CHICAGO — Members of the Illinois Senate Democratic Caucus supported a $156 million investment to create affordable housing options throughout the state.
“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.”
Currently, Illinois has roughly 142,000 fewer housing units than it needs and would have to build more than 225,000 homes over the next five years to keep up with growing demand. Additionally, almost one-third of Illinois households spend over 30% of their income on housing, meeting the U.S. Department of Housing and Urban Development’s cost burden threshold.
According to the Illinois Association of Realtors, the state’s median home sales price has risen by close to 8% year-over-year, which has resulted in fewer opportunities to enter the housing market for Illinois adults.
“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.”
Several Illinois programs are currently making housing more attainable and mortgages more affordable, providing down payment assistance for homebuyers, developing affordable rental housing, and creating communities for all residents to live, work and thrive.
The programs receiving funding through the new investments include:
- Opening Doors ($25 million in funding) – Opening Doors is a forgivable down payment, closing cost and loan assistant program that is estimated to support approximately 3,000 Illinoisans. Applications for the program are open now.
The program provides a 30-year, fixed-rate mortgage, plus $9,000 in down payment and/or closing cost assistance. The $9,000 is forgiven after five years with no additional payments due, providing immediate cost relief and incentivizing families to settle in Illinois.
Opening Doors is not exclusively for first-time homebuyers and can be used in conjunction with other down payment assistance programs. Prospective homebuyers can find a participating lender and learn if they qualify for the program at www.ihdamortgage.org. - Low-Income Housing Tax Credit Financing ($76 million in funding) – The investment in the Low-Income Housing Tax Credits program will go toward the construction of 20 developments and the preservation of 22 affordable housing developments in 15 Illinois counties, which amounts to 969 affordable homes for seniors, veterans, and low- to moderate-income families.
“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.”
The investment also funds several new programs working to make housing more affordable across Illinois, starting as soon as November. These programs include:
- New Homes Illinois ($20 million in funding) – New Homes Illinois is a new initiative supporting the construction of starter homes through local government–developer partnerships and purchase assistance for buyers earning up to 140% of area median income. The program’s funding requests will open for municipalities in the spring of 2027.
- Permanent Supportive Housing ($50 million in funding) – The Permanent Supportive Housing 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 program’s model has demonstrated success in improving residents’ well-being while reducing reliance on costly emergency systems.
Starting in November, a $50 million funding round will open for developers to create and preserve affordable homes paired with supportive services, supporting 187 units. For more information about the program’s upcoming funding round, visit https://www.ihda.org/developers/supportive-housing/. - SmartBuy ($25 million in funding) – The SmartBuy program provides direct monetary assistance for Illinois residents to pay off up to $40,000 in student loan debt when buying a home, helping to bridge the financial gap that has historically prevented many young adults and families from becoming homeowners.
The program offers an affordable 30-year, fixed-rate first mortgage, as well as $5,000 in deferred down payment and/or closing cost assistance. Information about the SmartBuy program’s newest funding round can be found at www.ihdamortgage.org closer to the spring of 2027. The program is expected to benefit over 550 Illinois homebuyers.
“Like many communities in Illinois, 6th District residents are being priced out of renting while the dream of homeownership is too far out of reach,” said State Senator Sara Feigenholtz (D-Chicago). “This spring, lawmakers acknowledged the need to address archaic zoning rules to adapt to today’s challenges. Bold housing legislation, coupled with these investments, will put more resources toward affordable housing and respond directly to the current reality we face.”
Senate Democrats are committed to fighting for housing affordability and addressing the housing needs of all Illinois residents.
