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Do Housing Rehabs Pay Their Way? 459 <br />Appendix (continued) <br />Anytown, USA—NCS of Anytown, USA <br />Summary of Anytown, .USA <br />Distribution of Present Values of Costs <br />O Administrative Costs <br />* Deferred Loans <br />❑ Other Loans <br />Endnotes <br />Distribution of Present Values of Benefits <br />96% <br />Construction Income Tax <br />® Direct Property Tax <br />❑ Indirect Property Tax <br />Loan Repayment <br />The Housing to Homes program, initiated by the city of St. Paul (MN), provides funds <br />to fill the gap between renovation costs and sales prices in inner-city low-income <br />neighborhoods for single-family homes use. The program also funds demolition of <br />substandard housing and new construction of owner -occupied, single-family homes on <br />vacant lots. <br />a Typical experience is used where the distribution of the item being discussed is not <br />normal and average or median statistics would be misleading. <br />s Property tax benefits were not calculated for LaGrange and New Orleans. The first city <br />does not have a property tax levy. The second has a homestead exemption, which did <br />not require any of the homes in the program to pay property tax to the city for the <br />improvements. <br />a The Battle Creek CDC has a very high fiscal benefit -cost ratio and is an anomaly in this <br />study. Unlike a typical NWO, whose administrative costs for rehab programs are <br />supported by the city's Community Development Block Grant funds, this organization <br />has the major share of its administrative costs covered by a large contribution from a <br />not-for-profit entity. This reduces the fiscal costs associated its rehab program. Also, in <br />1996-1997, this CDC produced a large volume of rehab units (105), far more than any <br />other CDC in the sample. Further, a large portion of these were for new homeowners, <br />which in turn leads to substantial amounts of ongoing taxes, which are added on the <br />fiscal benefits side of the equation. <br />s It is recognized that there are also substantial benefits to assisting a renter already residing <br />in the city in becoming a new homeowner, but from a strictly benefit:cost analysis <br />perspective, a new city resident, especially if he also was previously a renter, would have <br />J R E R I Vol. 25 No. 4 - 2003 <br />39 <br />