CLIENT ALERT: Affordable Illinois Program Extended Through 2034
The recently passed Revenue Omnibus Bill includes a critical extension of the Illinois Affordable Housing Special Assessment Program (AHSAP) — now branded as Affordable Illinois — through the year 2034. This program provides long-term property tax benefits for developers and owners of qualifying multifamily housing and strengthens the financial feasibility of such developments across Illinois.
In partnership with our client Related Midwest, Point of Difference Strategies and Croke Fairchild Duarte & Beres were instrumental in securing this extension. We worked closely with legislators and policymakers to ensure this important tool remains available to support the creation and preservation of affordable rental housing.
Key Highlights of Affordable Illinois:
Extended Sunset Date: The program is now authorized through 2034.
Local Implementation: Each Chief County Assessment Officer may implement the program for 10 taxable years after qualifying residential property is placed in service.
County Opt-Out Provision: Counties with fewer than 3 million residents may opt out, but any pre-approved properties will retain their full eligibility for the duration of their initial term.
Flexible Affordability Options: Developers may elect one of three affordability thresholds — 15%, 20%, or 35% of units designated as affordable — depending on project economics.
Eligibility Regardless of Financing Source: Participation is not limited by whether a development receives other public financing or is under a regulatory agreement.
Long-Term Tax Certainty: Eligible properties may receive property tax assessments based on restricted rents for up to 30 years — an initial 10-year period, with up to two 10-year renewals if compliance is maintained.
Next Steps:
The General Assembly has 30 days to transmit the bill to the Governor, who will then have 60 days to sign it into law. Once enacted, the Illinois Department of Revenue and local assessment officials are expected to release further implementation guidance.
This extension solidifies a valuable program for new multifamily housing development which includes affordable housing options. Please contact your Croke Fairchild Duarte & Beres attorney or Point of Difference Strategies representative to discuss how Affordable Illinois can support your project’s financial planning and long-term success.
We will continue to provide updates as implementation details become available.