Advocates push for tax credit aimed at increasing affordable housing
By NIKA SCHOONOVER
Capitol News Illinois
nschoonover@capitolnewsillinois.com
SPRINGFIELD – Lawmakers are considering bills that would create a new tax credit for affordable housing, referred to as the “Build Illinois Homes Tax Credit.”
The legislation, contained in the identical House Bill 2044 and Senate Bill 1737, would mirror a federal program administered by the Illinois Housing Development Authority and Chicago Department of Housing which helps finance affordable housing across Illinois.
The Illinois Housing Council, a non-profit membership association consisting of over 260 businesses and non-profits, has been advocating for the measure’s passage.
“Our state is facing an affordable housing crisis, stemming from years of housing under-production,” Allison Clements, executive director of IHC, testified in a Senate committee. “Our state’s housing deficit has grown 64 percent since 2012, meaning we have more people needing homes than are available.”
A 2023 IHC report showed Illinois still has a deficit of low-income housing despite the federal program. According to the report, Illinois has lost 13 percent of its low-rent units since 2011. Additionally, while there are more than 450,000 extremely low-income renters in Illinois, there are only about 150,000 affordable and available rental units, creating a deficit of about 288,000.
“The dollars have actually filled a critical need but they are only a short-term solution to build affordable housing in Illinois,” Rep. Dagmara Avelar, a Democrat from Bolingbrook and lead sponsor on HB 2044, said in a House committee hearing Thursday. “The long-term, permanent solution is a state tax credit, the Build Illinois Homes Tax Credit that can sustain affordable housing construction over the next 10 years.”
If passed, the Build Illinois credit would cost the state $35 million annually for 10 years, which advocates say would help increase the number of housing units by 3,500 each year. Once investors construct the housing developments, they would be eligible for an income tax credit based on the development area.
Clements emphasized that the state tax credit would only be issued after the construction of a unit is complete and qualified tenants are moved in.
“Private sector investors, not taxpayers, are going to bear the financial risk of a project not being completed or successful and they closely monitor and oversee each development where these credits are involved,” Clements said in the House committee. “Because the state tax credit is not claimed by an investor until the affordable housing is successfully built and completed, passing this state tax credit this year would not result in any budget impacts to the state until 2026.”
According to the IHC report, over 20 states currently use tax credits to attract private equity for building more affordable housing. Lawmakers in Kentucky and Ohio are also considering measures to enact such programs.
Gov. JB Pritzker proposed additional funds for housing in his budget address. The program, referred to as “Home Illinois,” would provide for a $50 million increase in homelessness services, including for emergency shelter, short-term rental assistance and the development of new permanent supportive housing units. If implemented, “Home Illinois” would bring the total funding in that area to $350 million.
In his budget address on Feb. 15, the governor estimated over 120,000 people experience homelessness annually and over 76,000 children live in overcrowded shared housing.
“The faces of Illinoisans with no home to go to are not homogenous,” Pritzker said in his budget address. “They include single parents with infants and toddlers, 6th graders trying to complete their homework using toilets as a desk in temporary shared housing, and LGBTQ+ high schoolers who were kicked out of their homes by their parents.”
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to more than 400 newspapers statewide, as well as hundreds of radio and TV stations. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Fun from above
Spread the love While some folks see heavy snowfall and curse the skies, children in Clearing and Garfield Ridge seemed thrilled with last week’s winter windfall. Schools cancelled classes, and kids like Garfield Ridge sisters Makayla, 10, and 6-year-old Mia Hernandez grabbed their plastic sleds and rode ripples of white all afternoon on a large…
Brother Rice’s 11-game win streak ends with loss to Leo
Spread the loveBy Jeff Vorva Staff writer In seemingly a blink of an eye, Brother Rice picked up as many losses as it had all season. The Crusaders headed into last weekend’s action with a 21-2 record and was 10-0 in the Chicago Catholic League Blue. But Friday night, they suffered a 56-50 setback to…
Area Sports Roundup: Six area girls bowling teams headed to sectionals
Spread the loveBy Jeff Vorva Staff writer Six area girls bowling teams are headed to sectionals. Reavis and Stagg won IHSA regional titles last Saturday, and four other teams have advanced to this weekend’s action. Reavis won its own regional at Palos Lanes in Palos Hills with a 5,378 in six games, well ahead of…
Marist cheerleaders takes 2nd in state
Spread the loveBy Jeff Vorva Staff writer After Marist’s cheerleaders watched a video of their state finals performance on Feb. 5, there were some long faces and tears as the girls filed out of the video room and into the cooling-off room. After a long meeting, there were more long faces. “I’ve had better days,”…
Oak Lawn-Hometown Middle School packs meals for needy during holidays
Spread the loveBy Kelly White Wishing everyone to have the best holiday season, Oak Lawn-Hometown Middle School students packed meals for those in need before they went on Christmas break. The school, 5345 W. 99th St., Oak Lawn, hosted its annual Feed6 Meal Packaging event on December 4, where students gathered together, while socially distanced, with…
McCord shows off Stagg student artworks
Spread the loveBy Kelly White Stagg High School art students proudly had their work showcased at a local gallery. McCord Gallery & Cultural Center, 9602 W. Creek Road, Palos Park, featured the art of Stagg’s most creative until January 28. “Having my work as part of an art show in an art gallery like McCord is significant to…
No injuries when Metra train hits school bus in Orland Park
Spread the loveBy Bob Bong No children were injured Friday afternoon when their school bus stalled on railroad tracks in Orland Park and the bus was hit by a Metra commuter train. The Orland Fire Protection District responded to an emergency call Friday when a school bus from American School Bus Co. carrying students from…
Charge West Lawn man in 47th St. slaying
Spread the loveBy Tim Hadac An 18-year West Lawn man has been charged with murder in connection with the June 11 slaying of a 20-year-old woman in the 4700 block of South Rockwell. Dilan E. Ugalde, of the 3600 block of West 62nd Place, was apprehended by members of the Chicago Police Department and the Great Lakes Regional…
Charge 2 in Ford City carjacking
Spread the loveBy Tim Hadac A 19-year-old man and a 15-year-old boy have been charged with aggravated vehicular hijacking in connection with a crime that occurred in a Ford City parking lot at about 8:45 a.m. Thursday, Jan. 27. Travell Barnes, 19, of the 6800 block of South Hermitage, and the boy allegedly took a…
Neighbors
Sisters make Chicago Lawn a world destination
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Earlier this month was the Fifth Lithuanian Documentary Film Festival, with distinguished guests from Lithuania and other parts of the United States visiting the neighborhood. They held a photo session in the editorial office of…
Happy Mother’s Day to everyone, everyone
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Yet another Mother’s Day is upon us. I wish everyone a happy day. By everyone I do mean everyone. There are a lot of dads who do it alone, along with important mother…
Mother’s Day is truly a day to be celebrated
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Mother’s Day happens on Sunday, May 12. If this isn’t something to celebrate, I don’t know what is. Motherhood means new life, new beginnings, new possibilities. Even if you won’t be seeing your mom, you can still…
Saint Xavier men’s volleyball finishes historic season in nation’s top 4
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier men’s volleyball team made history by advancing to the semifinals of the NAIA Men’s Volleyball National Championship. But the Cougars fell to eventual national champion Georgetown (Kentucky), 25-21, 25-23, 22-25, 21-25, 15-10, on May 3 at Alliant Energy PowerHouse in Cedar Rapids, Iowa. Although there was…
St. Francis first baseman Nate Maliska earns conference POW honors
Spread the loveBy Mike Walsh Correspondent The University of St. Francis sophomore first baseman Nate Maliska was chosen the Chicagoland Collegiate Athletic Conference’s Player of the Week in baseball for April 7. In helping the Saints to four wins that week, Maliska went 9-for-15 (.600) with eight RBI and seven runs scored. The St. Laurence…
Baseball | Marist claws way back to .500
Spread the loveBy Xavier Sanchez Correspondent This season has thus far not been what Marist had expected, but the RedHawks came into this week at .500. Marist was 2-8 after 10 games this season, with three of those first eight losses coming via shutout. But the RedHawks turned things around with a stretch of eight…
Red Stars fall to Spirit for third loss in past four matches
Spread the loveBy Jeff Vorva Correspondent After enjoying one of their best starts in franchise history, the Chicago Red Stars have slid to the middle of the NWSL standings, with the latest setback being a 4-2 loss to Washington at SeatGeek Stadium. The Stars (3-3-1) entered this week having dropped three of their past four…
Red Stars take aim at NWSL attendance record with Wrigley game
Spread the loveBy Jeff Vorva Correspondent The Chicago Red Stars are thinking big when it comes to their upcoming game at Wrigley Field. The team is taking aim at the NWSL record for single-game attendance when it hosts Bay FC at the historic home of the Chicago Cubs on June 8. The record is held…
IHSA announces boys volleyball postseason assignments
Spread the loveBy Jeff Vorva Correspondent Last year, the area sent a pair of boys volleyball teams to state as Lyons finished runner-up to champion Glenbard South and Brother Rice lost in the quarterfinals. This year, both could face each other in the sectional finals. The Lions picked up the second seed and the Crusaders…