SPRINGFIELD, Ill. – In an effort to create and preserve affordable rental housing, State Rep. Sara Feigenholtz, D-Chicago, introduced legislation that will create a new property tax incentive on Wednesday.
“Affordability in neighborhoods in cities and statewide can change dramatically because of redevelopment and new investments,” said Feigenholtz. “This dynamic growth has consequences that often result in displacement of families unable to find affordable housing in these quickly gentrifying neighborhoods where they have lived and worked for generations.”
In higher cost markets, soaring rents are shrinking the affordable housing supply and making it more challenging for low-income families to remain in their communities. HB 2168 provides the incentive to encourage owners to charge lower rents at the same time they are investing in an existing property or building new apartments.
HB 2168, if enacted, would also benefit lower cost housing markets, where it would encourage and improve the feasibility of rehabilitation projects, while ensuring rents stay affordable.
The property tax incentive would provide a reduction in equalized assessed value for 10 years or more for buildings with six or more residential rental units that are new construction or undertake qualifying rehabilitation and keep a portion of units affordable to households at or below 60% of area median income.
The legislation is an initiative of a coalition of housing advocates including Housing Action Illinois and Enterprise Community Partners. Housing Action Illinois is a statewide coalition that expands the availability of quality, affordable housing. Enterprise Community Partners works to creates opportunity for low- and moderate-income people through affordable housing in diverse, thriving communities. The incentive structure stems from a proposal developed by The Preservation Compact, a policy collaborative to preserve affordable rental housing.
“In higher cost markets, our goal is to keep rents affordable in buildings already being rehabbed or built,” said Bob Palmer, Policy Director for Housing Action Illinois. “In lower cost markets, we want owners to have more resources to invest in maintaining quality, affordable rental homes.”
The legislation is also supported by the Chicagoland Apartment Association, a non-profit trade association dedicated to serving the needs of the industry. They represent over 190 companies who manage more than 200,000 apartment homes.
“Increasing affordable housing benefits everyone,” said Mike Mini, Executive Vice President of the Chicagoland Apartment Association. “This proposal is a win-win scenario for both residents and apartment owners by building and improving quality housing and keeping it affordable as the same time.”
Rep Sara Feigenholtz
12th District Assistant Majority Leader
300 Capitol Building
Springfield, IL 62706
3223 N. Sheffield
Chicago, IL 60657
(773) 296-0993 FAX