Creativity and competition mark
developer applications    

Illinois Housing Development Authority received requests for five times the available federal funds to finance affordable housing across the state

[JAN. 5, 2004]  CHICAGO -- A 16-unit home for runaway youth and an 81-unit apartment complex for visually impaired elders are just two of the 60 innovative concepts that were submitted the fourth week of December for the first round of 2004 federal low income housing tax credits and multifamily housing development financing from the Illinois Housing Development Authority. Applications totaled $32 million for the federal credits, more than five times the amount being allocated in this first of two rounds. The applications represent more than 4,200 units of affordable housing, span the state's geography and target the most needy populations, including the homeless, low-income seniors, developmentally and physically disabled, and others.

"This application pool is especially exciting for many reasons," said Kelly King Dibble, executive director of IHDA. "It is first time we specified a need for employer-assisted housing to help businesses attract and retain workers through homeownership, and we received several applications from developers who worked directly with employers to meet their company's need. This was also the first time housing developers applied to IHDA under a completely revamped ‘common application' procedure where all of IHDA's funding sources were available at once. And most important, we had many first-time applicants -- developers that IHDA hasn't worked with in the past -- who each have interesting ideas to help house the state's most needy populations."

Even though applications far exceed available federal tax credits, many developers applied for host of alternative financing resources available at IHDA. To help developers create affordable housing across the state, IHDA also administers the Illinois Affordable Housing Trust Fund, the Illinois Affordable Housing Tax Credits, HOME funds and others. IHDA is also a bonding authority and independently sells bonds based on IHDA's own good credit to finance affordable housing across the state.

In this round, applications for the State's Affordable Housing Trust Fund totaled $17 million, with approximately $7.25 million available quarterly. IHDA received $28.4 million in applications for its federal HOME funds and received $6 million in applications for the Illinois affordable housing tax credits. Of the $32 million in applications for federal low income housing tax credits, less than $6 million of the $14.7 annual amount will be awarded in this round, with the remainder being allocated in the spring.

Applications were received from 22 counties, spanning the state, from the most rural counties, such as Jersey and Cass, to suburban Lake and DuPage and urban areas such as Cook and Madison. Other counties include Macon, Vermillion, Will, Champaign, Cook, Rock Island, Richland, Kendall, DeKalb, Livingston, LaSalle, DuPage, Kankakee, Logan, Williamson, Whiteside, Sangamon, St. Clair, Menard and Jefferson.

IHDA now begins the process of reviewing the applications. Each tax credit application will be scored according to strict guidelines laid out in the comprehensive Qualified Allocation Plan to determine how well it meets the needs of a community and a population, how viable and feasible the development is, and many other elements. The second round of applications for federal low income housing tax credit financing will be due in the spring.

"But IHDA is always open to finance affordable housing with its other revenue sources, said Dibble. "Just because the tax credit application deadline has passed, our doors are never closed to new ideas, new developers and new plans to house the state's troubled populations."

About the Illinois Housing Development Authority

The Illinois Housing Development Authority 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 160,000 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 funds and others. IHDA is also a bonding authority and independently writes and sells bonds, based on its own good credit, to finance affordable housing across the state.

[Illinois Housing Development Authority news release]

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