Purchase Price Limits Raised for Bungalow Purchase and Rehab
March 6, 2003 - Homeowners and those who purchase Historic Chicago Bungalows worth up to $272,800 in various Chicago neighborhoods may now be eligible for cash gifts and tax rebates worth thousands of dollars thanks to new guidelines for the Chicago Bungalow Mortgage and Chicago Bungalow Rehab Tax Credit programs.
The announcement of the new price guidelines, which raised the price of eligible homes, was made today by the Historic Chicago Bungalow Association and the City of Chicago Department of Housing. The two organizations operate the City's bold initiative to encourage the purchase and restoration of the 80,000 one-and-one-half story homes that give Chicago's "Bungalow Belt" its name
The Initiative's financial incentives include a cash gift equal to 4% of the loan (which can be used for down payment and/or closing costs), competitive fixed-interest rate mortgages, and federal tax breaks worth up to $2,000 per year for owners who use loans to improve their Historic Bungalows. These financial benefits are available through any of the Bungalow partner banks, including Bank One, LaSalle Bank, Parkway Bank and Founders Bank. The city also provides a $1,000 cash voucher toward the purchase of energy-efficient appliances to anyone who borrows from a participating lender to purchase or rehab a historic bungalow. The vouchers are accepted by any one of three partner vendors: Abt Appliances, Home Depot and Sears.
"This increase in purchase price limits allows more Chicago families to adapt their Historic Bungalow homes to meet today's modern energy efficient demands. It also will help strengthen whole neighborhoods, as the effect of the significant financial incentives to purchase and restore historic Chicago Bungalows is felt across the city's Bungalow Belt," said Jack Markowski, Commissioner of the Department of Housing, as he unveiled the new purchase price limits today.
The financial incentives complement a full array of architectural assistance, technical advice, expedited permits, and other benefits that the Bungalow Initiative provides free of charge to owners of certified historic bungalows. The Historic Chicago Bungalow Association provides certification, education and conducts special projects such as the Green Bungalow Block.
All Bungalow partner banks, vendors, city agencies and the Historic Chicago Bungalow Association will all be on hand at the 2nd Historic Chicago Bungalow Expo on May 3, 2003 at the University of Illinois' Chicago Campus.
There are more than 80,000 bungalows in Chicago, comprising 1/3 of the city's single-family housing stock. For more information on the bungalow financing program or general information on the Historic Chicago Bungalow Initiative, contact the Historic Chicago Bungalow Association at 312-642-9900 or call the City of Chicago's information line at 311.