Illinois Housing Development Authority Announces Funding Opportunity for Permanent Supportive Housing

Up to $75 million available to create housing for persons with disabilities, those at risk of homelessness and for projects with innovative healthcare partnerships

The Illinois Housing Development Authority (IHDA) announced it is seeking applications for up to $75 million in state and federal financing to create housing for persons with disabilities, those struggling with homelessness and other vulnerable populations.

Available through IHDA’s Permanent Supportive Housing (PSH) Development Program, funds will support the development of affordable housing combined with supportive services designed to help vulnerable individuals and families attain stable housing and use it as a platform for health, recovery and personal growth, as well as projects with innovative healthcare partnerships that address community health disparities.

The request for applications, which can be found here, is part of IHDA’s continuing efforts to integrate housing and healthcare, accelerate the production of supportive housing, and support the state’s progress under the Home Illinois Plan, a multi-year holistic approach to achieve “functional zero” homelessness in Illinois.

“Here in Illinois, housing isn’t a privilege—it’s a right,” said Governor JB Pritzker. “Through IHDA’s Permanent Supportive Housing Development Program, we are dispersing $75 million to ensure that our most vulnerable residents have a safe and accessible place to call home. Homelessness is not inevitable—and by investing in affordable housing and supportive services, we are moving one step closer to an Illinois where everyone has a roof over their head.”

“Everyone across our state deserves the security of a safe place to call home. These key investments through the Illinois Housing Development Authority are working to make that a reality, addressing health disparities and uplifting our most vulnerable so they have the tools to live healthy and well,” said Lt. Governor Juliana Stratton. “In Illinois, we move forward together, and we will stand in the gap so all are supported to grow and thrive.”

“This is another exciting illustration of our State’s leadership on a comprehensive effort to prevent and end homelessness,” said Christine Haley, State Homelessness Chief. “I am grateful to Governor Pritzker, Director Faust at IHDA and the members of the General Assembly who have been steadfast in finding bold, creative ways to help more families achieve the stability we all deserve.”

“This funding opportunity marks another important step forward in creating a brighter future where every resident has access to the housing, healthcare and support they need to achieve their full potential.” said IHDA Executive Director Kristin Faust. “Developments funded through this program have the power to transform lives and communities across Illinois, and we look forward to continuing this work with our public and private partners as we break the cycle of homelessness, institutionalization and crisis in our state.”

The PSH Development Program was created to increase the community-based housing options available to vulnerable populations who have historically faced barriers to stable housing. Developments funded by the program serve individuals and families who are homeless or at risk of homelessness, persons living with chronic disabilities and those who are at risk of institutionalization, including those exiting the criminal justice system. Approximately $60 million in state and federal funding is available to support the acquisition, new construction, rehabilitation or adaptive re-use of supportive housing units offered in a range of housing and service models.

IHDA’s Healthy Housing, Healthy Communities (H3C) initiative is a new, $15 million funding opportunity within the PSH Development Program RFA that seeks to leverage the connection between stable housing and positive health outcomes. This new initiative encourages strategic partnerships between affordable housing and the healthcare industry to address health disparities often experienced by low-income households and their communities. Applicants whose developments propose innovative models of healthcare integration and have a qualifying financial commitment from a hospital, healthcare system, insurer or managed care organization are eligible for H3C financing.

“We can end homelessness in Illinois,” said Rep. Will Guzzardi (D-Chicago). “But it’s going to take all of us coming together, including government, private capital, nonprofits and providers, to make key investments in keeping people housed and safe. Today’s announcement and the continuation of the vital Permanent Supportive Housing program is a very important step in those ongoing efforts.”

“Many of us have long known that permanent supportive housing is a compassionate and evidence-based way to build up housing stability and end homelessness, especially for Illinoisans with disabilities,” said Rep. Lindsey LaPointe (D-Chicago). “I’m proud of Illinois for recognizing this and I will continue to fight for expansion, including units, services and a fairly compensated workforce.”

“People with disabilities continue to face barriers to affordable, accessible housing options – a trend that has only gotten worse since the COVID-19 pandemic began,” said Sen. Cristina Castro (D-Elgin). “Integrating housing with health care and other support services helps break those barriers and expedite inclusive, holistic affordable housing so families and their loved ones can live independently and safely in their communities.”

Non-profit, for-profit and joint-venture affordable housing developers are eligible to apply and may request loans, forgivable loans and grants of up to 90 percent of the total development cost. Applications are due Tuesday, Jan. 16, 2024. Additional program details can be found at

A webinar hosted by IHDA staff covering PSH Development Program with option for H3C application process and timeline is scheduled for Tuesday, July 18 from 10 a.m. – 11 a.m. Applicants may register for the webinar here.

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