(The Center Square) – A new law will create financing programs and tax incentives to support the creation of affordable housing across Illinois.
The program will supplement affordable housing developments that qualify for federal tax credits. Funds will be made available through $75 million federal dollars from the American Rescue Plan Act. Officials expect it will fund the development and preservation of up to 3,500 rental homes and apartments by the end of 2024.
“Everyone deserves a safe, stable, and affordable place to live, and this bill (HB2621) will help us bring housing investment and opportunity to the communities where are need the most,” Illinois Housing Development Authority Deputy Executive Director Karen Davis said.
The bill also extends the Illinois Affordable Housing Tax Credit through 2026 to encourage monetary or real estate donations to housing developments. The program provides a one-time state income tax credit equal to 50% of the value of qualified donations to affordable housing developments.
In addition, the legislation will create two separate property tax incentives to support the preservation of affordable housing, including a provision that encourages owners of multifamily buildings with 7 or more units to invest in their properties and keep rents affordable by providing reductions in post-improvement assessed value.
The classification nine pieces of this legislation aims to keep renters in their homes by offering relief to property owners who keep their tenant’s rent affordable,” said state Sen. Sara Feigenholtz, D-Chicago.
Also signed into law was Senate Bill 265 which allows access to the state’s Low-Income Heating and Energy Assistance Program for families with young children and expands access to undocumented residents.
“Because of this, this will save lives,” said the bill’s cosponsor, state Rep. Barbara Hernandez, D-Aurora. “This will allow families to be able to keep their homes warm and be able to call a place to call their own.”