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4 4 6 Simons, Magner and Baku <br />E x h i b i t 4 1 Summary of Program Costs <br />Present Value of Costs <br />Per Unit ($) <br />Units <br />Total ($) <br />Administrative costs <br />3,209 <br />321 <br />1,030,120 <br />Buildings in kind <br />— <br />0 <br />— <br />Deferred loans <br />6,161 <br />74 <br />455,894 <br />First mortgages <br />15,712 <br />30 <br />471,356 <br />Grants <br />3,882 <br />55 <br />213,525 <br />Other loans <br />7,162 <br />112 <br />802,193 <br />Tax abatement <br />— <br />0 <br />_ <br />Technical expertise <br />— <br />0 <br />— <br />Total <br />2,973,088 <br />The present value of the total loan repayment for all projects was $1,010,813, or <br />$6,163 per unit for those programs with loans available. <br />All municipalities except one collected direct property tax. This benefit is <br />dependent on the percentage of the rehab cost captured as increased value for the <br />property, the amount of the rehab and the cities' property tax rates. total direct <br />property tax increase was $412,666, or $1,294 per unit. <br />Indirect property tax is driven by nearby property value appreciation, and was <br />discussed in some detail earlier (see Neighborhood Effects of Housing Rehab <br />Activity). Indirect property tax impacts were calculated on nearby property for all <br />CDCs in the study group except two.' The other eight cities received a total of <br />$827,577, or $3,183 per unit of indirect property tax'benefits. It is interesting to <br />note that indirect benefits exceed direct property tax benefits. Part of this is <br />attributable to the fact that less than half of rehab investment dollars are translated <br />into increases in assessed value for the rehabbed unit (rather, the investment is <br />dedicated to maintenance -related activity). <br />Two cities (Barberton and Battle Creek) had a city income tax. For the NWO <br />members operating in these two Midwestern municipalities, construction worker <br />income tax totaled $23,712, or $157 per unit. The same two communities also <br />collected new occupant income tax. Income taxes were only calculated for the <br />residents that are new residents of the cities. This benefit totaled $222,822, or <br />$1,476 per unit of output. <br />New occupant sales tax was also calculated for the cities that had both new <br />residents and a city sales tax. The cities that qualified were Phoenix and San <br />Diego. These cities received a total of $33,104, or $946 per unit of output for the <br />sales taxes that will be generated by the new residents. <br />W <br />