Elgin Housing Authority Secures $1 Million City Funding for 72-Unit Affordable Housing Project in Batavia
The Housing Authority of Elgin's nonprofit arm secured $1 million in Batavia city funding for a $28 million, 72-unit affordable housing development. Construction is expected to begin in July.
A $28 million affordable housing development led by the Housing Authority of Elgin has secured $1 million in financial support from the city of Batavia, advancing a project that would add 72 subsidized rental units to the Fox River Valley.
The Batavia City Council approved a redevelopment agreement Monday with Fox River Affordable Housing, the nonprofit development arm of the Housing Authority of Elgin. The deal includes a $1 million tax increment financing, or TIF, incentive to cover land acquisition and development soft costs such as engineering and architecture work.
"The developer is planning to close on the land in July, and is looking to start construction as soon as possible after closing," Martell Armstrong, executive director and chief executive officer of the Housing Authority of Elgin, told The Beacon-News on Tuesday.
What the project would deliver
The Residences at River Pointe would be built at 400 S. River St. in Batavia, a former limestone quarry site bordered by parks along the Fox River to the west, an industrial area to the south, and single-family housing to the north and east.
The development would include:
- 52 one-bedroom units
- 17 two-bedroom units
- 3 three-bedroom units
Of the 72 total units, 18 would be set aside for households earning at or below 30% of the area median income. 38 units would target households at or below 60% of the area median income, and 16 would serve those at or below 80%.
No units in the project would be market rate. The development secured a commitment for Low Income Housing Tax Credits from the Illinois Housing Development Authority, which caps maximum rent at 80% of the area median income for a 30-year period, according to IHDA.
The funding deal
The city originally signaled support for $1.2 million in TIF funding for the project just over a year ago. That initial commitment was part of the developer's application for the Low Income Housing Tax Credits.
But the final agreement reduced the incentive to $1 million. City staff said the reduction reflected the fact that the affordable housing development could obtain property tax abatements for 15 years, meaning the tax revenue the city would collect from the property would be partially abated during that period.
Batavia also negotiated a payment in lieu of taxes, starting at $15,000 in the first assessment year and increasing by 3% in future years, according to a city memo included in Monday's meeting agenda.
The project is projected to cost more than $28 million in total. After the 15-year abatement period, it is expected to provide more than $155,000 annually in tax revenue for all taxing bodies, per the city.
If the project is not completed within five years, the developer must either repay the incentive or deed the property to the city, under the redevelopment agreement approved Monday.
Why it matters for Elgin
The project highlights the Housing Authority of Elgin's role in developing affordable housing beyond Elgin's own borders. A 2023 statewide report from the Illinois Housing Development Authority found that Elgin's affordable housing stock was over 50%, significantly higher than Batavia's 23.5%.
That 2023 report defined affordable housing as units within the means of homebuyers making 80% of the regional median household income or renters making 60% of the regional median household income.
The report also found that several Kane County communities, including Campton Hills, Lily Lake, and Geneva, fell below the 10% threshold that requires communities to submit a plan to the state on how they will build out a diverse housing supply.
What comes next
The developer secured zoning entitlements earlier this year. The next step after Monday's council approval is for the developer to close on the property, which Armstrong said is planned for July.
The anticipated construction timeline is around 14 months, Armstrong said. That timeline depends on securing permits and remaining entitlement approvals.
The Low Income Housing Tax Credits are expected to be awarded after construction is completed and the development achieves its threshold occupancy goals, Armstrong previously said.
Source: Chicago Tribune reporting by Mike Morrow, June 3, 2026.