Illinois Opens $750K in Housing Grants to Fight Blight Across State

A new round of state grants is opening to help local governments tackle vacant and abandoned residential properties through rehabilitation and redevelopment efforts.

Illinois Expands Push to Revitalize Neglected Neighborhoods

The Illinois Housing Development Authority is now accepting applications for a new round of funding through its Strong Communities Program, an initiative aimed at helping local governments combat vacant and deteriorating residential properties across Illinois.

According to the announcement, the program offers grants of up to $750,000 for municipalities, counties, land banks, and regional planning commissions working to stabilize distressed neighborhoods.

Officials say the funding is designed to help communities address abandoned homes that often contribute to declining property values, crime concerns, and a shrinking tax base.

State Leaders Focus on Affordable Housing and Redevelopment

Illinois Governor JB Pritzker said the Strong Communities Program is part of Illinois' broader effort to improve housing affordability while revitalizing struggling areas.

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. -Illinois Governor JB Pritzker

Under the program, local governments can use funding for acquiring, rehabilitating, demolishing, or landscaping vacant residential properties containing up to six units.

State officials emphasized that rehabilitation remains the preferred outcome, but demolition funding is available for structures beyond repair to prepare sites for future development.

Competitive Application Window Now Open

The application process is competitive, and state officials are encouraging municipalities and potential third-party administrators to attend an informational webinar scheduled for May 20, 2026.

Funding applications must be submitted by 3 p.m. on June 16, 2026. Officials say the initiative is intended to help communities generate long-term investment, improve neighborhood safety, and return neglected properties to productive use.

Since launching in 2020, the Strong Communities Program has distributed more than $22.1 million statewide, impacting more than 1,800 residential properties in northern Illinois communities near the Wisconsin border and the southern Illinois communities along the Mississippi and Ohio rivers.