In a push to level the real estate playing field, Governor JB Pritzker and Illinois housing officials have unveiled the Next Generation Capacity Building Initiative (Next Gen), aiming to bolster minority involvement in affordable housing development. Announced by the Pritzker Administration, the Illinois Housing Development Authority (IHDA), and the Local Initiatives Support Corporation (LISC), the new program will provide 21 selected developers with capital, training, and strategic backing to help them overcome industry entry barriers.
"Every person in Illinois deserves access to fair and affordable housing," Governor Pritzker expressed, according to the state's recent announcement. With its focus on equity, Next Gen seeks to nurture a diverse group of affordable housing developers from across the state, concentrating its initial efforts on a cohort of 21 emerging developers shaped to support the State's aim of cultivating diverse talents within the housing sector.
Starting this March, these participants are set to dive into an extensive curriculum totaling 160 hours, covering a range of essential topics in housing development. The training includes understanding the nuances of utilizing the Low-Income Housing Tax Credit, honing skills in financing, deal structuring, and grasping the IHDA application process. State Senator Cristina Castro hailed the initiative, saying, "By supporting Black and Latino developers who enter the market and equipping them with training and technical resources, we can help boost the supply of affordable homes while empowering diverse developers to succeed in the industry," reported by Illinois government's official announcement.
Upon course completion, these up-and-comers will be eligible to compete for a pre-development loan, provided by IHDA and administered by LISC, to cover early-stage project costs, which have traditionally restricted entry for nascent and small-scale developers. "We are empowering current and future BIPOC developers for decades to come," said State Senator Elgie R. Sims, Jr., with the vision of creating a more balanced industry teeming with job opportunities, competition, and enhanced capacity.
The funding for this initiative derives from a $5 million Illinois Affordable Housing Trust Fund Bond Indenture, highlighting the program’s commitment to fostering long-term development in the affordable housing sector. During her interview, State Representative Barbara Hernandez stressed the importance of this financial commitment, stating, "Taxpayer dollars going towards funding the Next Gen program are dollars well-spent." She emphasized the return on investment in terms of equitable progress while also promoting fiscal responsibility within the state.
Applications for the 2025 cohort are scheduled to open in October 2024, as detailed by the source. Meghan Harte, LISC’s Executive Director, commented on the importance of the Next Gen program in "building a strong, diverse talent pipeline in affordable housing development" and the anticipated positive impact of the incoming cohort on the future of the housing market.
Meanwhile, a member of the inaugural class, Michele Jarrell, expressed her optimism about the program's potential to enact change. "This program opens doors for aspiring developers like me, and I'm eager to make a meaningful impact," she remarked.
