The Illinois Housing Development Authority (IHDA) Board has awarded over $29 million in low-income housing tax credit to 24 related establishments across 15 counties. The credits are estimated to generate $253 million in private capital to produce 1,229 additional affordable housing units for vulnerable groups in need, including veterans, the elderly, and individuals with special needs.
"I'm proud that we’re leading the way to provide safe and affordable housing for all of our residents. By awarding $29 million in federal low-income housing tax credits, we're advancing equity and opportunity for families across Illinois," Gov. JB Pritzker wrote in a Facebook post.
There is a shortage of affordable units for low-income families. Sixty-eight percent of low-income households either spend more than half their income on housing or are burdened financially. So far, the LIHTC program has financed more than 7,270 units of affordable housing.
"Illinois' tax credit program is a critical tool in our efforts to provide safe and affordable housing for all of our residents, and to build an economy that works for everyone," the governor said. "While much progress has been made in addressing housing needs and disparities, we know that much more help is needed to lift up our underserved communities. These awards represent significant investments and innovative partnerships that will advance equity and opportunity for our families and communities."
The program is derived from a section in the Tax Reform Act of 1986 (P.L. 99-514), through which the IRS allocated a significant amount of tax credits each year based on the number of residents in each given area. IHDA awards the credits through a competitive application process. After developers finalize sales and use the equity to reduce costs, the rest must remain affordable for a minimum of three decades.
The National Low Income Housing Coalition indicates that 68% of extremely low-income tenants spend more than half of their earnings on living expenses each month. The problem requires a solution to preserve nearly 270,000 units and minimize the gaps between available units and the outnumbering figure of families in need of them.
Since 1987, the IHDA has contributed to the creation and preservation of the establishments. Within the last five years, the program has been responsible for financing over 7,270 units of affordable housing and generated $1.2 billion in private capital, according to illinois.gov.
"The Low-Income Housing Tax Credit is one of the best incentives we have to create and preserve affordable housing throughout Illinois," said State Senator Cristina Castro (D-Elgin). "Developments like Hanover Landing would struggle to find financing without this vital tax credit, further displacing persons with disabilities from finding safe and secure housing. I will continue to fight in Springfield to ensure the most vulnerable have increased access to affordable housing."
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