Next Gen

Next Gen is a professional program to introduce emerging real estate development and finance practitioners to the essentials of LIHTC development.  

Next Gen will prioritize applicants to achieve geographic diversity and to support BIPOC developers who have experienced challenges in accessing capital for their business or to grow their business.

Applicants should be professionals working in real estate development and/or finance who want to expand their expertise to successfully complete a LIHTC project. Emerging for-profit and nonprofit developers in Illinois are eligible to apply for participation.

• Do you have real estate development experience? For example, building or rehabilitating multi-unit properties, and you want to grow your work to benefit your community? 
• Have you been a junior joint venture partner with a larger LIHTC developer and want to branch out on your own? 
• Are you a LIHTC professional, and now you want to understand how to leverage your knowledge to become a developer?
• Do you work for a development firm and want to start your own LIHTC development company?

The curriculum assumes knowledge and experience with real estate fundamentals including the creation of a basic Excel pro forma, loan applications, market analysis, and income/ expense tracking. It uses this base as a starting point for participants’ entry into LIHTC development.  

As this class is intended for professionals, a basic skill set with financial functions in Excel and financial concepts is required, including financial functions such as inserting addition/ subtraction/ multiplication formulae, labeling columns, and rows, linking cells, and using multiple tabs. Database knowledge is not necessary (pivot tables, etc.). Participants should be conversant in financial concepts such as income/ expense, profit/ loss, and cash flow analysis.    

Class time will not be spent on the basics. Students in need of this basic Excel experience should register for a workshop or view free Microsoft Excel videos here.

Next Gen includes approximately 160 hours of training and individualized technical assistance. It combines industry-leading content and real-world education as a platform for supporting the next generation of underrepresented real estate professionals to contribute tangible and lasting benefits to their communities. 

Modules will include real estate development topics focused on LIHTC development, including:  

• Finance and deal structuring
• LIHTC application process
• Legal structure and protections
• Managing a large team 
• Property management v. asset management

Cohort members will have access to related training, industry speakers, and networking events. The program also features the basics of structuring a real estate business and project-specific work that students will develop, leading towards access to pre-development financing and individualized coaching. 

Classes will be a combination of in-person and hybrid. Classes will begin February 2025 and go through November 2025. Participants should be prepared to spend 2 full days participating in Next Gen sessions and several additional hours with a technical adviser each month throughout the program. A detailed schedule will be provided at the beginning of the program in February.

Students are expected to arrive by the class start time and remain through the  entirety of each session. A written notification should be submitted to the Next Gen administrator at least one week prior to an absence so that the instructor and Next Gen team can prepare accordingly. Participants are also expected to meaningfully engage during sessions and avoid personal and professional distractions to the extent possible. More than two absences or lack of engagement may lead to adjustments in benefits available in the program.

Developers interested in Next Gen should apply online and include the required documentation. After reviewing completed applications, a Next Gen review panel may request an in-person or Zoom meeting with the applicant.

Application Details:

REQUIRED

• Personal Information
• Online form (Please complete the online form in its entirety.) 
• Resume (Please include a copy of your resume and your development team members – up to 2 pages.)
• Letter of Interest
  • Please provide a one-page (max 350 words) letter of interest discussing why you are suited for inclusion in the Next Gen program. The Letter of Interest should minimally address the following:
    • Why are you interested in the Next Gen program?
    • What applicable real estate and/ or LIHTC experience do you have?
    • What specific characteristics make you a good candidate for the Next Gen program?
    • How do you plan to use the knowledge gained from the program?
    • How will your participation in the program help fulfill NextGen’s mission of increasing the capacity of emerging developers?
    • How is increasing diversity among developers beneficial to both the development industry and Illinois residents in need of affordable housing?
    • Explain how your race or ethnic origin have negatively impacted your ability to access capital for your business or grow your business. Describe any examples of such negative impact (e.g., incidents of discrimination or bias you have experienced that have curtailed or limited your business prospects).  These examples should come from your individual experience and not describe societal discrimination or bias generally.  Clearly describing your experiences attempting to access capital for your business or grow your business is an important part of determining eligibility for this program.
• Letters of Recommendation
  • Please provide one to two letters of recommendation on the recommender’s company/ business letterhead addressed to the Next Gen Program Selection Committee. Letters should be from a professional/ business relationship such as a lender, community leader, elected official, or instructor (among others) and should speak to the following:
    • Nature of relationship with the applicant and number of years known.
    • Comments and observations on the applicant’s quality of work and character.
    • Comments on why the applicant should be considered for the Next Gen program within the context of the program’s focus on building the capacity of BIPOC developers.
• Proposed project
  • Please provide as much information as you have available describing a project you would like to develop using LIHTC. 
    • One-page concept narrative (required)
    • Excel Proforma (required) to the extent available please provide:
      • Sources & Uses
      • Rents
      • Operating expenses
      • Cash flow
      • Renderings/sketches/pictures if available

OPTIONAL 

• Provide company information and/or proposed project.
• Real estate development company information
• Please provide as much information as you have available describing your real estate development business. 
• Summary business plan  (one-page/ 350 words)
• Excel portfolio description by building including:
  • Building information (number of units, rents, bedroom count)
  • Financial information (estimated value, equity, loan balances)
  • Operating information (rent per year, debt, typical expenses, cash flow)
  • Pictures
• Excel balance sheet for the company

LIHTC was created by the U.S. Congress in 1986 to promote the development of affordable housing for low-income individuals and families. LIHTC is a powerful financing tool that developers use to create quality affordable rental housing and spur community development in coordination with LIHTC allocating agencies.

LIHTC housing reduces economic segregation and spurs new development in disinvested communities. It is often the first significant new investment of any kind in low-income or disinvested neighborhoods. It can also offer rarely available quality affordable apartments in higher-income neighborhoods. Renter households may include working families, people with disabilities, veterans, and senior citizens. Well-managed LIHTC housing and its residents blend seamlessly into neighborhoods and benefit both residents and neighbors. 

LIHTC and other financing structures enable developers to build and let apartments at rents well below market. In exchange for these funding sources, developers commit to long-term affordability. LIHTC housing developments are typically more than 60 apartments in urban areas and at least 35 apartments in rural areas due to the complexity and related costs of the financing structure. Developers must navigate the financing process and provide guarantees for substantial loans. Developers earn a fee, which is typically paid out at benchmarks from deal closing, to stabilized occupancy.  

Local Initiatives Support Corporation

Together with residents and partners, Local Initiatives Support Corporation (LISC) forges resilient and inclusive communities of opportunity across America—great places to live, work, visit, do business, and raise families.

Over the past 40+ years, LISC and its affiliates have invested approximately $29.7 billion in businesses, affordable housing, health, educational mobility, community and recreational facilities, public safety, employment, and other projects that help to revitalize and stabilize underinvested communities. Headquartered in New York City, LISC’s reach spans the country from coast to coast in 38 markets with offices extending from Buffalo to San Francisco and in 2,400 rural counties across 49 states and Puerto Rico.

In Illinois, LISC founded its first office in Chicago in 1979 and its second office in Peoria in 2012. LISC Chicago and Central Illinois work with nonprofit, community-based organizations to develop community-led plans, affordable housing, commercial development, commercial enterprises, and community facilities as well as investing in small businesses. LISC also invests in health, economic development, financial well-being, and environmental sustainability so that the community partners they serve are good places to live and thrive in wellness and economic stability. 

Illinois Housing Development Authority

Illinois Housing Development Authority (IHDAis the state’s housing finance agency and was created by the Illinois General Assembly in 1967 pursuant to the Illinois Housing Development Act as a self-supporting agency to finance affordable housing across Illinois. Since its creation, the Authority has provided more than $27 billion to finance more than 327,000 affordable homes. IHDA accomplishes its mission through several avenues:  

• Connects people with financing programs. 
• Partners with lenders, developers, local governments, nonprofits, community groups, and others to deliver low-cost financing programs.  
• Provides financial assistance to low- and moderate-income homebuyers and homeowners. 
• Offers resources to developers who build or preserve affordable and mixed-income rental housing. 
• Provides oversight for hundreds of affordable rental communities across the state.