Monday, May 16, 2011
Chicago Vacant TIF Purchase and Rehabilitation Ordinance
Some of you who read my blog may know that I am not a huge fan of the TIF program but when in Rome...
The newly passed Vacant TIF Purchase and Rehabilitation Ordinance could be a great deal for those of you thinking of a purchase rehab of a vacant/foreclosed property. If you are not a developer (I will get back to them), you cannot have owned a home in the last three years and you need to make less than the median income $75,000 for a family of four. If you qualify for the program you can buy and rehab a vacant property in one of the city's many TIF districts http://news.medill.northwestern.edu/chicago/news.aspx?id=92881&print=1.
The property must need at least $25,000 repairs, and I am hoping it can be a single-family or a two-flat but all of the detail have yet to be presented. Buyers can get up to 25% of the cost of purchase and rehab from the TIF fund. Once again it is not clear if you will be reimbursed or if you get the money up front. The property must be the primary residence of the buyer for a certain period of time but that is also not yet determined. I am really interested in this program so check back for more information in the coming months.
For developers looking at six or more units there is an option in this ordinance too. Developers can get between 30-50% of the cost of purchase and rehab for a vacant property if they make 30-50% of the units, respectively, affordable housing. There is more to come for this aspect of the ordinance too.
The newly passed Vacant TIF Purchase and Rehabilitation Ordinance could be a great deal for those of you thinking of a purchase rehab of a vacant/foreclosed property. If you are not a developer (I will get back to them), you cannot have owned a home in the last three years and you need to make less than the median income $75,000 for a family of four. If you qualify for the program you can buy and rehab a vacant property in one of the city's many TIF districts http://news.medill.northwestern.edu/chicago/news.aspx?id=92881&print=1.
The property must need at least $25,000 repairs, and I am hoping it can be a single-family or a two-flat but all of the detail have yet to be presented. Buyers can get up to 25% of the cost of purchase and rehab from the TIF fund. Once again it is not clear if you will be reimbursed or if you get the money up front. The property must be the primary residence of the buyer for a certain period of time but that is also not yet determined. I am really interested in this program so check back for more information in the coming months.
For developers looking at six or more units there is an option in this ordinance too. Developers can get between 30-50% of the cost of purchase and rehab for a vacant property if they make 30-50% of the units, respectively, affordable housing. There is more to come for this aspect of the ordinance too.
