Chicago pushes $21M home-purchase program, state expands its own

By Sean Reed | The Center Square
The Center Square

(The Center Square) – Affordable housing continues to be an area Illinois leaders seek to address through expanded taxpayer-funded spending at multiple levels of government in the state.

Chicago Mayor Brandon Johnson touted what he said was a success in beginning to build new affordable housing through new policies, which he said would create generational wealth – which he noted would be particularly impactful for the city’s African American population while at a city Juneteenth event.

A release earlier this month announcing the ‘Homegrown Purchase Assistance Program’ explained that the new program would be funded through an existing $1.25 billion Housing and Economic Development Bond taken out by Johnson’s administration.

“This $21 million investment helps eligible first time home buyers with down payments and closing costs,” Johnson said Tuesday. “Home ownership still remains one of the strongest pathways to building wealth, creating stability and investing in future generations.”

According to the mayor’s announcement, homebuyers will be required to meet financial benchmarks, complete homebuyer education counseling, and contribute no less than 1% of the original purchase price.

The release also included an explanation that funds would be limited to 25% of the property price, allowing for additional financial assistance to apply after the city’s program.

Johnson’s new program comes as a number of statewide measures part of Gov. J.B. Pritzker’s BUILD housing plan didn’t come to fruition by the end of May, the end of the spring legislative session in Springfield.

Pritzker defended the plan Tuesday by mentioning that state-funded programs that were included as part of the plan did pass in the state’s 2027 fiscal year budget.

“Things don’t always happen in one year. I did get several of the provisions of the BUILD Plan that I put forward – and the other provisions we’ll keep working on and hope that we can get resolution on them in the coming session in 2027,” Pritzker said.

One of the provisions to make it through the General Assembly’s spending plan provides similar taxpayer funds to support first-time homebuyers with a down payment and associated fees. Pritzker’s program, however, provides the aid as a state-backed mortgage.

The mortgage program, IHDAccess Home program, is overseen by the Illinois Housing Development Authority. The program received an allocation of $50 million, as requested in Pritzker’s budget proposal.

The program provides different-sized mortgages depending on if they are forgivable, deferred or repayable loans.

The full FY27 budget provides roughly $442.1 million for all programs administered by IDHA, including for the Access Home program.