Chicago Construction News staff writer
The Illinois Housing Development Authority (IHDA) and the Local Initiatives Support Corporation (LISC) have announced that affordable housing developers can now apply for the latest round of the Next Gen Capacity Building Initiative (Next Gen). This program aims to expand the talent pipeline and enhance diversity in the housing development sector.
Applications will be accepted until 11:59 PM (CST) on Friday, Dec. 13. Program information and the application can be found here.
Next Gen provides developers with capital, training, and technical assistance, specifically targeting barriers to accessing funding, particularly the Low-Income Housing Tax Credit (LIHTC) program.
Interested applicants are encouraged to attend one of two upcoming webinars hosted by LISC:
- Tuesday, Nov. 12 at noon – click to register
- Tuesday, Nov. at 5:30 p.m. – click to register
Governor JB Pritzker emphasized the initiative’s importance: “In Illinois, we are building a future where everyone has access to affordable, quality housing, and that starts with empowering diverse affordable housing developers. By equipping BIPOC developers with essential resources, the Next Gen initiative boosts the supply of affordable homes and promotes inclusivity in the housing industry. I encourage all eligible developers to apply as we strive to ensure our housing sector reflects the diversity of Illinois.”
Launched last year, Next Gen is part of a broader effort to increase equity in affordable housing development in Illinois. The first cohort included 22 emerging developers from various regions, highlighting the need for geographic diversity to address unique local housing challenges.
“As regional and national firms become more prevalent, new developers face increasing barriers,” said IHDA Executive Director Kristin Faust noted the complexities of affordable housing development. “Next Gen provides the guidance and hands-on experience necessary to navigate the LIHTC program and effect real change through affordable housing.”
The initiative prioritizes applicants with geographic diversity and BIPOC developers who have faced challenges in accessing affordable capital. Applicants should possess experience in real estate development or finance, as the curriculum assumes a foundational knowledge of real estate principles, including Excel pro forma creation, loan applications, market analysis, and income/expense tracking.
“We are excited to launch the second cohort of Next Gen. Our first cohort was a success in building a diverse talent pipeline in affordable housing development, and we aim to continue that momentum,” said Meghan Harte, senior executive director of LISC.
Starting in Spring 2025, approved participants will undergo 160 hours of training focused on utilizing LIHTC for affordable housing development. Topics will include forming and managing development teams, financing, the IHDA application process, and property management. Participants will also have opportunities to network with established housing developers.
Upon completing the curriculum, participants will be eligible for a pre-development loan funded by IHDA and managed by LISC, aimed at covering early project costs that often hinder smaller developers.
