The 2023 Qualified Allocation Plan (QAP), which determines more than 60% of the City of Chicago’s affordable housing resources, was issued today by Mayor Lori E. Lightfoot and the Chicago Department of Housing (DOH).

The third of its kind under Mayor Lightfoot and released every two years, the QAP sets the rules for accessing federal Low-Income Housing Tax Credits (LIHTC), which the City utilizes as affordable housing development funding. LIHTC is a public-private partnership in which investors provide equity for low-income rental properties in exchange for a federal tax credit over several decades. It is the most significant resource for creating affordable housing in the United States today.

The 2023 QAP is released jointly with the 2023 Architectural Technical Standards (ATS) manual, a support tool for developers, architects, and general contractors for the design and construction of quality housing.

In 2021, under Mayor Lightfoot’s leadership, DOH incorporated insight and priorities established by its Racial Equity Impact Assessment (REIA) into its 2021 QAP, and the 2023 QAP builds on these with the following additional priorities:

• 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 with no identity of interest in the owner or developer.
• 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 in order to reduce evictions and their impact.
• 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 (GC) 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.

DOH worked closely with residents, advocates, and developers in preparation for the QAP this year. Listening sessions were held with emerging and BIPOC developers and residents, and working meetings were hosted for advocate groups around SROs and construction standards and compliance.

The 2023 QAP draft was open for public comment until February 28th, 2023. DOH also held a public comment meeting on February 14, 2023 at 1pm. The recording of the public hearing can be found on DOH’s YouTube channel here. DOH’s responses to public comments can be found here.

The 2023 QAP and ATS manual can be found on DOH’s website. The funding round opens on June 5, 2023 and will close on July 7, 2023.

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