The city is holding its housing bargain basement sale again. This week city officials began accepting applications for 18 city-owned bouses which it will sell to qualified buyers for $1 each.

The homes, which need extensive renovation, are part of the highly successful urban homesteading program which is designed to reduce the city's stock of boarded-up houses and give families earning under $18,000 a year probably a one-in-lifetime chance to own their own homes.

The homes are available to all city residents, married or single, who head a household of two or more people, where the annual income is $18,000 or less after $500 is deducted for each child under 18, each person over 60 and each person who is unable to work because of a handicap.

City officials select the urban homesteaders by drawing names from a fishbowl. The only cost to the homesteader is repayment of the loan that is needed to finance the renovation work. The loan usually is below $25,000 and can be reduced if the homesteader does some of the work himself.

Since the program started in 1974, 19 families have received homes - homes they say they could never have afforded without the program.

All the homesteaders are former renters and in several instances their mortgage payments are less than or the same as the rent they were paying for apartments, which were smaller than the homes they are now buying.

Applications are available from Hospitality House at 337 H St. NE., a private non-profit social service agency which co-sponsors the program with the city government. The deadline for filing applications is 7 p.m. March 31.

Several of the 18 homes are located on Capitol Hill where shells similar to the urban homesteading homes sell for more than $40,000.

The homes are located as 640 I St. NE.; 1248 E St. NE.; 915 9th St. NE.; 1000 9th St. NE.; 235 14th Pl. NE.; 807 49th St. NE.; 1328 Fairmount St. NW.; 5323 Illinois Ave. NW.; 2519 12th St. NW.; 3330 Brothers Pl. NW.; 3304 D St. SE.; 2832 Halley Terrace SE.; 2217 Payne Terrace SE.; 2223 Payne Terrace SE.; 919 Potomac Ave. SE.; 2006 14th St. SE.; 1008 31st St. SE., and 3223 D St. SE.

Appliants who fail to get one of these 18 homes still have a chance to get 11 other urban homesteading homes. These 11 are not quite ready for sale and will cost more than $1. All the homes come fromthe federal Department of Housing and Urban Development who acquired them through defaults on federally insured mortgages.