The Spring Street Brief

Thirty months after Chicago announced its 2023 LIHTC awards, only 2 of 13 funded projects have closed and broken ground — a concrete signal that the city's layered approval process is straining one of affordable housing's most important financing tools. With $562M in estimated development costs on the line and construction inflation pushing per-unit costs higher, the stalled pipeline raises urgent questions for investors, syndicators, and developers active in the Chicago market. Key Takeaways: Only 2 of 13 projects from Chicago's 2023 LIHTC round have closed and started construction as of...

Show Notes

Thirty months after Chicago announced its 2023 LIHTC awards, only 2 of 13 funded projects have closed and broken ground — a concrete signal that the city's layered approval process is straining one of affordable housing's most important financing tools. With $562M in estimated development costs on the line and construction inflation pushing per-unit costs higher, the stalled pipeline raises urgent questions for investors, syndicators, and developers active in the Chicago market.

Key Takeaways:

  • Only 2 of 13 projects from Chicago's 2023 LIHTC round have closed and started construction as of mid-September 2026 — 30 months after awards were announced in March 2024.
  • The city estimated $562M in total development costs across the 13 projects in March 2024; cost inflation has pushed that figure higher since.
  • Hub 32, a 51-unit project in Garfield Park, saw per-unit costs rise from ~$732K to ~$796K between 2023 and early 2026.
  • 5 additional projects are expected to close before year-end; 4 more are not expected to close until after 2027; 1 has no closing date, and 1 award has been withdrawn.
  • City-allocated LIHTC projects in Chicago average $519K per unit — 15% more than IHDA-allocated deals at $454K per unit in the same market.
  • Both city and state LIHTC costs in Chicago exceed comparable markets like Houston by more than 50%.
  • Chicago is one of only two municipalities — alongside New York City — with its own direct federal LIHTC allocation, creating a dual-approval structure that adds significant time to deal closings.
  • Illinois has nearly 440,000 low-income renter households but only about 150,000 affordable rental homes available — just 31 affordable units per 100 extremely low-income renters in the Chicago metro.

The city's original 18-to-36-month closing window runs through March 2027, meaning the deadline has not yet been formally breached — but four projects are already tracking past it. Mayor Johnson's Cut the Tape initiative has not yet delivered the regulatory acceleration the industry needs. For investors and syndicators with exposure to this round, year-end closings are the near-term stress test. For developers choosing between city and IHDA allocations, the cost and timeline differentials deserve serious underwriting attention heading into the next cycle.

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The Spring Street Brief is your daily intelligence briefing on affordable housing in America.

In under 3 minutes, get the news that matters: LIHTC allocations, Section 8 voucher updates, HUD policy changes, private activity bonds, state housing finance agency deals, and emerging trends in affordable housing development.

Designed for LIHTC investors, affordable housing developers, syndicators, lenders, and policy makers who need to stay ahead of the curve.

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