Chicago Construction News staff writer
The Illinois Housing Development Authority (IHDA) Board announced $23.8 million in federal Low-Income Housing Tax Credits (LIHTC) to build or preserve 16 affordable housing developments in 10 counties.
Developments funded this year range from the adaptive reuse of a closed school in Decatur to the rehabilitation of a shuttered bank in Chicago that, without LIHTC, would never have been financially feasible to convert to affordable housing.
“Access to a safe, decent and affordable place to live is a fundamental human right that everyone in this state can and should have,” said IHDA Executive Director Kristin Faust. “All 16 of these developments will allow for individuals and families to live closer to where they work and for seniors continue to live in the communities they have called home for decades.”
Three core policy priorities were established this year in the updated QAP including statewide equity, helping vulnerable populations and sustainability and energy efficiency.
New this year, IHDA incorporated a Permanent Supportive Housing (PSH) Track to expand upon Governor Pritzker’s “Home Illinois” housing initiative that seeks to expand affordable housing options for individuals in high-risk situations and provide comprehensive support for individuals experiencing homelessness.
The PSH Track consists of a separate competitive scoring criteria for developments that set aside at least 30 percent of their LIHTC units for vulnerable populations. IHDA has been participating with other state agencies in a holistic approach to help Illinois reach “functional zero” homelessness and this is the first time PSH has been incentivized in the QAP. Three of the developments will include PSH units to help stop the cycle of homelessness for vulnerable Illinoisans.
LIHTC allows for developers to utilize federal, state, local, and private resources to build brand-new units or turn vacant or abandoned properties into modern affordable housing that will be viable for a generation. The total investment awarded by the IHDA Board for the 16 developments includes $23.8 million in 9% LIHTC that will generate an estimated $208 million in private capital and an additional $45.1 million in federal and state subordinate resources.
“The 1535 N. Pulaski development will allow seniors who have raised their families and significantly contributed to the cultural impact of Humboldt Park to remain in the community they have known and loved,” said State Representative Lilian Jiménez (D-Chicago). “Transforming the old Pioneer Arcade building into 60 homes is a significant victory in our fight against rising costs and gentrification affecting our neighborhoods. Our seniors bring life and history to Humboldt Park, and they deserve to stay in the community they have nurtured for generations. Securing the funding was a challenge, but with their advocacy, they got it done and secured a great investment for our community.”
