SPRINGFIELD — On Wednesday, the Senate Revenue Committee held a subject matter hearing on a measure spearheaded by State Senator Robert Peters that would address Illinois’ affordable housing crisis by creating a state-level housing tax credit, unlocking millions in federal funds and driving new private investment in housing development.

“Senate Bill 62 is about building homes, creating jobs and making sure working families across Illinois can afford a place to live,” said Peters (D-Chicago). “This is a responsible, proven model that brings everyone to the table – government, private investors and community developers – to deliver the housing our communities urgently need.”

Peters’ measure would establish the Build Illinois Homes Tax Credit, which mirrors the federal Low-Income Housing Tax Credit and helps finance new affordable rental housing. Administered by the Illinois Housing Authority and the Chicago Department of Housing, the credit would be awarded to affordable housing developers who already qualify for the federal LIHTC and are determined to need additional funding to move their projects forward.

The state credit would only be claimed after homes are completed and occupied, benefiting Illinois through housing, jobs and investment before any state dollars are spent. At a cost of $20 million per year over six years, the program is projected to generate $80.4 million in private equity, $447.6 million in income for Illinois residents and over 7,000 new jobs, according to the Illinois Housing Council.

The bill is a strategic investment with broad economic benefits, helping Illinois keep pace with 18 other states that already offer similar housing tax credits. These programs have had proven success in states like Colorado, Georgia and Wisconsin – generating tens of thousands of affordable housing units and billions in economic impact. Peters’ initiative aims to ensure Illinois can fully leverage available federal resources, address unmet housing needs and build stronger, more stable communities across the state.

“Affordable housing is the foundation of economic stability,” said Peters. “We can’t afford to miss out on federal dollars while families struggle to find a safe place to call home. This is our opportunity to act responsibly and strategically.”

Peters looks forward to continued conversations with colleagues, advocates and stakeholders in the hopes to advance his legislation.