Contact : Ty Cratic, 312-798-9376 – tycratic@aldermanervin
ALD. ERVIN, BURNETT VOTE TO RELEASE $1 MILLION TO HELP REHAB HOMES
Chicago/Central Park TIF to Help Rehab Single Family Homes
CHICAGO (March 26) – The Chicago City Council authorized $1 million to rehab single-family homes and stabilize communities. The funds were allocated to the Chicago/Central Park TIF District to assist residents in purchasing and rehabbing single-family homes. The funds are estimated to assist in the rehab of 20 -30 homes in the TIF district. A portion of the 28th Ward exists in the Chicago/Central Park TIF, along with the 27th Ward.
“This step we have is to spur development in our community. We have to reverse the damage caused by the recession and housing crisis,” said 28th Ward Alderman Jason C. Ervin. “We see the economy improving and this initiative will help to increase growth and create stable communities for families.”
"This is what we have been fighting for; to be able to use TIF money to put foreclosed properties back on the tax roles and help families acquire affordable homes with the hope that jobs and contracts will come to the neighborhood," said 27th Ward Alderman WalterBurnett.
The Department of Housing and Economic Development and Neighborhood Housing Services of Chicago will be partnering together to implement the program on behalf of the City of Chicago. To be eligible for the program, homebuyers must have a household income of no more than 120% of the median income in the area, which is $75,000 for a family of four. In addition, the property must be vacant, require a permit and rehab work with cost $25,000 or more per unit.
For example, if the purchase price of a home is $40,000 and the rehab cost in $100,000, totaling $140,000 in total development, homebuyers would be eligible to receive up to 25% of the cost to buy and rehab the home, which would be $35,000 in TIF assistance.
The homebuyer would be required to live in the home for 10 years. If the homeowner decides to sell the home within the 10 years, they would be required to pay back a pro-rated amount of the allocated TIF funds.
Map of Chicago/Central Park TIF: http://www.cityofchicago.org/city/en/depts/dcd/supp_info/tif/chicago_central_parktif.html