Illinois Expands Resources for Development of Permanent Supportive Housing

The Illinois Housing Development Authority (IHDA) announced some good news to end 2016 by declaring an expanded commitment to the development of permanent supportive housing (PSH). Up to $22.3 million will be available in 2017 to develop PSH housing, involving, among other sources of funding, the state’s first-ever national Housing Trust Fund (HTF) allocation. This use of HTF dollars, and the specific focus on people exiting institutional care such as nursing homes, came in large part from the advocacy and input provided to IHDA by advocates for the homeless, including CSH and Housing Action Illinois, an NLIHC state partner.

IHDA will distribute the new funding to develop PSH through the Permanent Supportive Housing Development Program. Potential recipients of the funds must use them for developments of 25 units or fewer and must set aside at least 10% of units to be occupied by residents referred through the Statewide Referral Network (SRN). SRN units are targeted for extremely low income (ELI) households earning at or below 30% of the area median income who are homeless or at risk of homelessness or whose head of household has a disability or illness, including, but not limited to, a physical, developmental or mental limitation, substance abuse disorder, or HIV/AIDS.

The primary source of funding for the expansion of PSH will be up to $12 million from the Illinois Affordable Housing Trust Fund (IAHTF). Dedicated resources for the IAHTF are generated through the state’s real estate transfer tax. Additionally, IHDA is committing up to $5.8 million from the two different Build Illinois Bond Fund resources.

IHDA also announced a new funding round for the Long Term Operating Support (LTOS) program, which provides rental subsidies over a period of 15 years to landlords who serve ELI households through the Statewide Referral Network. The LTOS program is committed to supporting mixed income housing, requiring that up to 33% of units in a given building participate in the program. LTOS is a component of the Rental Housing Support Program, a state rental subsidy program for ELI households that receives dedicated funding from a state fee on the recordation of real estate documents.

“We are excited to see that new funding, including Illinois’ first national Housing Trust Fund allocation, is being used to expand permanent supportive housing for our most vulnerable populations,” said Bob Palmer, policy director at Housing Action Illinois.

For more information about advocates’ work to expand Illinois’s investment in permanent supportive housing, contact Housing Action Illinois Policy Director Bob Palmer at: [email protected] 

The IHDA announcement of new and expanded funding is at: