Illinois Awards $26 Million in Housing Tax Credits to Fund 1,159 Affordable Units

Illinois renters stretched thin by rising housing costs got a meaningful piece of good news in the summer of 2023. On June 23, 2023, Gov. JB Pritzker and the Illinois Housing Development Authority (IHDA) announced nearly $26 million in federal Low-Income Housing Tax Credits (LIHTC) that will fund 18 affordable housing developments across 12 counties, creating or preserving 1,159 rental homes for families, seniors, and people with disabilities.

For households making 30 to 80 percent of the local Area Median Income (AMI), these awards translate into actual below-market apartments in cities like Chicago, Peoria, and Urbana, with rents locked in as affordable for at least 30 years.

What the $26 Million Actually Does

The $26 million figure is the annual tax credit amount, but the real impact is much larger. Developers sell the credits to investors, and the equity raised flows straight into construction and operating budgets. IHDA estimates the 2023 round will generate about $235 million in private capital for Illinois housing projects.

That equity lets developers keep rents well below market rate. In exchange, every building financed with LIHTC must remain affordable to income-qualified tenants for a minimum of 30 years, a rule written into federal land-use restrictions that follow the property even if it changes hands.

"Housing isn't a privilege, it's a right," Pritzker said in announcing the awards, pledging that "every Illinoisan has access to affordable housing." IHDA Executive Director Kristin Faust echoed the point, saying, "All Illinoisans have a right to a safe, decent and affordable place to live and call home."

Where the Money Is Going

The 18 selected developments spread the funding across urban, suburban, and downstate communities. A few of the largest projects give a sense of who benefits:

• Phoenix Manor in Peoria will convert a former hotel into 55 units targeted at people experiencing homelessness.
• Abrams Intergenerational Village in Chicago will deliver 71 units designed for seniors, grandparents raising grandchildren, and young adults ages 18 to 24 aging out of foster care.
• Steer Place Apartments in Urbana will add 108 units reserved for residents 55 and older.
• Churchview Garden Homes in Peoria will create 47 units across a multi-building site.

The remaining projects are spread across 12 Illinois counties, with a mix of new construction and preservation of existing affordable buildings that were at risk of aging out of the program.

What This Means for Illinois Renters and Homeowners

LIHTC is a rental program, not a down-payment grant, so it will not directly help someone buy a house. But for homeowners watching adult children, aging parents, or neighbors struggle to find affordable rent, the program is one of the few tools that reliably produces income-restricted apartments at scale.

Illinois residents looking for one of the new units will not apply to the state directly. Each property is managed by its developer or a property management company, and leasing typically opens a few months before the building is ready for occupancy. Applicants must meet income limits tied to household size and the county's AMI, and most properties also require standard rental screening like credit and background checks.

Renters interested in LIHTC apartments can search IHDA's online affordable rental housing locator or contact the developer for each property directly once applications open. Waitlists are common, especially for senior and supportive-housing units, so applying early at several properties is usually the best strategy.

The 2023 awards are part of an annual IHDA cycle. The agency issues a new Qualified Allocation Plan each year and releases tax credit awards on a regular schedule, meaning Illinois communities can expect another round of projects in future funding years.