The Illinois Housing Development Authority (IHDA) Board approved approximately $63 million in federal and state tax credits for affordable housing developments in 11 counties statewide.
IHDA will source the funds through $24 million in federal Low-Income Housing Tax Credits (LIHTC) and $39 million in federal and state subordinate resources.
LIHTC is a federal tax incentive designed to support affordable housing investments. Administered by state housing finance agencies — such as the IHDA — each state receives an annual allocation of credits based on population. The program encourages private equity investment in housing developments targeted at low-income residents. Units financed through LIHTC must remain affordable for at least 30 years, reflecting the state’s long-term commitment to housing stability.
The awards and resources will finance the creation and preservation of 16 affordable housing developments throughout Illinois. Authority officials anticipate the LIHTC awards could generate an estimated $180 million in additional private capital to support the development of 850 affordable homes for families, seniors and veterans that make low or moderate incomes.
The 16 approved developments include 11 new construction projects and five rehabilitations or adaptive reuses of existing buildings. New construction developments will create long-awaited housing for seniors in Aurora, Du Quoin and Channahon. Key preservation efforts include converting a shuttered school in Aledo and restoring the historic Werner Brothers Storage Warehouse in Chicago’s Rogers Park neighborhood.
The awarded cities include:
Aledo
Alton
Aurora
Batavia
Channahon
Chicago (two developments)
Du Quoin
Edwardsville
Evanston
Gurnee
Marion
Oak Park
Peoria
Rockford
Springfield
The tax credit enables the IHDA to provide new housing opportunities each year for renters that make low and moderate incomes across the state. In the past five years, IHDA has used the program to help finance 121 developments, supporting the creation or preservation of over 5,900 affordable homes in Illinois.
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