Affordable Housing Efforts Receive Boost with Governor Pritzker’s $26 Million Low-Income Housing Tax Credit Allocation
Governor JB Pritzker and the Illinois Housing Development Authority (IHDA) Board have announced the awarding of nearly $26 million in federal Low-Income Housing Tax Credits (LIHTC) to fund 18 affordable housing developments in 12 counties across Illinois. These tax credits will generate an estimated $235 million in private capital, enabling the creation and preservation of 1,159 affordable housing units for low- to moderate-income families, seniors, and people with disabilities.
Governor Pritzker emphasized the importance of affordable housing, stating that it is a right for every Illinoisan. He highlighted the significance of this funding in providing safe and affordable housing options for families across the state. Lt. Gov. Juliana Stratton also praised the efforts to improve housing opportunities for vulnerable communities and prevent homelessness.
In Illinois, 73 percent of extremely low-income renter households are severely cost burdened, spending more than half of their income on housing. The shortage of affordable units for extremely low-income families exacerbates this problem. To address the housing gap, Illinois needs to create and preserve over 293,354 housing units. The awarded tax credits will play a crucial role in bridging this gap and providing more security and affordability for renters.
The LIHTC program, established by Congress in 1986, allocates tax credits to each state based on population. IHDA administers the program in Illinois and awards the credits to affordable housing developments through a competitive application process. Developers sell these credits to investors, using the generated equity to reduce construction and operating costs. The resulting savings are passed on to renters in the form of below-market rents, which must remain affordable for at least 30 years.
Since IHDA began administering the LIHTC program, it has financed the creation and preservation of over 58,000 units of affordable housing throughout Illinois. The recently awarded tax credits will contribute to the ongoing efforts to provide equitable access to housing and economic opportunities for vulnerable populations.
The announcement of the LIHTC awards aligns with the bipartisan Affordable Housing Credit Improvement Act, a housing legislation designed to expand and strengthen the Low-Income Housing Tax Credit. If passed, the act could lead to the creation of nearly 2 million new affordable homes over the next decade, providing IHDA with additional tools to finance affordable housing initiatives statewide.
The awarded developments include a mix of new construction and renovation projects, focusing on various regions in Illinois. These projects will address specific housing needs in each area, such as senior housing, intergenerational housing, and affordable rental units for families. The IHDA Board has approved the conditional awards for the following developments:
- Abrams Intergenerational Village (Chicago)
- Casa Yucatan (Chicago)
- Addison Horizon Senior Living Community (Addison)
- Hillside Senior Apartments (Hillside)
- Poupard Place (Northbrook)
- Riverwalk Homes (Joliet)
- South Boulevard Shores (Evanston)
- Starling Senior Apartments (Lake Villa)
- Taylor Place Apartments (McHenry)
- Churchview Garden Homes (Peoria)
- Parker Glen II (Champaign)
- Phoenix Manor (Peoria)
- Steer Place Apartments (Urbana)
- Stevens Apartments (Wood River)
- Downtown Villas (Jacksonville)
- Fox Hill Senior Living (Yorkville)
- Lincolns Senior Flats (Lincoln)
- Timber Trails Apartments (Harrisburg)
These developments aim to provide safe, affordable housing options while addressing the specific needs of each community. IHDA will continue to work towards delivering equitable access to housing and economic opportunities for vulnerable individuals and families across the state of Illinois.