St. Charles, Elgin Land Federal Tax Credits For Affordable Housing
The Illinois Housing Development Authority Board of Directors this week awarded more than $26.4 million in federal Low-Income Housing Tax Credits to fund 26 affordable housing developments within 15 counties across Illinois — including two in Kane County.
Once sold to investors, the tax credits will generate an estimated $241.4 million in private capital to finance the creation or preservation of 1,327 affordable apartments for low- to moderate-income families, seniors, veterans, and persons with special needs.
The two projects in Kane County include redevelopment of a historic site in Elgin and the construction of senior housing in St. Charles, according to a state of Illinois news release.
1212 Larkin (Elgin)
Full Circle Communities will create 47 units across a mix of new and rehabilitated apartment and townhome buildings.
The development includes the adaptive reuse of two historic structures — the Larkin Center and Clubhouse buildings — into a mix of studio, one- and two-bedroom apartments and amenities for income-eligible families.
Anthony Place Prairie Centre St. Charles
Construction of a new senior apartment building that will create 74 affordable apartments for residents 55 and older.
The development is a part of the city of St. Charles’ master redevelopment plan for a long-vacant 27-acre former mall property, which includes affordable and market rate housing, as well as commercial and mixed-use buildings.
According to the city of St. Charles website, the Prairie Centre PUD project was approved by the City Council on March 6, 2017. The former St. Charles Mall property is located north of IL Route 38/Lincoln Highway, south of Prairie Street, and east of Randall Road.
Statewide, the construction activity is expected to support 2,379 full-time construction jobs and 524 permanent jobs after completion.
“The Low-Income Housing Tax Credit is instrumental in helping IHDA achieve our mission of financing safe, quality and affordable housing in Illinois,” IHDA Executive Director Audra Hamernik said. “This program is a proven public-private partnership that allows us to leverage the resources and expertise of the private sector to create jobs, generate tax revenue, and most importantly, ensure working families, seniors, and people with special needs have a place to call home.”
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 in 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 in Illinois since it began in 1986.
Since its inception, the program has financed more than 90,975 units of affordable housing in the state, generating $4.9 billion in private capital for affordable housing.
SOURCE: state of Illinois news release