Approximately $2 Million Available in Rent Subsidies for Developers of Affordable Housing - Metropolitan Planning Council

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Approximately $2 Million Available in Rent Subsidies for Developers of Affordable Housing

Developers Can Apply for Subsidies in Conjunction with Low Income Housing Tax Credit Application

The Regional Housing Initiative (RHI) announced today that it has approximately $2 million available in rental subsidies for developers of affordable and mixed-income developments in Lake, Cook and McHenry counties. Resources for more than 200 apartments are available in 2006.

The simple application process allows developers to apply for RHI operating subsidies in combination with Low Income Housing Tax Credits, thus becoming eligible for four extra points in their application to the Illinois Housing Development Authority (IHDA). Additionally, since successful RHI proposals must be located close to jobs and transportation, they may be eligible for additional points under the “Live Near Work” and other relevant provisions included in IHDA’s Low-Income Housing Tax Credit Qualified Allocation Plan (more details are available on IHDA’s Web site, www.ihda.org.)

Developers planning on applying for the upcoming round of Low Income Housing Tax Credits and RHI must contact Metropolitan Planning Council (MPC) Housing Associate Roberto Requejo at (312) 863-6015 or rrequejo@metroplanning.org as soon as possible and no later than November 17, 2006, to schedule a meeting with RHI staff. This is required todiscuss the RHI proposal and coordinate the tax credit and RHI applications.

Developers not using tax credits and owners of multi-family buildings may also apply for RHI subsidies for new and existing developments at any time during 2006.

“RHI is a great tool for developers, who can earn additional tax credit points through the program,” said Robin Snyderman, MPC housing director. “The program also helps municipalities advance their local housing goals and preserve the scarce apartments currently available for rent at affordable prices in Cook, Lake and McHenry counties.”

RHI was launched in 2002 by IHDA and MPC to spur the growth of affordable housing in communities where job opportunities exist, but homes for low- and moderate-income households are scarce. McHenry County recently joined the program, expanding the number of potential developments eligible for the subsidies. To qualify, proposals should be located near jobs and transit, thus preserving open space and reducing traffic congestion.

Application forms are available at RHI’s Web site, www.regionalhousinginitiative.org .

Partnering with IHDA and MPC on the program are Lake County Housing Authority, the Housing Authority of Cook County, the McHenry County Housing Authority, and the Chicago Housing Authority.

“This is a great program, not only because it offers another way to bring affordable housing and economic opportunity to more city and suburban neighborhoods. RHI is also terrific for developers because of the dependable operating subsidies offered through the program,” said Andy Geer, executive director of Heartland Housing, Inc., who recently finished rehabilitation of the Leland Apartments in Chicago’s Uptown neighborhood—one of the developments that received RHI subsidies in 2003. “This helps us secure financing up front, while also providing stability month-to-month once the building is up and running.”

The Regional Housing Initiative is:

Reliable: Developers can leverage capital investment based on RHI’s dependable, monthly rent subsidy.

Flexible: The subsidy can stay with the apartment (project-based) for up to 10 years (with extensions available).

A Tax Credit Advantage for Housing Developers: Selected RHI developments will receive four extra points for IHDA tax credits, depending on the overall quality of the applications.

For more information on the RHI program, including an informative brochure, please visit the RHI Web site, www.regionalhousinginitiative.org , or call Robin Snyderman at (312) 863-6007 or Roberto Requejo at (312) 863-6015.

About the Illinois Housing Development Authority
The Illinois Housing Development Authority (IHDA) is a self-supporting state agency that finances the creation and the preservation of affordable housing across Illinois . Since its creation by an act of the Illinois legislature in 1967, IHDA has allocated more than $6 billion and financed more than 150,000 units of affordable housing across the state. IHDA accomplishes its mission through a number of federal and state funding sources, including the Illinois Affordable Housing Trust Fund, the State’s Donations Tax Credit Fund, the allocation of federal Low Income Housing Tax Credits, HOME Investment Partnership funds and others. IHDA is also a bonding authority, and independently sells bonds, based on its own good credit, to finance affordable housing across the state.

About the Metropolitan Planning Council
Founded in 1934, the Metropolitan Planning Council (MPC) is a nonprofit, nonpartisan group of business and civic leaders committed to serving the public interest through the promotion and implementation of sensible planning and development policies necessary for an economically competitive Chicago region. MPC researches and develops policy recommendations and conducts outreach and advocacy in partnership with public officials and community leaders to enhance equity of opportunity and quality of life throughout metropolitan Chicago .

About the housing authorities of Lake, Cook, McHenry and Chicago
The Lake County Housing Authority (LCHA), the Housing Authority of Cook County (HACC), the McHenry County Housing Authority, and the Chicago Housing Authority (CHA) provide housing opportunities and support for more than 83,000 low and moderate-income households living in their areas of jurisdiction. They administer federal resources and develop programs that provide safe, decent, sanitary, and appropriate housing and permit residents to move along a housing continuum toward a maximum feasible independence and self-sufficiency.

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