New Housing Tax Credit

http://www.maloofrealty.com/search/listing.asp?mls=1104933&MLSArea=1

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What does the new federal housing tax credit mean for you?

  

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000* for first-time home buyers.

But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible. 

  

$8,000 Home Buyer Tax Credit at a Glance

  

· The tax credit is for first-time home buyers: defined as a purchaser not having owned a home within the previous 3-year period. 

· The tax credit does not have to be repaid.

· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. 

· The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. 

· The tax credit can be claimed on 2008 income tax forms even if the purchase took place in 2009.

· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

 

 

visit 

http://www.federalhousingtaxcredit.com/

 for more information

The City of Peoria also has some great programs to help people buy homes

http://housingpeoria.blogspot.com/

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Federal Economic Stimulus Seminar

REMI (Regional Economic Models, Inc.) invites you to a free seminar on March 26, 2009 from 9 am to 4 pm entitled “How National Policy Affects Regional Economies” at the Abraham Lincoln Hotel in Springfield, Illinois. 

Topics will include: 

The Economic Stimulus Package and Regional Economies

Ranking Public Investment Options

PI+: The Next Generation of Policy Insight

TranSight: Economic Impacts of Transportation Programs

At Regional Economic Models, Inc. (REMI), our goal is to improve public policy. With the economy in a state of turmoil, and federal stimulus aid on the way, now more than ever decision makers are looking for ways to deploy economic stimulus dollars to maximize job growth while creating infrastructure to serve the needs of the 21st century. The information presented at this seminar will enable you to make more detailed and efficient forecasts about the economic effects of policy change. There is no charge to attend this event, however space is limited and advanced registration is required. 

If you would like to participate, you may reply to this e-mail, contact us by phone, or register online at the REMI Seminar Page of our redesigned website at www.remi.com. For more information on the upcoming stimulus package, please see the White Paper prepared by ICF International on our website. 

We are confident that this will be a stimulating and productive discussion. We look forward to seeing you there! 

Yours truly, 

Leah Jalbert
Business Development Assistant
Regional Economic Models, Inc.
433 West Street
Amherst, MA 01002
tel. 413-549-1169
fax. 413-549-1038
seminars@remi.com
www.remi.com 

Warehouse District Redevelopment

The Warehouse District is adjacent to downtown Peoria and the Illinois River, just south of I-74.  The City of Peoria wants the area to convert to a great mixed use redevelopment area, with loft apartments, condos, offices, shops and resturants.

More info at:   http://www.warehousedistrict.blogspot.com/

Redevelopments in the District will get the Enterprise Zone incentive, which means no sales tax on building material. The Warehouse District Tax Increment Financing District (TIF), which has over 21 years left.  It takes a while to plan and build and get the building assessed, so a new redevelopment will probably have about 20 years of property tax incentive.
 
Property taxes are almost 2.8% of fair market value, so you can figure on about 56% of the new market value you create coming back to the redevelopers over the next 20 plus years.  
 
The standard city warehouse agreement gives 1/2 of the tax increment back to the developer, with the other 1/2 going for infrastructure, which can include parking lots and decks.
 
Most of the buildings were built before 1936, and can therefor qualify for a 10 to 20% Federal Historic Tax Credit.

The entire area is in a Hub Zone.  This great program enables small businesses who qualify to get the equivalent of minority business status.  Read it on the blog under Hub Zone.   http://hubzonepeoria.blogspot.com/
 
The area qualifies for a grant from the City to help low and moderate income buy homes. The grant is $10,000, and single persons earning under $35,000 are qualified. There is also low interest mortgage money available.  More info on the blog.  http://housingpeoria.blogspot.com/

 
Banks also have some additional mortgage down payment assistance programs.  
 
The City is also developing the Peoria Urban Living Iniative with partners Methodist, OSF, Cat, Bradley U, the County, School District and City. This study is looking at possible additional incentives to get companies to help employees live close to work and in the downtown area.

More info on the blog below. Check out the Warehouse, TIF, Hub Zone, etc under: 
 
http://www.peoriaed.blogspot.com

Federal Stimulus Bill

Excellent time to buy a home in the Heart of Peoria

FIRST-TIME HOME BUYER CREDIT First-time home buyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009, but before Dec. 1, 2009.

Unlike a similar credit that Congress provided last year, you don’t have to pay this one back over 15 years. The new credit, however, does phase out for individuals with incomes over $75,000 or married couples with incomes over $150,000 who file their taxes jointly. Also, you forfeit the credit if you sell the house within three years.

More info here:

http://articles.moneycentral.msn.com/Investing/Extra/how-the-stimulus-bill-could-affect-you.aspx

In addition to the Federal Tax credit, the city has programs that help persons of moderate income buy homes._

City of Peoria programs to help home buyers are shown on the links below:
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http://spreadsheets.google.com/pub?key=pSt1ivzaCLuN5M0iZgBtABg

http://www.ci.peoria.il.us/index.php?module=resourcesmodule&action=view&id=2860

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Housing Rehabilitation Form

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http://peoria-economicdevelopmentbrochure.googlegroups.com

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/web/Housing+Rehab+Assistance.pdf?gda=HM26ak4AAADxMfXAjK1PoH5J7dG-s92HWHM-Hv-y7EVJtPs3bt3-PzTm_ZvMObkuEqxsWgECLfy0wbPh2gH66hjbzJPkxB0j47Cl1bPl-23V2XOW7kn5sQ&gsc=itXsPQsAAADycVE8hdXy7Z6ni1TmxbzU

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http://spreadsheets.google.com/pub?key=pSt1ivzaCLuM6joTj2dnQWg
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For development and management of residential rehabilitation programs in community development areas, including loans and grants, contact Neighborhood Development, Twin Towers, Room 402, 494-8656.

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Or contact your local banker.

Southern Gateway - Eagle View

The City of Peoria plans a significant improvement for the Southern Gateway. This area is located at I-474, the Illinois River, and Adams Street. It is in a disadvantaged area, and suffers from substantial environmental and brownfield problems.

The area is in an:

Enterprise Zone
HUB Zone
Tax Increment Financing District
Disadvantaged Area

The area is:

Accessible by barge, rail, and Interstate
Affordable land controlled by government

The City requests Federal and State assistance:

Improvement to Darst & Clark Street $3,000,000
Improvements to existing city owned industrial land $3,000,000
Help with brownfield grants $750,000
Assistance in improving Adams Street $2,000,000
Assistance in building new entry way bridge $4,000,000

New City Logo

SBA Improvements in the Stimulus Bill

Some good news about the SBA 504 program from Charles Randle. If the President signs the proposed stimulus program, we will see the following at least through 2010:

 

* Elimination of the .5% bank participation fee charged to lenders

 

* Elimination of 1.5% CDC fee charged to the borrower

 

* Low-interest refinancing up to 50% of the project

 

* Job creation requirement from current $50,000 to $65,000 per job created

 

* Regular 504 increase from $1.5 million to $3.0 million

 

* Public Policy 504 increased from $2.o million to $3.5 million

 

* Manufacturing 504 increased from $4.0 million to $5.5 million 

 

This proposal certainly is a BIG BOOST for lenders wanting to offer exceptionally low interest rates for their borrowers with a 50 percent loan to value ratio.  Please contact Charles Randle.