To increase neighborhood stability and homeownership rates among low-income families locally, the City of Chicago has partnered with TAP’s Affordable Housing Initiative to implement the City’s TaxSmart program. TaxSmart encourages first-time homeownership as well as property rehabilitation in specially targeted low- to moderate-income City neighborhoods through a 20% nonrefundable federal tax credit on mortgage and home equity loan interest, for the life of the loan. The City estimates that a participant will save as much as $2,000 per year.

In 2006, we have enrolled 33 families in this program, thus surpassing our goal for the Affordable Housing Initiative and creating approximately $66,000 in tax credits.