- By Robin Snyderman, Vice President of Community Development
- January 12, 2010
In an innovative effort to support mixed-income housing that meets the Housing Endorsement Criteria adopted by the Metropolitan Mayors Caucus in 2002, the Illinois Housing Development Authority (IHDA) and the Metropolitan Planning Council (MPC) are working with six regional housing authorities (Chicago, Cook, Joliet, Lake, McHenry and Waukegan). Together, these eight partners form the Regional Housing Initiative (RHI).
RHI provides financial incentives (via operating subsidies) to developers and owners of quality rental housing addressing two pressing issues affecting northeastern Illinois that resurfaced in recent census findings and reports. Those issues, also priorities within the State's Comprehensive Housing Plan, are: (1) the shortage of quality, mixed-income rental housing located near jobs and transit, and (2) the scarcity of housing affordable to households earning less than fifty percent of the area's median income (AMI). Also, RHI can help implement the sort of housing solutions prioritized in the State's 2010 Comprehensive Housing Plan, which is updated annually.
Developers applying for IHDA Low Income Housing Tax Credits can also receive extra points in their application scoring if they tap RHI resources and advance RHI goals.
Also, effective 2009, RHI owners are now eligible for the recently amended Housing Opportunity Tax Incentive Act, which can leverage savings amounting to approximately one extra month's rent each year for each RHI apartment in property.
Already, RHI partners have awarded more than 200 apartment subsidies to 15 viable developments, for a total of 707 new homes, largely in mixed-income communities.
To download an application, see "Related Links" section below. For a list of frequently asked questions about this program, click here.
This rolling competitive application process allows property owners and developers to submit proposals for this round at any time. Nevertheless, in order to be eligible for the extra points awarded to tax credit proposals utilizing these subsidies, RHI applicants participating in IHDA's 2010 tax credit round (final deadline: May 10, 2007) must contact MPC program assistant Angie Leyva at (312) 863-6017 or aleyva@metroplanning.org to schedule meeting with RHI staff after receiving preliminary application award on March 15, and no later than April 26. This meeting is required to discuss the RHI proposal and coordinate the tax credit and RHI applications.
Developers who secure a commitment from RHI will improve their scores on the Tax Credit ranking system. Additionally, since successful RHI proposals must be located close to jobs and transportation, they may be eligible for points under the Live Near Work and/or Transit provisions(see IHDA’s Low Income Housing Tax Credit Qualified Allocation Plan for details). RHI is also an effective tool for Cook, Lake , McHenry and Will county municipalities covered by (or, with the recent changes to the QAP, at rist to being covered by) the Affordable Housing Planning and Appeals Act who are trying to preserve or expand their stock of affordable homes. RHI proposals located in those communities and applying for tax credits will receive extra points in IHDA’s tax credit scoring.
RHI is a great tool for apartment buildings experiencing vacancies and located near jobs and transportation. RHI and the Chicagoland Apartment Association (CAA) are working together to make owners and property managers aware of this stream of funding.
For more information,contact Robin Snyderman.
Related Links
