Tax Smart Mortgage Users Save $2,000 a Year
August 10, 2004 – While the days may still be warm, the Historic Chicago Bungalow Association (HCBA) is urging owners to 'think winter this summer' and take advantage of the organization's loans and grants that make improving home energy efficiency and savings possible.
HCBA grants of up to $2,000 are available to any Bungalow Owner who spends $4,000 or more improving their home's energy efficiency. This could mean repairing or replacing old windows or doors, upgrading a furnace, adding insulation or even converting to solar hot water heat.
Qualified Bungalow owners can gain even greater savings if they finance their energy and any other rehabilitation projects they wish to make with the unique Bungalow Rehab Tax Credit. The Bungalow Rehab Tax Credit, which can be used with any type of home improvement loan, allows users to deduct 50% of the yearly interest they pay on the loan from their Federal Income Tax bill, up to an amount of $2000 each year. Unlike a tax deduction, the Credit is subtracted from the bottom line of a Federal Income Tax bill. So, if after all deductions were taken, a user of the Rehab Tax Credit, owed the Federal Government $6,000, they could then subtract 50% of the yearly interest paid on the loan up to $2,000 and owe only $4,000 in income taxes. And the benefits continue for each year of the life of the loan.
In addition to all these benefits, any owner who spends $5,000 or more on the rehab of their certified Historic Chicago Bungalow will also be given a $1,000 voucher to be used for the purchase of an energy efficient home appliance at Bungalow Partner Vendors, Abt Appliances, Home Depot, or Sears.
"People in Chicago need to be able to live affordably," stated HCBA executive director Charles Shanabruch. "Our programs ensure that families are able to live in well-constructed homes with plenty of space for growing families and save money."
While the Energy grants are available to all Bungalow owners, the Bungalow Rehab Tax Credit is only available to those who meet income and housing purchase price guidelines. While those interested can find out the exact numbers by calling the HCBA or looking on the Chicago Bungalow website, at the top end, families (of three or more persons) earning as much as $105,000 per year and living in a home worth as much as $340,000 may be eligible.
Those interested in using the HCBA energy and rehab programs, can call the HCBA at 312-642-9900 or contact one of our partner banks: Bank One, Founders Bank, Harris Bank, LaSalle Bank, or Neighborhood Housing Services of Chicago.
Chicago Mayor Richard M. Daley launched the Historic Chicago Bungalow Initiative in the fall of 2000 to both celebrate the Bungalow for its unique contribution to the lives of Chicago residents and neighborhoods and to provide the technical and financial resources needed to ensure the modernization of the Bungalows so that they might serve Chicago for another hundred years. Operated by the HCBA the Initiative has helped more than 5,200 homeowners throughout the city purchase, restore and adapt bungalows to modern family needs by providing special financing options, vendor discounts, technical assistance and education.
Every year the HCBA holds a Bungalow Expo where owners and others can learn about financial options along with the purchasing and certification processes and experts in bungalow remodeling giving tips on bungalow restoration and rehab. Bungalows make up 1/3 of the city's housing stock or 80,000 homes.
To apply for Tax Smart or Rehab Tax Credit or to inquire about certification and other programs that the HCBA offers, please contact 312-642-9900.
Income Limits
| Non-Target Area | Target Area | |
| 1 person household | $60,320 | $72,384 |
| 2 person household | $75,400 | $90,480 |
| 3+ person household | $86,710 | $105,560 |
Purchase Price Limits
| Existing Building | |
| 1 Unit Non-Target | $281,250 |
| 1 Unit Target | $343,750 |
Bungalow Lenders
| Lender | Phone Number(s) |
| Bank One – Charise Williams | 773-284-3417 |
| Bank One – Ruth Perkins | 773-918-3911 |
| Founders Bank – Margaret Klockowski | 708-448-6500 ext. 5917 |
| Founders Bank – Virginia Connelly | 708-448-6500 ext. 2306 |
| Harris Bank – Maritza Berecz (North) | 773-292-7680 ext. 2222 |
| Harris Bank – Lasonia Ellis (Central) | 312-461-4518 |
| Harris Bank – Monica Hayes (South) | 73-451-2606 |
| LaSalle Bank | 877-431-4875 |
| Neighborhood Housing Services of Chicago | 773-329-4010 |