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Who are the buyers of these properties? ~ <br />About two-thirds of the buyers are North Carolinians. Occasionally they have family associations with the properties. <br />Typically, they are purchasing the properties for reasons of the "heart" rather than reasons of the "wallet." Other buyers axe <br />attracted to North Carolina by its high quality of life and its impressive stock of historic properties. _ <br /> <br />What loans are available to buyers to finance purchases and restoration? <br />The properties arc often too deteriorated for a conventional mortgage. Therefore, buyers will typically obtain a construction_ <br />loan for purchase and rehabilitation which, upon completion of the work, will convert into permanent financing. <br />Occasionally, the seller can provide short-term financing. <br /> <br />Can a buyer borrow money from the fund for a restoration project? <br />No. The revolving fund'is not set up as a loan fund, but functions to purchase and sell endangered historio properties. <br /> <br />Are there low-interest loans available? <br />No. The only fmanciai incentives are the 20% Federal tax credit and 5% North Carolina tax credit for rehabilitating <br />income-producing historic properties. There are no tax advantages to rehabilitating one's own home. <br /> <br />Does PNC make money on its properties? <br />Usually not. Most of the properties with which the fund works are problem properties. If someone could have turned a <br />profit on them, they already would have. Except when a property has been donated to PNC, the work of the revolving fund '" <br />is regarded as a success when it has broken even and has been reimbursed for its expenses. <br /> <br />What about gifts of real estate? <br />Gi~ of property to the revolving fund are sought and very much appreciated. Their sale can provide much needed capital <br />for the fund's work. Such gilts are tax-deductible. <br /> <br />How are the properties advertised? <br />PNC publishes the magazine North Carolina ~Preservation which has a circulation of approximately 5,000. PNC also <br />advertises in the publications of the National Trust for Historic Preservation and other national magazines, and provides <br />press releases on the activities of the revolving fund to local newspapers. <br /> <br />Do the covenants hinder the sale of properties? <br />Usually not. Purchasers typically share the concerns of PNC for the long-term protection of the property. Therefore, <br />purchasers usually appreciate the covenants, since the protection extended through PNC's restrictions will avert any future <br />desecration of the property in which buyers are planning to invest a large amount of time, energy and money. <br /> <br />What happens when there is a violation of the covenants? <br />Usually problems can be worked out with a property owner on a friendly and constructive basis. However, ifa serious <br />violation of the covenants occurs, PNC has the option to repurchase the property at its fair market value if the violation is <br />not corrected within 90 days. <br /> <br />Can property owners place protective covenants on property they already own? <br />Yes. PNC accepts preservation easements on historic properties which are very similar to the protective covenants it places <br />on the properties it buys and sells. These preservation easements provide a welcome tool for owners to safeguard the future <br />of their property in perpetuity. <br /> <br />12/95 <br /> <br /> <br />