Pull-Out: Reference Guide
Page 2A• NOVEMBER 2006
SPECIAL INSERT
_
Chicago REALTOR
®
Historic Chicago Bungalow Initiative
Perhaps the most popular Depart-ment of Housing program is theHistoric Chicago Bungalow Initiative.The Chicago Bungalow was developedin 1919 in response to a pressingdemand for owner-occupied housingduring a period of dynamic growth inChicago’s population and economicbase. To help preserve this element of Chicago's social and architecturalhistory, the City of Chicago'sDepartment of Housing has created theHistoric Chicago Bungalow Initiative.The program is administered inconjunction with a not-for-profit organ-ization, the Historic Chicago BungalowAssociation. Benefits of the programare for new Bungalow buyers as well asBungalow owners.
Membership Advantages:
•Historic Chicago BungalowMortgage offers competitive interestrates and assistance up to 4% of thetotal loan amount to be used for downpayments or closing costs. This optionis available through Bungalow partnerbanks.•Historic Chicago Bungalow TaxSmart Mortgage provides the purchasercompetitive interest rates and the abili-ty to reduce their federal income taxpayment by an amount equal to 20 per-cent of the annual interest paid on theloan, for the life of the mortgage.•Historic Chicago BungalowRehab Tax Credit for the financingof home improvements and repairs.Homeowners can receive a federal taxcredit equal to 50 percent of the yearlyinterest paid on their loan, up to
$
2,000per year.•Historic Chicago Bungalowrestricted Income Grants offer home-owners on restricted incomes grants of up to
$
5,000 for rehab work.•Energy Savers Matching Grant of up to
$
1,000 for windows, doors, stormdoors and storm windows.•Energy Savers Matching Grant of up to
$
2,000 for insulation and heatingand cooling systems.•Vouchers for
$
500 towards onenew energy efficient appliance pur-chased at Home Depot, The GreatIndoors (Sears), or Abt Appliances.•Design guidelines to aid ownersin maintaining the architecturalcharacter of their bungalows, providedfree by the HCBA.•Pattern Drawings can assistowners, architects and contractors withtypical projects.•Historic Chicago Bungalowhow-to seminars are held monthly ontopics related to Bungalow rehab andrestoration.•Bungalow Partners ResourceGuide lists crafts people, vendors andspecialists in Bungalow restoration.•Free permit assistance and expe-dited permitting for owners engaged inrestoration or rehabilitation.•Membership in the HCBA,including receipt of the Association Newsletter, Inside the Belt and freeadmission to the Historic ChicagoBungalow Expo. Members also receivean HCBA certificate and plaque.
Historic Chicago BungalowMortgage Facts
•The special Historic ChicagoBungalow Mortgage provides ownerswith a low mortgage rate while provid-ing funds to help owners pay for andrestore their Bungalows.•The mortgage features low fixed-interest rate mortgages for thirty yearsand assistance equal to 4% of the loanthat can be used for a down payment orclosing costs.•The Historic Chicago BungalowTax Smart Mortgage provides thepurchaser competitive interest ratesand the ability to reduce their federalincome tax payment by an amountequal to 20 percent of the annualinterest paid on the loan, for the lifeof the mortgage.•Tax Smart Mortgages must besecured before purchase is complete.•Both options are offered byBungalow Partner banks, Bank One,Founders Bank, Harris Bank andLaSalle Bank..
*Bungalows must be within certain purchase-price limits to qualify for themortgages. Purchase-price limits increasedthis year to a maximum of
$
343,750 in atargeted, or low-income, area, and
$
281,250 in other areas of the city.
Historic Chicago BungalowRehab Tax Credit Facts
•Allows Bungalow owners toobtain loans to renovate their homes ata competitive rate, while lowering theirFederal Income Tax Payments.•Competitive rates for all homeimprovements and renovations whetherusing a home improvement loan, a ren-ovation loan or an equity line of credit.•Federal Income Tax Credits up to
$
2,000 per year or half the yearly interestpayments on your home loan, whicheveris lower, for the life of the loan.•
This is not a tax deduction fromincome, rather it is an actual reduction of the taxes owed to the federal government.
Available through Bungalow part-ner banks, Bank One, Founders Bank,Harris Bank and LaSalle Bank.
Bungalow RestrictedIncome Grant Facts
•This program provides grants(money that need not be repaid) toowners of HCBA Certified bungalowswho have restricted incomes.•The funds may be used forgeneral rehab work.•Grants of up to
$
5,000 areavailable for those earning less than60 percent of area median income.•Grants of up to
$
3,000 are avail-able to those making less than 80% of area median income.•These grants can also be used asa “match” for other HCBA programsthat provide grants for home energyefficiency improvements.The funds are provided by theIllinois Housing DevelopmentAuthority.
Financial Resources forHistoric Chicago BungalowEnergy Grant Facts
•The Illinois Clean EnergyCommunity Foundation has awarded a
$
3.5 million energy-efficiency grant tothe City of Chicago.•The grant is the largest everawarded by Illinois Clean Energydealing with energy efficiency andthe second largest overall since itsinception in 2000.•The matching grants of up to
$
2,000 will allow owners of HistoricChicago Bungalows to make theirhomes more energy efficient.•The funds, to be distributed overa period of five years, will support aprogram allowing bungalow owners toupgrade or add new furnaces, air condi-tioning units, water heaters and solarthermal systems. Owners can alsoreceive matching grants from the cityto make improvements in windows,doors and insulation, and to purchasewater efficient toilets and faucets.•No income restrictions applybut homes must be HCBA-certifiedand homeowners must spend an amountequal to or more than the grant to beeligible.
Continued on page 4A
Leave a Comment