New law aims to expand affordable housing through $75 million investment, tax credits
By JERRY NOWICKI
Capitol News Illinois
jnowicki@capitolnewsillinois.com
SPRINGFIELD – Gov. JB Pritzker on Thursday signed a measure aimed at increasing affordable housing investment in Illinois, as well as a measure expanding the state’s low-income energy assistance program.
House Bill 2621 aims to create incentives for building and maintaining affordable housing projects through investment of federal funds and tax credits. Pritzker signed the bill at the Hope Manor II affordable apartment complex in the Englewood neighborhood on the South Side of Chicago.
Nancy Hughes Moyer, the CEO and president of Volunteers of America Illinois which developed and owns Hope Manor II, said the facility is an example of “affordable supportive housing at its best.” The campus-style facility is specifically designed for head-of-household veterans and their families
The Englewood community has seen its population decline from just less than 100,000 in the 1960s and 1970s to less than 30,000 today. The Hope Manor development and the area around it aims to bring people back to the community with “high quality affordable housing,” Moyer said.
“Affordable housing is a very, very powerful tool in creating and advancing community revitalization,” she said. “It brings people and density, and often replaces vacant land and abandoned properties with vibrant positive developments and activity. And what is least understood about the potential of affordable housing, is that it can be a very effective pipeline for home ownership, especially in communities struggling with negative perceptions and a desperate need of population density.”
HB 2621, sponsored by Chicago Democrats Rep. Will Guzzardi and Sen. Mattie Hunter, aims to incentivize further development of housing complexes similar to Hope Manor II. It is expected to fund the development and preservation of up to 3,500 affordable rental homes and apartments by the end of 2024, according to the governor’s office.
The new law directs the Illinois Housing Development Authority to launch a COVID-19 Affordable Housing Program and directs $75 million in federal American Rescue Plan Act dollars to support the construction and rehabilitation of affordable rental housing in areas most impacted by the COVID-19 pandemic. Funds will be directed to projects in “disproportionately impacted areas” based on metrics such as unemployment rate, students on free lunch programs and poverty rates.
The measure also extends through 2026 an affordable housing tax credit that would have expired by the end of the year. That credit is for 50 percent of the value of a qualified donation to affordable housing developments. Donations for the program that began in 2001 have included land, buildings and funding.
Karen Davis, assistant director of the state’s Illinois Housing Development Association, said “Illinois was already facing a shortage of safe, affordable housing for extremely low-income households” prior to the COVID-19 pandemic.
She said the state would have to add 250,000 affordable housing units to meet the current demand for such facilities. She said the extension of the tax credit is important, as it has created or supported 21,000 affordable housing units since its creation in 2001.
Another provision in the bill directs chief county assessment officers to create special assessment programs to reduce the assessable property value for newly built and rehabilitated affordable housing developments that serve seven or more families. While the program is required in counties with more than 3 million inhabitants, which includes only Cook County, all other counties can opt out by passage of an ordinance.
Pritzker also signed Senate Bill 265, a measure expanding access to the state’s Low-Income Heating and Energy Assistance Program to undocumented individuals and prioritizing families with children under the age of 6 years old when it comes to distributing funds. LIHEAP helps low-income families pay heating, gas, propane and electricity bills.
The General Assembly dedicated more than $252 million to LIHEAP from the American Rescue Plan Act in its current-year operating budget.
The law is also changed to expand eligibility to households earning up to 60 percent of the median income level.
The formula for the fee on utility bills funding the LIHEAP program will change beginning in January 2022. It will be a 48-cent base fee for residences, and will increase by 16 cents each year in which at least 80 percent of LIHEAP funds are spent, capping at 96 cents for residences.
The bill will be 10 times the base amount for non-residential customers using fewer than 10 megawatts of electricity and 4 million therms of gas, and 375 times the base rate for those using above that amount.
Previously, those fees were 48 cents for residences, $4.80 for non-residential and $360 for higher-use non-residential bills.
The changes in the fee structure are aimed at doubling participation in the Percentage of Income Payment Plan program by 2024. That program allows utility customers to pay a certain amount of their income to a utility bill. The law is also expanded to include customers of smaller utilities.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Cook County Animal and Rabies Control offers pet safety tips
Spread the loveParts of Cook County could see up to 12 inches of snow over the next day as a winter storm moves across the area starting tonight. Cold weather creates hazardous conditions for residents and their pets. The Cook County Department of Animal and Rabies Control reminds residents to take special precautions to keep…
Winter storm could bring heavy snowfall
Spread the loveParts of Cook County could see up to 12 inches of snow over the next day as a winter storm moves across the area starting tonight. The county’s Department of Transportation and Highways is monitoring conditions and has resources on standby to keep the 1,500 lane miles the county maintains, safe for drivers.…
Polk insists residents should use 9-1-1 when they need help
Spread the loveBy Jeff Vorva With snowstorms and bad weather hitting the area, first responders and 9-1-1 operators are taxed and stretched out. But Palos Park Police Commissioner Dan Polk said that should not deter people from calling 9-1-1. He insists on it. At the Jan. 24 village council meeting, Polk made a passionate speech…
District 230 waits for judge’s decision on mask mandates
Spread the loveBy Jeff Vorva Stagg and Sandburg students, parents and teachers are awaiting the decision of a Sangamon County judge to find out if there is any change in the mask mandate. District 230 was one of 145 districts in the state taken to court by parents who are against the mandate and believe…
Summit approves deal with CEDA for water assistance
Spread the loveBy Carol McGowan Help may be on the way for some Summit residents that have trouble paying their water bills. The Summit Village Board recently approved an ordinance authorizing an agreement by, and between the Community and Economic Development Association of Cook County. It’s a vendor agreement for the Low-Income Household Water Assistance…
Willow Springs hires Grace as village administrator
Spread the loveBy Steve Metsch Citing his experience in Lyons, Willow Springs Mayor Melissa Neddermeyer said Ryan Grace was the best of five finalists interviewed for the job of village administrator. Grace, 38, had been public works director in Lyons the past four years, working on a wide range of village issues and events in…
Body of missing Forest View woman found
Spread the loveBy Carol McGowan The search for 20-year-old Charisma Ehresman of Forest View is over. The body of the young woman was found Friday evening in her vehicle in Chicago’s South Austin neighborhood, on the city’s west side, which borders Oak Park. The car had apparently been there for several days. The Cook County…
Heritage Middle School cheer team takes first
Spread the loveBy Carol McGowan Congratulations are in order for the Heritage Middle School Cheer Team. The team competed for the first time on Saturday, January 15, at Old Quarry Middle School in Lemont and took first place. It was a huge accomplishment for the team and Summit School District 104 is very proud of…
Area Sports Roundup: Sandburg bowls ’em over at state; Marist cheerleaders win sectional
Spread the loveBy Jeff Vorva Staff Writer Is there a state trophy coming for the Sandburg boys bowling team in the future? With this unpredictable sport, that’s hard to predict. But after a fourth-place finish in the IHSA state tournament, held Jan. 28-29 at St. Clair Bowl in O’Fallon, the needle is pointing up. The…
Intense dance performance nets Evergreen Park sixth place at state finals
Spread the loveBy Jeff Vorva Staff Writer Actual competitive dancing returned to the state level this year and Evergreen Park’s dancers couldn’t be happier. The Mustangs are on the rise, and the team enjoyed its highest state finish by placing sixth in Class 1A in the IHSA state meet held Jan. 28-29 at Grossinger Motors…
Neighbors
Niego Real Estate salutes America again
Spread the love. Popular flag program underway . By Tim Hadac Clearing and Garfield Ridge residents who want to decorate their blocks in red, white and blue this Independence Day are encouraged to contact Niego Real Estate and reserve a supply of U.S. flags at no charge. The popular program to promote patriotism and community…
Lyons Mental Health Commission pulls LeaderShop funding
Spread the loveExecutive director accused of harassment From staff reports The local nonprofit service community was jolted when nearly $300,000 in mental health funds was withdrawn by a Lyons Township agency from the Western Springs LeaderShop, a social service agency that has provided youth programs for nearly 40 years. The Lyons Township Mental Health Commission…
Mount Carmel, Marist and Oak Lawn among 84 teams at Riverside-Brookfield shootout
Spread the loveBy Xavier Sanchez Correspondent High school boys basketball does not stop in March and pick back up in late autumn. For many players, playing hoops is a year-round commitment. AAU ball is a big reason for, that there are summer camps, shootouts or other events at most schools during the summer. The…
Dog lovers to celebrate ‘Fur of July’
Spread the love. By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . I’m starting out with some fun news. The West Lawn Dog Park Advisory Council will be hosting a Fur of July Pet Parade on Saturday, June 29 from 10:30 a.m. to 12:30 p.m. at West Lawn…
Fourth of July not happy for everyone
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Happy Fourth of July. Cannot believe I am already saying that, time sure goes. Hope it is safe and quiet for everyone and especially all of our house pets. For us its shutting…
St. Rita’s transformation is worth a look
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . St. Rita of Cascia Church, 63rd and Fairfield, continues to undergo its transformation from the sunflowery/harvest golds and browns of the 1960s and 1970s to the calming pastels of the 2000s. Since the basilica-style church…
Loss to Courage brings Red Stars’ winless streak to five games
Spread the loveBy Jeff Vorva Correspondent The Chicago Red Stars historic start to the season is all but forgotten. In the last five matches, the Red Stars have failed to win, with the latest setback being a 3-1 loss on the road to North Carolina on June 23 in an NWSL battle. The Red Stars…
Summer League Basketball | Illinois powers compete at Riverside-Brookfield Shootout
Spread the loveBy Xavier Sanchez Correspondent School’s out for the summer, but high school athletes across Illinois are remaining active during the summer sports season. This includes basketball players, who can be found at camps, open gyms, camps and even weekend tournaments. Among the more high profile hoops action in the area was the Riverside-Brookfield…
Dana Rettke and Ryan Murphy heading to Paris Summer Games
Spread the loveBy Jeff Vorva Correspondent Area fans of the Summer Olympics will have extra reasons to cheer athletes from the United States in the upcoming Paris Games. Dana Rettke of Riverside is a member of the U.S. women’s volleyball team and Palos Heights native Ryan Murphy will represent the country in swimming. Rettke, a…
Hope Church feeds the hungry at Marquette Park
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Last week on the way to our CAPS meeting at the Marquette Park Fieldhouse, I stopped in at the Tuesday Community Dinner hosted by Hope Church every week in the auditorium. Pastors Ben and Jordyn…