South Side Chicago Real estate

Redevelopment Opportunities Abound

Kurt Clements Real Estate Leave a Comment

Redevelopment Opportunities Abound

Do you remember when Chicago was offering houses for a dollar? Millions (perhaps billions) in tax incentives were being offered by the City of Chicago. It is all about incentivizing redevelopment.  Things like reclaiming contaminated land. Partnering with Walmart to build town centers. What do all of these things have in common? They are examples of exciting redevelopment opportunities in different parts of America.  This article will give you examples of how to get involved, but warning it is not easy.

HUD Dollar Homes

The U.S. Department of Housing and Urban Development (HUD) offers homes for $1. Local governments may purchase them if they listed for sale without finding a buyer for six months. HUD acquired these homes through foreclosures.

The local governments purchase the homes for $1 so that they can fix them up and then re-sell them to low- to moderate-income families as part of a neighborhood revitalization program.

For investors and home buyers, there are also many bargain-priced HUD homes for sale, which need rehabilitation. First-responders and teachers get a 50% discount. Non-profits get a 30% discount.

Tax Incentives

Tax incentives attract investments by businesses in economically-disadvantaged areas. Federal, state, and local programs encourage redevelopment in many areas. Tax abatements come from the state, county, and the local community.

In 2018, the U.S. Treasury Department created Opportunity Zones in many states to give preferential tax treatment for investments made in these zones. Investors in these zones can defer federal income tax on capital gains. Under the new tax code, investments in Opportunity Zones held for 10 years have zero capital gains tax.

Super Fund Site Reuse

The Environmental Protection Agency (EPA) has a Superfund Redevelopment Initiative (SRI) to clean up toxic sites and reclaim contaminated land. There are now quite a few Superfund sites that went through the cleanup process and have EPA approval for reuse. Some successful projects under the SRI program include large solar energy collection arrays built on reclaimed land.

 

Pros and Cons of Buying a Foreclosure!

 

Walmart Parking Lots To Become Town Centers

Walmart plans to partner with developers to build Walmart Town Centers on underutilized acreage that surrounds some of its Walmart Super Centers.

Walmart invites small businesses and local communities to work with them on these redevelopment projects. Some plans include dog parks, day care centers, health clinics, farmer’s markets, basketball courts, and green spaces for picnics.

Sounds a bit like what downtown Main Street used to offer before Walmart came to town. Doesn’t it? Now, with these new redevelopment plans, the community space of a town center is coming back to some American towns.

Conclusion

Opportunities in redevelopment received support on a national level by the JOBS Act and the recent changes in the tax code. There are many redevelopment success stories happening in places where before everyone only saw problems and now real estate investors and developers find opportunities.

Whether you are in the market for a single family residence or a commercial investment that would create a huge redevelopment I would love to help you out.  Let’s set up a time to chat by emailing me [email protected].

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Kurt Clements

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Kurt has developed a unique system designed to turn renters into homeowners. Unlike most Realtors his initial focus is on the financial end of the transaction. This dynamic has allowed him to develop more buyers that were not previously in the market, which in turn leads to more listings being sold. While Kurt is constantly tweaking his programs to meet the needs of his clients, he is ever mindful that a home is not sold without a buyer. More times than not, a buyer that he turned into a homeowner.