The Pressure is On: Illinois’ Affordable Housing Crisis Demands Action

As March Madness captivates the nation, Illinois lawmakers are facing a crucial decision that will impact families and communities across the state: addressing the escalating affordable housing crisis.The call for action comes amid growing concerns about housing insecurity,a challenge mirroring national trends where rising rents and stagnant wages leave many Americans struggling to find safe and affordable places to live.

Ed hightower, a retired educator and renowned college basketball referee, understands the importance of making the right call under pressure. Drawing parallels between the high-stakes world of sports and the complexities of public policy, Hightower is urging Illinois legislators to support the Build Illinois Homes Tax Credit, a proposed solution aimed at tackling the state’s affordable housing shortage.

“In high-pressure moments, when everything is on the line, leaders must be able to make the right call.”

Ed Hightower, Retired Educator and College basketball Referee

Hightower’s viewpoint is deeply personal. Growing up in a large family in southeast Missouri, he witnessed the struggles of poverty and the transformative power of stable housing. “Growing up in a family of eight children in Southeast Missouri, I knew what it meant to struggle,” Hightower explains. “We didn’t have indoor plumbing until 1966, when my mother moved us to Alton, Illinois, in search of a better life. That experiance shaped my understanding of the critical need for safe, affordable housing — something too many families in our state still lack today.”

The situation in Illinois reflects a nationwide problem. According to the National Low Income Housing Coalition, there is a shortage of over 7 million affordable rental homes for extremely low-income renters in the U.S. This scarcity forces families to make tough choices, often sacrificing healthcare, food, or education to keep a roof over their heads.

The Build Illinois Homes Tax Credit: A Potential Game-Changer

The Build Illinois Homes Tax Credit is designed to incentivize private investment in affordable housing developments. It aims to bridge financing gaps that frequently stall these projects, providing developers with the necessary resources to move forward. This approach mirrors triumphant strategies employed in other states, such as California and Texas, which have utilized tax credits to stimulate affordable housing construction.

Here’s how it effectively works:

• Private investors provide upfront funding for affordable housing projects.
• the state issues tax credits to these investors only after the developments are completed and families move in.

This approach is considered a fiscally responsible way to stimulate housing development while minimizing risk to taxpayers. “This tax credit is a low-risk investment for taxpayers,” Hightower asserts. “Private investors supply the funds upfront, and the state issues credits only after developments are completed and families move in. It’s a fiscally responsible way to create much-needed housing while spurring economic growth.”

More than half of U.S. states have already adopted similar tax credit programs to boost affordable housing investment, demonstrating the potential effectiveness of this strategy. California’s Low-Income Housing Tax Credit (LIHTC) program, for example, has been instrumental in financing affordable housing developments across the state, providing homes for thousands of families. Similarly, Texas has seen important gains in affordable housing development through its own tax credit program.

The LIHTC program,a federal initiative,provides states with tax credits to allocate to developers of affordable housing. These credits can then be sold to investors, providing developers with crucial equity financing. The build Illinois Homes Tax Credit would complement the federal LIHTC program, further boosting affordable housing development in the state.

sunnybrook Community: A Success Story in Alton

The Sunnybrook Community in Alton, Illinois, serves as a prime example of the positive impact affordable housing can have on a community. This development, slated to open its doors this spring, will provide 40 affordable homes to support Madison County’s growing workforce near St. Louis. The project highlights the potential for public-private partnerships to address housing needs effectively.

The Sunnybrook project was made possible through a combination of a one-time state grant, private investment, and federal housing tax credits. Beyond providing much-needed housing,it has generated notable economic benefits for the local area:

• Millions of dollars in local investment
• Creation of high-quality construction jobs
• Up to $4 million in material purchases from area suppliers

However,many other promising affordable housing developments across Illinois remain stalled due to a lack of funding. Without renewed investment from the state, these projects may never come to fruition, leaving communities without desperately needed housing options. The situation underscores the urgent need for sustained and strategic investment in affordable housing.

Addressing Potential Counterarguments

While the Build Illinois Homes Tax Credit offers a promising solution, some critics may argue that it places an additional burden on taxpayers or that it primarily benefits developers. Though, proponents emphasize that the tax credit is a targeted investment that generates significant economic and social returns. It’s crucial to consider the long-term costs of inaction,including increased homelessness,strain on social services,and reduced economic productivity.

The tax credits are only issued after projects are completed and occupied, ensuring that taxpayer dollars are used effectively. Moreover, affordable housing developments create jobs, stimulate local economies, and improve the overall quality of life for residents. Studies have shown that affordable housing can led to improved health outcomes, increased educational attainment, and greater economic stability for families.

Furthermore, the argument that tax credits primarily benefit developers is often overstated. While developers do benefit from the financing provided by tax credits, they are also subject to strict regulations and oversight to ensure that the housing remains affordable for a specified period. The tax credits incentivize developers to build affordable housing, which addresses a critical societal need.

The Broader implications: Affordable Housing as a Foundation for Success

The availability of affordable housing is not just a matter of shelter; it’s a fundamental building block for individual and community success.Stable housing provides families with a sense of security, allowing them to focus on education, employment, and health. This aligns with the broader understanding of social determinants of health, which recognize that factors like housing, education, and income significantly impact health outcomes.

As Hightower notes, “During these trying times, people need safe, affordable housing and education, health care, and social service support. All work together to lift people and their communities.”

The Build Illinois homes Tax Credit represents a critical investment in the future of Illinois, offering a pathway to create more vibrant, equitable, and prosperous communities. By addressing the affordable housing crisis, illinois can create a stronger foundation for economic growth and social well-being.

Call to Action: Lawmakers Urged to Support the Tax Credit

With the clock ticking, advocates are urging Illinois lawmakers to seize the prospect and support the Build Illinois Homes Tax Credit.This legislation has the potential to transform the state’s affordable housing landscape, providing families with the homes they deserve and strengthening communities across Illinois. The decision lawmakers make in the coming weeks will have a lasting impact on the lives of countless Illinois residents.

“I want to commend Governor JB Pritzker and Illinois legislators for prioritizing affordable housing and encourage them to support the Build Illinois Homes Tax credit. This is the right call for working families,communities,and the future of our state. Let’s make the right call and give Illinois families the homes they deserve.”

Ed Hightower, Retired Educator and College Basketball referee