An increase in the low-income housing tax credit will directly yield more support for affordable housing.
The low-income housing tax credit, which provides subsidies to developers building affordable housing, has been increased from $1.25 per capita to $1.75, to be phased in over two years. The bond cap, another financial tool that supports development of affordable housing, has also been increased (over two years) from the current $50 per capita to $75, and indexed for inflation thereafter. Combined, these financial tools could lead to as many as 700 net new affordable rental units in the City of Chicago alone over the next 10 years.
The Low Income Housing Tax Credit is a cornerstone of revitalization in low-income communities and contributes significantly to economic growth nationwide, generating approximately 70,000 jobs, $2.3 billion in wages and $1.2 billion in federal, state and local taxes annually.