A Note from Audra's Desk
Dear Development Partners,
Happy New Year!
2016 was a great year at IHDA because we were able to help more people live in housing they can afford. 2017 is a year to celebrate as IHDA turns 50!
Congratulations, the Illinois Affordable Housing Tax Credit was extended until 2021! We look forward to using this tool to attract private resources into affordable housing deals. It was a big effort and we appreciate your help.
The Governor's Conference on Affordable Housing will be held on March 13 and 14. IHDA and the Illinois Housing Council have been working hard to bring you great panelists, and we are holding two new tracks this year for property managers and municipalities:
- Please encourage your property managers or compliance staff to register for the new Asset Management track at the conference. Participation in this new track will count towards your IHDA training requirement.
- We are inviting municipal officials and staff to the new Empowering Communities track. Our goal is to provide mayors and managers with a toolbox of helpful resources from IHDA and other partners.
The deadline for submitting applications under the
Permanent Supportive Housing Development Program has been extended to
February 27, 2017.
Multifamily dates to know: We hope the new schedule below will give our development partners time and comfort to adjust to new equity pricing:
- All projects awarded 9% credits in 2016 must submit an updated firm commitment letter from a syndicator with pricing valid through June 30, 2017. In order to be on the February Board agenda, please submit by January 20, 2017.
- IHDA will have one 2017 9% LIHTC Application Round due on June 23, 2017.
- IHDA will accept applications for 2017 Round II PPAs due on March 3, 2017.
We wish you a happy New Year full of blessings!
IHDA Celebrates 50 Years and $15 Billion
IHDA was established 50 years ago by the state legislature with a simple mission - to finance the creation and preservation of affordable housing.
Since 1967, we've grown in size and scope, partnering with the private sector to build healthy, economically integrated communities throughout the state. Over the past five decades, we have financed over 138,000 affordable apartments for underserved populations, helped 112,400 working households to buy or fix their home, and invested $15 billion into the state's economy. T
his work has only been possible with the support of our partners - the
lenders, developers, property managers, counselors, legislators and advocates who all make affordable housing possible in Illinois.
We are thankful to have your support,
and we invite you to join us as we celebrate IHDA's 50th anniversary throughout 2017. And as we enter the new year, we
look forward to
50 more years of building and preserving affordable housing in Illinois.
Register Today for the 2017 Illinois Governor's Conference on Affordable Housing
The Illinois Governor's Conference on Affordable Housing will take place on March 13 and 14 at the Hyatt Regency Hotel in Chicago. Join us for one-and-a-half days packed with keynote speakers, networking opportunities and multiple tracks of educational sessions on the current trends and key issues for affordable housing in 2017.
Register today at
, and stay tuned for more details on sessions. All speakers have been contacted and will receive their registration instructions shortly.
Standard & Poor's Raises Rating on IHDA's Housing Bond Program
On January 10, Standard & Poor's (S&P) upgraded its rating on all existing debt under IHDA's Housing Bond Program to 'AA+' from 'AA', recognizing IHDA's extensive, 50-year experience in the financing of affordable housing and overall financial strength. The upgrade will reduce IHDA's borrowing costs, which in turn will allow the Authority to offer products at lower interest rates for homeowners and developers that participate in IHDA's programs.
S&P stated that the upgrade was supported by IHDA's excellent financial management and oversight, strong cash flows, and a portfolio of high-quality multifamily mortgages. The ratings agency also cited IHDA's excellent track record of managing its portfolio of properties and its dedicated management team that continues to be proactive in guiding the agency through difficult market conditions in order to fulfill its mission.
LIHTC Program Updates: 2016 Awards and 2017 Applications
Please note the following updates for IHDA's 9% Low-Income Housing Tax Credit Program.
2016 9% LIHTC Awards:
- All projects awarded 9% credits in 2016 must submit an updated firm commitment letter from a syndicator with pricing valid through June 30, 2017.
- All sponsors must seek to maximize credit pricing. Based on individual markets or set asides, IHDA may require sponsors to further negotiate with syndicators to achieve higher credit pricing.
- Failure to submit an updated firm commitment letter may negatively impact a project's ability to obtain subordinate financing resources.
- Updated firm commitment letters will be reviewed promptly for potential subordinate resource allocations. We anticipate presenting requests to the IHDA Board on February 17, 2017.
2017 9% LIHTC Applications:
- IHDA will have one 9% LIHTC application round in 2017 due on June 23, 2017.
- The PPA schedule is unchanged, and IHDA will accept Round II 2017 PPAs until March 3, 2017.
- The Developer Experience Certification review process will occur in late April, after PPA approvals.
- Guidance for subordinate requests and credit pricing for 2017 LIHTC applications will be provided in March 2017, after IHDA receives updated firm commitment letters from the 2016 awards and presents subordinate resource allocation requests to the IHDA Board for approval.
IHDA Delivers $10.6 Million in Multifamily First Mortgages in December
IHDA's Multifamily Finance team delivered $10.6 million in first mortgage financing in December, providing critical funding and some of the best rates and terms in the market to rehab or refinance three properties containing 330 units for families and low-income households.
The Michaels Development Company secured a Credit Advantage construction loan and an IHDA permanent loan of $4 million to acquire and preserve the 80-unit Carling Hotel in Chicago. The project will use the 40-year IHDA loan with LIHTC and federal Historic Tax Credits to redevelop the former SRO property so it remains affordable for households earning less than 80 percent of the area median income.
The Multifamily team also arranged a $2.4 million first mortgage and issued tax-exempt bonds to finance the Freeport Housing Authority and Brinshore Development's rehabilitation of the Brewster and Mary Hosmer Apartments under the RAD program. The 4% LIHTC generated by the bonds will augment the 35-year permanent loan and equity generated from the sale of State Donation Tax Credits to renovate 167 units.
provided a $4.2 million permanent
to refinance existing debt on the New Evergreen Sedgwick Apartments, an 84-unit complex that had been acquired, rehabilitated and preserved as affordable housing in 2001.
No matter how simple or complicated your project is, IHDA has the financing solutions and flexibility you need to make every type of deal work in every type of market. Visit our
First Mortgage Programs page
for more information.
Deadline Extended: There's Still Time to Apply for Supportive Housing Funding
The new round of the PSH Program will fund developments serving low-income persons with disabilities, persons experiencing homelessness and other PSH populations. E
ligible developments may contain no more than 25 units, and the
program offers flexibility to accommodate a range of development types, including acquisition, new construction, redevelopment of vacant units, or adaptive reuse of non-residential properties. Applications may be submitted to IHDA until February 27, 2017.
Illinois Lenders Used IHDA Programs to Create 6,000 New Homeowners in 2016
Mortgage lenders across the state had an outstanding year in 2016, helping more than 6,000 families and individuals to purchase a home using IHDA's down payment assistance programs. Over the course of the year, a network of 130 participating lenders working from offices across the state closed a total of $756 million in IHDA first mortgages and connected their borrowers with nearly $43 million in down payment assistance.
These opportunities were made possible through IHDA's 1stHomeIllinois, @HomeIllinois and I-Refi programs.
Stay tuned for an announcement recognizing the top performing lenders and loan officers for 2016.
Governor Rauner Signs Legislation to Extend the Illinois Affordable Housing Tax Credit
The State Donation Tax Credit rewards donations of funding or property to non-profit developers of affordable housing with a tax credit worth half the value of the donation. The
program has become one of the most successful tools Illinois has in bringing private capital to the affordable housing market, allowing the state's non-profit partners to reduce the cost of building or renovating properties in order to offer lower rents.
Since it launched in 2001, the program has contributed to the creation or preservation of more than 18,000 affordable homes for working families throughout Illinois.
Thanks to everyone who joined in the effort to extend the program until 2021.
Underwater Homeowners Have a Lifeline with the I-Refi Program
It will take two more years for Chicago-area home prices to return to their peak 2006 values according to a Chicago Tribune report, which means underwater homeowners waiting for their property values to bounce back may not see relief in 2017. Still, homeowners should not give up hope. Options do exist, and thousands of borrowers may be eligible for a refinance through IHDA's I-Refi program.
Funded by the U.S. Department of the Treasury, the I-Refi program offers a forgivable loan of up to $50,000 to reduce the balance owed on a homeowner's mortgage, erasing their negative equity and refinancing them into an affordable 30-year fixed-rate IHDA mortgage. The program not only brings relief in the form of a lower interest rate and lower monthly payments, but it is the only solution available that actually wipes out a homeowner's negative equity to bring their loan in line with the property's current value.
IHDA Chairman King Harris Recognized with Metropolitan Planning Council's Champion Fighter Award
The Metropolitan Planning Council presented IHDA Board Chairman and MPC Senior Fellow on Housing King Harris with the Champion Fighter Award at their annual luncheon on January 9, recognizing his determined work to ensure a sustainable, equitable and competitive future for the Chicago region.
Harris has promoted affordable and accessible housing in the region for nearly two decades, from the launch of the region's first employer assisted housing program to the Homes for a Changing Region initiative that has helped 44 Chicago-area communities chart their future needs. In honor of his commitment to affordable housing, MPC also established the King W. Harris Housing Fund to support ongoing housing policy work.
2017 Fellows Selected for the IHDA Leadership Academy
We are pleased to announce the inaugural class of the IHDA Leadership Academy. Congratulations to the following 11 Fellows:
- Alka Kumar - Finance
- Brian Bickett - Information Technology
- Brent Butcher - Legal
- Daniel Gutman - Multifamily Finance
- James Scudder - Asset Management
- Karin Roman - Multifamily Finance
- Kyle Nestlehut - Homeownership
- Mariano Alonso - Loan & Portfolio Management
- Mary Nielsen - Loan & Portfolio Management
- Melinda Jones - Accounting
- Victoria Vann - Asset Management
Over the next 12 months, these individuals will have the opportunity to develop their strategic thinking and project management skills to help them along their path to becoming the future leaders at IHDA. Please join us in congratulating the 2017 class
The IHDA vs. Developers Bowling Tournament is Set for January 27
The IHDA vs. Developers bowling tournament is coming up soon on January 27, 2017. Join us at the Fireside Bowl for food, drinks and bowling as the IHDA staff faces off against our partners in the development world. See below for more details on the date, time and place:
Friday, January 27, 2017 at 6 p.m.
2646 W. Fullerton Ave.
Chicago, IL 60647
Developers... We Want to Hear From You
Please remember to reach out to IHDA when planning your next groundbreaking or grand opening. Contact
in IHDA's Marketing & Communications Department to help identify the best dates, speakers and media opportunities that make these events a success.