Chicago City Wire

Under the leadership of Mayor Brandon Johnson, the Chicago Department of Housing (DOH) has introduced Rebuild 2.0, a program designed to rehabilitate vacant buildings in underserved communities. This initiative will be managed by the Bureau of Neighborhood Preservation within the department.

Rebuild 2.0 is an expansion of the original Rebuild program and aims to preserve housing primarily on Chicago's south and west sides while fostering community development. The strategy involves identifying abandoned buildings in historically neglected neighborhoods, acquiring them, rehabilitating them, and then selling them for homeownership.

The program's objectives include assisting local developers in building wealth, creating more opportunities for homeownership, and eliminating urban blight. "Rebuild 2.0 reflects our commitment to addressing decades of disinvestment by turning vacant properties into opportunities for homeownership and economic empowerment," stated Mayor Brandon Johnson. He emphasized that the program strengthens neighborhoods and supports local developers.

Lissette Castañeda, DOH Commissioner, remarked on the importance of housing preservation: “Rebuild 2.0 will invest in Chicago’s neighborhoods via the rehabilitation of buildings, as well as support local businesses and homeowners so that residents can reside in the safe, quality communities they deserve.”

The Illinois Housing Development Authority (IHDA) has provided a $20 million grant to aid in expanding the program. IHDA Executive Director Kristin Faust expressed support: “Every family deserves a safe, affordable home and a community they can be proud of.”

Two Community Development Financial Institutions (CDFIs), namely the Chicago Community Loan Fund (CCLF) and Greenwood Archer Capital (GAC), have been chosen as administrators for Rebuild 2.0 and will receive grant funds upfront.

Bob Tucker from CCLF commented on their involvement: “Our partnership with the Chicago Department of Housing helps us provide financing and technical assistance to developers.” He noted that Rebuild 2.0 offers incentives to reduce development costs, enabling community developers to revitalize residential housing stock.

Organizations were selected based on their dedication to neighborhood needs, experience with BIPOC developers, and capacity to lend capital effectively.

LeVar Love from Rosie Investment Corporation expressed enthusiasm about collaborating with DOH: “This opportunity allows housing redevelopment, workforce development training and support of minority-owned businesses.”

Developers involved in Rebuild 2.0 will submit budget estimates for properties which will be approved based on total development costs.

Will Edwards from DOH’s Housing Preservation Bureau highlighted their comprehensive strategy: "By reducing the blight of abandoned homes, it gets us one step closer to neighborhood revitalization."

The emphasis on supporting BIPOC developers ensures they are key beneficiaries of this initiative. The program also seeks to enhance targeted housing markets by transforming neglected areas into thriving communities.

One method employed is DOH’s forfeiture process which allows properties with demolition orders to be transferred to the program for rehabilitation.