April 19, 2004 – For generations of families, Historic Chicago Bungalows have been a foundation of family life and neighborhoods. On May 1st, at the 3rd annual Historic Chicago Bungalow Expo, those wishing to own or restore a bungalow will have the chance to learn about unparalleled opportunities to do so affordably.
At the daylong event, to be held at the Illinois Institute of Technology, 3421 South Federal, City and HCBA officials will be on hand to lead workshops and talk with individuals about incentive programs that make home ownership, rehabilitation and restoration affordable. While there are more than 35 workshops being offered, homebuyers and rehabbers will be particularly interested in workshops on:
Bungalow Mortgages: Available to families earning as much as $120,000 per year and buying homes appraised at no more than $343,000.
- Bungalow Mortgages offer buyers a competitive rate and a gift equal to 4% of the mortgage for use as a down payment or other closing costs
- Bungalow Tax Smart Mortgages provide borrowers with the ability to take a Federal Income Tax Credit (not a deduction) equal to 20% of the yearly interest paid on their mortgage, each and every year for the life of the loan. THIS IS AN ACTUAL REDUCTION OF INCOME TAXES TO BE PAID.
Bungalow Rehab Loans: Available to families making as much as $120,000 and living in homes appraised at no more than $343,000 in value, these loans allow borrowers to take a Federal Income Tax Credit (not a deduction – this amount is taken off of the amount owed to the government after deductions) equal to 50% of the yearly interest paid on their loans up to $2,000 per year, each year for the life of the loan.
Bungalow Matching Energy Grants: Owners of certified Bungalows
are eligible for a matching grant of up to $2000 to make their homes
more energy efficient. Eligible work includes restoration work on windows,
doors or insulation, furnace, air conditioning systems, solar power
or water heaters. The money can also be used for fixtures and
appliances designed to improve water efficiency.
Rehab Grants for those with Restricted Incomes. Owners of certified bungalows with restricted incomes can receive grants of up to $5,000 for general home and restoration work, including but not limited to energy improvements (these grants can also be used as matching funds to draw down Bungalow Matching Energy).
Property Tax Relief through Historic Designation. In February the U.S. Department of the Interior approved three nominations—the Chicago Bungalow Multiple Property Listing and two distinct bungalow districts—for inclusion on the National Register of Historic Places. The two districts are the Schorsch Irving Park Garden District and the South Park Manor District respectively in the Portage Park and Chatham communities. As a result, home owners in these areas who spend an amount equal to 25% of the appraised value of their homes on approved restoration or improvement may be eligible for a property tax freeze for eight years (and another four in which the rate gradually climbs to the new assessed value).Energy-Efficient Appliance Vouchers: All those who purchase a certified Historic Chicago Bungalow or who spend more than $5,000 on rehab or restoration will be given a $1,000 voucher for use in purchasing an energy-efficient appliance at Abt Appliances, Home Depot or Sears.
To ensure that home owners and buyers take advantage of these programs, each workshop will be run at least twice at the May 1st Expo.
"Our entire effort has been to encourage the purchase and restoration of the 80,000 homes that define nearly a third of Chicago's housing stock," says Charles Shanabruch, executive director of the HCBA. "Through these special financing options, that is happening. We are helping ensure that the purchase and renovation of Historic Chicago Bungalows is affordable for all Chicagoans."
Chicago Mayor Richard M. Daley launched the Historic Chicago Bungalow Initiative four years ago to both celebrate and ensure the longevity of Chicago's historic bungalows. So far, the program has helped more than 4,200 homeowners throughout the city purchase, restore and adapt bungalows to modern family needs by providing special financing options, vendor discounts, technical assistance and education. Bungalow owners and others can learn about these options by attending the Bungalow Expo, to be held at the Illinois Institute of Technology on May 1, 2004 from 10 a.m. to 4 p.m. The Expo will have over 80 vendors ranging from contractors to materials suppliers to financial representatives, and experts in bungalow remodeling and living will hold how-to seminars on bungalow restoration and rehab throughout the day.
Homeowner Chris Rutt bought a bungalow in the West Rogers Park neighborhood in 2001 and soon thereafter joined the HCBA. He has since used the appliance voucher to buy a new dishwasher and a matching grant to buy and install new windows. "The incentives were why we joined the association," he says. "We are big fans of the bungalow program."
The workshops on financing will be co-led by HCBA, City officials and representatives of Bungalow Partner Lending Institutions, including:
Bank One
Charise Williams (773) 284-2417
Ruth Perkins: (773) 918-3911
Founders Bank
(708) 448-6500
Marge Klockowski ext: 5917
Virginia Connelly ext: 2306
Harris Bank
North - Maritza Berecz: (773) 292-7680 ext. 2222
Central - Lasonia Ellis: (312) 461-4518
South - Monica Hayes: (773) 451-2606
LaSalle Bank
Toll-Free Number: (877) 431-4875
Neighborhood Housing Services of Chicago
(773) 329-4010