The Missouri Housing Development Commission approved on December 18, 2009, a $35 million economic development package which included $15 million to fund a new Real Estate Tax Assistance Program. The new Real Estate Tax Assistance Program is intended to provide funding for the payment of the first year of property taxes for qualified home buyers who purchase a new or existing home after January 1, 2010. The new Real Estate Tax Assistance Program also includes funding for energy efficiency and energy conservation repairs and improvements.
Here is an overview of the new MHDC Real Estate Tax Assistance Program:
- Who is Eligible for the MHDC Real Estate Tax Assistance Program? Purchasers must meet the ncome eligibility guidelines set by the MHDC. Depending on the location of the home, the household income limit guidelines for low to moderate income persons or families range from $58,300 to $98,560.
- What Property is Eligible for the MHDC Real Estate Tax Assistance Program? The assistance grants under the new MHDC program are available only for owner-occupied purchases only.
- When does the MHDC Real Estate Tax Assistance Program Start? The assistance grants under the new MHDC pgraom are available for properties purchased after January 1, 2010. The funding for this program is limited and is available on a first-come, first-served basis.
- How much of the Property Tax Bill could be Paid under the MHDC Real Estate Tax Assistance Program? Income qualified purchasers are eligible to receive $1,250 or the amount of their first year's real estate tax bill, whichever is highest, when they purchase a new or existing residential home. An income-qualified individual or family can enhance this base amount, up to $1,750, if they purchase an energy-efficient new home or make energy efficient improvements to an existing home that is purchased. These improvements must be made prior to closing or within 60 days of closing.
- How do Missourians Apply for Assistance under the MHDC Real Estate Tax Assistance Program? The MHDC will be issuing program guidelines, forms and affidavits to be executed at closing for this program shortly. Additional receipts and documentation will be required for proof of energy efficient improvements.
- What Energy Efficiency and Conservation Improvements and Repairs are Eligible for the Additional Incentive under the MHDC Real Estate Tax Assistance Program? Eligible improvements include installing high-performance windows, house wraps, programmable thermostat controls, water-efficient toilets and faucets, and energy-efficient water heaters, lighting and appliances; sealing heating and air conditioning ductwork; caulking; insulating water heater pipes; increasing the R-value of insulation in crawl spaces and attics; and conducting on-site energy efficiency inspections and tests, including a blower door test, which tests the overall energy efficiency of the house, and a duct blaster test, which tests how much the air ductwork leaks.
Purchasing a new home in the City of St. Louis? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 to discuss how the MHDC Real Tax Assistance Program, Federal Tax Credit, and other programs can be used to assist you in purchaing your new home.