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STL County Spending 300k to Rehab Homes worth 70-100k | Missouri Political News Service

State Spending 300k to Rehab Homes Worth 70-100k in STL County

September 27th, 2010 by mopns · No Comments

St. Louis County government is “the biggest bargain in our town.”  –Charlie Dooley

Last week, we learned that the Dooley/Temporiti trash scheme may cost St. Louis County millions of dollars in damages to the private trash haulers they tried to run out of business, and now we learn that hundreds of thousands of taxpayer dollars are being used to rehab houses in St. Louis County worth between $70-100,00!

From “Bob McCarty Writes:”

1. HILLSDALE MANOR 2009 — 37 single-family homes located on scattered sites within Hillsdale. The 3-bedroom homes will rent for $590 a month.

Tax Credits: Private investors made an up-front investment of $7,214,539.00, in exchange for receiving Federal Low-Income Housing Tax Credits of $650,000 annually over 10 years and State LIHTC of $650,000 annually over 10 years.

Loans: The construction funding was provided by a $5,300,000 participation loan, funded $4,750,000 by U.S. Bank and $550,000 by MHDC. The permanent financing was in the form of a $900,000 participation loan, funded $550,000 by MHDC and $350,000 by U.S. Bank.

BRYAN BINKHOLDER: Investors and loans (not counting interest) total $8,114,539. Divided by 37 homes, that equals $219,311 per home. Now they are giving out TAX CREDITS which are dollar for dollar against taxes (unlike deductions which benefit you basically at your tax bracket). It equals $13 million over the next 10 years or more than $375,000 per house in real dollars if we do a realistic accounting of what will be lost in tax revenue at all the various levels. As a note, some may claim property tax values will be higher, but this is a straw man argument since the value is not based on what you spent fixing it up but only on the appraised value based on the area. Read more…



Tags: STL County Executive Charlie Dooley

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