Pritzker picks housing solutions director, offers student loan payoff to combat 'crisis'

[December 13, 2024]  By Jim Talamonti | The Center Square

(The Center Square) – Illinois Gov. J.B. Pritzker is trying to increase the state’s housing supply.

The governor signed an executive order Wednesday creating an Illinois Director of Housing Solutions to lead consideration, planning and implementation of innovative solutions to combat the state’s housing crisis.

Pritzker said there has not been enough focus on working class and middle class housing.

“Our primary focus will be reducing housing costs for working families, and we will leave no stone unturned in that work,” the governor said.

Pritzker said he hopes to increase the number of attainable middle-class homes and rental options across the state. The governor said nearly one-third of Illinois households spend more than 30% of their income on housing.

In addition, Pritzker announced that the Illinois Housing Development Authority would relaunch the state’s SmartBuy program.

“The program provides affordable fixed-rate mortgages, closing cost assistance and up to $40,000 per household in student loan relief,” Pritzker said.

SmartBuy, which the governor first introduced in 2020, distributed state taxpayer-funded debt relief to 631 borrowers who bought homes in Illinois. Pritzker said his administration paid down more than $17 million in debt.

Starting in 2020, the governor launched seven separate emergency housing programs, allocating more than $1.15 billion in taxpayer funds for rental assistance and $400 million in taxpayer funds for mortgage assistance in response to increased strain on renters and homeowners during the COVID-19 pandemic.

Illinois Gov. J.B. Pritzker - BlueRoomStream

Pritzker’s administration has also distributed hundreds of millions of dollars in state and federal housing grants.

Last month, the Governor’s Office of Management and Budget released a five-year projection that shows the state spending $63 billion by 2030, creating an annual $5 billion deficit. Illinois imposes the second-highest property tax rates in the nation.

At the Illinois Housing Council’s panel on workforce housing, state Rep. Dagmara Avelar, D-Bolingbrook, said affordable housing is an issue for workers and employers.

“Affordable housing requires a significant amount of investment, but it is going to pay off in the long run,” Avelar said.

U.S. Bank Senior Vice President of State Tax Credits Robert Espeland also participated in the Illinois Housing Council event. Espeland said building has been affected by higher interest rates and higher construction costs.

“That’s happening right now as we speak. That’s causing a lot of these projects not making it to the finish line on their financial closing,” Espeland said.

Pritzker said his announcement was the beginning of some of the most important work his administration would do over the next few years.

“We must build more housing in every Illinois community from Cairo to Chicago,” the governor said.

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