Illinois Unveils Funding for Vacant and Abandoned Residential Properties

$9 million investment will help local governments revitalize distressed areas, creating new housing opportunities

CHICAGO - The Illinois Housing Development Authority (IHDA) is now accepting applications from units of local government for grant funding dedicated to supporting local affordable housing needs and community revitalization efforts across Illinois. Offered through IHDA's Strong Communities Program (SCP), this initiative provides financial assistance to allow local governments to address vacant, abandoned, and deteriorated residential properties within their communities. Through leveraging SCP funding, local entities can work in partnership with others or on their own to increase property values, stimulate job creation, reduce crime in affected areas, generate additional tax revenue, and encourage further investment in the community.

"Thanks to the Strong Communities Program, local governments can create new housing opportunities by directly tackling vacant, abandoned, and deteriorated residential properties in distressed areas," said Governor JB Pritzker. "This is one of the many tools that we are using to help make renting and owning homes in Illinois more affordable. I encourage all eligible municipalities to apply for this funding to create healthier, safer, and more affordable communities across the state."

SCP offers grant opportunities of up to $750,000 to grantees for tackling challenging properties threatening their communities. SCP funds can be used for a range of activities, including acquiring, rehabilitating, demolishing, and landscaping vacant and abandoned residential properties containing up to six units. Eligible applicants for SCP must be a unit of local government located in Illinois; however, a county or municipality may join with other counties or municipalities and submit a single application. Additionally, land banks and Regional Planning Commissions are eligible to apply on behalf of units of local government.

"The responsibility for maintenance and upkeep of vacant and abandoned homes unfortunately falls on local governments, often resulting in additional financial burden for taxpayers." said IHDA Executive Director Kristin Faust. "The Strong Communities Program helps offset a portion of these costs, allowing local governments to invest in their communities by revitalizing neglected properties and return these distressed properties back to the active tax roll."

The primary goal of the program is to restore neglected residential properties to active, taxable status through rehabilitation, while also providing financial resources for demolition when properties are beyond repair to reposition the land for new development. Since SCP first launched in August 2020, more than 1,800 residential properties have been impacted with $22.1 million in assistance from Winnebago County at the Wisconsin border to Alexander County at the confluence of the Mississippi and Ohio Rivers. These communities are investing in themselves by addressing vacant and abandoned properties directly leading to healthier, safer, and more lively communities.

SCP Webinar

The SCP application process is competitive, and units of local government and potential third-party administrators, such as regional planning councils and land banks, interested in applying may attend an informational webinar from 11:00 a.m. to 12:00 p.m. on Wednesday, May 20, 2026. Online registration for this session can be found here.

SCP Application

Applications for SCP funding will be accepted through 3:00 p.m. on Tuesday, June 16, 2026. Full program information and the application can be found online here.

Any member of a local government with questions regarding SCP may email [email protected] with your questions or comments.

About the Illinois Housing Development Authority

IHDA is a self-supporting and mission-driven state agency dedicated to financing the creation and preservation of affordable housing in Illinois. IHDA offers affordable mortgages and down payment assistance for homebuyers, provides financing for the development of affordable rental housing, and manages a variety of assistance programs to create communities where all Illinoisans can live, work, and thrive. Since it was established in 1967, IHDA has delivered more than $29 billion in state, federal, and leveraged financing to make possible the purchase, development, or rehabilitation of 335,750 homes and apartments for low- and middle-income households. For more information on IHDA programs, visit www.ihda.org.