In Chicago, Buyers Can Get Up To $18,000 Off When Purchasing Units in Certain Communities
- Mar 18, 2009
By Anuradha Kher, Online News EditorChicago–Since the housing woes began last year, the city of Chicago along with The Partnership for New Communities, has been offering $10,000 as a gift for buyers of units located in six developments that are part of Chicago’s Plan for Transformation. The Plan for Transformation includes replacement of high-rise public housing with new mixed-income communities featuring contemporary town homes and low-rise buildings, where public housing residents will live in the same neighborhood as people who purchase market rate and affordable homes. Generally, these developments will consist of one-third public housing, one-third affordable housing and one-third market rate homes.Thousands of units have been sold in these mixed-income communities so far, but last year, demand for the remaining for-sale, market rate units across six developments started slowing down due to the prevailing market conditions. There are currently 234 unsold units that are part of the ‘Find Your Place in Chicago’ program. “We wanted to do something to attract buyers and stimulate sales at these remaining communities,” Maria P. Hibbs, executive director of The Partnership for New Communities, tells MHN. Nearly 51 homes have been sold since the launch of the program last year. The only pre-requisite for this incentive is that the units must be less than $450,000. The developments eligible include Oakwood Shores, Park Boulevard (pictured) and Lake Park Crescent on the near-south side; Parkside adjacent to the Gold Coast; Westhaven Park on the near west side and Roosevelt Square near the University of Illinois at Chicago.Now with the $8,000 first time homebuyer tax credit being offered as part of the Stimulus Package, Hibbs hopes that units at these communities will be sold faster.“We are confident that the additional $8,000 tax credit being offered right now will make these units more desirable. Buyers can package many other incentives (such as developer incentives or employee housing assistance) along with the $10,000 and $8,000 already available and the result can be pretty attractive.”While there is no set date on which this incentive will expire, the city and The Partnership for New Communities will evaluate the need for it when the market starts recovering. “If the market is performing the way it should, there should not be any need for this incentive,” says Hibbs.