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Illinois Affordable Housing Trust Fund
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A brief overview and history...
Created by the Illinois Legislature in 1989, the Illinois Affordable Housing Trust Fund assists in the provision of affordable, decent, safe and sanitary housing for low- and very low-income households.
The source of Trust Fund revenue is half of the state real estate transfer fee. This provides approximately $20 million to $22 million each year. The maximum award from the Trust Fund for a project is typically $750,000. Sponsors are generally limited to applying for up to $1.5 million in any 12-month period.
What type of funding is available?
The source of Trust Fund revenue is half of the state real estate transfer fee. This provides approximately $20 million to $22 million each year. The maximum award from the Trust Fund for a project is typically $750,000. Sponsors are generally limited to applying for up to $1.5 million in any 12-month period.
Who is eligible to apply for Trust Fund Financing?
Not-for-profits and for-profit corporations as well as units of local government may seek Trust Fund dollars. Individual citizens are not eligible for Trust Fund financing.
How may funds be used?
Projects eligible for consideration include, but are not limited to:
* Acquisition and rehabilitation of existing housing
* New construction (single family and multifamily)
* Adaptive reuse of non-residential buildings
* Special housing needs for the:
- mentally ill
- developmentally disabled
- elderly
- physically disabled
- single-parent families
* Technical Assistance (for non-profit organizations only)
What are the rates and terms of Trust Fund financing?
The Trust Fund makes loans available at less than the prevailing commercial rate to all applicants. Grants are available to not-for-profit applicants when the project demonstrates a strong very low-income orientation and is not feasible without Trust Fund assistance.
What are the basic application requirements?
Following is a list of general guidelines for the application process. Prospective applicants should consult the Illinois Affordable Housing Trust Fund Program Guidelines for a more comprehensive explanation.
* The application fee must be paid. The application must be complete. The sponsor of the project must be an eligible sponsor.
* The project must be financially feasible
* The application must contain evidence of site control.
* The application must contain evidence that the sponsor has applied for the other funding sources required to complete the project.
* The development team must have the capacity to complete the project.
* The project must have local support.
What types of projects are selected to receive funding?
Projects which have met the basic requirements will be further evaluated to determine that they meet the Affordable Housing Trust Fund funding criteria. These criteria include, in order of importance:
Readiness to Proceed:
Projects which have appropriate zoning, local approvals, commitments from their other financing sources, evidence of equity, prepared plans and specifications and meet the financial underwriting standards (Section 4) will be given priority.
Percentage of Affordable Units:
Priority will be given to projects which provide a greater percentage of affordable units for very low-income households.
Community Impact:
Projects that are part of a larger neighborhood revitalization plan will be given priority.
Special Needs Housing:
Priority will be given to projects which address the housing needs of a targeted population. Examples of these projects might include, but are not limited to:
* projects which address the needs of the working homeless and/or prevent homelessness
* projects which help the chronically mentally ill, developmentally and physically disabled, single-parent families and the elderly in need of supportive services
* projects which provide housing for families (3- and 4-bedroom units)
* projects which promote homeownership
Mixed-Income Developments:
Applications proposing mixed-income developments (with a combination of low, and/or very low and market units) are encouraged under the Trust Fund guidelines.
Rent Impact:
Priority will be given to projects which have rents that are below the market for an area.
Affordability Periods:
The affordability period is the length of time the units will remain affordable to low- and very-low income households.
Leveraging of Other Funds:
Projects which propose the leveraging of ther sources of funds will be given a priority.
How are funds distributed statewide?
The U.S. Census data for the state determines the resource distribution targets for the Affordable Housing Trust Fund. The approximate distribution target, assuming adequate demand, is:
64% of available funding: Metropolitan Chicago counties
18% of available funding: Other metropolitan counties
18% of available funding: Non-metropolitan counties
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