Housing Authority of Joliet (HAJ)
Receives Tax Credit Financing Package Valued at $18.6 Million
On June 16, 2015, the Illinois Housing Development Authority (IHDA) Board of Directors approved an annual allocation of $1,228,333 in Low-Income Housing Tax Credits (LIHTC) to the revitalization of the Housing Authority of Joliet’s oldest affordable housing community at Des Plaines Gardens, Joliet, Illinois.
The federal tax credits which are allocated by IHDA through a competitive application process will finance the development of 68 single family and townhome rental units - Water’s Edge, an affordable housing “community of choice” near downtown Joliet. Water’s Edge will be a new construction project to commence following the demolition of the functionally obsolete row house buildings (122 dwelling units) built in 1954 – 1956 and will consist of two phases. The first phase will be the revitalization of the existing Des Plaines Gardens site with 68 newly constructed homes and the second phase (54 homes) will be constructed on vacant land the Housing Authority owns.
Will County Housing Development Corporation, the 501(c)(3) instrumentality of the Housing Authority of Joliet submitted the successful tax credit application – one of only nine projects funded for Round One of 2015. This is the third successful LIHTC application for Will County Housing Development Corporation and the Housing Authority of Joliet, the first two funded Liberty Meadow Estates, a 116 single-family home lease-to-own community located at Briggs and Rosalind Streets, Joliet.
To rank within the LIHTC application evaluation process, developers must demonstrate that the proposed project not only meets the community’s housing needs, but also serves the appropriate in-need population as determined by income levels, rent levels, age, special needs, family size, and other demographic factors. The developers determine these needs through market feasibility studies and research. Projects that meet the minimum underwriting criteria and rank high enough in the competitive application process receive an annual allocation of Low-Income Housing Tax Credits for ten years, which are sold to third party investors through syndicators, which then is a source of equity in these multi-family rental projects. Projects that receive Low-Income Housing Tax Credits must rent to households with income at or below 60% of Area Median Income.
“We are extremely excited by this wonderful news that we have won the tax credits. All of our hard work has finally paid off. Now we have the financial resources to make our vision of revitalizing this distressed area a reality for the City of Joliet. We are ready to get down to business and move forward with our development partner, Will County Housing Development Corporation, on our plans to bring forth renewal. The demolition of the Des Plaines site and the redevelopment of the new homes is a win-win for our entire community.”
- Mittchelena Meade, HAJ Commissioner & Chairman
Over the past nine years, the Housing Authority of Joliet and its instrumentality have brought nearly $50 Million into the City of Joliet, strengthening the housing market and bolstering the City’s economy.
“We want to chart a successful course for this agency that will positively impact our residents, the organization, and subsequently, our contribution to the future of the City of Joliet.”
– Michael Simelton, HAJ CEO
See development in progress:
For More Information regarding HAJ’s Development Program, contact John Chow, Chief of Development & Operations