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EPD policy for purchasing properties
Any property that is purchased with the intention of holding it long-term (more than a year) and/or utilizing it for rental must be approved by the EPNIA board.
Any long-term financial obligation (more than a year), such as mortgages or construction loans, must be approved by the EPNIA board.
EPD shall not purchase any properties owned by a board members of EPNIA/EPD. Board members of EPNIA/EPD shall not be entitled to collect any real estate fees when acting as a buyer’s agent on behalf of EPD.
EPD policy for selling properties
Renovated residential properties and all commercial properties will be listed in the MLS. EPD will list properties with a licensed Realtor and pay the customary commission rate to both the listing agent and buyer’s agent, if necessary. Board members of EPNIA/EPD shall not be eligible to act as the agent for either the buyer or seller of a property owned by EPD.
“As Is” residential properties will not be listed in the MLS and no commission or other Realtor fees will be paid. EPD will provide information about available distressed properties to potential buyers.
EPD will continue to recruit urban pioneers through social media, announcements at monthly membership meetings, interviews with local media, etc. Available properties will be advertised on the EPNIA website and during tours and/or open houses. Inquiries from interested parties will be tracked to measure the success of getting the word out about available properties.
When an interested party contacts EPD, they will be provided with information on available properties, an application, and a copy of the design standards. The potential buyer(s) will be asked to meet with the EPD managers to review the application and discuss their time frame, budget, and general plans. They will then be invited to tour available properties. Once the potential buyer(s) has identified a property of interest, they will be asked to provide a scope of work. They will then meet with the EPD managers a second time to review their scope of work and budget, as well as provide proof of bank financing or cash on hand. Their application and scope of work with then be provided to the EPNIA board, along with a recommendation from the EPD managers. The EPNIA board will vote to approve or deny the sale of the property.
No EPNIA board member shall be eligible to purchase a property owned by EPD until six months after the initial acquisition, in order to allow time to advertise it to the general public.* After six months, if there are no other interested parties, the EPNIA board member must follow the same process to apply for the property and recuse themselves from the vote to approve or deny the sale.
*If the property has reached the end of the three year registration period with the City of Springfield and is at risk of demolition, an exception to the timeline can be made. This requires a 2/3 vote of the EPNIA board of directors to approve.
EPD policy for awarding contracts
EPD will utilize an architect for projects that require a licensed architect and/or exceed $10,000 in renovation costs. On residential projects that do not require an architect according to building code, the architect will serve as a project manager. The architect may not receive a fee if he/she is on the board of directors for EPNIA/EPD. The architect will prepare a scope of work and Request for Proposals, to be approved by the EPNIA board. The RFP shall then be publically advertised for a minimum of 30 days.* The architect will be responsible for awarding the contract, subject to approval by the EPNIA board. Contracts which are awarded to EPNIA board members or their immediate family require a 2/3 vote of the EPNIA board of directors to approve.
*If the required work is of an urgent nature, an exception to the timeline can be made. This requires a majority vote of the EPNIA board of directors to approve.
EPD Reporting
Each month, an EPD manager will provide an update at the EPNIA membership meeting of any new properties bought or sold and any contracts that were recently awarded. This update will include disclosures about any involvement by EPD/EPNIA board members. At the end of each calendar year, an annual report will be compiled summarizing all properties bought and sold over the course of the year and any contracts awarded.