Linking affordable housing and job growth

Many efforts to create more sustainable, equitable, and economically competitive regions are highlighted in the Policy Link report. One section (on page 129) focuses on ways of creating affordable housing in areas where job growth is occuring.

For example, the Housing Opportunity Tax Incentive is an Illinois state law enacted in 2004 that seeks to make it easier for housing choice (aka Section 8) voucher families to move to good neighborhoods near jobs and quality schools.

To counter the concentration of vouchers being used in areas of poverty, the law offers a tax credit to landlords to welcome tenants using Housing Choice Vouchers. A maximum of two units or 20 percent of a rental complex can qualify for the incentive.

Local officials estimate that 2,000 landlords used the program in the first year, according to the report, mostly in Chicago. The average annual tax savings is about $750 per unit and the maximum tax shift in Cook County for any municipality is under 1/10 of 1 percent.