Program to preserve affordable rentals
New funding available through the Illinois Housing Development Authority will help preserve an estimated 1,200 affordable rental units for working families, seniors and people with disabilities. In addition, work to preserve these developments will create quality jobs to help advance the economy.
IHDA created the Preservation Now program to provide subordinate mortgage financing to new IHDA issued tax-exempt bond projects that contain minimum levels of existing project-based rental subsidy.
“Preservation Now leverages public-private partnerships to ensure the long-term affordability of apartments and to help ease the cost of housing for working families, seniors and people with disabilities,” said IHDA Executive Director Mary Kenney.
Preservation Now will preserve project-based rental subsidy in existing developments by encouraging the acquisition and rehabilitation of properties by owners that will agree to extend the existing rental subsidy contracts related to the development. Approximately $245 million in project-based subsidy will be preserved over the next 20 years as a result of Preservation Now.
The Preservation Now program will make available up to $20 million in Illinois Affordable Housing Trust Fund and other resources, which are anticipated to leverage up to $100 million in IHDA bond volume cap to support preservation efforts. Trust Fund revenue is generated from half of the state real estate transfer fee.
Applications are now available at www.ihda.org.