SPRINGFIELD, Ill. – The Illinois Senate approved a significant proposal Sunday that could create new incentives to build affordable housing.
This legislation could lead to a COVID-19 affordable housing grant program to supplement developments that qualify for federal tax credits. It also includes a reduction in assessed value for developers of new multi-family buildings that agree to set aside at least 20% of their units for low-income renters in areas with low affordability for 30 years.
Sponsors also included an incentive for developers if property owners commit to having at least 15% of units for low-income renters for 10 years.
“This bill will not only help my district, but it will help Illinois – the entire state of Illinois because there is a shortage of affordable housing,” said Sen. Mattie Hunter (D-Chicago).
Co-sponsors say the housing crisis is one of the most crucial issues Illinois is facing.
“As of 2019, Illinois was short nearly 108,000 rental homes individuals earning 60% of their local area median income could afford,” said Sen. Sarah Feigenholtz (D-Chicago). “In Chicago, this is about $56,000 for a family of four. By offering tax incentives, we will be able to keep families together, in their homes and in their communities.”
Sen. Ann Gillespie (D-Arlington Heights argues the state needs a long-term strategy.
“Creating incentives in the housing market will produce better options and more stable lives for working families across the state,” Gillespie said.
The proposal passed unanimously out of the Senate and heads to the House for concurrence.
The post Senate passes affordable housing plan with incentives for developers appeared first on WEEK.