RHI for Developers
What is RHI?
The housing crisis and recession have led many more households to seek apartments and single-family homes for rent in the suburbs. Yet the availability of affordable rental homes in areas with good job opportunities, transportation options and quality schools is falling far short of demand in metropolitan Chicago. Adjusting to this “new normal,” suburban communities are seeking smart strategies for attracting quality developers and property managers that ensure rental homes—whether new or rehabilitated—are an asset to the community and meet the needs of working families.
The Regional Housing Initiative (RHI) is a one-of-a-kind partnership between eight regional housing authorities in northeastern Illinois, the Illinois Housing Development Authority (IHDA), and MPC. Participating housing authorities pool a portion of their available rental assistance to provide long-term support for the rehabilitation or construction of multifamily, affordable rental homes in great communities across the region.
RHI helps to create affordable rental housing where shortages are particularly severe—typically in areas with good jobs, transportation options, and quality public education—and that meet the Metropolitan Mayors Caucus’ Housing Endorsement Criteria. The initiative actively seeks out and subsidizes developments located in low-poverty, high-opportunity communities or in communities undergoing reinvestment and redevelopment that would benefit from increased housing stability.
- Low-income families gain access to housing in attractive communities, while paying reasonable rents set at 30 percent of their incomes.
- The owner of the development receives a steady source of rental income throughout the 15-year operating subsidy.
- Developers using RHI are more competitive for IHDA’s Low-Income Housing Tax Credit funding.
- Homes that receive funding support regional and local housing goals.
For more information
312 863 6029