"You've Caught the NET!"

In many parts of the country, I would assume, tax and public incentives for restoring worn, yet historic homes and commercial buildings are readily available.  In order to get the money, however, those renovating have to comply with certain detailed guidelines for repair and reconstruction.,

One such individual, renovating a home he purchased in the late 1990's on the South Side of Chicago, in the historic Kenwood Neighborhood, restored his home to pretty much it's original state - with more than a few modern amenities, of course!

Homeowner Daniel Aucunas completely refinished and repaired original hardwood floors, stripped paint from vintage wood trim, replaced five art glass windows, refurbished and replaced original ornamental ironwork, and pressure washed exterior masonry.

To provide a bit of financial incentive along his $570,000 rehab projects, Aucunas took advantage of an eight-year freeze on the assessed value of the property, through the Tax Assessment Freeze Program administered by the State of Illinois.   (After the eight-year period expires, the assessed value gradually increases to current market levels). 

"If you look at it 10 years later, your tax bill is pretty reasonable," said Aucunas, who may be applying for additional financial assistance money in the near future.

Other government-sponsored incentives require compliance with strict guidelines regarding materials to be used, construction methods, and non-variance of the original floor plan add cost, and may scare away owners who wish to update the house's original layout to one more contemporary. 

At least 25 percent of the market value of the property must be invested in repairs and renovation, and it must meet U.S. Department of the Interior Standards for rehabilitation of historic homes and buildings.  Architect's plans and photos must be submitted to state or local agencies for approval before work can begin, and historic certification must be applied for within two years after completion of the work.

The City of Chicago has a number of programs to incentive those who renovate potentially-historic buildings.  In some cases, fees for building permits can be waived.  Chicago also  has it's quite popular Historic Chicago Bungalow Initiative, as well as a separate program to restore the facades on historic commercial structures. 

Cook County - the county in which the City of Chicago is located - offers a "Class L" incentive to those renovating landmark commercial, non-profit, and multi-family buildings.  For more information, check out this Fact Sheet via the Cook County Assessor's Office website.

Certain buildings in national or local historic districts can also qualify for a 20 percent Historic Preservation Tax Credit if they plan to spend more than the building's adjusted basis-the value of the building not including land value.  The Illinois Historic Preservation Agency oversees this program. 

See our post today at BlogChicagoHomes.com, including a link to Janice Neumann's article from The Chicago Tribune on July 6th.

DEAN & DEAN'S TEAM CHICAGO