In recent weeks, the prospects of programs available to assist homeowners has continued with a verve heretofore unseen. The sources and contacts, which I draw from professionally and for this column, have been saturated with a continuous stream of new information.
Last week it was a discussion of new initiatives supported at the national, regional and philanthropic levels, and this week there's more to report from the local front that targets the urban core and Hamilton County.
First announced in October of last year, Hamilton County's Home Improvement Program (HIP) will provide loans at 3 percent below market rates for five years with a $50,000 ceiling, subject to community approval currently underway. Properties eligible are single-family and two-family dwellings up to $299,000 in value and multi-family structures with no property value limits.
What makes this program extraordinary is the lack of income limitations, plus owner-occupied as well as investment dwellings are included. Loans can be used for repairs, alterations, maintenance and improvements -- although some restrictions do apply, such as luxury items, new home construction and refinancing of existing loans. Code violations and property upgrades are also included.
At this writing, each community in the county is in the process of approving the program, which they will be responsible for monitoring with 100 percent compliance accepted.
A program sponsored by the city of Cincinnati, the Cincinnati Homeowner Infill and Rehabilitation Program (CHIRP), is the first initiative from the newly formed Department of Community Development's Department of Neighborhood Services division. Under the program, newly constructed homes will receive a waiver of property taxes for 15 years up to $218,000. Land taxes must still be paid, however, and homes costing more will receive the abatement up to the $218,000 amount.
For instance, a new home valued at $150,000 will save $40,500 over the 15-year period, or $2,700 a year. Remodeling costs in excess of $2,500 on a one-, two- or three-dwelling unit are eligible for an exemption for 10 years for 100 percent of the increased value of the structure due to the remodeling, with a maximum exemption of $218,000.
Another city-sponsored program targets one- to three-home developments by offering subsidies of up to $30,000 to help encourage infill housing, or homes built or rehabbed in existing older neighborhoods. Hopefully this will capture the attention of builders and homeowners by making the core of our community an attractive place to live.
One note can be beautiful to hear, but add a second and a melody begins to take form. So it seems that the county and the city are beginning to orchestrate and practice some new music, though the coordination is still a little off.
The Largo pace, which has been our anthem and anathema, is slowly beginning to move up-tempo with a more allegro tenor and just a skosh of traditional Cincinnati non-troppo thrown in for good measure.
I'm hoping that these programs will be promoted enough to capture the ear of those desiring home ownership and that they'll add a third and final note necessary to strike a chord as a new theme for our community. We all benefit by increasing the economic attractiveness of living inside the county.
STEVEN J. LOWENSTEIN, a native of Cincinnati, is a Realtor with Coletta & Associates Realtors. He's a graduate of the University of Cincinnati and holds a Master's degree from North Texas State University.
