Lincoln-King Townhomes

All purchaser(s) need to have at least $3,000.00 of their own funds at the time of closing to be used in the purchase of the unit.

Note: Any purchaser using a realtor may do so. The process to apply does not require a realtor or any additional counsel. If you are using a realtor or other counsel in this purchase, the CDA is not covering this cost, you as the purchaser(s) will need to cover any fees or commissions charged by anyone representing or assisting you in the purchase.

Equity Second Mortgage

The end units will be assessed at $310,000.00 and interior units will be assessed at $290,000.00; those numbers represent the real value of the property and improvements. Your property tax bill will be based upon that assessed value determination and your recorded sales price will be that number.

  • The CDA is providing you a $70,000.00 equitable second mortgage making the actual price you will pay $240,000.00 for an end unit or $220,000.00 for an interior unit. The $70,000.00 equity second mortgage helps you build generational wealth for staying in the property.
    • If you sell the property to another owner occupant within 5 years, all $70,000.00 is due to the CDA at the time of sale. If after 5 years you sell the property, 50% of that equity amount is yours to keep; each year from year 6-10, an additional 10% becomes yours to keep upon sale.
    • If at any time you were to sell the unit, any equity gained beyond $70,000.00 would be yours to keep. Example, in 4 years you decided to sell the an end unit and it sold for $320,000.00; $70,000.00 of the equity second mortgage would be returned to the CDA, $10,000.00 would be yours to keep. Under the same terms, but if in year 6 the sale occurred, you would keep $42,000.00 of the equity second mortgage, return $28,000.00 to the CDA and still keep the $10,000.00.
  • Financial intuitions listed on this page are familiar with the equity second mortgage program for this development.
Down Payment Assistance

The City of Racine is providing $10,000.00 in down payment assistance to purchasers of units in this development. This will be made available at the closing. If you are taking out a loan (mortgage) financial institutions offer other programs to help bring additional funds to closing (such as first time home buyer programs). Please visit our need help finding a lender page if you need help securing a commitment letter or a loan to purchase a unit.

Ownership Details

All 33 units are part of a Homeowner’s Association (HoA). As part of the purchase and sales agreement (see how to apply) you will receive a copy of the covenants and restrictions which are applicable to all units in the development. The HoA monthly fees (dues) are $300.00 and cover the following:

  • Insurance for common areas (you should still purchase homeowners insurance for the contents of your unit);
  • maintenance in summer and winter months (mowing and snow removal of sidewalks and private drives);
  • Replacement and maintenance of siding and roofing materials of all 33 units, and paved areas, once past their useful life.

Under State law, the CDA as the developer, retains control of the HoA until 25 units are sold. At that time, there will be an election of a board to consist of a president, vice president, secretary, and treasurer. The CDA staff will help with this transition from CDA control, to homeowner control.

 

Lincoln-King Townhomes