Latest news with #BuildIllinoisHomesTaxCredit
Chicago Tribune
25-04-2025
- Business
- Chicago Tribune
Guest column: Illinois must act now to solve affordable housing crisis by passing tax credit bill
Every day, the Association for Individual Development (AID) witnesses the growing demand for affordable homes. Individuals facing developmental, intellectual, physical and mental health challenges as well as those who are chronically unhoused are struggling to find homes they can afford, putting their stability and well-being at risk. We know how to meet this need — by building more affordable housing — but we need the right tools to make it happen. The Build Illinois Homes Tax Credit is one of those tools. This proposed state legislation will help shovel-ready developments cross the finish line and bring urgently needed homes to vulnerable communities across the state. Our nonprofit, based in Aurora, provides services across seven counties in Illinois, including the far western suburbs of Chicago. We have just finished building Wildwood Commons and Trace in Elgin. This development took vacant, unused acres and converted them into a beautiful neighborhood complete with artistic murals that provides housing for 74 families who need it most. The waiting list for these units is more than 600 people long. We secured highly competitive federal tax credits for the development but found it necessary to leverage other financing to move the development towards construction. If the Build Illinois Homes Tax Credit were in place now, we would be able to create more affordable homes for residents in need. We are also in the process of constructing Las Rosas, a permanent supportive housing development in Aurora. The property was the previous home to an unused religious school but will be transformed into homes for individuals and families with disabilities or facing homelessness. These properties are excellent examples of how the Build Illinois Homes tax credit program could unlock increased development and address the shortage of housing across our communities. Illinois currently faces a shortfall of more than 289,000 affordable rental homes for its lowest-income residents. This is not just a crisis for those directly impacted — it weakens our entire state. When individuals with disabilities, unhoused individuals and extremely low-income families cannot access affordable housing, they are more likely to face unnecessary costly institutionalization and chronic homelessness. When families and individuals are forced to spend the bulk of their income on rent, they have less to invest in local economies. And when housing insecurity rises, so do emergency services and health care costs, putting additional strain on public resources. The Build Illinois Homes Tax Credit (HB 1147/SB 62) is a proven, bipartisan solution to this crisis. This proposal has already been adopted in more than 25 other states, and it would create a stable and predictable funding source for affordable housing development. The state does not spend a dime until developments are completed. This minimizes taxpayer risk while maximizing public benefit and ensures that private investment flows into Illinois communities, helping to build high-quality housing without requiring state funds upfront. Illinois cannot afford to wait any longer. The cost of inaction is far greater than the investment needed to solve this crisis. If we do nothing, housing costs will continue to rise, pushing more families into instability and making it harder for businesses to attract workers. But if we act now, we can create a stronger, more resilient Illinois where our workforce and vulnerable populations have the security of a home, and communities thrive. The Build Illinois Homes Tax Credit is a smart, common-sense investment in our state's future. We urge lawmakers to pass HB 1147/SB 62 and take decisive action to address our housing crisis. The time to act is now.
Yahoo
28-03-2025
- Business
- Yahoo
Build Illinois Homes Tax Credit program would pave way for greater impact
Like many other communities across Illinois, Rockford is facing a housing crisis. The city reports that 42.9% of renters across our community are cost burdened. Home buyers are burdened at about half the rate of renters. Burdened means they spend more than thirty percent of their income on housing, straining available income for other items like healthcare, transportation, food and education. While many local leaders are working to bring housing costs down through various efforts, i.e. zoning changes, property tax waivers, and more, these changes alone won't make a meaningful difference. Without additional action Rockford's crisis will worsen. Across Illinois we have an opportunity to leverage unspent federal bond capacity for the 4% Low-Income Housing Tax Credit (LIHTC) allocations awarded annually to Illinois. The Build Illinois Homes Tax Credit creates a stable, predictable funding source for affordable housing development and leverages existing federal tax credit sources. To understand what this means for us here in Rockford … On March 10th, 2025, the City of Rockford Planning and Development committee, unanimously approved a Housing Strategy to 'create and preserve the 6,000-9,000 housing units by 2035 to support and build on regional growth.' Without the Build Illinois Homes Tax Credit, we are leaving money on the table for housing production and filling gaps with other essential locally controlled funds that could be used elsewhere to spur additional economic development. For the city to meet this goal it committed to several actions, including, 'Combine HOME and CDBG funding with innovative financing approaches, such as TIF funding, tax rebates, and fee reductions to support housing development and redevelopment.' I sincerely appreciate this; however, why not support bringing money from outside our community to allow our 'in house' resources to go further? To see the practicality in the Build Illinois Homes Tax Credit on an actual project in Rockford, I share the project I am currently preserving in downtown – The LaFayette Hotel. The Lafayette is an historic adaptive reuse project that transitions a once transient hotel to affordable housing for residents who make up to $39,360/annually (single person household). The LaFayette total project costs are approximately $18.6M. This was a very tight project. We had to leverage several state and local resources to fill the gaps, including $650,000 in City HOME funds. Had the Build Illinois Homes Tax Credit been in place, it would have generated sufficient equity through the sale of the Build Illinois Homes Tax Credits. This means we wouldn't have needed our local funds, and they could have gone elsewhere to develop even more housing and create greater economic impact. Rockford's housing challenges are not unique; they reflect a broader statewide issue. Illinois has a shortage of more than 289,000 affordable rental homes for its lowest-income residents. In many Illinois communities, including Rockford, the cost of developing housing exceeds what the market can sustain in rent or sale prices. And, as previously mentioned, while local leaders are taking steps to address this gap, without new solutions, the housing crisis will only worsen. This bipartisan legislation has broad support from the business, housing, and real estate communities. Passing the Build Illinois Homes Tax Credit (HB 1147/SB62) is a smart, common-sense investment in our future. I ask that you join me in advocating for the passage of the Build Illinois Homes Tax Credit to spur housing production. Please call your legislators today and ask them to support HB 1147/SB62. Ron Clewer is the National President for Community Revitalization for Gorman & Company. He also serves the boards of Winnebago County CASA, Northern Illinois Center For Nonprofit Excellence, Transform Rockford and on the statewide preservation organization, Landmarks Illinois. This article originally appeared on Rockford Register Star: Why I'm supporting the Build Illinois Homes Tax Credit | Opinion
