Not all TIF projects in Chicago receive all of their assistance in the form of incremental real estate taxes. Certain projects receive a portion of their incentives in the forms of low-cost land or loans with favorable interest rates.
For example, the City has conveyed property to private developers at a nominal price for the development of affordable housing projects and mixed-use projects that include an affordable housing component. Although most of the agreements for these projects contain covenants that all of the dwelling units must be affordable to households with incomes below certain levels, some projects that include both affordable and market-rate dwelling units have received this type of assistance.
The City may also elect to lend money to affordable housing developers at favorable or even zero interest rates in order to incentivize affordable housing development.