Sixteen Developments Receive LIHTCs in Illinois

The Illinois Housing Development Authority (IHDA) has reserved nearly $24 million in federal low-income housing tax credits (LIHTCs) to 16 affordable housing developments.

The awards will help finance the creation or preservation of 792 affordable homes in 10 counties throughout the state.

“Everyone deserves access to stable and affordable housing—no matter their ZIP code,” said Gov. J.B. Pritzker. “Thanks to our federal partners and the LIHTC program, my administration can further combat homelessness by incentivizing housing developers to creatively build or preserve additional affordable housing units for low-income individuals statewide.”

This year’s developments are the first to be awarded under the 2024-2025 qualified allocation plan (QAP), the rules that govern Illinois’ LIHTC program. IHDA incentivized three core policy priorities in the updated QAP, including statewide equity, helping vulnerable populations, and sustainability and energy efficiency, according to officials.

This year, IHDA also incorporated a new permanent supportive housing (PSH) track to expand upon 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% 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 awarded credits will include PSH units to help stop the cycle of homelessness for vulnerable people.

Overall, 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 LIHTCs would never have been financially feasible to convert to affordable housing.

Among the 16 developments, 52 of the units are reserved for residents making less than 80% of the area median income (AMI), 372 are for residents making less than 60% of the AMI, 171 of the units are for residents at or below 50% of the AMI, and 197 units are set aside for residents making below 30% of the AMI who often face housing insecurity.

“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 to continue to live in the communities they have called home for decades. IHDA will continue to find new and innovative ways to create additional housing opportunities for low-income households. I am grateful of the work we do every day to underwrite these projects so thousands in Illinois can have a new, affordable place to call home every year.”