Illinois Housing Development Authority Awards $28 million in Tax Credits for Affordable Housing

The Illinois Housing Development Authority (IHDA) Board of Directors announced conditional awards totaling more than $28 million in federal Low-Income Housing Tax Credits (LIHTC) that will fund 25 affordable housing developments in 16 counties throughout Illinois. Once sold to investors, the tax credits will generate an estimated $257.7 million in private capital to finance the creation and/or preservation of 1,864 affordable units for low- to moderate-income families, seniors, veterans and persons with special needs. These developments are expected to support 4,445 full-time construction jobs and 464 permanent jobs after completion. 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 through 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. The IHDA Board approved the following developments to receive tax credits

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