08 Jan 2014

How to Ensure a Successful Business Or Property Sale in 2014

By Ginny Grimsley
Surprise, It's Not Only About The Price!

Corporations are holding record levels of cash, interest rates are low and the housing market is rebounding. The result? Merger and acquisitions professionals are buying more businesses and high-end homes are selling faster -- Silicon Valley had a 26 percent increase in sales of $1.5 million-and-up houses in the first half of last year.

If you're considering selling a business or property in 2014 - while business is good and before mortgage rates climb - keep in mind: Focusing only on the price can short-change you in the long run.

"A lot of sellers are rushing to close the deal because they're worried about what may be around the corner," says attorney John Hartog of Hartog & Baer Trust and Estate Law (www.hartogbaer.com). "My first rule: Sell smart, not fast."

Sales of commercial properties were up 11 percent in the third quarter of last year, notes wealth management advisor Haitham "Hutch" Ashoo, CEO of Pillar Wealth Management (www.pillarwm.com).

"These sales can constitute a significant money event, so you have to consider how they may impact your future lifestyle needs," he says.

Adds CPA Jim Kohles, chairman of RINA accountancy corporation (www.rina.com):

"And you have to factor in how the transaction will affect your tax position. A great sales price doesn't look so good if it costs you more in taxes."

The three offer these tips for a successful business or residential property sale:

  • Know the true value of your business! A surprising number of entrepreneurs have an unrealistic idea of what their business is worth, says attorney Hartog. He tells of a man who owned a large chain of fast-food franchises. "He told everyone he knew the business was worth $150 million. After he died ... the business was sold for $35 million." That resulted in a drawn-out lawsuit by relatives of the man who accused the sellers of under-valuing the company. "Whether you're selling a business or real estate, get it appraised," Hartog advises. "It may sound obvious, but I've seen savvy business owners make big mistakes due to delusions of value."
  • How confident are you that the transaction will help you maintain the lifestyle you want? Before their clients take one step toward moving forward on a significant sale, wealth managers Ashoo and his partner, Chris Snyder, analyze how it might affect them in the future. "This is a must-do step. You need to have confidence that this money event will help you maintain your lifestyle until you're in your 90s," Ashoo says. He and Snyder run the transaction through an  economic simulation factoring in major world and financial events since 1925, then use the information to project its future effect on the client. "If we're not 75- to 90 percent confident that it will help them reach their goals and maintain their lifestyle, we advise the develop a Plan B -- or not sell at all."

 

  • The pre-tax price and the after-tax price must both be part of the negotiations. Getting the highest price for your business won't result in the most net gain if you end up paying a high tax rate on the proceeds, notes accountant Kohles. If you sell the shares in your company, you'll pay a lower tax rate. If you sell the physical plant, you'll pay a higher rate. In the first case the buyer is on the losing end of the tax question; in the second you are. "You have to package the deal so that there are some tax advantages for both of you; this is where having professional help is crucial," he says. If you've taken depreciation on the equipment, you'll pay a higher rate. Sales of some assets, such as patents, are taxed at the lower capital gain rate. Selling your goodwill - elements of the business that relate to the value of your relationships - allows your buyer to write off depreciation.

About John Hartog, Haitham "Hutch" Ashoo  & Jim Kohles: John Hartog is a partner at Hartog & Baer Trust and Estate Law in Orinda, Calif.  He is a certified specialist in estate planning, trust and probate law, and taxation law. Haitham "Hutch" Ashoo is the CEO of Pillar Wealth Management, LLC, in Walnut Creek, Calif., specializing in client-centered wealth management. Jim Kohles is chairman of the board of RINA accountancy corporation of Walnut Creek, Calif. He is a certified public accountant specializing in business consulting, succession and retirement planning, and insurance. All three advise ultra affluent families.

07 Jan 2014

Loebsack Urges House Leaders to Act on Bipartisan Extension of Unemployment Benefits

By Joe Hand

Extension cleared Senate procedural hurdle earlier today

Washington, D.C. - Congressman Dave Loebsack released the following statement after the Senate cleared a procedural hurdle and is set to vote on extending unemployment benefits that expired last month. Loebsack joined a number of his colleagues in calling on the Speaker of the House, John Boehner, to address the expiration of the benefits.

"At a time when many Iowans are still struggling to find work, I am pleased the Senate took this action to extend unemployment benefits. Now it is time for House leadership to do the same and bring this bipartisan legislation to the floor. It is beyond irresponsible that these working families have had to face the possibility of not being able to feed their families or keep the heat on this winter. These benefits provide a critical lifeline to individuals and families who have been hit hard by these difficult economic times. As someone who was raised in poverty, I know what it is like to sit around the table each month and wonder how my family would make ends meet. The House needs to act now."

###
07 Jan 2014

New read shows baby boomers how to survive in the new economic landscape

By Marketing Services

Author Michael Hib has created in 'BOOMERVILLE: Getting Off the Corporate Merry-Go-Round' an eye-opening read on how to survive and thrive in today's economy

COVINGTON, Ga. - The Baby Boomers generation has always been fortunate. This is due to the fact that most of them were born after the Second World War and have reaped the economic and moral benefits of the times. Therefore they have reaped the benefits of a higher income and better working conditions and benefits in their lifetime. But with a huge majority of baby boomers reaching retirement age and the world economy in shambles, the collective fates of all baby boomers seem uncertain. In "BOOMERVILLE: Getting Off the Corporate Merry-Go-Round" author Michael Hib has written a helpful guide on how the baby boomer generation can survive and thrive in the new economic arenas.

"BOOMERVILLE: Getting Off the Corporate Merry-Go-Round" shows how as millions of baby boomers head toward retirement and to new ventures, the world in which everyone lives in is shrinking rapidly. Many more countries attempt to become an economic player and US competitor as the global economy emerges. Rapidly expanding technologies and communications are enabling more countries to become borderless within a global economic community of creative destruction ? competitors on a global stage and 24 hour global clock. This highly informative book shows readers how millions of retiring baby boomers getting off the corporate merry-go-round will play a crucial role as freelancers and free agents in bridging the gaps in skills, talent, business wisdom, and sustainability.

This eye-opening and helpful read is a must have for all baby-boomers who wish to survive in the ever changing economic landscape of the times.

07 Jan 2014

Grassley on Janet Yellen nomination

By Grassley Press

Floor Statement of Senator Chuck Grassley

Nomination of Janet Yellen to be Fed Chairman

Delivered Monday, Jan. 6, 2014

Over the past five years the Federal Reserve has pursued unconventional and unprecedented monetary policy.  As vice chair of the Fed, Janet Yellen has been a strong proponent of these policies.  As chair, she is likely to continue these same easy money policies with the same, if not more, vigor than her predecessor.

I have deep concerns about the long-term effects of pursuing these policies.  Historical evidence suggests that failing to rein in easy money policies on a timely basis risks fueling an economic bubble or even hyperinflation.

It is true that one of the lessons learned from the Great Depression was that an overly tight monetary policy in a recession risks economically debilitating deflation.  Thus, understandably, when the recession hit in 2008 the Fed sought to avoid the mistakes of the past by lowering interest rates to encourage investment.  However, this expansionary monetary policy cannot continue into perpetuity without causing real and lasting damage to our economy.

Just as we should not repeat the mistakes of the Great Depression, we need to be careful not to repeat the mistakes that fueled our recent recession.  Let us not forget that our current economic stagnation began with the bursting of the housing bubble in late 2007.  A housing bubble fueled by rampant speculation that was driven, in part, by historically low interest rates maintained by the Fed between 2001 and 2004.

Yet, once again we see the Fed embarking on a policy of sustained historically low interest rates.  The Fed has now maintained the Federal Funds rate essentially at zero for over five years.  What may be the future consequences of this policy?  What new bubble will arise?  At this point, I do not think anyone can answer these questions definitively.  But no one can deny that the risks are real and could be devastating.

The Fed though has not just sought to maintain record low interest rates.  With its traditional monetary tool tapped out, the Fed has turned to a less conventional and more aggressive program in an attempt to jumpstart our economy and lower unemployment.

The Fed is now engaged in an open-ended policy it has termed quantitative easing.  Essentially, this is a fancy way to say the Fed is flooding the economy with trillions of dollars through large purchases of mortgage-backed securities and longer-term Treasury securities.  As a result of this program, the Fed has seen its balance sheet more than quadruple from around $800 billion to nearly $4 trillion.  Vice Chairman Yellen has not presented a plan to Congress on how the Fed plans to deal with this issue.

While I welcome the news from the Feds' December meeting that it intends to reduce the monthly purchases, I fear it may already be in too deep.  It remains unclear how the Fed will be able to go about unwinding its nearly $4 trillion balance sheet without spooking investors.

The stock market has become addicted to the Fed's easy money policies.  This has led one notable investment advisor to question whether the Fed will ever be able to end the quantitative easing program.

While the stock market has become addicted to easy money, the benefit to Main Street has been questionable at best. Unemployment remains high, bank lending remains tight, and savers discouraged.

While the benefits to Main Street remain unnoticeable, Main Street most certainly will feel the pain should the Fed carry on its easy money policy for too long.

For an example of what Main Street could be in store for, one need look no further than the late 1970s and early 1980s.  The easy money policies of the 1970s intended to spur employment resulted in stagflation, a period of hyperinflation and high unemployment.  During this period unemployment topped 10 percent while inflation exceeded 14 percent.

The experience of the late 1970s and early 1980s made it clear that once you let the inflation genie out of the bottle it is very difficult to stamp it out.   After suffering years of stagflation, Americans were then subject to the pain of unprecedented interest rates as high as 20 percent just to get hyperinflation back under control.

Statements by Ms. Yellen indicate she would be open to inflation exceeding the fed target of 2 percent as a means to achieve full employment.   While achieving full employment may be a noble goal, the Fed has a dismal record at being able to produce sustainable job creation through expansionary monetary policy.

While inflation may aid employment in the very short term, our experience with stagflation in the 1970s shows this tradeoff falls apart quickly as people's expectations change.  Sustainable job growth comes not from inflation, but price stability that promotes long-run economic growth.  We need a chairman focused on a strong dollar and low inflation.

My concerns about the Fed's easy money policies and inflation led me to vote against Chairman Bernanke for his second term at the Fed.   Because it appears that Ms. Yellen will continue to pursue these misguided policies, I cannot in good conscience vote in favor of her confirmation.

-30-
06 Jan 2014

State of Iowa expands government payment partnership with Dwolla; Iowa DOT begins using service for IFTA and IRP

By Andrea Henry

(AMES) - Gov. Terry Branstad today announced the continuation of Iowa's state government payments partnership with Dwolla, the Internet's first payment network. Today's announcement allows carrier customers of the Iowa Department of Transportation to use Dwolla when filing and paying International Fuel Tax Agreement (IFTA) returns and International Registration Plan (IRP) fees. As the only online payment option for the nearly 55,000 annual transactions, the new partnership provides the state and its tax payers a streamlined online process and turnaround time, an alternative to costly card payments and mailed checks, and a reduction in clerical errors and administrative costs

The State of Iowa announced its first partnership with Dwolla in early 2013. It allowed retailers to pay more than $100 million in cigarette stamp taxes through the Iowa Department of Revenue. In July 2013, nearly a dozen Iowa counties began accepting the low-cost payment network for their individual vehicle registration and property taxes.

"Reducing the size and cost of government must also mean a more innovative, business and taxpayer friendly government," said Branstad. "The State of Iowa has seen success in our partnership with Dwolla and the Department of Revenue. Expanding our partnership to the Department of Transportation will help our citizens and modernize the way government does business."

Click here to learn more about Iowa state's 2013 government payments partnership with Dwolla.

"Dwolla's simple payment network brings an effective, innovative means of payment for Iowa taxpayers, while providing increased government efficiency," said Lt. Governor Kim Reynolds. "We're excited about the state's expanded use of Dwolla and are continuing to explore new ways to use the payment network."

Iowa DOT Director Paul Trombino III, said, "Nearly 7,000 motor carriers in Iowa have been able to complete IFTA and IRP paperwork online for several years, but they have not been able to complete the payment portion of the transaction online until now. That was causing many of them to continue to file paper returns, which have a greater opportunity for errors. We think using Dwolla will reduce the number of errors and streamline the filing process for these transactions."

The ability to complete the entire transaction online has many benefits to both Iowa's motor carrier customers and the Iowa DOT.  Mark Lowe, director of the Iowa DOT's Motor Vehicle Division, said, "Because motor carriers had to print the document and send us a check anyway, many of them did not take advantage of the online system. By making it easier and more cost effective to pay fees and taxes, we are reducing the cost of the transaction, both for the customer and the state, and effectively increase the revenue collected."

The online service completes several complicated calculations automatically, drastically reducing errors that can hold up the documents from being accepted. Receiving the documents online will help the DOT process the returns much more quickly and efficiently.  Lowe added, "Dwolla' brings the whole thing together by offering carriers an online payment option that is inexpensive and avoids credit card processing fees, which can be significant for large transactions. I think this is the first of many opportunities that the Iowa DOT will explore using Dwolla."

Click here to learn more about Dwolla and government payments.

Dwolla is a new payment network that bypasses traditional credit and debit card networks, providing online and mobile payments. The benefits of using Dwolla include :

  • Cheaper than sending a check. Dwolla is only 25 cents per transaction or free for transactions $10 or less. There are no hidden costs or licensing fees for its members or integrations.
  • Many uses. Individuals, businesses, and nonprofits use the online service and its mobile app everyday to send money, buy goods, pay invoices, collect payments, and make donations.
  • Security. By simply eliminating the visibility and circulation of this sensitive data between the members of the network, Dwolla removes a significant source of fraud risk.
  • Simple. Simply sign into your existing account at checkout, enter your PIN, and initiate a payment.

###

Dwolla allows anything connected to the Internet to move money as quickly, safely, and at the lowest cost possible. Powered by an accessible web-based platform and its "free or 25 cent flat-fee" per transaction pricing model, the software uses the Internet to securely link mobile phones, computers, social communities, and even physical locations to create a safe network that bypasses traditional card and check systems. This allows friends, families, businesses, even governments to easily send and receive digital payments with one another, like cash, but with easy to use websites, apps, and tools and without the fees and constraints of traditional debit and credit cards.

---

06 Jan 2014

3 New Year's Resolutions That Will Enrich Your Retirement

By Rick Martin
Financial Advisor Shares Steps Everyone Should Take in 2014

For many baby boomers looking to retire in the next few years, the biggest worry is not whether or not they can retire, but if they'll outlive their savings.

It's a valid concern: One of every four people turning 65 today can expect to live past their 90th birthday, and one in 10 will live past 95, according to the Social Security Administration.

For a married couple, there's a 58 percent chance that one of them will live to 90.

With 10,000 boomers turning 65 every day, according to the Pew Research Center, it's something on the minds of many Americans.

"I went into this business because I hated seeing people who'd followed the rules - saved money in a 401k, put their kids through college, gave to charity - get to retirement and find they didn't have enough to sustain them for more than a few years," says Andrew McNair, founder and CEO of SWAN Capital, (SWAN-Capital.com), and author of "Don't be Penny Wise & Dollar Foolish."

"It's not enough to have a certain amount of money in your portfolio; you want to have a guaranteed check coming in, in addition to your investments."

Whether you're years from retirement or planning for it now, McNair says these three New Year's resolutions will be the best you ever made:

• Resolve to plan for expenses in retirement to equal or exceed your expenses today. Many people assume their expenses will decline once they retire - they forget that they're going to have a lot more free time to do what they love, McNair says. "What are your dreams? Will you want to travel? Take up a new hobby? Meet friends for golf two or three times a week? Those likely are going to be expenses you don't have now," he says. Also, once you retire, things don't magically last forever. The rug in the dining room, the fridge in the kitchen - eventually they'll need to be replaced or repaired. Also, as you age, medical expenses either appear or increase. Sit down and think about what your ideal retirement looks like, and presume that it will be for at least 30 years. Make a list and take a guess at what those activities cost - even if your retirement is years away. How much money will you need coming in each month or year?

• Resolve to get most of your investments out of tax-deferred plans. If you're working for a company that provides a match for 401k contributions, by all means, contribute up to the maximum match. "That's free money - you'd be crazy not to take advantage," McNair says. But investments that can be more strategic in terms of taxes should also be considered: Roth IRA, municipal bonds, life insurance or real estate. No one expects taxes will go down - they'll be going up. Uncle Sam already has a lien on your IRA or 401(k); don't let his lien, the taxes you'll owe, continue to grow. Go ahead and pay now, and your future retired self will be glad you did.

• Resolve to have a portfolio that generates a steady or guaranteed paycheck. The ideal financial security for retirement is having a guaranteed income that increases with inflation, McNair says. "I suggest planning for an income that meets or exceeds your annual income now so, for example, if you'll be getting $1,000 a month from Social Security at age 62 and your current income is $4,000 a month, you need to have a plan to guarantee $3,000 a month to cover that gap." Annuities and life insurance are investments that may provide an income you cannot outlive, so consider them for at least part of your portfolio. "You don't want them to make up 100 percent of your portfolio, but they should provide the foundation," McNair says.

It's important to start thinking now about where you want to be in retirement and what combination of investments will ensure you have the lifestyle you want for as long as you live, he says.

"At 65, you don't want to be making risky investments because you're panicking about not having enough money."

About Andrew McNair

Andrew McNair is founder and CEO of SWAN Capital, specializing in Wealth Management and Retirement Income. After earning a degree in business administration/finance, and with two books on his financial strategies already published, McNair launched SWAN later that year. At 22, he was hosting a radio show, What Your Money Would Say, which provides financial guidance to retirees. McNair is also the founder and CEO of the Veteran Benefit Project, which works with veterans and their families at no charge to ensure they receive all of the benefits they're entitled to.

02 Jan 2014

Loebsack Announces Nearly $310,000 to Help Low Income Iowans Find Employment

By Joe Hand

Washington, D.C. - Congressman Dave Loebsack today announced that housing authorities in Iowa City and Muscatine and the Eastern Iowa Regional Housing Authority, which covers Cedar and Clinton Counties and the City of Bettendorf in Scott, will receive a total of $174,051 to provide funding for their communities to create partnerships to assist low income families in obtaining employment. This funding will help spur economic independence and self-sufficiency. The funding is provided through the U.S. Housing and Urban Development's (HUD) Housing Choice Voucher Family Self-Sufficiency Program.

"Helping communities provide low-income families with the tools needed to find employment is a win-win situation," said Loebsack. "It is important at a time when the economy is still struggling to provide folks an opportunity to get the training they need to be able to support and care for their families."

Details of the grant funding follow.

Second District

Eastern Iowa Regional Housing Authority - $135,678

Iowa City Housing Authority - $119,673

Muscatine Municipal Housing Agency - $54,378

###
02 Jan 2014

Governors Branstad and Heineman to make economic development partnership announcement Friday in Omaha

By Jimmy Centers

(DES MOINES) - Iowa Gov.  Terry E. Branstad and Nebraska Gov. Dave Heineman will be on hand Friday, January 3, 2014, at 9:30 a.m., for a press conference announcing an economic development partnership.

The following event is open to credentialed members of the media:

Friday, January 3, 2014

 

9:30 a.m. Iowa Gov. Terry Branstad and Nebraska Gov. Dave Heineman hold press conference announcing economic development partnership

Gallup - Great Plains Room

1001 Gallup Drive

Omaha, NE

 

###
30 Dec 2013

Chicago, Six Other Metros Add More Than 60,000 Jobs in November

By Greg Rivara

Temporary Layoffs Push Up Rate Outside Suburban Chicago

Not Seasonally Adjusted Unemployment Rates
Metropolitan Area   Nov. 2013*   Nov. 2012
Bloomington-Normal  7.0%  6.1%
Champaign-Urbana    7.9%  7.1%
Chicago-Joliet-Naperville 8.1%  8.3%
Danville      11.7% 9.4%
Davenport-Moline-Rock Isl.      6.5%  6.3%
Decatur       12.2% 10.1%
Kankakee-Bradley    10.7% 9.9%
Lake-Kenosha, IL-WI 8.0%  7.7%
Peoria  8.9%  7.5%
Rockford      11.0% 10.3%
Springfield   7.4%  6.9%
St. Louis (IL-Section)    8.4%  8.3%
* Data subject to revision.

CHICAGO - The November unemployment rate in the Chicago Joliet Naperville Metro Division fell .02 to reach 8.1 percent while temporary layoffs pushed rates higher elsewhere, according to preliminary data released today by the U.S. Bureau of Labor Statistics (BLS) and the Illinois Department of Employment Security (IDES). Not seasonally adjusted data compares November 2013 to November 2012.

Illinois businesses added jobs in seven metros.
Largest increases:

Chicago-Joliet-Naperville (+1.5 percent, +55,300),

Lake-Kenosha (+1.2 percent, +4,700),

Champaign-Urbana (+0.9 percent, +1,000).

Largest decreases:

Decatur (-3.0 percent, -1,600),

Peoria (-1.7 percent, -3,100), and

Bloomington-Normal (-1.0 percent, -900).

Much of these decreases are connected to a temporary slowdown in global manufacturing demand. Industry sectors recording job growth in the most metros: Education and Health Services (11 of 12), Leisure and Hospitality (eight of 12), and Other Services (seven of 12).

Not seasonally adjusted data compares the current month to the same month of the previous year. The
November 2013 not seasonally adjusted Illinois rate was 8.3 percent and 12.2 percent at its peak in this
economic cycle in January 2010. Nationally, the unemployment rate was 6.6 percent in November and 10.6 percent in January 2010 at its peak. The unemployment rate identifies those who are out of work and looking for work and is not tied to collecting unemployment insurance benefits. Historically, the state unemployment rate is higher than the national rate.

Total Non-farm Jobs (Not Seasonally Adjusted) - November 2013
Metropolitan Area   November 2013*   November 2012**  Over-the-Year Change
Bloomington-Normal MSA    91,300      92,200     -900
Champaign-Urbana MSA      109,400     108,400    1,000
Chicago-Joliet-Naperville Metro Div.  3,823,300    3,768,000     55,300
Danville MSA  29,900      29,800      100
Davenport-Moline-Rock Island MSA      185,000    184,900   100
Decatur MSA   51,100      52,700      -1,600
Kankakee-Bradley MSA      44,700      44,600      100
Lake County-Kenosha County Metro Div. 396,100    391,400 4,700
Peoria MSA    183,600     186,700     -3,100
Rockford MSA  150,700     151,200     -500
Springfield MSA     113,200     112,600     600
Illinois Section of St. Louis MSA     230,000    230,500     -500
*Preliminary    **Revised

Not Seasonally Adjusted Unemployment Rates (percent) for Local Counties and Areas Nov 13      Nov 12

Davenport-Rock Island-Moline IL-IA MSA
Rock Island County  7.1 % 6.7 %
Henry County  7.0 % 6.2 %
Mercer County    6.8 % 6.1 %
Scott County, IA    5.6 % 5.9 %

Cities
Rock Island City 7.3 % 7.4 %
Moline City   7.2 % 6.4 %
Galesburg City      9.3 % 8.2 %

Counties
Bureau County 9.0 % 8.6 %
Fulton County 10.0 %      8.9 %
Henderson County    6.2 % 7.3 %
Knox County   8.6 % 7.8 %
Stark County  10.2 %      7.9 %
Warren County 7.1 % 6.6 %
Whiteside County    9.3 % 8.3 %

Historically, the Illinois unemployment rate is higher than the national rate. Only six times since January 2000 has the state rate been lower than the national rate. The data is seasonally adjusted and includes times of both economic expansion and contraction.

Davenport-Moline-Rock Island IL-IA MSA

The not seasonally adjusted unemployment rate increased slightly to 6.5 percent in November 2013 from 6.3 percent in November 2012.  Non-farm employment increased from its year-ago level by +100. Job growth occurred in Construction (+700), Professional-Business Services (+500), Educational-Health Services (+200), Transportation-Warehousing-Utilities (+200), Wholesale Trade (+200), Other Services (+100), Leisure-Hospitality (+100), and Information (+100).

Declines were posted in Government (-1,500) and Manufacturing (-500) compared to November 2012. Illinois has added +281,400 private sector jobs since January 2010 when job growth returned to Illinois following nearly two years of monthly declines. State data is seasonally adjusted. Since January 2010, leading growth sectors in Illinois are Professional and Business Services (+116,400); Educational and Health Services (+61,000) and Trade, Transportation and Utilities (+58,700). Government has lost the most jobs since January 2010, down -28,600. The unemployment rate identifies those who are out of work and seeking employment. A person who exhausts benefits, or is ineligible, still will be reflected in the unemployment rate if they actively seek work. The IDES supports economic stability by administering unemployment benefits, collecting business contributions to fund those benefits, connecting employers with qualified job seekers, and providing economic information to assist career planning and economic development.

Note:

• Monthly 2012 unemployment rates and total non-farm jobs for Illinois metro areas were revised in February 2013, as required by the U.S. Dept. of Labor, Bureau of Labor Statistics (BLS). Comments and tables distributed for prior metro area news releases should be discarded as any records or historical analysis previously cited may no longer be valid.

###

This message is a service of the State of Illinois.  If you have any questions about this document, please contact the Illinois Office of Communication and Information (IOCI), Room 611, Stratton Office Building, Springfield, Illinois 62706, (217) 558-1548.
27 Dec 2013

Governor Quinn Announces 5,000 Affordable Rental Homes Financed in 2013

By Brooke Anderson

State Support Enables Creation and Preservation of Quality Housing, Creates Jobs Across State

CHICAGO - Governor Quinn today announced that the Illinois Housing Development Authority (IHDA) provided more than $471 million in financing this year to make 5,000 quality affordable rental homes available to working families, seniors and people with disabilities. Since Governor Quinn took office, IHDA has provided $2.2 billion in financing to build or preserve more than 19,600 affordable apartments in 131 communities across the state, generating an estimated 20,280 jobs. Today's announcement is part of the Governor's agenda to ensure quality affordable housing for people in-need across Illinois.

"Affordable housing is important to the fabric of our communities," Governor Quinn said. "That is why are working tirelessly to increase affordable housing options for working families, seniors and people with disabilities throughout Illinois, which also creates thousands of jobs and drives our economy forward."

Creating and preserving affordable rental housing works as an economic engine to generate construction and post-construction jobs and spur local economic activity.  Affordable housing financed through the state in 2013 is estimated to create 3,200 construction and post-construction jobs.

Just in time for the holidays, Rhonda Pruitt and her twin 3-year-old sons recently moved into a three-bedroom townhome in the new construction 20-unit Greenleaf Manor development in Glenview. A clergy member at St. John's Evangelical Lutheran Church in Wilmette, Pruitt and her family were staying with family members but wanted to find a permanent stable and secure home of their own.

"For much of my boys' lives, they have lived somewhere else," Pruitt said. "Now, when they say to me, 'Can we go home now?' - I'm able to say, 'Yes, we're going home.'"

As the state's housing finance agency, IHDA provided federal Housing Credits that generated private equity totaling nearly 90 percent of the cost to develop Greenleaf Manor. Developed by Chicago-based Daveri Development Group, Greenleaf Manor features two-, three- and four-bedroom townhome apartments for families earning no more than 60 percent of the area median income, or $39,780 in the Chicago area for a three-person household.

The need for affordable housing is nationwide. In 1960, about one in four renters were cost burdened, or paid more than 30 percent of their income for housing. Today, one in two are cost burdened, according to the Joint Center for Housing Studies of Harvard University.

"Renters represent nearly one-third of households in Illinois, and approximately 425,000 are extremely low-income," IHDA Executive Director Mary R. Kenney said. "Governor Quinn's administration is focused on working together with our federal, local and private partners to create and sustain affordable housing statewide to meet the needs of Illinois residents."

To qualify for the affordable units financed through the state, residents must earn at or below 60 percent of the area median income (AMI), or $36,300 in the Springfield area, $36,000 in Peoria area or $37,380 in Metro East for a three-person household.

A list of developments offering affordable rents is available at www.ihda.org or www.ilhousingsearch.org.

###

Pages

Subscribe & Listen to Reader Podcasts

On Stands Now

 

Tagged Content

    

Two Ways to Subscribe

1. Subscribe to free weekly e-mail content updates.

You'll get both the current official narrative challenge and What's Happenin' in the Quad Cities.
(Did you know we publish a new Real Astrology and RCR Crossword every week?) 

Subscribe!

* indicates required

2. Get 12 monthly issues mailed first class for $48

Get 12 issues mailed monthly for $48 per year.

Get the printed Reader edition mailed to you (or anyone you want) first-class for 12 months for $48.
$24 goes to postage and handling, $24 goes to keeping the doors open!

Click this link to Subscribe now.