Marycrest Village in Joliet gets federal tax credits
10/12/2017, 10:20 a.m.
The Low-Income Housing Tax Credit Program Will Support the Construction and Rehabilitation of 1,442 Affordable Apartments Statewide
On September 29th, the Board of Directors of the Illinois Housing Development Authority (IHDA) awarded more than $22.5 million in federal Low-Income Housing Tax Credits (LIHTC) to fund 20 affordable housing developments within twelve counties across Illinois. Once sold to investors, the tax credits will generate an estimated $258 million in private capital to finance the creation or preservation of 1,442 affordable apartments for low- to moderate-income families, seniors, and persons with special needs. The construction activity is expected to support 2,071 full-time construction jobs and 549 permanent jobs after completion.
“The Low-Income Housing Tax Credit is instrumental in helping IHDA achieve our mission of financing safe, quality and affordable housing in Illinois,” IHDA Executive Director Audra Hamernik said. “This program is a proven public-private partnership that allows us to leverage significant private investment to drive developments that will create jobs, generate tax revenue, and ensure working families, seniors, and people with special needs have a place to call home.”
The Low-Income Housing Tax Credit program was created with the passage of the Tax Reform Act of 1986 (P.L. 99–514). The Internal Revenue Service allocates a certain number of tax credits annually to each state based on population. Once developers receive the credits, they sell them to investors and use the equity generated to reduce construction and operating costs. The savings in underwriting are passed on to the renter in the form of below-market rents, which must remain affordable for a minimum of 30 years. IHDA has administered the LIHTC program in Illinois since it began in 1986. Since its inception, the program has financed more than 83,500 units of affordable housing, generating over $4 billion in equity.
The following developments were approved locally by the IHDA Board to receive tax credits:
Marycrest Village - Joliet: The Volunteers of America National Services will rehabilitate the existing 57-unit senior development in Joliet. The tax credit financing will modernize the building and help cover costs of installing energy efficient systems.