IHDA EQUITY REPLACEMENT PROGRAM (ERP)
The Tax Credit Assistance Program (“TCAP”) and the Section 1602 Program (“Section 1602”) contained in the American Recovery and Reinvestment Act of 2009 (ARRA), provide direct benefits to low income housing projects while creating and preserving jobs, promoting economic recovery in the near term, and investing in infrastructure that will provide long-term economic benefits in Illinois.
Under TCAP, the U.S. Department of Housing and Urban Development (“HUD”) will make a grant to IHDA to award funds to projects on a competitive basis and pursuant to IHDA’s qualified allocation plan (“QAP”). TCAP funds will be used to assist projects that received or will receive an award of low income housing tax credits (“LIHTC”) under Section 42(h) of the Internal Revenue Code of 1986, as amended, (IRC) (26 U.S.C. 42) (“Section 42”), during the period from October 1, 2006 to September 30, 2009. It is expected that projects receiving an allocation of TCAP funds will have a current award of LIHTC. TCAP funds will be allocated in the same manner and subject to the same limitations (including rent, income, and use restrictions) as an allocation under Section 42.
Under Section 1602, the U.S. Treasury Department (“Treasury”) will make a grant to IHDA in lieu of, or in exchange for, LIHTCs. Section 1602 funds will be used to finance the construction or acquisition and rehabilitation of qualified low-income buildings, with or without an allocation under Section 42. Allocation of Section 1602 funds will be in the same manner and subject to the same limitations (including rent, income, and use restrictions) as an allocation under Section 42.
IHDA’s Equity Replacement Program (ERP) is a direct response to ARRA legislation and encompasses TCAP and Section 1602. Under this program, IHDA will make TCAP and/or Section 1602 funds available to eligible projects that demonstrate a financing gap. Applicants in each round will be put through a scoring process which will determine eligibility.
The links below offer additional information related to the Equity Replacement Program:
ERP Round 1
Application Period: June 15 – July 1, 2009 at 5:00 P.M.
Eligible Projects:
Projects with an award of 2007 or 2008 9% LIHTC under Section 42 from IHDA that are seeking gap financing
Projects with an award of 2007 or 2008 4% LIHTC under Section 42 from IHDA that are seeking gap financing
Application Package:
ERP Cover Letter to Round I Eligible Applicants
ERP Workshop Information
ERP Program Overview
ERP Competitive Selection Criteria
ERP Application Form (Round I) - Updated 6/10/09
ERP Application Checklist
ERP Application Payment Instructions
ERP Syndicator/Investor Contact Waiver
ERP Market Study Requirements
State Historic Preservation Requirements
ERP Environmental Checklist For a list of projects selected for Round 1 funding (IHDA Board approved), click HERE.
ERP Round 2
Application Period: September 21 – October 5, 2009 at 5:00 P.M.
Eligible Projects:
- Projects with an award of 2008 or 2009 9% LIHTC under Section 42 from IHDA that are seeking gap financing
- Projects with an award of 2008 or 2009 4% LIHTC under Section 42 from IHDA that are seeking gap financing
- Projects with an award of 2008 or 2009 Midwest Disaster Tax-Credits
Application Package:
ERP Cover Letter to Round II Eligible Applicants
ERP Workshop Information
ERP Program Overview
ERP Competitive Selection Criteria
ERP Application Form (Round II) - updated 9/22/09
ERP Application Checklist (Round II)
ERP Application Payment Instructions
ERP Syndicator/Investor Contact Waiver
ERP Market Study Requirements
State Historic Preservation Requirements
ERP Environmental Checklist
TCAP Information related to HUD NOFA:
TCAP Public Hearing
TCAP Competitive Selection Criteria