Mayor Brandon Johnson presides over a City Council meeting on Oct. 30, 2024. [Don Vincent/The Daily Line]

Mayor Brandon Johnson and the city Department of Housing on Monday unveiled a new program to help some prospective homeowners with down payments and closing costs. The grant program is the latest to be funded through Johnson’s $1.25 billion Housing and Economic Development bond package.

The HomeGrown Purchase Assistance Program was designed “to address the growing affordability challenges facing low and moderate-income level families in today’s housing market,” the mayor’s office said.  

The $21 million bond-funded program is aimed at closing that affordability gap to place homeownership back in reach for working class Chicagoans.   

"We want Chicagoans to be able to afford to raise their children and spend their lives in our city,” the mayor said in a news release. “As we work to invest in housing opportunities and expand pathways to stable, affordable housing for all our residents, it is a key aim of our administration to ensure that homeownership remains within reach for working families across Chicago while investing in generational wealth, neighborhood stability and long-term opportunity in every community.”

The program will be administered by Neighborhood Lending Services, Inc., a Neighborhood Housing Services of Chicago affiliate, and TRP Lending, LLC, an affiliate of The Resurrection Project. 

Households must meet income requirements to be eligible, and the amount of financial assistance will be determined by the household’s income and the part of the city in which the home is located. The program divides the city into zones A and B. Zone A consists of neighborhoods that have experienced “significant increases in home sale prices,” and Zone B includes low-income census tract areas where 70 percent of families or more have incomes below 80 percent of the statewide median family income.

In Zone A, homebuyers will be able to qualify for grants between $40,000-70,000, depending on their income. In Zone B, homebuyers will be able to qualify for grants between $10,000-50,000 depending on income. 

Homebuyers in Zone A must make 120 percent of the area median income or below to qualify for a grant. In Zone B, buyers must make 150 percent of the area median income or lower. The homebuyers in lower income brackets will be eligible for higher grant amounts. 

Applications will open June 8. In addition to the income requirements, homebuyers must also provide a mortgage pre-approval letter, complete a homebuyer education counseling course and contribute at least one percent of the property’s original purchase price from their personal funds, the city said. 

The participating homebuyers will also be required to occupy the purchased home as their principal residence for at least five years, and the grant funding will not exceed 25 percent of the pre-assistance purchase price of the home.  

“Homeownership is one of the most powerful tools individuals and families have to build stability, create generational wealth, and contribute to safe, strong communities,” said Kristen Komara, vice president of Full Circle Homes at The Resurrection Project. “Through the HomeGrown Grant initiative and The Resurrection Project’s integrated housing model — which includes financial education, realty services, and lending support, we are expanding access and opportunity for new homeowners across Chicago. This is more than purchasing a home; it’s about building community and championing housing justice for families, neighborhoods, and the future of our city.” 

The billion-dollar-plus bond authorization was approved by the City Council in 2024 and has also funded other housing-related priorities such as the city’s Green Social Housing program and Missing Middle Housing Initiative.