Affordable Housing Tax Credit
The Affordable Housing Tax Credit from the Illinois Housing Development Authority incentivizes the creation and preservation of affordable rental housing through federal and state tax credits.
Funder: Illinois Housing Development Authority
Due Dates: September 16, 2026: Universal PPA Deadline for 2027 9% LIHTC | February 23, 2027: 2027 9% LIHTC Application Deadline
Funding Amounts: Tax credits allocated based on project eligible basis; 9% LIHTC is competitive (annual round), 4% LIHTC is non-competitive (rolling); no set maximum, varies by project size and state allocation.
Summary: Provides federal and state tax credits to incentivize the development or rehabilitation of affordable rental housing in Illinois.
Key Information: Preliminary Project Assessment (PPA) approval is required before full application; 4% LIHTC applications accepted year-round.
Description
The Affordable Housing Tax Credit program, administered by the Illinois Housing Development Authority (IHDA), offers both federal (Low-Income Housing Tax Credit, LIHTC) and state tax credits to developers and sponsors of affordable rental housing projects in Illinois. The goal is to incentivize private investment in the creation and preservation of affordable housing by reducing tax liability for qualified projects. The program supports both new construction and rehabilitation of existing rental properties, with long-term affordability requirements.
