New Tax Refund To Buy or Build Homes in Rockford
A new homebuyers programs has been announced that would give tax refunds for three years to people who build new single-family homes, or purchase short sale or foreclosed homes in Rockford and physically live in them.
The purpose of this new program called The Homebuyer's Property Tax Refund Program, would be to increase property values, broaden the tax base, and hopefully reduce crime by reducing the number of vacant homes and strengthening neighborhoods.
Steve Bois, president and CEO of The Rockford Area Association of Realtors told the Rockford Register Star that;
1 in 3 homes sold in Rockford last year was a foreclosure or short sale." He also added that "Fewer than 10 single-family building permits were issued in Rockford each year in the last four years. Foreclosures have wreaked havoc on our local real estate market and every neighborhood has been adversely affected."
According to the Register Star, 650 Rockford area homes that sold in 2015 would have qualified for this program, and currently there are 100 homes on the market the will qualify if the program is approved by local taxing bodies.
The program is being presented to the 11 taxing bodies found on a typical tax bill, and homebuyers that qualify for the program would receive tax refunds from all the bodies that approve the program.
Now, to the answer the big question...how do I qualify?
- Buyers must be under contract to build a new home or purchase a foreclosed or short sale home by December 31, 2016.
- Annual proof of residency is required. (Sorry, flippers!)
- Program participants do not need to be first-time homebuyers or currently live in the Rockford area.
Just to put in perspective how much of a win-win this new program would be, let's say you purchased a home worth $100,000. According to the Register Star, the annual refund for that home purchase would be about $4,000 if all tax bodies approved the program.
Let's make it happen, Rockford!