Affordable Housing: Lawmakers, advocates push for Build Illinois Homes Tax Credit

SPRINGFIELD, Ill. (WAND) — A bipartisan group of state lawmakers want Illinois to create a new tax credit to encourage investments in affordable housing.

The state has lost 20% of its low-income apartments since 2011, according to the Illinois Housing Council. Advocates told reporters in Springfield Wednesday that Illinois needs nearly 300,000 more rental homes built to meet growing demand.

This plan would give housing developers tax credits to exchange with private investors to reduce mortgage debt and make apartments more affordable for renters.

"We need to find long-term solutions to affordable housing," said Rep. Dagmara Avelar (D-Bolingbrook). "We can't just do this in grants. Grants are band aid solutions. They are very much needed, but they help us in the short-term. We need long-term solutions."

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Lawmakers said their $20 million plan could help build up to 1,150 affordable homes and create more than 7,000 jobs. 25 other states have created similar tax credit plan to build affordable housing.

"When people know they can afford their rent and meet all of their other basic needs, the burden in their lives eases tremendously, and it takes a huge strain off of our state social service support system," said Allison Clements, Executive Director of the Illinois Housing Council. "Colorado, Georgia and Wisconsin all have seen tremendous benefits right away from their state affordable housing tax credits, and we know Illinois will see the same."

Advocates explained investors would only receive credits after construction is complete and qualified tenants move in. This is a major change from the state's current system where housing developments could be in jeopardy due to the uncertainty of year-to-year funding.

"You hear often that this is a tight budget year," said Sen. Robert Peters (D-Chicago). "Well, this is also a unique economic development opportunity. We're talking about thousands of jobs and thousands of units. We're talking about development on land that needs it and becomes an economic engine in a community that needs it."

Peters and Avelar hope this idea will be a top priority during budget negotiations with the Pritzker administration.