Lawmakers fight for affordable housing tax credit, Pritzker signs housing executive order

SPRINGFIELD, Ill. (WAND) — As more companies locate to Illinois, lawmakers and business leaders know the state needs more housing for workers. Illinois could become the twenty-sixth state to create a tax credit for building affordable housing.

The Illinois Housing Council has reported the state has lost 20% of its low-income apartments since 2011. Experts believe the demand for new housing will continue to grow each year, and business leaders said housing is essential to the future of the economy.

"It's not just about the ability to attract talent," said Jack Lavin, President and CEO of the Chicagoland Chamber of Commerce. "It's about ensuring that employees at all levels can live and work in the communities that our businesses call home."

A bipartisan group of lawmakers want the state to create a new tax credit to encourage investments in affordable housing. Their plan could give housing developers tax credits to exchange with private investors to reduce mortgage debt, and make apartments more affordable.

"Affordable housing requires a significant amount of investment, but that is going to pay off in the long run because we want to make sure that people are staying in Illinois," said Rep. Dagmara Avelar (D-Bolingbrook). "We want to make sure that the workforce is staying in Illinois, but also that the industry is staying in Illinois."

Lawmakers and advocates argue the $20 million plan could help build 1,150 affordable homes, and create more than 7,000 jobs.

Meanwhile, Gov. JB Pritzker hopes to tackle the lack of housing by signing an executive order to create an Illinois Director of Housing Solutions. The new employee will work with multiple state agencies to increase the number of middle class homes and rental options.

"Our primary focus will be reducing housing costs for working families, and we will leave no stone unturned in that work," Pritzker said Wednesday.

Pritzker is also relaunching the popular SmartBuy program to help young adults and families become homeowners. The program offers an affordable 30-year fixed rate first mortgage with $5,000 in deferred down payment or closing cost assistance. SmartBuy will also provide up to $40,000 in student loan relief to borrowers buying homes in Illinois.

"Our state's housing shortage destabilizes families and communities," said Jeff Baker, CEO of Illinois Realtors. "It doesn't just prevent us from realizing the American dream of homeownership, it drives more of us into a permanent rental market which itself suffers from low inventory and higher prices."

The SmartBuy program was able to help over 630 individuals and families buy homes in 2020. The Illinois Housing Development Authority paid down nearly $17 million in student loan debt, equal to an average of approximately $27,000 in mortgage relief.

"Everything revolves around housing. Everything revolves around healthcare. Everything revolves around job creation," Avelar said. "At the end of the day, we can't do one without the other."