MAYOR BRANDON JOHNSON AND THE CHICAGO DEPARTMENT OF HOUSING TO INVEST $20 MILLION IN VACANT AND ABANDONED BUILDINGS IN THE CITY VIA REBUILD 2.0 PROGRAM

Mayor Brandon Johnson
Mayor Brandon Johnson

MAYOR BRANDON JOHNSON AND THE CHICAGO DEPARTMENT OF HOUSING TO INVEST $20 MILLION IN VACANT AND ABANDONED BUILDINGS IN THE CITY VIA REBUILD 2.0 PROGRAM

CHICAGO - Under Mayor Brandon Johnson’s leadership, the Chicago Department of Housing (DOH) has launched Rebuild 2.0, a program aimed at rehabilitating vacant buildings in disinvested communities, to be run by the department’s Bureau of Neighborhood Preservation.

An expansion of the original Rebuild program, Rebuild 2.0’s overall goal is to preserve existing housing sites—primarily on the Chicago’s south and west sides—and develop communities. This will be executed by identifying abandoned buildings in close proximity in historically disinvested neighborhoods and acquiring, rehabilitating, and selling the buildings for homeownership.

As a result, the program aims to assist in building wealth for local developers, create greater opportunities for homeownership, and eliminate blight.

"Rebuild 2.0 reflects our commitment to addressing decades of disinvestment by turning vacant properties into opportunities for homeownership and economic empowerment," said Mayor Brandon Johnson. "This program not only strengthens our neighborhoods but also uplifts local developers and ensures that every Chicagoan has a stake in our city's future."

“Housing preservation is a priority for DOH,” said Lissette Castañeda, DOH Commissioner. “Rebuild 2.0 will invest in Chicago’s neighborhoods via the rehabilitation of buildings, as well as support local businesses and homeowners so that residents can reside in the safe, quality communities they deserve.”

A $20 million grant provided by the Illinois Housing Development Authority (IHDA) will aid in the overall expansion of the program.

“The Illinois Housing Development Authority is committed to revitalizing the housing stock in every corner of our state, and we are proud to support this work as the City brings new energy to neighborhoods that have faced decades of disinvestment,” IHDA Executive Director Kristin Faust said. “Every family deserves a safe, affordable home and a community they can be proud of, and the expansion of this program is an important step that will make this dream a reality in neighborhoods across Chicago.”

Two local Community Development Financial Institutions (CDFIs) -- the Chicago Community Loan Fund (CCLF) and Greenwood Archer Capital (GAC) -- have been selected as administrators of the program and will receive the grant funds upfront.

“Chicago Community Loan Fund is excited to scale the Rebuild 2.0 program,” said Bob Tucker, Interim President at CCLF. “Our partnership with the Chicago Department of Housing and others helps us provide financing and technical assistance to developers. Rebuild 2.0 provides acquisition and rightsizing incentives to reduce total development costs, enabling community developers to rehab residential housing stock and strengthen communities that have been challenged for years by redlining and disinvestment with new homeownership opportunities.”

Organizations were selected based on their commitment to the neighborhoods in need, experience in and dedication to working with BIPOC developers, and their capacity and capital to lend to developers.

“On behalf of Rosie Investment Corporation, I am pleased to be able to work alongside the City of Chicago's Department of Housing,” said LeVar Love, CEO & Founder of Rosie Investment Corporation, as well one of the program’s developers. “This opportunity allows housing redevelopment, workforce development training and the support of minority-owned businesses to flourish in the city we all love.”

As a function of the program, developers will submit a total estimated budget for a property, and program administrators will approve projects based on total development costs.

“Our communities deserve to become communities of opportunity with flourishing businesses, cultural events, and safe homes,” said Will Edwards, Deputy Commissioner of DOH’s Housing Preservation Bureau. "The comprehensive strategy will be to purchase available vacant properties while working to acquire tax burdened and demolition list properties, which will require additional time and relevant partnerships. By reducing the blight of abandoned, dilapidated homes, it gets us one step closer to the neighborhood revitalization that our residents deserve.”

The program’s emphasis on supporting BIPOC developers ensures that they are leading beneficiaries of the program. It further aims to gradually improve the housing market in targeted areas, turning disinvested communities into communities of opportunity.

One of the tools available for accomplishing this is the DOH’s forfeiture process. In coordination with the Chicago Departments of Law and Buildings, as well as the Housing Court, properties that have demolition orders entered can be forfeited to the program. This will provide an opportunity for the program to aggregate properties for rehab in concentrated areas, impact the surrounding neighborhood, and move the local housing market to a more sustainable level.

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