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What is the Illinois Affordable
Housing Trust Fund?
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.
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.
What are deadlines for submitting
Trust Fund Applications?
The Trust Fund reviews applications
during four rounds each year. Applications are due by:
- January 8, 2001
- April 9, 2001
- July 9, 2001
- October 8, 2001
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
For more information,
call (312) 836-5318. |
