The City of Moline is looking at starting a Historic Home Tax Rebate Program to encourage people to invest in older, residential neighborhoods. The city will rebate 100% of the city portion of their property taxes for five years.
"It's specifically for homes that are 50-years or older," says Moline Economic Development Manager Patrick Burke, "Homeowners have to invest at least $20,000 into their home and it's for single family, owner occupied homes."
A homeowner can receive up to $5,000 over the five year period.
"In Moline that's about 22% of your property tax bill," adds Burke.
Building materials for interior and exterior work qualify. The rebate can be used for labor costs, but the work must be done by a 3rd party professional and labor can't exceed 75% of the total project costs.
"It's really for exterior improvement to increase the curb appeal of the home. Maintenance issues like replacement of a heater, HVAC and things like that are not included," says Burke.
Before the project begins, the homeowner will have to apply to be apart of the program.
"They would submit an application to our preservation commission," says Burke, "The commission would review the application and then their recommendation would be sent to city council for the final decision."
The city is expecting the program will cost around $20,000 to $30,000 a year until it ends in 2017. Money would have to come out of the general fund budget, which is why city council still has to approve the program.
"Not only could it improve property values, but it could also help improve home ownership," adds Burke, "A great way to stabilize a neighborhood is to increase the percentage of home ownership."
Here are a few examples of how much money homeowners could receive from the rebates. A home with a market value of $94,000 would receive $618 every year for five years. A home valued at $134,000 would receive $654. To receive the maximum $1000 rebate for five years, your house must be valued at $153,000.
City council has to approve the program. Aldermen will discuss it at their meeting on Tuesday.
