Multi-Family TIF Purchase-Rehab Program

The Multi-Family TIF Purchase-Rehab Program helps private developers purchase and rehabilitate vacant and/or underutilized buildings within designated Tax Increment Financing (TIF) districts.

The program provides TIF assistance ranging from 30 to 50% of the total cost needed to rehabilitate and/or acquire multifamily and mixed-use buildings containing five or more units in portions of the South and West side sides. The amount of TIF assistance is determined by project need and requires a percentage of apartments be made available to households earning no more than 80% of area median income over a period of 10 years.

For example, if the TIF grant provides 30% of the project’s total cost to purchase and rehab the property, 30% of the units must be affordable. If the grant provides 40% of the cost, 40% of the units must be affordable.

To be eligible, a property must require substantial rehabilitation that requires a permit for costs of $10,000 or more per unit. Projects that aim to redevelop mixed-use properties with underutilized retail spaces within the City of Chicago's targeted Invest South/West commecrical corridors are prioritized.

Smaller buildings within a two-block radius may also be grouped together to include six or more units.

The program is active within the 43rd/Cottage Grove, 47th/Ashland, 47th/King, 63rd/Ashland79th Street, Avalon/South Shore, Austin Commercial, Chicago/Central Park, Commercial Avenue, Englewood Neighborhood, Midwest, Roseland/Michigan and South Chicago TIF districts

The Department of Housing works in collaboration with Community Investment Corp. (CIC) to administer the program.

For further information, contact douglas.stepnicka@cicchicago.com or call 312.870.9948.

 

 

Program Requirements
Affordability Requirement Required
Percentage of Affordable Units 
Minimum Amount
of Assistance
(% TPC*)
Maximum Amount
of Assistance
(% of TPC*)
Minimum Required
Number of
Total Units**
Affordability
Period
50% AMI 30% $25,000 30% 6 15 years
50% AMI 40% $25,000 40% 6 15 years
50% AMI 50% $25,000 50% 6 15 years

 

 

* Total Project Cost (TPC) = Base Purchase Price + Cost of Substantial Rehabilitation

** Single-family (1-4 unit) residential properties may be aggregated to meet minimum unit requirement

 

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