The Building Neighborhoods and Affordable Homes program (BNAH) is a City of Chicago forgivable grant of $50,000 to $100,000 for buyers of a newly built home of one to four units that was developed under a City land sale redevelopment agreement or City Lots for Working Families agreement. Household income can be up to 140% of area median income, and you must live in the home for at least 10 years.
Last reviewed October 13, 2026 · Chicago First Time Home Buyer editorial team
At a glance
| Administered by | City of Chicago Department of Housing (DOH) |
| Assistance | $50,000 to $100,000, based on income and neighborhood-area residency |
| Form | Forgivable grant |
| Occupancy | Primary residence for at least 10 years; DOH monitors occupancy |
| Income limit | Up to 140% of area median income (AMI) |
| Eligible homes | Newly built, 1–4 units, built under a City land sale redevelopment agreement or City Lots for Working Families agreement |
| Where | Citywide (since a 2023 ordinance) |
| First-time buyer required? | Not listed on the City’s program page; confirm with DOH |
| Where to apply | Online BNAH application on the DOH website |
| Launched | June 2018 (pilot); expanded citywide May 31, 2023 |
Grant amounts
The grant depends on household income as a share of AMI and on whether you are a resident of the neighborhood area where the home is. Neighborhood-area residents receive $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 |
Dollar income limits by household size are on the City’s Area Median Income chart, which changes each year. Ask DOH how it defines the neighborhood area for the home you are considering.
What the grant can pay for
- An appraisal gap (sale price above appraised value)
- Down payment
- Closing costs
- Paying down the principal of the first mortgage
- Appraisals, inspections, prepaid interest or points, and one year of prepaid insurance
Which homes qualify
BNAH is tied to the home as well as 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. Existing homes and new homes built on private land do not qualify. DOH also says BNAH funds can’t be used for private developments that trigger the Affordable Requirements Ordinance.
Two- to four-unit buildings qualify if you live in one of the units. See buying a Chicago two-flat with an FHA loan for how rental income can help you qualify for the mortgage.
How to apply
- Get pre-approved for a mortgage; BNAH does not replace your own loan. See mortgage options for first-time buyers.
- Confirm with the seller or DOH that the home was built under a qualifying City agreement.
- Apply online and upload the BNAH checklist, DOH homebuyer application, income affidavit, child support affidavit, and Economic Disclosure Statement and Affidavit.
- DOH handles the grant through closing and monitors owner occupancy for 10 years.
Common questions
Do I have to repay the BNAH grant?
Not if you meet the terms. It is a forgivable grant that requires you to live in the home for at least 10 years. If you may sell or move out earlier, ask DOH how repayment works under the grant agreement before closing.
Can I use BNAH with HomeGrown?
In practice, no. HomeGrown does not fund new construction, and its program rules say it can’t be combined with other City down payment assistance.
Can I use BNAH with IHDAccess Home?
The City’s BNAH page does not say. Ask DOH and your lender before planning on both.
Is BNAH only for certain neighborhoods?
Not anymore. The 2018 pilot covered parts of Englewood, Lawndale, Little Village, Humboldt Park/Garfield Park and Woodlawn. A City Council ordinance passed May 31, 2023 opened it citywide.
Sources
- City of Chicago Department of Housing, Building Neighborhoods and Affordable Homes Program
- City of Chicago Department of Housing, Area Median Income (AMI) Chart
- Chicago City Council, Ordinance O2023-0001752 (passed May 31, 2023)
- Office of the Mayor, BNAH pilot announcement, June 25, 2018
- TRP Lending, HomeGrown Lender Requirements and Program FAQ
Cite this page: Chicago First Time Home Buyer, “BNAH: Up to $100,000 Toward a New Home Built on City Land in Chicago,” reviewed October 13, 2026, chicagofirsttimehomebuyer.com/programs/bnah/.