Tax credits OK'd for 12 affordable rental projects

October 23, 2012

The Associated Press

The Illinois Housing Development Authority has allocated federal tax credits to 12 developments to spur the construction of affordable rental apartments.

Officials say the tax-credit allocations will generate about $118 million in private equity to help developers build nearly 700 affordable rental apartments. More than one-third of the units will be set aside for veterans and people with disabilities.

The approved projects include veterans' housing in Cook County and single-family homes in East Alton with a lease-to-own option.

Developers who received the credits now must seek private investment.

Federal tax credits generate private investment when the credits are sold to private investors. The equity generated reduces the amount developers must borrow, allowing them to offer lower rents.

Construction on the projects is expected to begin by next spring.