There
are three parts to the process of obtaining a Certificate
of Rehabilitation:
Part I, placement on the National
Register of Historic Places, has been achieved. Approval
of Part II by the Illinois Historic Preservation Agency
(IHPA) is pending. Part II includes the IHPA’s
review of the developer’s work plans for the
Palmolive Building’s interior and exterior to
make sure that they meet the Secretary of the Interior’s
Standards for Rehabilitation of an historic structure.
Part III requires IHPA certification that the work
has been completed according to the work plan approved
in Part II. This occurs at the end of the development,
when substantial completion of construction has taken
place. Upon fulfillment of all three parts of the
process, an application must be made by each homeowner
for a Certificate of Rehabilitation. When the Certificate
is issued, it is transmitted to the assessment officer
and a copy is forwarded to the property owner. The
assessor then makes the necessary adjustments. The
homeowner is required to submit an affidavit to the
assessor each year verifying ownership and use.
Once finalized, the real estate
taxes will be frozen at a level consistent with its
current use (i.e. before improvement to a condominium)
for a period of eight years. The assessment will gradually
be adjusted to fair market value by increasing the
assessment as follows:
- Year
9 - Add 25% of the difference between Fair Market
Value (FMV) and Freeze Value (FV).
-
Year 10 - Add 50% of the difference between FMV
and FV.
-
Year 11 - Add 75% of the difference between FMV
and FV.
- Year
12 - Fair Market Value (FMV)
The developer estimates that
if a Tax Freeze becomes effective, the level of real
estate taxes for a condominium owner will be more
than 60% lower than that indicated by the assessor’s
Fair Market Value.
For more information about
the Tax Freeze, please visit:
Illinois Historic Preservation Agency (IHPA):
www.state.il.us/hpa
IHPA’s Historic Tax Freeze
Page:
www.state.il.us/PS/taxfreeze.htm
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