(WAND) – Federal tax credits will be used to fund low-income housing developments across Illinois.
The Internal Revenue Service distributed awards of over $28 million in tax credits to Illinois as part of the Low-Income Housing Tax Credit program. Each year, the IRS gives each state a certain number of credits based on population. In Illinois, the state’s Housing Development Authority (IDHA) gives them out after a competitive application process, then the developers who get them sell them to investors to help with construction and operating costs.
Renters have the savings passed on them in below-market rent costs, which have to be affordable for at least 30 years.
The credits are expected to generate an estimated $257.7 million in private capital once they’re sold to investors. They will finance the creation and/or preservation of 1,864 affordable units for low and moderate-income families, seniors, veterans and people with special needs, according to an IDHA release.
“The Low-Income Housing Tax Credit is perhaps the most vital tool in country to spur the development of affordable housing and fill an increasing void,” said IHDA Executive Director Audra Hamernik. “With Illinois renters becoming increasingly burdened, LIHTC allows us to leverage public/private resources for the construction of affordable housing that otherwise would not be built.”
Two central Illinois developers are getting grants. They include Livingston Homes in Springfield and Hathaway Homes Phase II in Taylorville/Pana.
The press release says Livingston Homes will use the money from the grants to transform Poplar Place, building 11 one-bedroom, 38 two-bedroom, 40 three-bedroom and 10 4-bedroom units. Hathaway Homes plans on building 60 single-family homes as part of a scattered site development, including 30 two-bedroom and 30 three-bedroom houses. There will be central A/C, wood floors and modern appliances in each unit.