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Urbana commission approves splitting $5.38 million 2026 bond cap between IHDA and Eastern Illinois EDA
Summary
The commission voted unanimously to transfer Urbana's 2026 private activity bond cap authority of $5,377,185, allocating $2,688,592.50 each to the Illinois Housing Development Authority and the Eastern Illinois Economic Development Authority.
The Community Development Commission unanimously approved two related resolutions to transfer Urbana's 2026 private activity bond volume cap, splitting the city's allocation equally between the Illinois Housing Development Authority and the Eastern Illinois Economic Development Authority.
Staff explained the volume cap is IRS-authorized authority to issue tax-exempt private activity bonds (it is not direct cash). The city's 2026 allocation was presented as $5,377,185; staff recommended a 50/50 split, which would give each receiving entity $2,688,592.50 of bond issuance authority. "It's not like we're giving the money away or losing any access to money. It's just the permission we have to have a non-taxed capital," a commissioner paraphrased while staff confirmed the characterization.
Staff described the two requesters: IHDA, which uses tax-exempt bonds to subsidize affordable housing and mortgage assistance and reported that between 2015 and 2025 it supported mortgage assistance for 147 households totaling a little over $18 million in mortgage volume; and the Eastern Illinois Economic Development Authority, a regional agency with authority to issue tax-exempt bonds for affordable housing and economic development across a 10-county region that includes Champaign County.
Commissioners moved separately to (1) transfer half the volume cap to the Eastern Illinois Economic Development Authority and (2) transfer half the volume cap to the Illinois Housing Development Authority. Both motions passed by unanimous voice votes.
Next steps: staff will process the transfers according to state procedures and the entities will use the authority for eligible private activity bond financing as they determine appropriate.
