Danville Senior Housing at VA campus receives funding

Jul. 19—DANVILLE — Danville Senior Housing, or Danville Senior Apartments, on the Veterans Affairs Illiana Health Care System campus in Danville has received Rebuild Illinois funding.

The housing at 11 Blue Star Highway has received a $474,863 in funds for affordable housing preservation.

The Illinois Housing Development Authority (IHDA) Board announced conditional awards totaling nearly $12 million in Rebuild Illinois funding that will provide critical improvements to 27 affordable housing developments throughout Illinois.

Awarded under the new Limited Rehabilitation Preservation Program, the funds will preserve the safety and long-term stability of affordable rental housing for the benefit of very low-income or low-income households across the state.

In all, more than 1,400 units of affordable rental housing will see vital capital repairs that will address code violations, resolve security issues and improve the health and safety of both the buildings and their residents.

"In Illinois, affordable housing is a right—not a privilege," said Gov. JB Pritzker, through a press release. "For too long, our low-income families have resided in homes falling into disrepair—lacking critical security and infrastructure improvements. This funding will ensure that every Illinoisan has access to the quality, safe housing they have long deserved."

"Far too many people in this country worry about keeping a roof over their heads," said Lt. Gov. Juliana Stratton. "Families deserve leadership that prioritizes their safety and wellbeing—recognizing that a good quality of life begins with stable, secure affordable housing. In Illinois, we are doing just that. This program is about supporting the housing units eligible for funding so that we can build and uplift communities in our neighborhoods across this state. We are doubling down on our commitment to ensure that resources are in place that put families first."

Created in Jan. 2022, the Preservation Program provides grants of up to $475,000 to affordable housing developments for property stabilization, rehabilitation and/or improvements. As a condition of receiving Preservation Program funding, all property owners are required to extend their current use and income restrictions for an additional 10 years beyond their current expiration date to ensure these rehabilitated units remain affordable.

"With the nation already facing an affordable housing shortfall, it is critical to not only create additional housing, but ensure our current stock does not fall into disrepair forcing households to relocate," said IHDA Executive Director Kristin Faust. "I thank the governor and Illinois General Assembly for their continued support in ensuring people are not forced from their homes through no fault of their own. The Preservation Program will not only help keep Illinoisans in their homes; it will ensure these units remain affordable to provide for additional families and seniors."

In addition to the natural aging of the state's affordable housing stock, the COVID-19 pandemic negatively affected rent rolls due to increased unemployment causing many property owners to defer maintenance projects. To ensure low-income families, seniors and other vulnerable households continue to have access to housing that is safe, healthy and well-maintained, IHDA created the Preservation Program to provide the capital that addresses physical needs so these developments can continue to provide quality affordable rental units.

To be eligible for the Preservation Program, developments must have a minimum of 25% of the units restricted to households with incomes at or below 60% of the Area Median Income.

In addition, eligible developments were required to be impacted by at least two of the conditions identified below:

▪ Direct financial risk to IHDA or another funding entity;

▪ Existing physical needs that, if not repaired threaten the sustainability of the development;

▪ Loss of marketability;

▪ Loss of affordability due to expiration of use restrictions or loan maturity; or

▪ Inability to sustain operations with income and rent restrictions going forward.

All applicants were required to submit a Physical Needs Assessment completed by an independent third party that addressed all anticipated capital repairs required within the next 12 years.

The Preservation Program was funded through a portion of the $200 million appropriation to IHDA in the Rebuild Illinois capital plan. IHDA has used funding from the capital bill to develop and implement various programs including reducing barriers to homeownership and revitalizing and stabilizing communities. IHDA expects to launch additional programs to help create and preserve affordable housing in the coming months.