Mayor Richard M. Daley announced today a $535 million project to provide low rent housing.

Daley made the announcement amongst several alderman, developers and residents at the Senior Suites of New City on South Western Ave.

"Thousands of families, seniors, and those at risk of homelessness will benefit from new affordable housing opportunities in neighborhoods throughout Chicago," said Daley.

Of the $535 million, the city will be providing $276 million from tax exempt bonds, tax increment financing, loans and low income housing tax credit while the rest will come from private developers.

"Developers have their own private lenders who are helping fund the program," said Molly Sullivan, in the housing departments press office.

Daley was asked at the press conference if he felt the use of TIF's was appropriate for this project, to which he responded with an emphatic "definitely". Daley called the TIF's a tool for the betterment of the community.

The plan is to build or renovate housing 2,673 housing units over the next three years according to Ellen Sahli, the acting commissioner of the Department of Housing.

The plan has four categories of projects that will be built, 1,117 units for senior housing, 649 units for multifamily housing, 546 units for special needs housing, and 361 units for family housing for Chicago Housing Authority residents.

The rents in the apartments cannot exceed 60 percent of the area median income and will be set depending on a renters income, according to Molly Sullivan in the housing departments press office.

The city is also working with banks that foreclose on properties to get them back on the market quickly.

"What we want to avoid is property sitting vacant," said Sahli.