On Monday, Mayor Lori E. Lightfoot and Chicago Department of Housing (DOH) Commissioner Marisa Novara joined City and community leaders to announce more than $1 billion in affordable housing. In 2021, the City of Chicago made unprecedented investments for affordable housing creation and preservation through the Chicago Recovery Plan and Mayor Lightfoot’s 2022 budget. As a result, DOH is more than doubling developments awarded and units built over the 2019 Low-Income Housing Tax Credit (LIHTC) round: 11 developments, 1,083 units, and $398 million in 2019 vs. 24 developments, 2,428 units, and $1 billion in 2021.
The 24 selected LIHTC developments reflect DOH’s commitment to conduct the Department’s work through a racial equity lens. Over the course of 2020, staff conducted the country’s first Racial Equity Impact Assessment of the LIHTC program through a process that examines data by race and centers on the experiences of impacted populations. Staff then converted learnings from that process into new expectations in the 2021 Qualified Allocation Plan (QAP), including for the first time ensuring that BIPOC (Black, Indigenous People of Color) developers benefit from LIHTC, a focus on access to housing for particularly marginalized groups, accessibility to transit and developments that improve outcomes and wealth-building opportunities for residents.
Total development costs for the 24 LIHTC developments are estimated at $952,775,414 and include all public and private resources: $18.6M in nine percent Low Income Housing Tax Credits and $13.9M in four percent LIHTC to generate an estimated $308.6M in private resources and equity; and an estimated $208M from public loans, Tax Increment Financing and the Chicago Recovery Plan. The latest ERAP application period is part of the Lightfoot Administration’s comprehensive response to the COVID-19 pandemic, which has included economic relief, free legal assistance, and policy changes to protect residents. Renters and landlords can apply online by visiting Chicago.gov/renthelp.
