Chicago’s BNAH Grant: Up to $100,000 Toward a New City-Backed Home (Fall 2026)

Chicago’s Building Neighborhoods and Affordable Homes program, known as BNAH, gives qualifying buyers a forgivable grant of $50,000 to $100,000 toward a newly built home of one to four units that was developed on City land. Household income can be up to 140% of area median income, and you must live in the home for 10 years.

Last reviewed October 13, 2026 · Chicago First Time Home Buyer editorial team

Why BNAH is worth knowing about now

The City is putting more vacant lots back into housing in 2026. In its spring land sale, which opened April 1, 2026, the Department of Planning and Development offered more than 600 City lots, including 55 set aside for affordable homes through the Department of Housing’s City Lots for Working Families program. Homes built under City agreements like these are the ones BNAH is meant to help buyers purchase. For the full program reference, see our BNAH program page.

BNAH is also one of the largest purchase grants a Chicago buyer can get. It is bigger than the City’s HomeGrown grant (up to $70,000) and far bigger than IHDAccess Home (up to $15,000). The catch is that it only works on specific new homes, so it fits a narrower group of buyers.

At a glance: BNAH

Run by	City of Chicago Department of Housing (DOH)
Type of help	Forgivable grant
Amount	$50,000 to $100,000, based on income and whether you already live in the neighborhood area
Income limit	Up to 140% of area median income (AMI)
Eligible homes	Newly built 1–4 unit homes built under a City of Chicago land sale redevelopment agreement or a City Lots for Working Families agreement
Where	Citywide (since a 2023 ordinance; before that, five targeted areas)
Occupancy	Must be your primary residence for at least 10 years; DOH monitors occupancy
How to apply	Online BNAH application on the DOH website

How much is the grant?

The amount depends on your household income as a share of AMI, and on whether you are a resident of the neighborhood area where the home is. Neighborhood residents get $10,000 more at every income level.

Household income	Neighborhood area residents	Non-residents
Below 80% of AMI	$100,000	$90,000
81–90% of AMI	$90,000	$80,000
91–100% of AMI	$80,000	$70,000
101–120% of AMI	$70,000	$60,000
121–140% of AMI	$60,000	$50,000

Income limits by household size are on the City’s Area Median Income chart, which is updated each year. Ask DOH how it defines the “neighborhood area” for the home you are considering before you count on the higher amount.

What the money can pay for

DOH lists these uses:

Filling an appraisal gap (when the sale price is above the appraised value)
Down payment
Closing costs
Paying down the principal of your first mortgage
Appraisals, inspections, prepaid interest or points, and one year of prepaid insurance

The appraisal-gap use matters. New homes in neighborhoods where few homes have sold recently can appraise below their price, and the grant can cover that difference. For a full picture of what else you will pay at closing, see what it costs to buy a home in Chicago.

Which homes qualify

BNAH is tied to the home, not just the buyer. The home must be newly built, have no more than four units, and have been built under a City of Chicago land sale redevelopment agreement or a City Lots for Working Families agreement. You can’t use BNAH on an existing home or on a new home a developer built on private land.

DOH also says BNAH money can’t be used for private developments that trigger the City’s Affordable Requirements Ordinance. Because eligibility depends on the agreement behind each building, ask the seller or DOH to confirm that a specific home qualifies before you write an offer that depends on the grant.

Two-flats, three-flats and four-flats count, as long as you live in one of the units. Our guide to buying a Chicago two-flat with an FHA loan explains how rental income from the other unit can help you qualify for the mortgage.

How the program got here

The City launched BNAH in June 2018 as a $5 million pilot. It offered up to $60,000 toward homes built through City Lots for Working Families in parts of Englewood, Lawndale, Little Village, Humboldt Park/Garfield Park and Woodlawn. In May 2023, the City Council passed an ordinance that opened the program citywide and extended it to 1–4 unit homes built under any Council-approved land sale redevelopment agreement. The grant now reaches $100,000.

How to apply

DOH handles BNAH from application through closing. You apply online and upload these documents:

BNAH checklist
DOH homebuyer application
Income affidavit
Child support affidavit
Economic Disclosure Statement and Affidavit

You still need your own mortgage. Getting pre-approved early tells you which loan fits; see our guide to FHA, conventional and VA mortgage options and the 7 steps to buying a home in Chicago.

Common questions

Do I have to pay the BNAH grant back?

Not if you meet the terms. BNAH is a forgivable grant, and you must live in the home as your primary residence for at least 10 years. If you might sell or move out sooner, ask DOH how repayment works under the grant agreement before you close.

Can I use BNAH with HomeGrown?

In practice, no. HomeGrown does not fund new construction, and HomeGrown’s program rules say it can’t be combined with other City down payment assistance. See our HomeGrown guide for details.

Do I have to be a first-time buyer?

The City’s BNAH page does not list a first-time buyer requirement. Its stated rules are the income limit, the type of home, and the 10-year occupancy. Confirm your situation with DOH when you apply.

How do I find a home that qualifies?

Start with developers building under City Lots for Working Families and other City land sale agreements, and ask DOH which projects have BNAH-eligible homes for sale. A broker can also check whether a listing was built under a City agreement. For other assistance options, see our overview of down payment assistance programs in Chicago.