rdabuyapropertyprocess

How to Acquire RDA Property
Vacant properties owned by the Redevelopment Authority of the City of Philadelphia (RDA) are available to individuals and organizations with plans and resources for improving them.

Before an RDA property can be conveyed to a new owner, the applicant’s improvement plans and its financial capacity to carry them out are subject to review and approval. Upon approval, the property can be obtained at fair market value, provided the applicant agrees to complete the project as approved.

Improvement plans can be as simple as turning a vacant lot into a sideyard or community garden, or as complex as rehabilitating a vacant structure for housing or business/commercial use.

Who Can Apply?
Any individual or organization—non-profit or for-profit, public or private—with plans for improving an RDA-owned property may apply.

An eligible re-use proposal is one that is compatible with the requirements of various City codes, ordinances and plans for the property and/or area.

Financial capacity means that the applicant is able to afford the costs associated with acquiring the property, which can include:

How to Apply
There are different steps to applying for an RDA-owned property, depending on the type of property involved, its location and the applicant’s re-use proposal. The process is simpler for sideyards and for single-family (1–4 unit) properties than it is for multifamily, commercial and industrial properties.

Because the approval of various city agencies is required before a property can be conveyed to an applicant, the time it takes to complete the process will vary in each case. Processing time also depends on the proposal’s quality and the applicant’s ability to provide the documentation needed to evaluate it.

Step 1–Submit an “Expression of Interest”
Applicants with a particular property in mind should first determine the exact street address and verify that it is owned by the Redevelopment Authority.

Applicants are strongly encouraged to visit the property before applying for it. Arrangements for inspecting an RDA property can be made by contacting the address below.

When ready to apply, applicants should send a letter indicating their interest in an RDA-owned property to the Director of Development, noting the exact address and briefly describing their re-use proposal and financing plan. The letter should also indicate the name, address and telephone number of the person who should be contacted in case of questions.

The letter will be forwarded to the RDA Project Manager responsible for the area of the City in which the property is located. He or she will review the request, determine the property’s availability, and respond. If the property is available, an application packet will be sent.

Step 2–Complete the Application Packet
The following forms must be completed and returned to the RDA Project Manager before any next steps can be taken. These include:

Once the completed forms are returned to the Project Manager, he or she will review the application with RDA staff, other city agencies, and any local community group(s).

In some cases (for example, involving large or especially valuable parcels), the Redevelopment Authority may provide public notice of the proposed transaction by way of newspaper advertisements.

The Authority will provide an estimate of the property’s fair market value, in order to establish the final settlement price. Applicants will be asked to submit architectural drawings and/or specifications. Upon approval of the drawings or specifications, the Project Manager will prepare a Redevelopment Agreement.

Step 3–Sign the Redevelopment Agreement
The Redevelopment Agreement is a legally binding contract that is recorded at the time of settlement. Its purpose is to ensure that the property is developed in accordance with the approved re-use proposal and other applicable plans or regulations.

At the time the Redevelopment Agreement is signed, a “good faith” deposit, typically in the amount of 10% of the settlement price, is placed with the Authority. At settlement, this is converted into a “security completion” deposit and is held until the project is successfully concluded.

Upon receipt of a signed Redevelopment Agreement and deposit, RDA staff will work to obtain a series of formal approvals (involving the RDA Board, City Planning Commission and City Council) so that property settlement can proceed.

Step 4–Schedule Property Settlement
At settlement, the applicant pays all costs of acquiring the property, including the fair market value and closing costs.

Once the property has been settled, work on the property must proceed along the timeline specified in the Redevelopment Agreement. This usually calls for work to begin within 3–6 months and to be completed within 12–24 months. RDA staff will periodically inspect the property during construction to ensure that adequate progress is being made.

After the project is completed and all terms of the Redevelopment Agreement have been satisfied, RDA staff will conduct a final property inspection and issue a Certificate of Completion to clear the title and return the deposit.

For Further Information
Michael Koonce
Deputy Executive Director of Real Estate
Redevelopment Authority of the City of Philadelphia
1234 Market Street, 16th Floor
Philadelphia, PA 19107
Phone 215-209-8662
Fax 215-854-6532

Note: The procedures described above apply only to properties owned by the Redevelopment Authority, including properties currently in the RDA inventory as well as those being acquired by the Authority on behalf of an applicant. They do NOT apply to properties owned by the City of Philadelphia or other City agencies, the Philadelphia Housing Authority or the U.S. Department of Housing and Urban Development.