TIF Neighborhood Improvement Program Helps Local Home Owners

Since 1999, the City of Chicago has been using TIF funds to assist existing single and multi-family residences through the Tax Increment Finance-Neighborhood Improvement Program (TIF-NIP). Based on our recent review of the 2009 Chicago TIF District Reports, the City of Chicago has pledged approximately $29 million to the TIF – NIP and based on information available on the City of Chicago website, the TIF-NIP has paid $17.9 million in TIF funds since 1999 to repair approximately 2,700 housing units in 17 communities throughout the City.

The TIF-NIP is designed to preserve existing residential properties located within TIF areas and to keep them affordable.  It provides residential property owners with grants for both exterior and interior home repair.  The TIF-NIP includes two types of programs, the Single Family Program (SFP) and the Multi-Family Program (MFP). SFP funds are for properties with a maximum of four residential units. The SFP maximum grant amount ranges from $12,500 for a one-unit property to $22,500 for a four-unit property.  Owners of apartment buildings with more than four units are eligible for MFP funds in an amount equal to $5,000 per unit up to a maximum amount of $100,000 per building.  Eligibility for the SFP and the MFP is determined by household incomes of the owners and the tenants. In order to receive the maximum benefit, household income level must be less than 100% of Area Median Income (AMI) for the SFP and less than 80% of AMI for the MFP.

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