Strengthening Communities through
Multifamily Programs
Multifamily Programs
Illinois renters and housing developers faced a challenging economy during the past two years. As the supply of lower-cost rental units continued to shrink, nearly half of all renters in the state struggled with affordability challenges, and more than 382,000 Illinois households spent more than half of their income on rent.[i],[ii] At the same time, developers were confronted with elevated construction and borrowing costs, leading to fewer construction starts compared to previous years.[iii] Compounding these challenges was growing uncertainty surrounding federal housing programs, including proposed budget cuts, delayed grant disbursements, and staffing cuts at federal agencies that slowed approvals and strained administrative capacity.
Against this backdrop, IHDA strengthened its partnerships with local governments, developers, investors, and others to ensure the production and preservation of affordable rental housing continued to move forward. In 2024 and 2025, IHDA closed on $510.4 million in multifamily loans and grants and awarded state and federal housing tax credits worth another $936.3 million in equity to finance the construction and rehabilitation of 5,468 affordable rental units for families, seniors, and vulnerable populations in 90 developments across Illinois. These investments leveraged $821.8 million non-authority capital for a total investment of nearly $2.3 billion for affordable rental development in urban suburban, and rural communities across the state.
The impact of this production goes beyond the units themselves, and each development IHDA finances represents a long-term investment in the stability and vitality of the surrounding community. By partnering with local governments, anchor institutions, and residents across the state, IHDA investments are often catalysts for ongoing work that further locally identified goals and priorities. In many communities, IHDA-financed housing incorporates partnerships with healthcare providers, insurers, and social service providers as housing becomes a platform for improved community health outcomes.
In other areas, IHDA’s collaborative approach plays an important role in preventing displacement and preserving community stability in neighborhoods experiencing rising housing costs, ensuring residents of all backgrounds not only benefit from a growing economy and community, but have a voice to actively shape it. And across the state, many IHDA developments are integrated within broader economic development and community revitalization strategies that aim to re-purpose historic buildings, expand local labor forces, improve access to fresh food, and support local business growth.
[1] U.S. Census Bureau American Community Survey: Table B25063 – Gross Rent
[1] U.S. Census Bureau American Community Survey: Table B25070 – Gross Rent as a Percentage of Household Income in the Past 12 Months
[1] Joint Center for Housing Studies: America’s Rental Housing 2024
Shimer Square, Mount Carroll
In the northwest Illinois community of Mount Carroll, IHDA’s collaboration with local officials, nonprofit developers, and community members helped save a historic college campus and convert it into a hub of community development referred to by one partner as “a city within a city.”
The former Shimer College campus is known for more than its picturesque, peaceful grounds of 14 acres with tall trees towering beside stately Georgian-style buildings. During its 164 years in operation as an independent educational institution, Shimer College lived many lives, from a female-governed co-ed seminary to an all-women’s academy associated with the University of Chicago, to the co-ed Shimer College. Though the college ceased operations as an independent institution in 2017, Shimer became absorbed by North Central College in Naperville as the Shimer Great Books School.
Back in Mount Carroll, though, the Shimer campus stood empty. Buildings where Mount Carroll Mayor Carl Bates used to attend Sunday school, go swimming, and play basketball throughout his life fell into such disrepair that most, if not all, of the campus’s buildings seemed destined for the wrecking ball – until a partnership that included IHDA changed everything.
“So you can already see some of the revitalization, the excitement around what's going on in our community.”
Through a connection, the Economic Growth Corporation (GROWTH) was invited to tour the campus and gauge if the developer could rescue the buildings. GROWTH devised a multi-phased vision of converting three of the former dormitories into affordable housing and transforming the other buildings into businesses, including a childcare facility to serve the city’s need for childcare. The plan aligned with the City of Mount Carroll’s goal to attract more young families to the community to increase the population and spur more economic growth in the city and region – and it all centered on repurposing the former dormitories into affordable housing.
“I always talk about fundamental foundation pieces, and affordable housing is a foundation piece for a community,” Bates said. “… I can’t really have development unless I have a place for people to live. I have to have affordable housing.”
GROWTH took ownership of the campus in 2018 and began engaging with residents and stakeholders as plans for the site began to unfold. Supported by $8.5 million in IHDA financing as well as state and federal tax credits worth an additional $15.4 million for the redevelopment, the former McKee/Hostetter Halls and Dezendorf Hall were transformed into 51 mixed-income apartments, blending modern amenities with historic preservation. During this process, staff from IHDA’s Multifamily and Planning Departments toured the campus to evaluate the site and the structural soundness of the campus’s buildings, while also connecting with residents, local officials, and business owners – forging IHDA’s partnership with all stakeholders in the redevelopment.
“The fact that IHDA staff made the commitment to come in and walk the campus and meet with stakeholders was very much appreciated and it really set the stage for rallying the community,” Hollenback said. “IHDA clearly demonstrated inclusion coming into the community because they were there. It wasn’t me talking to them or relaying what we heard … they walked the campus, they met with the business community, they had a lot of one-on-one interaction, and they were able to hear what we were reporting themselves.”
The three converted dorms opened in November 2025 as part of Shimer Square, the new name for the redeveloped campus. Now, whenever Bates walks through the campus and past the buildings that will remain a part of his and Mount Carroll’s history, the mayor often meets families who moved to the new apartments from other towns. The parents and children reflect the city’s goal to attract young families to Mount Carroll – and the residents are not the only newcomers to the area. Besides the coffee shop, microbrewery, restaurant, and other businesses planned for the remaining Shimer Square buildings, other businesses are moving to Mount Carroll beyond the campus’ walls, further contributing to the city’s economic growth.
“A couple of the restaurants that [moved in] downtown only came to our community after the campus had started,” Bates said. “So you can already see some of the revitalization, the excitement around what’s going on in our community.”
Hollenback, who called Shimer Square one of the most challenging but also one of the most rewarding developments of his career, said the “city within a city” of Shimer Square would never have been completed “without IHDA’s tremendous support,” nor without IHDA’s strong partnership with all the other stakeholders in the development.
“It took literally everyone. And without that engagement and support and rallying behind it, the most difficult of a redevelopment effort and a concept became a reality.”
[1] Illinois Association of Realtors: 2025 Annual Report
[1] National Association of Realtors: 2025 Profile of Home Buyers and Sellers
[1] Federal Reserve: Report on the Economic Well-Being of U.S. Households in 2024 – May 2025
[1] National Association of Realtors: 2025 Home Buyers and Sellers Generational Trends Report
Paseo Boricua, Chicago
In a Chicago neighborhood known as the center of Puerto Rican culture in the American Midwest, IHDA’s financing programs and partnerships with community leaders are advancing the neighborhood’s goals to support local economic growth and preserve its cultural fabric.
The city’s Humboldt Park neighborhood has long been characterized by its many locally owned businesses, colorful murals on brick buildings, and two 59-foot-tall steel Puerto Rican flags that flank a one-mile stretch of West Division Street to further signal Humboldt Park’s strong community identity. Nestled in between these cultural landmarks is a 24-unit apartment building with a white exterior, balconies with colored accent walls, and ground-floor archways that nod to Spanish colonial architecture while blending seamlessly with the character of the surrounding neighborhood. This is the Nancy Franco-Maldonado Paseo Boricua Arts Building, a home for local artists and families that opened in August 2024. Developed by the Puerto Rican Cultural Center (PRCC) with $2.2 million in IHDA financing, the development is a symbolic bridge that connects the neighborhood’s past, present, and future.
“Literally, IHDA provided a lifeline to the construction of this amazing building,” said José E. López, Executive Director of the PRCC. “I say this because when the cost of the construction came through, the final costs, we were quite behind in the amount of money that we had available. So IHDA came through and provided that, and that’s how we were able to make sure the construction began.”
IHDA and the PRCC, along with co-sponsor Brinshore Development, partnered on the development to advance one of Humboldt Park’s overarching community goals: to offset the threats of gentrification and displacement as the neighborhood grows and property values rise. López said that when Illinois designated the community as a cultural district called “Puerto Rico Town” in 2023, he and other local leaders and advocates chose four “pillars” for the community to focus on to maintain the community’s cultural heritage and combat displacement. One of the pillars was affordable housing.
“We decided that the only way we could maintain the identity, the cultural presence of Puerto Ricans in this area, was to create and provide affordable housing,” López said.
The Paseo Boricua Arts Building directly addresses this by providing affordable homes for local artists who help preserve the community’s cultural fabric. Eduardo Arocho, a local artist who devised the initial plans for the development, now lives at the building and creates poetry and art inspired by Puerto Rican traditions. Arocho hoped his vision would help to support one of Humboldt Park’s other pillars, economic development – and it has. When IHDA partnered with the PRCC on the Paseo Boricua Arts Building, the new structure replaced four vacant buildings, adding tax revenue back into the local economy and providing a space right on the main drive for artists and families who would contribute to the local market.
For López, the Paseo Boricua Arts Building merges everything that Humboldt Park is trying to achieve to promote stability in all areas: quality of life, economic vitality, and culture.
“I believe [for] anybody that comes here, this is a centerpiece of Paseo Boricua,” López said. “… It just adds this incredible new dimension to this whole community effort to create a cultural designated district.”
He added that it was “very, very inspiring” to partner with IHDA, which López said “listen[ed] to us” and “knew how important [the building] was to this community.”
“I think that’s what a good government institution does,” López said. “It must be a reflection of people’s needs and wants and desires, and even passions. And so, I really applaud IHDA for that.”
“We decided that the only way we could maintain the identity, the cultural presence of Puerto Ricans in this area, was to create and provide affordable housing,”
Metro East Regional Revitalization
Across Southwestern Illinois, IHDA’s locally driven planning and development efforts are helping leaders lay the groundwork for healthier, more vibrant communities throughout the Metro East region.
In Cahokia Heights in St. Clair County, IHDA’s work began with listening. Like many communities in the region, the recently incorporated city faces significant challenges, including disproportionate rates of chronic illness, population loss, and deteriorating infrastructure. To better understand and address these issues, IHDA partnered with the St. Clair County Housing Authority (SCCHA) and Southern Illinois Healthcare Foundation (SIHF) to develop a comprehensive Community Revitalization Plan – a roadmap for the city’s future that identified a critical need: increasing access to affordable housing that connects residents to health services.
“Housing is healthcare,” said Suzanne Letang, Clinical Strategy Manager for BlueCross BlueShield of Illinois (BCBSIL), who helps support housing needs for BCBSIL’s Medicaid members in Cahokia Heights and the rest of Illinois. “We need people to be in a stable, safe environment so we can start working with them on addressing those other healthcare needs.”
That planning soon turned into action as SIHF began work to create Permanent Supportive Housing (PSH) in Cahokia Heights, a new venture for the organization, to provide both stable homes and supportive services for vulnerable populations. Through IHDA’s Supportive Housing Institute, SIHF gained the training and predevelopment financing to propose Vivian’s Village, a PSH development offering 16 one-bedroom apartments with onsite connections healthcare professionals and medical services. IHDA supported the project with nearly $5 million in funding.
“We need people to be in a stable, safe environment so we can start working with them on addressing those other healthcare needs.”
Named after a longtime local housing advocate, Vivian’s Village quickly became an important bridge between housing and healthcare. Residents have access to healthcare professionals without leaving their homes, directly addressing the barriers identified in the city’s revitalization plan. Building on this success, SIHF is advancing Vivian’s Village II, a 36-unit development that will have full access to the services at the first phase. Camille Scott, Senior Director of Compliance and Community Development at SIHF, hopes the continued housing development will spur more economic development in the area surrounding both Vivian’s Villages, and send the message “that we’re rebuilding the Metro East and it’s possible.”
Letang, whose organization partnered with SIHF on Vivian’s Village I, credited IHDA’s partnership with not only helping to fund Vivian’s Village, but with providing the data, tools, and staff commitment needed to build the development – and to continue building up Cahokia Heights.
“All the knowledge and the resources and the willingness to help partners address homelessness in Illinois that this agency provides is unmatched by anything else,” Letang said.
While Cahokia Heights highlights the intersection of housing and health, IHDA’s impact across the broader Metro East underscores how affordable housing can catalyze economic renewal. In East St. Louis just five miles away, Pastor Herman Watson of the Mt. Sinai Missionary Baptist Church and Dennis Jackson of the Mt. Sinai Development Corporation have long believed that more affordable housing would restore the sense of community identity and the small-business hub that thrived in the city when they were young men.
“When I’ve talked to commercial investors, their first question is, ‘how many rooftops?’” Watson said. “So, us bringing more rooftops to this neighborhood will set up some opportunity… One develops the other.”
“So you can already see some of the revitalization, the excitement around what's going on in our community.”
Having grown up in substandard housing, Pastor Watson committed to ensuring others would not face the same conditions. And he found a financing partner for his vision in IHDA, which has committed more than $13.8 million in state and federal funding as well as federal tax credits worth another $14.9 million to create nearly 100 affordable homes in the city’s Winstanley Park neighborhood, transforming vacant and underutilized properties into vibrant residential spaces.
These efforts are already attracting new investment, including plans for a Sinai Family Life Center that will provide childcare, family services, and space for future commercial tenants.
Jackson said seeing the completed housing and pending commercial activity on sites that had once been vacant or occupied by abandoned properties gives him hope that East St. Louis can come back. “Without IHDA, there is no comeback,” Jackson said. “There’s just not.”
And 24 miles north in Alon, IHDA’s partnership-driven approach has helped bring new life to vacant land through The Community of Sunnybrook, a 40-unit affordable rental development designed to meet the needs of working families. Developed by EBJJ LLC, Sunnybrook responds to demographic trends showing demand for family housing among younger residents, while its proximity to schools, healthcare, and employment centers positions it as a stabilizing force for future growth.
Over six years, IHDA provided critical financial support and remained a consistent partner in moving the project from concept to completion. For EBJJ Principal Dr. Ed Hightower, Sunnybrook represents more than a single development. He believes it is a blueprint for regional revitalization and the answer to the question of how to rejuvenate the entire Metro East Region through better access to fresh food, infrastructure improvements, business development, and more.
“Sunnybrook is a microcosm of what could be for the Metro East,” Hightower said. “Partnerships are the bricks that build thriving, healthy communities, and the Metro East has good bones. So long as we continue to work together, the Metro East’s rebuilding will evolve from a work-in-progress to a reality.”
[1] U.S. Census Bureau American Community Survey: Table B25063 – Gross Rent
[1] U.S. Census Bureau American Community Survey: Table B25070 – Gross Rent as a Percentage of Household Income in the Past 12 Months
[1] Joint Center for Housing Studies: America’s Rental Housing 2024