Tax Rebate Initiative Aims to Revitalize Home Construction in Rockford
The administration of Rockford’s mayor, Tom McNamara, has proposed a three-year property tax rebate in return for the construction of new residences.
Before the crisis involving subprime mortgages collapsed the housing market in 2008 as well as sent home prices plummeting, homebuilders typically produced an annual average of 225 new single-family residences and duplexes.
According to Rockford City Administrator Todd Cagnoni, there were fewer than 20 last year.
Meanwhile, the city has demolished approximately one thousand dilapidated residences over the past decade. As housing stock has decreased, home prices have reached an all-time high.
What’s Under the Property Tax Rebate Proposal?
This proposal would provide a three-year property tax rebate for recently built single-family homes, duplexes, and multifamily structures occupied before December 31, 2025.
They must be situated within the city of Rockford, the Rockford Public School District, and Winnebago County.
Ineligible would be structures that already receive other tax incentives, and only owner-occupied single-family residences would be eligible.
The approximated 85 percent of a homeowner’s property tax bill will be considered by the leaders of all three organizations and the Rockford Park District.
Alongside the property tax rebate, the city of Rockford would waive building permit fees for new construction projects.
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New Habitat for Humanity
Conor Brown, CEO of the NorthWest Illinois Alliance of Realtors, stated that a comparable program which encompassed new construction as well as foreclosures had limited effectiveness a few years ago.
It was feared that this would lead to a “floodgate” of new construction, yet this did not occur. The revised program, according to Brown, is a step in the correct direction.
In a three-county region that includes Winnebago, Boone, and Ogle counties, he estimates that there are approximately 300 available housing units. Brown stated that a robust and well-balanced housing market would have five times as many housing units available.
If approved, the program could save new Habitat for Humanity homeowners approximately $10,000 over the course of their mortgage terms.
Source: YAHOO
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