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Low-Income Housing Tax Credit through IHDA.

IHDA allocates federal housing tax credits to qualifying affordable-rental developments throughout Illinois.

Offered byIllinois Housing Development Authorityverified 2026-07-10

Overview

What it does.

A Chester project may compete for 9 percent credits or pursue applicable 4 percent credits and multifamily financing. Projects must complete IHDA's preliminary review, follow the Qualified Allocation Plan, and maintain long-term affordability and compliance.

Best for: Substantial affordable rental, rehabilitation, or mixed-use housing developments with an experienced development team.

Eligibility

Who and what may qualify.

Eligible applicants

  • Qualified affordable-rental-housing development sponsors meeting IHDA application and project requirements

Applicants excluded by the source

  • Ordinary market-rate projects without the required affordable-housing commitments

Eligible uses

  • New construction and rehabilitation of qualifying affordable rental housing
  • Eligible residential portions of qualifying mixed-use projects under IHDA rules

Uses excluded by the source

  • Unrestricted market-rate development
  • Projects that do not pass IHDA's preliminary and full application processes

Application

How to start.

  1. Review the current Qualified Allocation Plan and IHDA timelines.
  2. Submit the required Preliminary Project Assessment.
  3. Complete the applicable 9 percent competitive or 4 percent transaction process.

Timing: The 2026 9 percent round is closed; IHDA states 4 percent applications continue on a rolling basis through 2026 subject to transaction timelines.

Planning notes

Limits to account for.

  • Tax credits are allocated through a complex development and compliance process.
  • The 9 percent competitive round and 4 percent transaction route have different schedules.

Affordable housing projects commonly require layered financing, all subject to IHDA review and subsidy rules.

Evidence

Official sources.