Building Neighborhoods and Affordable Homes Program

The Building Neighborhoods and Affordable Homes Program (BNAH) provides forgivable grants to qualifying buyers to assist in their purchase of primary, owner-occupied residences that are newly constructed single-family residential buildings, containing no more than four dwelling units, built pursuant to a City of Chicago land sale redevelopment agreement. The program provides up to $100,000 in purchase price assistance to qualifying buyers. 

Program Requirements

  • Homes must have been built pursuant to a City of Chicago land sale redevelopment agreement and located in a city-wide area 
  • Household income cannot exceed 140% of the area median income (AMI) (see the City's Area Median Income Chart here)
  • Buyers must dwell within one of the dwelling units as their primary residence for a minimum of 10-year occupancy period

Program Features

Grants will be provided to eligible buyers on a scale based on AMI and neighborhood residency:

 

Neighborhood Area Residents
Household Income Limits

 Grant Amount  Non-Neighborhood Area Residents
Household Income Limits
 Grant Amount

Below 80% of AMI

$100,000

Below 80% of AMI

$90,000

81 - 90% of AMI

$90,000

81 - 90% of AMI

$80,000

91 - 100% of AMI

$80,000

91 - 100% of AMI

$70,000

101 - 120% of AMI

$70,000

101 - 120% of AMI

$60,000

121 - 140% of AMI

$60,000

121 - 140% of AMI

$50,000

 

Grant funds can be used as follows: 
  • To fill an appraisal gap (difference between sales price and appraised value); and 
  • Closing Costs 
  • Down Payment
  • Senior loan principal reduction 
  • Appraisals, inspections, pre-paid interest/points, 1 year pre-paid insurance

The Department of Housing administers the program from the application stage through closing, and then monitors the property for 10 years to verify owner occupancy.


For more information on how to apply for the BNAH grant, please contact destiny.durham@cityofchicago.org.

Note: The use of BNAH grant funds for private developments triggering the Affordable Requirements Ordinance is not permitted.

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