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Dear Multifamily Development Community,
We would like to share a few reminders about information you can find online on our website!
- Visit the Developer Resource Center. Here you will find a variety of helpful documents and tools including the “Qualified Allocation Plan (QAP)”. View the approved 2024-2025 QAP as well as a summary of changes between the previous 2022-2023 QAP.
- Join the IHDA team! Open positions can be found under the Join The Team section on IHDA.org.
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Green and Resilient Retrofit Program (GRRP)
The Green and Resilient Retrofit Program (GRRP) provides owners of HUD-assisted Multifamily housing with funding to reduce carbon emissions, improve utility efficiency, incorporate renewable energy sources, and make properties more resilient to climate hazards.
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The GRRP Leading Edge cohort provides funding to owners with ambitious plans involving carbon reduction, renewable energy generation, use of building materials with lower embodied carbon, and resilience goals through achieving an advanced green certification. Development teams must be able to leverage other financing sources without extensive technical assistance from HUD. The application deadline is April 30, 2024. | | |
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The GRRP Elements cohort provides gap funding to properties in the midst of a recapitalization transaction that includes utility efficiency, renewable energy, carbon emission reduction, and/or climate resilience measures. Elements funds can be used to add or preserve specific green or resilient items in the property’s scope of work. The Elements Wave 3 application deadline of January 4, 2024 has been extended to March 28, 2024, and the Elements Wave 4 application deadline is now July 31, 2024, in accordance with the Notice Revision. | |
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Tax Court Ruling on Bond Issuance Costs
In 2000, the IRS determined that tax-exempt bond issuance costs were not to be included as eligible for the Low-Income Housing Tax Credit. Practitioners have generally followed this guidance since it was issued. On February 20, 2024, the United States Tax Court 162 T.C. 3 held in favor of the taxpayer and concluded tax-exempt bond issuance costs allocable to the construction period were costs of a nature that would be included in Low-Income Housing Tax Credit eligible basis.
This should not be taken as a legal opinion and does not bind the Illinois Housing Development Authority. You should consult your tax professionals relative to how this may impact your properties.
Federal Financing Bank (FFB) Program Extended Indefinitely
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury (Treasury) announced that they will indefinitely extend the Section 542(c) Housing Finance Agency Risk-Sharing Initiative offered through HUD’s Federal Housing Administration (FHA) and Treasury’s Federal Financing Bank (FFB). The Risk Sharing Initiative provides a critical source of cost-effective capital for state and local housing finance agencies (HFAs) that supports the creation and preservation of high quality, affordable rental homes, and its extension will allow even more HFAs to participate in this important program. The Section 542(c) Housing Finance Agency Risk-Sharing Initiative allows eligible Housing Finance Agencies (HFAs) to enter into contracts with HUD through which FHA insures multifamily mortgages originated by an HFA that are used to finance construction or rehabilitation of properties with affordable housing units. Under these contracts, HUD and the HFA share the risk of any potential loss resulting from a default of the insured mortgage. With the FHA insurance credit enhancement in place, the Federal Financing Bank will purchase the mortgage, enabling the HFA to recoup their capital and make other investments in their communities.
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Important Dates
Please Make Note of These Key Dates
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Permanent Supportive Housing
Friday, April 19, 2024 – PSH awards presented to IHDA Board
9% LIHTC
Friday, March 29, 2024 – Applications due
Friday, July 19, 2024 – LIHTC awards presented to IHDA Board
4% LIHTC
IHDA will continue to accept 4% LIHTC PPAs and full applications on a rolling basis through the end of 2024. For more information on application timing, please see the updated 2024 Multifamily Transaction Timeline.
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Development Highlight
Maitri Path to Wellness 1 and 2 - Peru, IL
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This project was awarded two IHDA grants in 2022 from its Housing for Justice Involved Individuals Program (HJIIP). This development was created as a transitional residential treatment center for people with drug addictions and/or reentering the community after incarceration, along with serving those who were previously at an inpatient addiction recovery facility. The center accommodates up to 24 residents, of which 16 are dedicated to HJIIP residents.
Formerly a medical office building, the redesign of the building included a combination of rehab and new construction. After planning with an architect and selecting Bear Construction Company as the general contractor, the interior of the existing building was gutted, and a new construction addition was incorporated to better support both residential living and clinical space.
The total development cost was $2.8 million, of which IHDA grants totaled $950,000. The gap was filled by the sponsor through a private loan from Eureka Savings Bank and nearly $1 million of cash and in-kind donations. The labor was donated by inmates through a carpentry training program offered at Sheridan Correctional Center and the materials by the Peru Home Depot. GAF Roofing donated roofing materials, PPG Industries donated paint, James Hardie donated siding and another local corporate contributor, Carus Corporation, donated 18 new bicycles to provide transportation (and recreation) for residents. Last but not least, the Starved Rock Country Community Foundation donated time as a mentor and supported the Maitri throughout the development process.
Congratulations to Kelly, Brenden, and the Maitri Center staff for the completion of a project that is the first in the LaSalle-Peru region to provide a residential recovery treatment facility! IHDA is proud to be your partner, and we look forward to the many success stories we know your hard work and dedication will produce!
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Meet Your IHDA Developer Team
March Spotlight
Linda Brace - Assistant Director, Client Services
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Where are you from originally?
- I was born in Taiwan and adopted by an American military couple posted there at the time. Being an Army brat, there was a lot of moving around as a child, but we eventually settled in Rockford, IL, where I called home for most of my high school/college years.
Where do you live now?
- I live in Oak Park and have been there for nearly 20 years. I previously lived in a number of Chicago neighborhoods including Rogers Park, Hyde Park, Bucktown, and the South Loop.
What is your role at IHDA?
- I’m the Assistant Director of the Client Services group within Multifamily Finance. Along with other Multifamily colleagues, our team manages the process from initial closing to draw administration during the construction period to final closing and loan conversion. By the way, if any of you can suggest a more descriptive title for our group, we’d welcome the input!
When did you start working at IHDA?
- I started at IHDA in November 2022.
What drew you to IHDA/affordable housing originally?
- IHDA is my first experience in the public sector after more than 30 years as a developer. The transition has been perfect as it allows me to remain “true” to the mission, but from a different perspective.
What do you find most rewarding about your job?
- I find sharing my experience as a developer with my team and the broader Multifamily group most rewarding. Our goal is to make closings more efficient and less stressful for everyone. Hopefully, my past life has helped our team understand the pressures faced by developers and when and how to eliminate unnecessary obstacles in the process.
What has been your favorite project while working at IHDA?
- While every project is unique and frankly, wonderful, I have really enjoyed working on the Housing for Justice Involved Individuals Program (HJIIP) projects. One in particular is featured in this newsletter – the Maitri Path to Wellness project in Peru, IL. Nearly all of the first group of HJIIP projects have closed, paving the way for another round of funding in the future!
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