The issuance of General Obligation and Sales Tax Securitization Corporation bonds will fund Mayor Johnson’s planned housing and economic development investments. Bond proceeds will be primarily tax-exempt, but as much as 35 percent of the issuance will be taxable in order to deploy funds towards revolving loans and other non-capital expenses. 

Bond proceeds will be augmented by traditional City funding sources, including Affordable Requirement Ordinance (ARO) in-lieu fees, Low-Income Housing Tax Credits (LIHTC), the Neighborhood Opportunity Fund (NOF), Tax Increment Financing (TIF), and additional State, Federal, and private funding sources. Collectively, the sources represent approximately $3 billion in City investment over the next five years, including $1.25 billion for housing support and $1.75 billion for economic development support.

The bond issuance will not require a corresponding property tax increase for debt service needs. Instead, debt service obligations will be funded by new tax revenues resulting from the expirations of 43 TIF districts over the next four years, or more than one third of the City’s total districts. The district expirations will simultaneously provide other taxing bodies with new tax revenues, including Chicago Public Schools and the Chicago Park District.