Views: Illinois Affordable Housing Tax Credit Driving Housing and Economic Growth Across the State

SPRINGFIELD -- As lawmakers in Springfield continue debating how to address Illinois’ growing housing shortage, affordable housing advocates say one existing state program is already delivering results in communities large and small. In this guest column, Brian Hollenback of Economic Growth Corporation explains how the Illinois Affordable Housing Tax Credit has helped support housing development, neighborhood revitalization, and economic growth in communities across Illinois — and why extending and expanding the program could help address rising demand for affordable housing statewide.

The Illinois Affordable Housing Tax Credit Helps Communities Grow

By Brian Hollenback, President/CEO, Economic Growth Corporation (GROWTH), Milan

Illinois faces a serious housing shortage that affects communities of every size. Families, seniors, and workers across the state are struggling to find affordable places to live, while local leaders search for practical solutions that can help expand housing options and strengthen local economies. One proven solution is the Illinois Affordable Housing Tax Credit (IAHTC), also known as the State Donation Tax Credit.

For more than two decades, IAHTC has helped encourage private investment in affordable housing development across Illinois. The program has leveraged more than $510 million in donated assets and funds to help build and preserve more than 26,000 homes in communities throughout the state. For nonprofit, community-based developers like Economic Growth Corporation (GROWTH), it remains an essential financing tool.

Since 1982, GROWTH has worked to strengthen housing and economic development, with a primary focus on low-income and rural areas We have used IAHTC to support affordable homeownership, increase affordable housing supply, drive private, local investment, and help revitalize neighborhoods. In the past, I have testified before the Senate Hearing Committee to extend IAHTCs and its continued effectiveness.

One example is The Locks development in Rock Island. The project transformed underutilized land, specifically a vacant parking lot, into 34 affordable riverfront apartments located near job centers and transit. The new construction development created new housing opportunities, activated underutilized space, and generated an entirely new tax base. The City of Rock Island’s investment of land and funding helped leverage $1.2 million through IAHTC, financing that was critical to making the development possible.

Looking ahead, GROWTH plans to use the program to support affordable senior housing in Milan and help finance the continued rural redevelopment of a former college campus into housing opportunities in Mt. Carroll.

Programs like IAHTC help create partnerships between nonprofit developers, private donors, and local governments that would otherwise not happen. At a time when Illinois urgently needs more affordable housing, lawmakers should extend and expand this successful program so communities across the state can continue creating housing and economic opportunity for future generations.