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
Boys Volleyball | Stagg ends Marist Invite with win over Riverside-Brookfield
Spread the loveBy Jason Maholy Sports Editor Stagg outlasted Riverside-Brookfield in a marathon first set, winning 36-34, then followed that with a 25-20 clincher on March 23 to finish seventh in the Silver divison at the 20th Marist RedHawks Invitational. The Chargers went 2-3 in the tournament. They opened pool play on March 22 at…
Boys Volleyball | Shepard finishes 4th in Bronze at Marist Invite
Spread the loveShepard served as one of three host sites for the 20th Marist RedHawks Invitational, and kicked off play in Palos Heights by facing Lincoln-Way East on March 22. The Griffins defeated the Astros, 25-10, 25-15. Marian Catholic beat Shepard, 25-23, 25-9, in the Astros’ second match of the day. The Astros fell to…
Obbie’s Pizza to stay ‘unique and delicious’
Spread the love. New owner vows to serve same popular menu . By Tim Hadac Archer Avenue’s long-time king of pizzerias will continue to rule. Same recipes at Obbie’s Pizza, 6654 W. Archer. Same pizza and ingredients. Same pasta, broasted chicken, shrimp, perch, Italian beef/sausage/meatball sandwiches, sides and pop. Same seasoned, Middleby Marshall pizza oven…
Countryside City Council tackles long list of items
Spread the loveBy Steve Metsch Water leaks, a new truck and abandoned vehicles were among a laundry list of items tackled by the Countryside City Council at its latest meeting. They were all from the infrastructure committee chaired by Ald. Mark Benson (3rd). All of the following were approved by a unanimous 6-0 vote on…
Argo High School holds Iftar Dinner for community
Spread the loveBy Carol McGowan More than 100 people gathered at Argo Community High School last week for a now annual Ramadan Iftar dinner organized by Argo teacher Nadia Elkhatib. Elkhatib was happy with the turnout for those coming Thursday night to break bread with the school’s Muslim students and their families. “I will continue…
Pool improvements advance in Palos Heights
Spread the loveBy Nuha Abdessalam Palos Heights aldermen last week approved contracts advancing improvements at the municipal pool. Alderman Jefry Key motioned for approval of a letter of agreement with the American Institute of Architects between Williams Architect and the City of Palos Heights for the pool improvement project. Since first proposing pool improvements in…
Teens enjoy Green Hills karaoke party
Spread the loveBy Nuha Abdessalam Palos Hills tweens and teens sang their hearts out for karaoke night at a neighborhood coffee house. Green Hills Library invited all tweens and teens for a karaoke night at Strange Brew Cafe on West 103rd Street and 87th Street on Feb. 22. Organized by Green Hill Library Youth Program…
Cervantinos Authentic Mexican Restaurant opens in Palos Heights
Spread the loveBy Kelly White When choosing a location for his second business location, Luis Garcia knew he wanted it to be Palos Heights. “I absolutely love it here,” Luis Garcia, of Oak Forest and the owner and chef of Cervantinos Authentic Mexican Restaurant #2, said. “It’s a great area, nice clientele and I’m happy…
Worth Polar Plunge raises record amount
Spread the loveBy Joe Boyle The FOP Worth Polar Plunge has been deemed a major success and local officials said the amount raised has set a new record. The annual event, sponsored by the Worth Police Department, took place in a large swimming pool that was put up in the parking lot of the Marrs-Meyer…
Green Hills Public Library hosts Eid Clothing Drive
Spread the loveBy Kelly White The Islamic calendar has two major holidays each year: Eid al-Fitr, which marks the end of Ramadan and celebrates an entire month of fasting, and Eid al-Adha, the festival of the sacrifice that occurs during the culmination of the Hajj pilgrimage season. It takes place two lunar months after Ramadan.…
Neighbors
Boys Volleyball | Stagg ends Marist Invite with win over Riverside-Brookfield
Spread the loveBy Jason Maholy Sports Editor Stagg outlasted Riverside-Brookfield in a marathon first set, winning 36-34, then followed that with a 25-20 clincher on March 23 to finish seventh in the Silver divison at the 20th Marist RedHawks Invitational. The Chargers went 2-3 in the tournament. They opened pool play on March 22 at…
Boys Volleyball | Shepard finishes 4th in Bronze at Marist Invite
Spread the loveShepard served as one of three host sites for the 20th Marist RedHawks Invitational, and kicked off play in Palos Heights by facing Lincoln-Way East on March 22. The Griffins defeated the Astros, 25-10, 25-15. Marian Catholic beat Shepard, 25-23, 25-9, in the Astros’ second match of the day. The Astros fell to…
Obbie’s Pizza to stay ‘unique and delicious’
Spread the love. New owner vows to serve same popular menu . By Tim Hadac Archer Avenue’s long-time king of pizzerias will continue to rule. Same recipes at Obbie’s Pizza, 6654 W. Archer. Same pizza and ingredients. Same pasta, broasted chicken, shrimp, perch, Italian beef/sausage/meatball sandwiches, sides and pop. Same seasoned, Middleby Marshall pizza oven…
Countryside City Council tackles long list of items
Spread the loveBy Steve Metsch Water leaks, a new truck and abandoned vehicles were among a laundry list of items tackled by the Countryside City Council at its latest meeting. They were all from the infrastructure committee chaired by Ald. Mark Benson (3rd). All of the following were approved by a unanimous 6-0 vote on…
Argo High School holds Iftar Dinner for community
Spread the loveBy Carol McGowan More than 100 people gathered at Argo Community High School last week for a now annual Ramadan Iftar dinner organized by Argo teacher Nadia Elkhatib. Elkhatib was happy with the turnout for those coming Thursday night to break bread with the school’s Muslim students and their families. “I will continue…
Pool improvements advance in Palos Heights
Spread the loveBy Nuha Abdessalam Palos Heights aldermen last week approved contracts advancing improvements at the municipal pool. Alderman Jefry Key motioned for approval of a letter of agreement with the American Institute of Architects between Williams Architect and the City of Palos Heights for the pool improvement project. Since first proposing pool improvements in…
Teens enjoy Green Hills karaoke party
Spread the loveBy Nuha Abdessalam Palos Hills tweens and teens sang their hearts out for karaoke night at a neighborhood coffee house. Green Hills Library invited all tweens and teens for a karaoke night at Strange Brew Cafe on West 103rd Street and 87th Street on Feb. 22. Organized by Green Hill Library Youth Program…
Cervantinos Authentic Mexican Restaurant opens in Palos Heights
Spread the loveBy Kelly White When choosing a location for his second business location, Luis Garcia knew he wanted it to be Palos Heights. “I absolutely love it here,” Luis Garcia, of Oak Forest and the owner and chef of Cervantinos Authentic Mexican Restaurant #2, said. “It’s a great area, nice clientele and I’m happy…
Worth Polar Plunge raises record amount
Spread the loveBy Joe Boyle The FOP Worth Polar Plunge has been deemed a major success and local officials said the amount raised has set a new record. The annual event, sponsored by the Worth Police Department, took place in a large swimming pool that was put up in the parking lot of the Marrs-Meyer…
Green Hills Public Library hosts Eid Clothing Drive
Spread the loveBy Kelly White The Islamic calendar has two major holidays each year: Eid al-Fitr, which marks the end of Ramadan and celebrates an entire month of fasting, and Eid al-Adha, the festival of the sacrifice that occurs during the culmination of the Hajj pilgrimage season. It takes place two lunar months after Ramadan.…