Pritzker announces $156 million for housing programs under his BUILD plan

Gov. JB Pritzker and the Illinois Housing Development Authority on Thursday announced $156 million for housing programs under Building Up Illinois Developments, or BUILD, the governor’s plan to address the state’s housing shortage.^{1, 2} Of that total, $103 million is new funding secured in the budget for the 2027 fiscal year, according to the governor’s office.¹

The administration says Illinois is short roughly 142,000 housing units and will need to build more than 225,000 units over five years to keep up with demand.^{1, 2} Nearly one-third of Illinois households spend more than 30% of their income on housing, the release said, the federal threshold for being cost-burdened.¹

“We’re doing this because we need more housing,” Pritzker said Thursday.² “Supply is too low and interest rates aren’t coming down right now.”²

What the money pays for

The largest pieces go to buyers and to affordable rental construction.¹

• Opening Doors ($25 million): IHDA opened applications Thursday for a 30-year, fixed-rate mortgage paired with $9,000 in down payment or closing cost help, which is forgiven after five years.¹ The state estimates it will help about 3,000 people, and it is not limited to first-time buyers.¹
• Low-Income Housing Tax Credit financing ($36 million in BUILD money, $76 million in all): The BUILD dollars supplement $37 million in federal tax credits the IHDA board approved earlier this year.¹ The awards are expected to support 969 affordable homes in 15 counties, according to the release.¹
• SmartBuy ($25 million): The relaunched program will pay off up to $40,000 in student loan debt for people buying a home in Illinois, with $5,000 in deferred down payment or closing cost help.¹ It is expected to open in spring 2027 and to help more than 550 buyers.¹
• Permanent supportive housing ($14 million in BUILD money, $50 million in all): IHDA will open a $50 million funding round in November 2026 for developers building homes paired with services for people with disabilities or at risk of homelessness, supporting 187 units.¹
• New Homes Illinois ($3 million in BUILD money, $20 million in all): A new program will back starter-home construction through partnerships between local governments and developers, with purchase help for buyers earning up to 140% of area median income.¹ Municipalities can request money starting in spring 2027.¹

The state secured a commitment of $250 million in BUILD funding in the 2027 budget, which will go to future programs, the release said.¹

The zoning fight ahead

The spending is one half of BUILD.² The other half is a package of legislative proposals that would speed approval of affordable housing and “missing middle” housing such as duplexes, triplexes and accessory dwelling units, ABC7 Chicago reported.²

That proposal would set statewide requirements that reduce local zoning authority.² Similar legislation stalled in the spring session after opposition from city and village leaders, and the plan is expected to face significant opposition in the November veto session, according to ABC7.² Local officials who oppose it argue that state zoning rules would preempt local control and change the character of neighborhoods, the station reported.²

Pritzker pointed to that debate in the release.¹ “Public investment alone cannot produce all the housing Illinois needs,” he said.¹ “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.”¹

IHDA Executive Director Kristin Faust said nearly 33,000 buyers bought homes with an IHDA mortgage in the past five years.¹ Lt. Gov. Juliana Stratton and several Democratic legislators, including state Rep. Kam Buckner and state Sens. Robert Martwick, Sara Feigenholtz, Mattie Hunter and Cristina Castro, were quoted in support in the governor’s release.¹

Buyers can find a participating lender for Opening Doors through IHDA’s mortgage site, ihdamortgage.org, according to the release.¹