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Reference Guide

Chicago REALTOR _ SPECIAL INSERT NOVEMBER 2006 Page 1A

2A | Historic Chicago Bungalow Initiativeinside:

T he City of Chicagos Department of Housing offers many enticing options to attract buyers and pleahomeowners by saving money. It is important that you are aware of the myriad programs available to yoclients so that you can be referred to as the REALTOR who watches out for your clients best interest. Intodays marketplace, having a competitive edge is what you need, and what better way to get that edge than improving your client services. This reference guide highlights some of the popular homeownership programsthe full menu can be viewed atwww.cityofchicago.org .

3A | TaxSmart Mortgage Credit Certificate

City of ChicagoHousing Programsfor Your Clients


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Pull-Out: Reference GuidePage 2A NOVEMBER 2006 SPECIAL INSERT _ Chicago REALTOR

Historic Chicago Bungalow InitiativePerhaps the most popular Depart-

ment of Housing program is the

Historic Chicago Bungalow Initiative.The Chicago Bungalow was developedn 1919 in response to a pressing

demand for owner-occupied housingduring a period of dynamic growth inChicagos 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-zation, the Historic Chicago Bungalow

Association. Benefits of the programare for new Bungalow buyers as well asBungalow owners.

Membership Advantages: Historic Chicago Bungalow

Mortgage offers competitive interestates and assistance up to 4% of theotal loan amount to be used for down

payments or closing costs. This options available through Bungalow partner

banks.

Historic Chicago Bungalow TaxSmart Mortgage provides the purchasercompetitive interest rates and the abili-y to reduce their federal income tax

payment by an amount equal to 20 per-cent of the annual interest paid on the

oan, for the life of the mortgage. Historic Chicago Bungalow

Rehab Tax Credit for the financingof home improvements and repairs.Homeowners can receive a federal taxcredit equal to 50 percent of the yearlynterest paid on their loan, up to $2,000

per year.

Historic Chicago Bungalowestricted 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, storm

doors 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 assist

owners, 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 years

and 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 by

Bungalow 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 their

Federal Income Tax Payments. Competitive rates for all home

improvements 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 than

60 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 their

homes more energy efficient. The funds, to be distributed over

a period of five years, will support aprogram allowing bungalow owners toupgrade or add new furnaces, air conditioning 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 amounequal to or more than the grant to beeligible.

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NeighborhoodLending ProgramHome Purchase and

Purchase/Rehab

New Homesfor Chicago

Pull-Out: Reference GuidePage 4A NOVEMBER 2006 SPECIAL INSERT _ Chicago REALTOR

Historic Chicago Bungalow Initiative The Illinois Clean Energy funds

will also be used to create more GreenBungalow Blocks and for communityoutreach and education.

The first Green Bungalow modelblock was created on the 6400 block of South Fairfield in Chicago, where fourbungalows were creatively restored tobe models of green design while meet-ng the needs of modern families. Afterhe homes were remodeled in 2002,hey were sold to low and moderate-ncome buyers.

Illinois Clean Energy is an inde-pendent, nonprofit grant-making insti-ution created to support efforts that

protect and improve the environmentn Illinois communities.

Illinois Clean Energy has awardedmore than $38 million in grants, includ-ng 350 grants to improve the energy

efficiency of K-12 schools, publicibraries, park district facilities and

other public and nonprofit buildings in81 counties around the state.

The grant represents the first timellinois Clean Energy programs haveeached large numbers of homeowners..

Water Efficiency

In addition to energy efficiencygrants, the Historic Chicago BungalowAssociation now makes grants available

Continued from page 2Ato support the protection of our localwater resources. These water-related

grants are available to all who purchaseor rehab an HCBA-Certified Bungalowregardless of income or purchase price.

Water Conservation GrantsConsistent with Mayor Daley's

Water Agenda, these grants may beused for a range of conservation meas-ures, as well as natural storm watermanagement techniques. Specific con-servation items that are eligible forgrant assistance include low flow ordual flush toilets and ultra-low flow fix-tures, as well as high efficiency appli-ances like washing machines and dish-washers. Additional assistance is avail-

able for bungalow owners to disconnecttheir downspouts or implement othermeasures to naturally direct storm waterback into the ground.

In addition to the grant-eligibleitems, bungalow owners can help con-serve water by observing the followingtips:

Don't over water your lawn.Lawns need only one inch of water per week.

Water early in the morning orevenings to keep the lawn moistlonger.

Run the dishwasher and clotheswasher when you have a full load.

Check your toilet for leaks.

Fix dripping faucets. Replace showerheads and faucet

aerators with lower flow models.

Turn off the water while brushingteeth, shaving, washing dishes.

For more information, contactthe Historic Chicago BungalowAssociation at 312.642.9900 or visitwww.chicagobungalow.org.

Teacher HousingResource Center

The Teacher Housing ResourceCenter helps Chicago Public Schoolsrecruit/retain quality teachers by develop-ing and marketing incentives for afford-able rental and for-sale housing. This strat-egy also helps revitalize neighborhoods.

The Teacher Housing ResourceCenter (THRC) is a unique program inwhich the CPS partners with privateproperty management companies, residen-tial developers and lending institutions toprovide both rental and for-sale housingincentives for teachers and student teach-

Purchase price assistance is avail-able for households at 80% of the areamedian or below, who demonstrate agap between the amount of the first

mortgage they can secure and theaffordable sales price. Eligible recipientsneed to maximize their purchasingpower through a first mortgage beforereceiving assistance. Assistanceis in the form of a deferred loan at 0%interest, which is reduced on an annualpro rata basis.

A list of properties available forpurchase can be found at www.city-ofchicago.org.

Information provided by the City of ChicagoDepartment of Housing

Through the Neighborhood Lending Program, the City of Chicago and Neighborhood Housing Services (NHS), provide first and second mortgage loans forthe purchase and purchase/rehab of 1-4 units for homeowners who might otherwisenot be able to purchase a home. Subsidy resources are also available to eligible house-holds to complement mortgage loans. Clients receive one-on-one counseling and class-room instruction in budgeting, financial planning and credit repair.

BenefitsQualifying applicants that utilize first and subordinate mortgages for purchase or

purchase/rehab may receive:

deferred and/or forgivable incentive loans for the purchase of vacant buildings

deferred loans or grants of $1,000 to $10,000 for the cost of federally requiredlead paint abatement/removal

deferred or forgivable loans for down payment and/or closing costs

Eligibility RequirementsProgram eligibility will be determined by NHS based on annual gross household

income. A minimum of 60% of subsidy funds will be provided to households under80% of area median income. That's about $45,200 for a family of four.

Application ProcessContact NHS at 773.329.4010 for information and application materials.

Information provided by the City of Chicago Department of Housing

The New Homes for Chicagoprogram has approved over 65 develop-ments, or over 1,600 new affordablecondominiums, single family or two-flat

homes, which are either completed orn process throughout Chicago. Usingbusiness incentives to reduce develop-ment costs, the City encourages devel-opers to provide new construction of homes for purchase by moderate-ncome working individuals and fami-ies. Prices under this program are

capped at $195,000 for single familyhomes or condos and $265,000 forwo-flats.

Eligible homebuyers may earn up to100% of the area median income.

Eligible buyers may also qualify forTaxSmart Mortgage Credit CertificateMCC).

ers in the CPS. Currently, 26 private prop-erty management companies, 6 residentialdevelopers and 9 lending institutions serveas partners.

The THRC website(www.teacherhousing.cps.k12.il.us/)provides general information aboutChicago neighborhoods and allows poten-tial hires to search for rental partners byCPS school location.

Information provided by the City of ChicagoDepartment of Housing

city of chicago housing programs 06

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