
Lightfoot Issues 2023 Updates to Allocation Plan for Affordable Housing Development
The Lightfoot administration has issued the 2023 Qualified Allocation Plan (QAP), which determines more than 60% of the City of Chicago’s affordable housing resources. The QAP, which sets the rules for accessing federal Low-Income Housing Tax Credits (LIHTC), has been issued every two years under Mayor Lori Lightfoot, and this year’s edition includes the following additional priorities for developers:
- Dedicated resources for Permanent Supportive Housing, including a minimum 5% set-aside for PSH in all developments.
- Encouraging public transit and Divvy use for transit-served developments.
- Greater broadband infrastructure and connectivity.
- Emphasis on energy efficiency and decarbonization efforts in alignment with City’s Climate Action Plan, Energy Transformation Code and the Building Decarbonization Recommendations Report.
- Bolsters site-specific opportunities in Woodlawn, East Garfield Park, and Pilsen.
- Financial consultant fees no longer must be paid by the developer fee. A capped amount can be included in the Professional Fees budget category. Financial consultants must be unrelated third-party entities.
- For PSH developments, developers are allowed to request a 5% higher developer fee to fund a supportive services escrow to be used for the cost of supportive services to benefit residents.
- For PSH developments, developers are obligated to develop and implement an eviction prevention plan.
- Developers will be expected to follow tenant selection plan guidelines outlined in the LIHTC Affirmative Fair Housing Marketing and Tenant Screening Plan document.
- Developers and general contractors will be expected to hold bid forums and to solicit bids at a minimum with City of Chicago Assist Agencies to open opportunities for BIPOC contractors.
- Construction contingency will be allowed to cover errors and omissions within the AIA Standard of Care of up to 5%.
- Costs associated with the requirement to retain an experienced, independent cost-estimating firm are allowed to be included in the project budget. This third-party firm is ineligible to bid on the project.
- ◦Development
- ◦Policy/Gov't