Illinois Preservation Now Program

Illinois Housing Development Authority created the Preservation Now program to provide subordinate mortgage financing to new tax-exempt bond projects that contain minimum levels of existing project-based rental subsidy.

The program preserves project-based rental subsidies in existing developments by encouraging owners who acquire and rehabilitate properties to extend existing rental subsidy contracts. The amount of subordinate funding to be provided under Preservation Now will be limited to approximately 10 percent of the total development costs or the amount necessary to make the project financially feasible, as determined by IHDA.

IHDA approved more than $79.4 million in financing in 2013 to preserve over 1,000 affordable units. 

The Preservation Now program is supported by $20 million in Illinois Affordable Housing Trust Fund resources which are anticipated to leverage up to $100 million in IHDA bond volume cap to support preservation efforts. Approximately $245 million in project-based subsidy will be preserved over the next 20 years as a result of the program.

Multifamily rental developments with an existing project-based rental subsidy contract for at least 50 percent of the units in the development are eligible.

Eligible projects also must demonstrate the following:

  • A commitment to preserve any federal existing project-based rental assistance, including, but not limited to project-based Section 8, Rent Supplement, Rural Development subsidy programs or RAD commitment to remedy existing physical deficiencies that if not repaired threaten the viability of the development and/or the health and safety of the residents;
  • A financially viable development as a result of the new financing;
  • A financing gap, to support the need of subordinate financing;
  • Readiness to proceed as evidenced by meeting Mandatory Application Criteria, as defined in Section 2 Part C of the Preservation Now Request for Applications (RFA);
  • A form of a sale between two unrelated parties that shall satisfy all relevant provisions of the Internal Revenue Code; and
  • A rehabilitation plan that shall satisfy all relevant provisions of the Internal Revenue Code.
Contributed By: 
National Housing Trust

Other Items of Interest