FHLBank Chicago awards $62 million for 1,786 affordable homes in Illinois and Wisconsin
The 47 grants in the 2026 round of its Affordable Housing Program, announced Nov. 10, include $10 million added by the bank's board. A Chicago homeownership effort, a veterans shelter and a Habitat for Humanity affiliate are among the recipients.
Grants to six nonprofit developers in the 2026 round
Chicago. The Federal Home Loan Bank of Chicago said on Nov. 10 that it has awarded $62 million through the 2026 General Fund round of its Affordable Housing Program to help finance 47 housing projects in Illinois and Wisconsin. The total includes an additional $10 million approved by the bank's board of directors. The money will go to the purchase, rehabilitation and new construction of 1,786 affordable housing units.
Housing development organizations, government entities, public housing authorities and tribally designated organizations apply once a year through its member institutions, which include banks, credit unions, insurance companies and community development financial institutions. On the bank's list of awards, each grant is passed on by a member lender, and the largest are $2 million.
Who received grants
Reclaiming Chicago NFP received $1.2 million, through First Eagle Bank, to build 24 single family homes on vacant, city owned lots in Back of the Yards, Roseland, North Lawndale and Washington Park, to be sold to homebuyers. The effort is an initiative of United Power for Action and Justice, which brings together civic and religious organizations, among them five nonprofit development partners. First Eagle Bank has also made a $1 million interest free loan to the effort, according to Faruk Daudbasic, a senior vice president of the bank.
In Milwaukee, Milwaukee Development Corporation received $2 million, through Associated Bank, to turn a historic former hospital into 124 affordable apartments for adults 55 and older. The project will include 25 supportive housing units for residents with disabilities, with services on site from Jewish Family Services.
Other nonprofits on the list include Connections for the Homeless, $2 million for the rehabilitation of 42 units at its Margarita Inn shelter project in Evanston; Midwest Shelter for Homeless Veterans, $1 million for 20 rental units in Wheaton; DuPage Habitat for Humanity, $500,000 for ten homes in West Chicago; and Goodwill Industries of South Central Wisconsin, $1 million for 20 units in Jefferson. Options for Independent Living received three grants of $2 million each, for projects in Sturgeon Bay and Milwaukee. By the Herald's count, 18 of the grants are for projects in Illinois and 29 in Wisconsin.
“Affordable housing remains a pressing need across Illinois and Wisconsin, as rising development costs and limited housing supply continue to challenge communities.”
Since 1989
From the program's start in 1989 through the end of 2025, the bank allocated more than $630 million in General Fund grants, which it says helped provide housing for more than 85,000 households. It is separate from the $5 million the bank gave in October for housing development fellowships. The release does not say when the next General Fund round will open.
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