CHICAGO – Today, Governor JB Pritzker and the Illinois Housing Development Authority (IHDA) announced $156 million in investments for housing initiatives as part of Building Up Illinois Developments (BUILD)—Governor Pritzker’s comprehensive housing plan designed to address Illinois’ housing crisis and support Illinois working families. Of the $156 million in total investments, $103 million is new funding secured for the FY27 budget as part of BUILD.
BUILD is designed to make housing more affordable for Illinoisians across the state, from Chicago to Rockford to Cairo, by investing in programs that both increase the housing supply and make homeownership more attainable. Through BUILD, Illinois is setting a national example of what targeted investment can achieve when applied to the housing shortage.
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“BUILD is a comprehensive plan designed to tackle rising housing costs from every angle and provide assistance to Illinoisans at every opportunity,” said Governor JB Pritzker. “These programs are meaningful actions to invest in homes the market isn’t delivering and help families it isn’t reaching, but public investment alone cannot produce all the housing Illinois needs. Looking forward, we must also confront the regulations that make it harder and more expensive to build housing so that the door to homeownership is opened to more Illinoisans.”
“The price of housing has skyrocketed, and families are struggling to make ends meet—BUILD is part of our plan to change that,” said Lieutenant Governor Juliana Stratton. “With these investments, the dream of homeownership will become a reality for more and more Illinoisans.”
“The Governor’s BUILD Plan recognizes the reality that Illinois needs more housing for working families, for seniors being priced out of their communities, and especially for first-time homebuyers who are seeing fewer starter homes and more bidding wars in markets across the state,” said IHDA Executive Director Kristin Faust. “The good news is that we are facing this reality head on. Nearly 33,000 homebuyers bought their home with an IHDA Mortgage in the past five years alone, and with this additional investment in the Opening Doors program, we can help thousands more as they put down roots in communities across Illinois.”
“Far too many working families in Illinois struggle to find affordable, reliable, diverse housing opportunities,” said State Rep. Kam Buckner (D-Chicago). “With fluctuating real estate prices, outdated zoning ordinances, and an overall housing shortage, this investment is crucial for the hardworking people of Illinois that deserve to have a safe home in their price range. While we have more work to do to combat this statewide housing crisis, I’m confident that this is a step in the right direction and paves the way for future solutions.”
“Every Illinoisan deserves access to safe, stable housing that fits their budget,” said State Senator Robert Martwick (D-Chicago). “By helping more affordable housing developments move forward, we create construction jobs, support local economies and give more residents a path towards homeownership, strengthening our communities while addressing the growing need for attainable housing across the state.”
“Every person deserves a safe, stable and affordable place to call home,” said State Senator Mattie Hunter (D-Chicago). “By increasing our investment into affordable and middle housing developments, we are creating more housing options, strengthening our communities and giving more families the opportunity to thrive. I was proud to support this essential funding that will build a more equitable Illinois where everyone has the opportunity to put down roots and build a brighter future.”
“When we invest in affordable housing, we also invest in the future of Illinois families,” said State Senator Cristina Castro (D-Elgin). “As we face a time of economic uncertainty, Illinois is leading the charge of ensuring residents can build a life for themselves in Illinois.”
“Investing in housing is about caring for the thousands of Illinois families facing cold winters without adequate shelter,” said State Rep. Bob Rita (D-Blue Island). “Working families shouldn't have to carry heavy burdens on their own, which is why in Illinois, we're giving them the foundation they need to build better lives for themselves and their communities.”
Illinois is short roughly 142,000 housing units and will need to build over 225,000 units in five years to keep up with growing demand. Additionally, nearly one-third of Illinois households spend more than 30% of their income on housing, meeting the threshold of a cost burden as defined by the U.S. Department of Housing and Urban Development.
Per the Illinois Association of REALTORS®, the median sales price for a home has increased by almost eight percent year over year, resulting in fewer opportunities for adults to enter the housing market.
Governor Pritzker believes all Illinoisans should have access to attainable housing across all income levels. The State continues to build on the work of IHDA and the Illinois Office to Prevent and End Homelessness to expand and implement solutions across the housing affordability continuum.
New BUILD Investments Support Housing Accessibility Across Illinois
There are several programs currently making housing more attainable across the state, supported by BUILD and administered by IHDA. These programs support affordable mortgages and down payment assistance for homebuyers, financing for the development of affordable rental housing, and a variety of assistance programs to create communities where all Illinoisans can live, work, and thrive.
The programs announced today include:
Opening Doors ($25M in BUILD Funding)
As part of new BUILD investments, IHDA is opening applications for Opening Doors today. Opening Doors is a forgivable down payment, closing cost, and loan assistant program that’s estimated to support approximately 3,000 Illinoisans.
Through Opening Doors, IHDA provides a 30-year, fixed-rate mortgage combined with $9,000 in down payment and/or closing cost assistance, anywhere in Illinois. The $9,000 is forgiven after five years with no additional payment due, which provides immediate cost relief and incentivizes families to put down roots in Illinois.
The program is not exclusively for first-time homebuyers and can be used in conjunction with other external down payment assistance programs to increase homebuyer support.
Prospective homebuyers can find a participating lender to learn if they qualify for the program them at www.ihdamortgage.org.
Low-Income Housing Tax Credit Financing ($36M in BUILD Funding; $76M Total Investment)
Earlier this year, the IHDA Board approved awards totaling $37 million in federal Low-Income Housing Tax Credits (LIHTC) and an additional $36 million in BUILD funding to supplement the federal contributions, financing construction of 20 developments and preservation of 22 affordable housing developments (building 20 new developments; rehabbing two developments) in 15 counties throughout Illinois. LIHTC awards are expected to support the development of 969 affordable homes for low- to moderate-income families, seniors, and veterans. $36 million in funding appropriated through BUILD will be utilized in the financing of the 22 developments.
Building for the Future
The investment portion of BUILD also funds several programs to make housing more affordable, starting as soon as November of this year.
The programs launching in FY2027 include:
New Homes Illinois ($3M in BUILD Funding; $20M Total Investment)
To spur new home construction, IHDA is developing and implementing New Homes Illinois, a new initiative that will support new starter homes construction through local government–developer partnerships and purchase assistance for buyers earning up to 140% of area median income.
Request for funding will open in the spring of 2027 for municipalities.
Permanent Supportive Housing ($14M in BUILD Funding; $50M Total Investment)
The Permanent Supportive Housing (PSH) Development Program combines long-term affordable housing with tailored services that support individuals and families in achieving housing stability and improved health outcomes. Residents are individuals with disabilities, those who are at risk of homelessness, and those who require ongoing support to stay healthy and housed. The PSH model has consistently demonstrated success in improving residents’ well-being while reducing reliance on costly emergency systems.
IHDA will open a $50 million funding round for developers to create and preserve affordable homes paired with supportive services in November 2026. This will support 187 units. For additional information regarding this upcoming funding round of PSH, visit https://www.ihda.org/developers/supportive-housing/.
SmartBuy ($25M in BUILD Funding)
Homeownership isn’t just about buying property; it’s about building equity, investing in neighborhoods, and giving the next generation a stronger start. However, the average Illinois resident is saddled with more than $40,000 in student loan debt, preventing many younger adults from buying a home.
To increase home purchase accessibility, IHDA will relaunch the SmartBuy program, which provides direct monetary assistance to pay off up to $40,000 in student loan debt for those buying a home in Illinois. The program helps bridge the financial gap that has historically prevented many young adults and families from becoming homeowners.
SmartBuy offers an affordable 30-year fixed rate first mortgage with $5,000 in deferred down payment and/or closing cost assistance. This round is funded through a $25 million appropriation to IHDA in the Illinois FY2027 budget as part of BUILD. Program information can be found at www.ihdamortgage.org closer to its launch date in Spring 2027. The program is expected to benefit more than 550 Illinois homebuyers.
Governor Pritzker is committed to addressing the housing shortage in Illinois with a bold, comprehensive agenda that opens doors to more affordable, accommodating homes. Through the FY27 Budget, the State secured a commitment of $250 million in BUILD funding, which will be applied to future programs. This work is ongoing and will continue to make meaningful impacts in communities across the state, as future programs open to homebuyers, developers, and municipalities, and as the Governor pursues further action to address the growing housing needs of Illinoisans.
