A housing development before distant trees and a cloudy sky.

Illinois opens permanent supportive housing program to applications

August 13, 2025

The Illinois Housing Development Authority (IHDA) is accepting applications for Round 12 of its Permanent Supportive Housing Development Program.

The program offers loans, forgivable loans and grants for affordable housing development or preservation that includes supportive services for households with disabilities, households at risk of homelessness, or households in need of ongoing assistance. 

Eligible applicants include nonprofit developers, for-profit developers, or joint ventures. Applicants with an endorsement from the Illinois Supportive Housing Institute, or substantial collaborative experience with the institute, are encouraged to apply.  

IHDA advocates collaborative partnerships between developers and service providers, including combinations of nonprofits, for-profits, or joint ventures. Prospective applicants should register on IHDA Connect, obtain a Project ID, and prepare a preliminary project assessment by September 17, 2025. Applicants should review all program materials and be ready to submit a competitive full application by January 26, 2026. 

IHDA has not specified a fixed number of units per project. However, an internal planning review identified a statewide need for 6,300 additional permanent supportive or other permanent housing units. Since 2017, the agency has provided financing to create or preserve more than 1,200 supportive units in over 50 developments. 

This round includes additional resources from the Illinois Opioid Remediation Fund. Of the one-time remediation fund, $20 million has been allocated for capital investment in supportive housing for individuals experiencing homelessness who have substance use disorders.  

Projects funded through the opioid fund may include about 40 units designed with on-site accessible features and dedicated case management, behavioral health, and recovery support services. 


Photo by Ryan Stephens from Pexels

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