Federal incentive will create 1,188 units for families, seniors and individuals with disabilities
CHICAGO – Two Southwestern Illinois housing projects are sharing in federal housing tax credits being applied in the state.
The Illinois Housing Development Authority Board announced conditional awards totaling more than $26 million in federal Low-Income Housing Tax Credits that will fund 21 affordable housing developments in 11 counties throughout Illinois. Once sold to investors, the tax credits will generate an estimated $238.4 million in private capital to finance the creation and/or preservation of 1,188 affordable units for low- to moderate-income families, seniors, veterans and persons with special needs.
“With more and more families and seniors increasingly rent burdened and reeling from the impact of the pandemic, it is crucial that we continue to build and preserve affordable housing throughout Illinois to address this urgent need,” said IHDA Executive Director Kristin Faust. “The Low-Income Housing Tax Credit program is the strongest tool in Illinois to spur the much-needed development of additional affordable housing, and these awards build on our efforts to provide real relief to local renters hit hardest by the economic downturn.”
The Low-Income Housing Tax Credit program was created with the passage of the Tax Reform Act of 1986 (P.L. 99–514). The Internal Revenue Service allocates a certain number of tax credits annually to each state based on population. IHDA awards the credits through a competitive application process, and, once developers receive the credits, they sell them to investors and use the equity generated to reduce construction and operating costs. The savings in underwriting are passed on to the renter in the form of below-market rents, which must remain affordable for a minimum of 30 years.
IHDA has administered the LIHTC program to facilitate the creation and preservation of affordable housing in Illinois since 1987. In just the past five years, the program has financed more than 18,600 units of affordable housing in the state and generated $1.7 billion in private capital. For more information regarding LIHTC, visit: www.ihda.org/developers/tax-credits.
The IHDA Board approved two developments to receive 2021 Low-Income Housing Tax Credits in Metro East:
McKay Manor (Breese): A new-construction development with 58 units across a mixture of 1-, 2- and 3-bedroom units from Housing Service Alliance Inc. The project will include large floor plans and amenities such as washer/dryer hookups, on-site management, a community room. All units will have energy efficient ranges, refrigerators, garbage disposals and built-in microwaves. The development will also include a bike rack and an outdoor gathering spaces with grills, picnic tables and a playground.
Diamond Apartments of Jerseyville (Jerseyville): 3 Diamond Development, LLC, will build a new construction development with 6 two-story breezeway buildings and 1 single-story duplex totaling 50 units and a community building. The development will consist of 4 one-, 20 two- and 26 three-bedroom affordable units. Each unit will include stoves, Energy Star refrigerators, dishwashers and ceiling fans.