Federal Tax Credits Bolster Chicago’s Affordable Housing Initiatives
Winners Announced: Chicago Developers Secure Low-Income Housing Tax Credits! (PHOTO: Curbed Chicago)
Tackling the Shortage: A Multi-Faceted Approach to Affordable Housing
According to The Real Deal, in a move to address Chicago developers’ affordable housing crisis thirteen new affordable housing projects are set to receive federal low-income housing tax credits as reported by the Chicago-Sun Times. These developments with an estimated cost totaling $562 million will be supplemented with $154 million from tax-increment financing and city public loans. While the exact number of units to be created remains unspecified, the initiative aims to tackle Chicago developers significant shortage of affordable housing estimated to require around 120,000 units to meet demand.
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Mandate for Eviction Prevention Plans Highlights Chicago’s Affordable Housing Strategy
The tax credits allocated every other year in Chicago developers serve as a primary funding source for affordable housing development in the city. Notably, this year’s allocation includes a mandate for Chicago developers to incorporate eviction prevention plans into their projects. Most of the homes generated through these tax credits will be designated for residents earning a percentage of the area median income with one exception—the Janet L. Smith Apartments in West Pullman which will focus on permanent supportive housing providing vital social services through the Southside Center of Hope. Perry Vietti president of Interfaith Housing Development Corporation underscored the urgency of addressing Chicago’s homelessness and affordable housing crisis. Vietti highlighted the critical shortage of affordable housing as a key driver of homelessness emphasizing the pressing need to increase supply. Through these developments stakeholders aim to make tangible strides towards alleviating housing insecurity and fostering stability for Chicago’s vulnerable populations.
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