciting opportunity for developers and homebuyers to build and own new homes on vacant City lots.

The application process for Phase 1 of the "a LOT to LOVE" Initiative including the Developer Incentive Pilot Program and discounted City lot sales will open up on March 3rd. Applications must be submitted no later than April 18th.

Explore our discounted city-owned lots, available at reduced prices to support infill housing development. These affordable properties are designed to lower barriers to building, making it easier for developers and homeowners to invest in new construction.

Potential developers may be awarded a maximum of three lots in the initial application phase. All applications will be reviewed for project feasibility and neighborhood impact.

a LOT to LOVE Land Sale Policy

The intent of this policy is to manage the sale of infill properties owned by the City of Fort Wayne and Housing and Neighborhood Development Services (HANDS) to support the community’s housing and neighborhood revitalization goals.

Objectives:

1. Promote Housing Development: Encourage the development of housing affordable to a range of income levels.
2. Support Community Revitalization: Prioritize projects that will positively impact neighborhood aesthetics and safety.
3. Assist Local Small Scale Developers: Support the growth of community
4. Stimulate Economic Development: Consider projects that will increase neighborhood-focused economic activity, provide jobs or bring in new services.

Eligible Applicants:

Interested parties must meet the following requirements to be eligible for acquiring an infill property:

• Financial capability to purchase and develop the property
  
• Experience with property development or has participated in developer training
• Alignment with City goals including affordable housing creation or community revitalization

Selection Criteria:

Community Development staff will use the following criteria to prioritize applicants:

• Community Benefit: preference for projects that provide housing that is affordable for households below 120% of the area median income
• Project Feasibility and Readiness: Ability to begin construction within three months of application
• Developer Qualifications and Financial Strength: preference will be given to applicants with the financial stability to ensure successful completion of the project
• Local Engagement: In some cases the City may request input from community stakeholders to seek confirmation of their support for the proposed development.

Application Process:

1. Applicant will submit a completed application form along with proof of financial capability and relevant experience and capacity.
2. A selection committee will review applications to determine alignment with priority uses and eligibility.
3. Staff will notify the applicant of the decision that has been made. If the application has been approved, the City will place the lot on hold for up to three months. The applicant may request an extension for delays caused by pre-development activities.
4. Once the applicant is able to document that they have all of their financing in place staff will order a title search and indemnification and start preparing the deed for transfer.
5. City staff will hold a closing with the applicant.

Monitoring and Compliance:

• The sale of infill properties will be limited to three per small scale developer
• Once the property has been sold, the applicant is required to start construction on their project within three months. In the event that the project is not started within this timeframe the City reserves the right re-convey the parcel back to the City. Extensions may be granted upon request.

The Developer Incentive Pilot Program is designed to reduce financial barriers that prevent the development of infill housing. These barriers may include costs associated with development, appraisal gap and construction lending challenges. The program prioritizes projects that contribute to neighborhood revitalization and enhance housing diversity through a competitive application process.

Eligibility

Developer Eligibility:

• Must be a small-scale developer, which can include individuals, small businesses, or non-profits.
• Preference for developers with a demonstrated commitment to the community and experience in construction or real estate or have participated in the SEED Build Program.

Project Eligibility:

• Projects must involve small-scale residential infill development, such as single-family homes, duplexes, or small multi-family buildings.
• Properties should be located within identified infill neighborhoods.
• Projects must comply with local zoning, building codes, and planning guidelines.

Types of Assistance

Development Subsidy

• Covers direct costs of land acquisition, site preparation and construction
• Terms: Assistance will be provided in the form of grant.
• Disbursement: Funds will be disbursed at key project milestones (e.g., land acquisition, completion of site prep).

Construction Lending Assistance

• Supports developer by reducing barriers to accessing working capital. May include options such interest rate buy-downs and loan guarantees.
• Repayment: Terms for repayment will be project-specific.

Appraisal Gap Financing

• Reduces the gap between appraised value and contract price, which can inhibit securing financing.
• Conditions: Appraisal must be conducted by a certified appraiser, and the gap must be demonstrated through financial documentation.
• Terms: Assistance will be provided in the form of a five year forgivable loan. If the buyer transfers, sells or refinances within the five year period a pro-rated portion will be due based on net proceeds.

We encourage potential homebuyers to connect with the Home Builders Association to find a trusted builder or developer. Through this partnership, you can explore incentives and apply for a discounted city-owned lot to make your dream home a reality.