CHICAGO – Governor JB Pritzker and the Illinois Housing Development Authority Board announced conditional awards totaling nearly $34 million in federal Low-Income Housing Tax Credits that will fund 25 affordable housing developments in 15 counties across Illinois. Once sold to investors, the tax credits will generate an estimated $296 million in private capital to finance the creation and/or preservation of 1,343 affordable units for low- to moderate-income families, seniors, veterans and persons with special needs.
“All Illinoisans—no matter their income status, age, occupation, zip code, or ability—deserve access to affordable housing,” said Governor JB Pritzker.
Morris will see the construction of 55 units of affordable housing across 14 townhome-style residential buildings on a lot that is currently vacant. The unit mix includes 2- and 3-bedroom floor plans to serve non-elderly households. In Rochelle, 69 units of independent senior housing for those aged 55 and older will be built. The proposed design includes a mix of one- and two-bedroom units contained within a four-story apartment building. The development will include various amenities and services that will keep residents independent and active.
The Low-Income Housing Tax Credit program was created with the passage of the Tax Reform Act of 1986 (P.L. 99–514). The Internal Revenue Service allocates a certain number of tax credits annually to each state based on population. IHDA administers the LIHTC program on behalf of the state of Illinois and awards the credits after a competitive application process. Once developers receive the credits, they traditionally sell them to investors and use the equity generated from the sale to reduce construction and operating costs. These savings in underwriting are passed on to the renter in the form of below-market rents, which must remain affordable for a minimum of 30 years.
Since 2017, IHDA has financed the creation and/or preservation of more than 8,800 units of affordable housing across Illinois through the LIHTC program.
June 4, 2022 at 08:15AM