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IWP!, flagship product is Chicago's premiere real estate Investment
magazine. Entitled Invest With Passion!, it is the tool for investors and professionals in the
Mid-West. The publication seeks to grow it's market share by providing
powerful information designed to build the reader both as an investor and a
person.
Since it's release in January of 2006, the magazine has been well received and
continues to gain momentum and support. The education, information, and
networking opportunities for the real estate investor has been long neglected.
No More!
The time is now and the momentum is building.
It's Happening!
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CITY OF CHICAGO
New Construction Subsidy Programs
By Anita Clinton
According to the Chicago
Metropolis 2020's Homes for a Changing Region report, 10,800 - 13,500
affordable housing units will need to be added the region's supply per
year from now until the year 2030 in order for the city to stay abreast
with the expected population growth. In addition, the city of Chicago is
interested in the overall growth and development of communities. A huge
emphasis is placed on new construction/renovation of residential,
commercial & industrial properties; the creation or relocation of new
businesses which create jobs for residents; and road/infrastructure
rehabilitation projects. Therefore, in an attempt to ignite and continue
the growth of communities, the city of Chicago has established multiple
subsidy programs to encourage new developments. Some of those programs
are outlined here and more information on all the programs can be found at
cityofchicago.org:
New Homes For Chicago
Program
The primary objective of
New Homes for Chicago is to provide low- and moderate-income working
families with the opportunity to purchase high-quality new homes.
Eligible properties include: single family, 2-units and condominiums. The
incentives for developers to participate in the program could include:
- Conveyance of
city-owned vacant lots for as little as $1
- Waiver or reduction of
various building permits and utility connection fees
- Perimeter site
improvements where needed
- Assistance in
upgrading the energy-efficiency of units
Chicago Partnership for
Affordable Neighborhoods (CPAN) Program
The CPAN program was
created as a partnership tool between developers and the city of Chicago
to create affordable homeownership units in market-rate developments.
The incentives for developers to participate in the program could include:
- City provided
assistance in expediting the permit application process
- Reduced application
fees and/or construction grants
- Infrastructure support
in the form of new sidewalks/landscaping
- Density bonuses that
would allow more units to be constructed than would otherwise be
permitted
Tax Increment Financing (TIF)
Tax increment financing (TIF)
provides financial assistance to businesses that are investing in parts of
the city that are blighted or in danger of becoming blighted. Funds are
usually provided in conjunction with private development projects to build
and repair roads and infrastructure, clean polluted land and put vacant
properties back to productive use. Expenses eligible for TIF assistance
include:
- Acquisition of land,
site preparation and environmental cleanup
- Rehabilitation or
repair of existing public or private buildings, fixtures and leasehold
improvements
- Payments in lieu of
taxes; taxing district capital costs
- Up to 50 percent of
the cost of construction, renovation and/or rehabilitation
of low- and very low-income housing units
CD Float Loan Program
The CD float loan program
provides financial assistance for up to 100 percent of the project's costs
involving new construction, building renovation and acquisition of fixed
assets. Made available through Community Development Block Grant funding,
loans are secured through an irrevocable, direct-pay letter of credit from
a qualified financial institution with an AA rating. The interest rate on
the loan is 40 percent of the prime fixed rate and has a two year term.
At the end of the two year term, the city will draw down on the letter of
credit all principal and accrued interest that is due. |
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