Abstract:
A system and method of obtaining offers for an option in one embodiment includes obtaining an option to purchase a real property, storing tax credit data associated with future development of the real property in a database, storing option data associated with the obtained option in the database, associating the stored option data with the stored tax credit data, retrieving the stored option data and the stored tax credit data, displaying the retrieved data, requesting an offer for the option associated with the displayed data, and receiving an offer to purchase the obtained option.

Description:
FIELD OF THE INVENTION  
       [0001]    This invention relates to real estate options and more specifically to real estate options for properties within Qualified Census Tracts (QCTs). 
       BACKGROUND  
       [0002]    Tax credits are incentives offered by either the federal or state governments to induce contributions and investments from the private sector into projects that benefit targeted communities and populations. One tax credit program is the low income housing tax credit (LIHTC) program. The LIHTC program is an indirect Federal subsidy used to encourage the development of affordable rental housing for low-income households. A tax credit provides a reduction of taxpayer liability in the jurisdiction issuing the credit. 
         [0003]    Federal housing tax credits under the LIHTC program are awarded to developers of “qualified” projects. To qualify for consideration of receipt of tax credits under the LIHTC Program, a proposed project must: (1) be a residential rental property; (2) commit to one of two possible low-income occupancy threshold requirements; (3) restrict rents, including utility charges, in low-income units, and (4) operate under the rent and income restrictions for 30 years or longer, pursuant to written agreements with the agency issuing the tax credits. 
         [0004]    Each year, the IRS allocates specific numbers of housing tax credits to designated state agencies, typically state housing finance agencies. Each state is limited to a total annual housing tax credit allocation based upon the state population, with only the first year of the 10 years of tax credits counting against the allocation. States and local jurisdictions may also offer tax credits to offset state and/or local taxes to encourage various types of development projects. 
         [0005]    In order to provide the greatest return on the available tax credits, the entities allocating the tax credits have devised processes for assessing proposed developments. Developers are required to submit detailed proposals including information about the experience of the developer, financial plans for the proposed development, neighborhood and site information, market feasibility analysis, general contractor information and architectural and engineering plans. 
         [0006]    The proposals received by the allocating authority are graded based upon a number of criteria which reflect the information that is required to be submitted. Generally, the amount of tax credits available cannot support the amount necessary for each of the proposals which meet a minimum eligibility grade. Accordingly, not all of the proposals are approved. 
         [0007]    Generally, a planned development will not be undertaken if the proposal is not approved because the financial feasibility of most plans is generally substantially dependent upon the receipt of some amount of tax credits. By way of example, tax credits issued for a rental property development may be sold to investors at a discounted rate. The proceeds from the sale may then be used as the initial capital needed to fund the development project. The availability of initial capital reduces the debt incurred by the development, thereby reducing the amount of income from the development that is needed to service the debt. The reduction in debt service allows a lower rent to be charged, thereby achieving the goals of the tax credit program. The failure to obtain the tax credits thus eliminates a significant source of funding. The loss of funding is generally fatal to the planned development. 
         [0008]    Accordingly, the market for housing tax credits is very complicated and very competitive. Additionally, identifying an appropriate property for a project can be a time consuming venture. The subsequent identification of information sources necessary to prepare a proposal based upon the particular property is also time consuming. Thus, a developer has typically made a significant investment of resources in a project before drafting of a specific proposal is even begun. 
         [0009]    What is needed is a method of identifying properties that may qualify for development under one or more tax credit programs. Providing information which can be used by a developer to assess the potential of the identified property would be beneficial. Providing information that can be used to prepare and submit a proposed development of the property would also be useful. A need also exists for a method of providing a developer the opportunity to obtain an option to the property. 
       SUMMARY  
       [0010]    In accordance with one embodiment, there is provided a method of obtaining offers for an option in one embodiment includes obtaining an option to purchase a real property, storing tax credit data associated with future development of the real property in a database, storing option data associated with the obtained option in the database, associating the stored option data with the stored tax credit data, retrieving the stored option data and the stored tax credit data, displaying the retrieved data, requesting an offer for the option associated with the displayed data, and receiving an offer to purchase the obtained option. 
         [0011]    In accordance with another embodiment, there is provided an option auction system including a network, a display operatively connected to the network, a memory in which command instructions are stored, and a processor configured to execute the command instructions to store tax credit data associated with future development of a real property; store option data associated with an obtained option, associate the stored option data with the stored tax credit data, retrieve the stored option data and the stored tax credit data, display the retrieved data, request an offer for the option associated with the displayed data, and store a received offer to purchase the obtained option. 
         [0012]    In accordance with a further embodiment, an option auction system includes a network connection, a memory in which command instructions are stored, and a processor configured to execute the command instructions to (i) store development data for a plurality of real properties, (ii) store a plurality of option data, each of the plurality of option data associated with an obtained option for an associated one of the plurality of real properties, (iii) associate the stored development data with the associated real property, (iv) retrieve the plurality of real properties and the associated stored development data, (v) transmit the retrieved plurality of real properties and the associated stored development data through the network connection, (vi) request a plurality of offers, each of the requested plurality of offers associated with one of the retrieved plurality of real properties, (vii) store a received offer to purchase one of the retrieved plurality of real properties. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS  
         [0013]      FIG. 1  depicts a schematic view of an option auction system incorporating principles of the invention; 
           [0014]      FIG. 2  depicts an exemplary welcome page rendered on a user display in response to accessing the auction information system of  FIG. 1 ; 
           [0015]      FIG. 3  depicts an exemplary user specific page rendered on a user display in response to entering a user specific password in the welcome page of  FIG. 2 ; 
           [0016]      FIG. 4  depicts a portion of an exemplary property specific page including development data unique to a specific property and general data applicable to the specific property rendered on a user display in response to selecting one of the properties listed on user specific page of  FIG. 3 ; 
           [0017]      FIG. 5  depicts another portion of the property specific page of  FIG. 4 ; 
           [0018]      FIG. 6  depicts an expanded portion of the property specific page of  FIGS. 4 and 5  showing listing data unique to the specific property and listing data generally applicable to the specific property rendered on a user display in response to expanding a data filed of the property specific page of  FIGS. 4 and 5 ; and 
           [0019]      FIG. 7  depicts an expanded portion of the property specific page of  FIGS. 4 and 5  showing contact data applicable to the specific property rendered on a user display in response to expanding a data filed of the property specific page of  FIGS. 4 and 5 . 
       
    
    
     DESCRIPTION  
       [0020]    For the purposes of promoting an understanding of the principles of the invention, reference will now be made to the embodiments illustrated in the drawings and described in the following written specification. It is understood that no limitation to the scope of the invention is thereby intended. It is further understood that the present invention includes any alterations and modifications to the illustrated embodiments and includes further applications of the principles of the invention as would normally occur to one skilled in the art to which this invention pertains. 
         [0021]    An option auction system  100  is shown in  FIG. 1 . The auction system  100  includes an option information system  102  with local I/O devices  104 , a processing circuit  106  and a memory  108 . The I/O devices  104  may include a user interface, graphical user interface, keyboards, pointing devices, remote and/or local communication links, displays, and other devices that allow externally generated information to be provided to the processing circuit  106 , or that allow internal information of the option information system  102  to be communicated externally. 
         [0022]    The processing circuit  106  may suitably be a server or general purpose computer processing circuit such as a microprocessor and its associated circuitry. The processing circuit  106  is operable to carry out the operations attributed to it herein. Program instructions  110  are stored within the memory  108  along with databases  112 . The program instructions  110 , which are described more fully below, are executable by the processing circuit  106  and/or any other components as appropriate. 
         [0023]    The databases  112  are used to store development data. Development data as used herein means data related to the future development of a property, wherein the property is associated with an option to purchase the property. The development data includes data unique to the property as well as general data that apply to the property. Data unique to the property thus includes, for example, the price of the property, the zoning of the property, and the present condition of the property. General data includes data related to the approval process of development proposals, market surveys, contact data for the relevant municipality, etc. 
         [0024]    In this embodiment, the databases  112  include an option database  114 , a tax credit database  116 , a regulatory database  118 , a contacts database  120 , a survey database  122 , and an auction database  124 . The data stored in the databases  112  may be stored in a single database or within separate databases as shown in  FIG. 1 . Additionally, while the databases  112  are shown within the memory  108 , one or more of the database  112  may be in one or more memories remote from the memory  108 . In one embodiment, the databases  112  are populated using object oriented modeling. The use of object oriented modeling allows for a rich description of the relationship between various objects. 
         [0025]    The option database  114  includes data related to physical property on which an option to purchase is available. The data stored within the option data base  114  may include site characteristics, a site plan or survey/plat, sale price of the property, current condition of the property, address of the property, pictures of property, and other data specific to the property. For example, identification of the property as a historical site or prior uses of the property may be included. 
         [0026]    The tax credit database  116  includes data associated with the potential for receiving tax credits for development of the property. Such data may include financial incentives available (i.e. tax abatement), special classifications that apply to the property (revitalization area, enterprise zone, etc.), community needs score, census tract data, and data identifying development goals of the relevant municipality. 
         [0027]    The regulatory database  118  includes legal data associated with development of the property. The data stored within the regulatory database  118  includes zoning ordinances, building codes, proposal process data (e.g., deadlines, checklists, selection criteria self score data, etc.), fees assessed by the responsible municipality (e.g., sewer fees, permit fees, etc.). 
         [0028]    The contacts database  120  includes contact information for various entities involved in the proposal process. The contacts for which data may be provided include municipal/regulatory contacts such as planning, engineering, and development entities. 
         [0029]    The survey database  122  includes data associated with the area surrounding the property. Data which may be included in the survey database  122  includes infrastructure data, nearby stores, nearby amenities, nearby land use, map of the surrounding area, demographic reports and market analyses. 
         [0030]    The auction database  124  includes data related to the conduct of an auction for the option to purchase the property. The data stored within the auction database  124  may include bid opening and closing times, bid activity, current bid amount, etc. 
         [0031]    A communications network  130  provides communications between the option information system  102  and remote terminals  132 ,  134 ,  136 ,  138 , and  140 . In the embodiment described herein, the communications network  130  may be a direct dial connection, Intranet, Extranet, the Internet or World Wide Web (“WWW”), or other suitable communications path. A suitable network protocol, such as the TCP/IP protocol, may be used for the communications. 
         [0032]    The remote terminals  132 ,  134 ,  136 ,  138 , and  140  may be any type of computer which allows remote users to access the network  130 . The remote terminals  132 ,  134 ,  136 ,  138 , and  140  may include a central processor unit (“CPU”) and main memory, an input/output interface for communicating with various databases, files, programs, and networks, and one or more storage devices. The storage devices may be disk drive devices or CD ROM devices. The remote terminals  132 ,  134 ,  136 ,  138 , and  140  may also have a monitor or other screen device and an input device, such as a keyboard or a mouse. The remote terminals  132 ,  134 ,  136 ,  138 , and  140  may also have software programs contained in the main memory or the storage devices which can be used by the CPU such as a Web browser. 
         [0033]    The processing circuit  106  allows access through the network  130  to various resources in the option information system  102 . Upon initial access of the option information system  102  from a remote terminal  134 ,  136 ,  138 , or  140 , a welcome page  150  shown in  FIG. 2  is displayed. The welcome page  150  includes public option buttons  152 . The public option buttons  152  provide access to information which may be used by a new customer to better understand the resources of the option information system  102  that may be accessed through the welcome page  150 . 
         [0034]    Additional data may be provided on the welcome page  150  if desired. In the embodiment of  FIG. 2 , the welcome page  150  includes discussion field  160  and featured listing field  162 . The discussion field  160  may be used to provide general information about the site or an inducement to register with the option information system  102 . The featured listing field  162  provides a sampling of available options which are presented to generate interest in the resources available through the option information system  102 . The featured listing field  162  is populated with data stored in the databases  112 . 
         [0035]    The welcome page  150  also includes an email box  164  and a password box  166  which are used to allow established customers access to non-public resources. New customers may obtain access to the option information system  102  resources by selection of the register button  168 . Selection of the register button  168  causes registration pages (not shown) to be displayed to the user. 
         [0036]    Access to the non-public resources is accomplished by entry of a previously registered email address in the email box  164  and an associated password in the password box  166 . Once the appropriate input is entered into the email box  164  and the password box  166 , the user selects the sign-in button  170 . In response to the selection of the sign-in button  170 , the option information system  102  causes a user specific page  172 , shown in  FIG. 3 , to be displayed to the user. 
         [0037]    The user specific page  172  includes an option pane  174 , an auction pane  176 , a navigation pane  178 , and a search pane  180 . The option pane  174  includes the public option buttons  152  as well as user specific option buttons  182 ,  184 , and  186 . 
         [0038]    The auction pane  176 , which may encompass a number of pages, includes option summary modules  190   X . The option summary modules  190   X  identify properties associated with options that are available for purchase. With reference to option summary module  190   1 , each of the option summary modules  190   X  include a property image  192   1 , a property summary  194   1 , and a view listing button  196   1 . Additional fields may be provided such as warning field  198   1  which, in this embodiment, is used to highlight an impending deadline associated with the property. 
         [0039]    The option summary modules  190   X  provide the user with basic information as to the nature of the property associated with a particular option. The property image  192   X  is useful for identifying at a glance if the option is associated with a building (see, e.g., property image  192   1 ) or a plot of land (see, e.g., property image  192   2 ). The property image  192   X  may be an actual photograph, a rendering, or an icon. Preferably, the property image  192   X  is an actual photograph. The data for the property image  192   X  is stored in the option database  114 . The property summary  194   X  includes a brief description of the physical characteristics of the property associated with the option, populated with data from the option database  114 , some grading criteria for the property populated with data from the tax credit database  116 , and a summary of the bid activity on the associated option populated with data from the auction database  124 . 
         [0040]    The navigation pane  178  includes a pull down button  200  which allows a user to filter the list of properties in the auction pane  176  according to the listing type. Accordingly, selection of the pull down button  200  allows a user to filter the list of properties to show only vacant land, only apartments, or only historic buildings. Similarly, the search pane  180  may be used to rapidly identify properties listed in the auction pane  176  that are within a specified price range, that are within a specified city or state, or by the number of units that may be developed on the property. Additional or different search and navigation options may be provided 
         [0041]    Once a user identifies a property of interest, the view listing button  196   X  associated with the property is selected by the user. By way of example, a user interested in the property described in option summary module  190   2  may select the view listing button  196   2 . In response to the selection of the view listing button  196   2 , the option information system  102  causes the property specific page  210  shown in  FIGS. 4-5  to be displayed to the user. 
         [0042]    The upper portion of the property specific page  210  which is shown in  FIG. 4  includes the option pane  174 , a property specific option pane  212 , a property title field  214 , a map field  216 , a detail summary field  218  and an image  220  of the property. The lower portion of the property specific page  210 , shown in  FIG. 5  includes data fields  222 ,  224 ,  226 ,  228 ,  230 ,  232 , and  234 . 
         [0043]    The property specific option pane  212  includes a return to listings button  240 , a bid button  242 , a save button  244  and a print button  246 . Selection of the return to listing button  240  results in the display of the user specific page  172 . Selection of the bid button  240  results in the display of a bid page (not shown) which allows the user to identify a bid amount for an option and any special conditions attached to the bid. Selection of the save button  244  causes a link to the property specific page  210  to be displayed in response to selection of the user specific option button  182 . Selection of the print button  246  results in the display of a printer friendly version of the property specific page  210  which the user may then print on a local printer. 
         [0044]    The map field  216  displays a map of the location of the property. The map may be interactive and may incorporate aerial images of the location of the property. The data used to populate the map field  216  is stored in the survey database  122 . Detail summary field  218  is populated with data similar to the data displayed in the property summary  194   2 . The data may be obtained from one or more of the databases  112 . 
         [0045]    With reference to  FIG. 5 , the data field  222  provides additional detail as to the nature of the property. In this embodiment, a narrative of the present condition of the property as well as information as to the local needs score and development goals of the local municipality are provided. This data, which is stored in one or more of the databases  112 , may be used by a developer to assess the potential of a property for future development. 
         [0046]    The data field  224  includes two links  254  and  256  to images of the property. The links  254  and  256  are used to display data stored in the option database  114 . The data may be used to render images showing various characteristics of the property. In alternative embodiments, the images are rendered on the property specific page. 
         [0047]    The data field  226  provides data which is used to better understand the amenities which are located near the property. The amenities may include restaurants, shops, malls, stores, parks, etc. If desired, data may be presented in the form of a score or chart. Alternatively, a map with icons may be used. The information presented in the data field  226  may be stored in the survey database  122 . 
         [0048]    The data field  228  is used to provide links to documents which may be used to better assess the feasibility of developing the property. Links may be provided for regulatory documents stored in the regulatory database  118  such as zoning codes, housing codes, fee schedules and proposal submission guidelines. Links to documents such as market data and topographic surveys stored in the survey database  122  may also be accessed through the data field  228 . 
         [0049]    The data field  230  provides data as to the physical location of the property including local jurisdiction information that may be stored in the survey database  122 . Zoning information from the regulatory database  118  may also be displayed. 
         [0050]      FIG. 6  shows the data field  232  after the listing details button  254  has been selected to expand the data field  232 . The data field  232  includes links  260  and  262 . The link  260  provides access to demographic report data stored in the survey database  122 . The link  262  provides access to fee schedule data stored in the regulatory database  118 . More or fewer links may be provided. 
         [0051]    The data field  232  further displays data obtained from the databases  112  to provide more detailed information associated either directly or indirectly with the property. Thus, data such as cost data for the property, regulatory fees, tax information, special classifications or incentives that apply the property, and other data which may or may not be presented elsewhere may be displayed or linked to the data field  232 . 
         [0052]      FIG. 7  shows the data field  234  after the contacts button  256  has been selected to expand the data field  234 . The data field  234  is used to provide a developer with data for contacting the municipal entities associated with the property. These entities may include political entities and regulatory entities. Contact information may include physical addresses, telephone numbers, and web site addresses. 
         [0053]    The option information system  102  thus provides a user with a plethora of data associated with a particular property. The data facilitates an evaluation of the fiscal viability of a development of the property. Using the data available through the option information system  102 , an individual may identify a property which may viably be developed and submit a bid to purchase an option to the property. The information provided by the option information system  102  further facilitates the preparation and submission of a development proposal to a tax credit allocation entity. 
         [0054]    While the invention has been illustrated and described in detail in the drawings and foregoing description, the same should be considered as illustrative and not restrictive in character. It is understood that only the preferred embodiments have been presented and that all changes, modifications and further applications that come within the spirit of the invention are desired to be protected.