The Illinois Tax Assessment Freeze Program applies to buildings
that are certified as historic structures and which are located
in areas throughout the state that are designated as Historic
Districts. The program, which is administered by the Illinois
Historic Preservation Agency and the Cook County Assessor (the
"Assessor"), was developed to encourage the rehabilitation
of historic structures in accordance with the rehabilitation guidelines
set forth by the U.S Department of Interior.
If a building is certified, unit owners may enjoy substantial
real estate tax savings. During the first 8 years of ownership,
unit owners may enjoy a 100% assessment freeze on their unit and
may further benefit from a partial freeze for an additional 3
years. These tax savings are available only to the initial unit
owners who occupy their condominium as a primary residence and
may not be transferred to subsequent purchasers. Purchasers who
do not intend to occupy their unit may be eligible for an investment
tax credit equal to 20% of the eligible cost of renovating their
unit. Please contact the developer for more details on the tax
credit program. Projected property tax savings for sample owner
occupied units
are listed below:
Purchase
Price |
Projected
Taxes |
Projected
Taxes |
Estimated
Annual |
|
of
Unit |
Without
Freeze (1) |
With
Freeze (2) |
Tax
Savings |
|
$234,900 |
$4,698 |
$766 |
$3,932 |
|
$371,000 |
$7,420 |
$1,269 |
$6,151 |
$472,900 |
$9,458 |
$1,670 |
$7,788 |
$589,000 |
$11,780 |
$1,700 |
$10,080 |
$659,000 |
$13,180 |
$2,075 |
$11,105 |
|
(1)
Projected taxes without the tax assessment freeze program
are based on 2% of the individual unit purchase price.
(2) These projections are based upon the tax assessment
freeze assuming the Property is assessed based upon the
Developer's acquisition price, a 16% assessment ratio, a
2.7320 equalization factor and a 5.981% tax rate. This equates
to total taxes for the Condominium of approximately $76,073.
Individual tax amounts are then calculated by multiplying
the percentage interest of each unit by the total taxes
due. Though the freeze program fixes the assessed value
(estimated to be the developer's acquisition price) which
is the largest component determining property taxes, the
equalizer and tax rate are not frozen. These variables can
increase or decrease in any year resulting in relatively
small adjustments to property tax amounts. |
Motor
Row Lofts has been accepted as a contributing building within
the Motor Row Historic District. Application has been made for
certification of the rehabilitation work with the Illinois Historic
Preservation Agency in order to qualify the condominium units
within the development for the Tax Freeze Assessment Program.
While preliminary approval has been obtained, the Agency will
not make a final decision on the certification until the rehabilitation
work is completed. Because the property was previously owned by
a tax exempt entity, the Assessor must also determine the assessment
level to be frozen. If the Assessor uses the last established
assessment level the resulting taxes will be lower than the more
conservative projections shown above.
It
is the Motor Row Development Corporation's belief, based on similar
projects that the rehabilitation work will be approved and the
building certified for the Tax Assessment Freeze Program. However,
because the certification and assessment level are subject to
future governmental approvals, changes or modifications, the Seller
cannot guarantee that this tax abatement will be granted. Further,
the tax calculations listed are only estimates of potential tax
savings. The Seller assumes no responsibility for these calculations
or the assumptions upon which the calculations where determined.
|
