Neighborhood Historic Preservation 2.2 % loan rate available until Dec 31, 2007

Submitted by lmcshane on Sun, 11/04/2007 - 04:39.
11/03/2007 - 08:00
12/31/2007 - 17:00
Etc/GMT-4

The Cleveland Restoration Society’s Neighborhood Historic Preservation Program’s (NHPP)

has the potential to turn-around many of the vacant properties in Brooklyn Centre's Historic District and it applies to all of Ward 15. 

If you are a property owner and find it difficult to finance repairs to a property due to recent restrictions on refinancing, please contact the Ward 15 office for more information 216-459-8400.




Qualifying areas:  CRS relies on the support of Cleveland City Council Representatives in order to offer the loan program in participating wards in the City of Cleveland - Wards 2, 3, 4, 6, 7, 8, 9, 10, 13, 14, 15, and 17.
If your ward does not participate in the NHPP, it may participate in CRS’ Heritage Home Program that has an interest rate slightly higher than the NHPP program.

 

The Cleveland Restoration Society’s Neighborhood Historic Preservation Program’s (NHPP) interest rate has dropped to 2.2%!  (It was previously 2.6%) The special low rate will be effective through December 31, 2007.

  If property owners own houses 50 years old or older and need help with home repairs please call J.P. Kilroy at 216-426-3116 at the Cleveland Restoration Society.

 

SUMMARY INFO – NHPP & City of Cleveland Tax Abatement Program*

*restoration/rehabs of 1-2 family homes are eligible for 10-year 100% abatements; multi-family buildings are eligible for 12-year 100% abatements.

 

Cleveland Restoration Society (CRS) -- Neighborhood Historic Preservation Program (NHPP)

 

Purpose:  for homes 50 years or older, to finance the repair of code violations, the rehabilitation and preservation of historic features, and other home improvement projects.

Features:  Free technical advice on maintenance problems i.e., deteriorating masonry, peeling paint, and wet basements; recommendations on historic paint color schemes; repair of historic building materials and appropriate replacement options; and instruction on preventive maintenance, custom construction specifications and assistance in locating qualified contractors.  Rental properties up to three units or less are eligible for the program. The property does not have to be owner-occupied.

Loan Program Specifics:  2.2% (w/Key Bank), 12-year term home equity loan (second mortgage) for residential rehabilitation projects.

Qualifying areas:  CRS relies on the support of Cleveland City Council Representatives in order to offer the loan program in participating wards in the City of Cleveland - Wards 2, 3, 4, 6, 7, 8, 9, 10, 13, 14, 15, and 17.
If your ward does not participate in the NHPP, it may participate in CRS’ Heritage Home Program that has an interest rate slightly higher than the NHPP program.

Process:

1.              Step One: Contact the CRS to Qualify

2.              Step Two: Homeowner Applies for Loan and Schedules a Site Visit

3.              Step Three: Loan Pre-Approval and Scope Agreements

4.              Step Four : Bid Specifications & Obtaining Estimates

5.              Step Five: Homeowner Signs for Loan at KeyBank

6.              Step Six: CRS Helps Facilitate Rehabilitation Project & Payments

Loan amount: The minimum loan available through the NHPP is $5,000 and the maximum loan is $250,000 Loans are booked for the amount needed to complete the job(s), typically after all construction bids have been attained, and often a small contingency (10-15%) of is added to the contract total to cover unforeseen costs.

Fees: NHPP Administration Fee 2% of the Contract Amount

·         CASH Escrow Fee $200.00

·         Title Search $105.00*

·         Filing Fee $ 36.00*

·         After-Rehab Appraisal Fee

Loan to Value:  90% owner occupied; 70% non-owner occupied

For more information contact:  J.P. Kilroy at 216-426-3116, jpkilroy [at] clevelandrestoration [dot] org" target="_blank" ymailto="mailto:jpkilroy [at] clevelandrestoration [dot] org" rel="nofollow">jpkilroy [at] clevelandrestoration [dot] org, and also see the Frequently Asked Questions page which is very helpful.

City of Cleveland Tax Abatement Program
Department of Community Development's Division of Neighborhood Development

 

Tax abatement - the temporary elimination of increased real property taxes, generally offered as a stimulus for new development or as an incentive for redevelopment.

Qualifying Projects:

·         Improvements of one- and two-family homes that cost more than $2,500 and would result in an increase in assessed value for real estate tax purposes.

·         Rehabilitation of multifamily (three or more units) structures, including historic buildings;

·         New construction of single-family homes;

·         New construction of multifamily investor-owned properties

·         Conversion of nonresidential buildings to residential units

 

Terms and rate:  (All are State Law maximum terms)

·         Rehab of 1-2 family homes; 10 years 100%

·         Rehab multi-family buildings; 12 years 100%

·         New Construction; 15 years 100%

Process: 

·         Contact the Division of Neighborhood Development's Tax Abatement Office at 216-664-3442, after the building permit has been issued to construct or remodel.

·         The Housing Officer will verify the facts contained in the application and permit and then certify for tax abatement.

·         A copy of the certification is forwarded to the County Auditor's Office that the property taxes are to be abated. However, the owner must pay taxes on the increased value of the land itself. In the case of rehabilitation projects, the owner will remain responsible for the initial tax assessment of the property.

·         Any increase in taxes as a result of rehabilitation or new construction will be abated.

 

Complete information on program including:

·         What kind of improvements on residential properties DO NOT increase taxes?

·         What type of improvements DO increase the assessed value of residential property?

Location

Cleveland, OH
United States
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