CHICAGO – An effort to create more affordable housing for Illinois residents led by State Senators Mattie Hunter, Ann Gillespie and Sara Feigenholtz was signed into law by Governor JB Pritzker Thursday.

“I’ve advocated for equitable housing for a long time, and this year, affordable housing is more necessary than ever before,” said Hunter (D-Chicago). “People are still recovering from the financial struggles brought on by the pandemic, not to mention the eviction moratorium coming to a halt. I hope that affordable and equitable options prevail long after this pandemic is gone.”

Recognizing that the COVID-19 pandemic left thousands of households at risk for eviction, the law creates several monetary incentives for residential developers to create affordable housing in Illinois, including the COVID-19 Affordable Housing Grant Program, which would supplement affordable housing developments that qualify for federal tax credits throughout the state.

“Renters across the state are counting on us to keep their communities affordable, said Gillespie (D-Arlington Heights). “This plan creates a long-term strategy for affordable housing and provides stability for working people.”

Even before the pandemic, Illinois had a severe shortage of affordable housing, and the COVID-19 pandemic only exacerbated the number of people facing housing insecurity. It led the General Assembly to include reduction in assessed value for developers of newly constructed multi-family development within the affordable housing measure.

This provision agrees to set aside at least 20% of their units for low-income renters in areas with low affordability for a period of 30 years would be leveraged to diversify high opportunity areas under the measure.

Additionally, there would be another reduction in assessed value for developers of newly-constructed or rehabilitated rental property if the owner commits at least 15% of the multifamily building's units are set aside for low-income renters for 10 years.

“The COVID-19 pandemic amplified the severity of our state’s decades-long housing crisis,” said Feigenholtz (D-Chicago). “Many families are struggling to afford putting a roof over their heads, so by providing landlords with an incentive to offer more affordable apartments, we’re implementing a common-sense solution to one of the most pressing issues Illinoisans are facing today.”

The measure is effective immediately.