CHICAGO – The Illinois Housing Development Authority (IHDA) is now accepting applications for its Permanent Supportive Housing (PSH) Development Program, offering loans, forgivable loans, and grants to developers building or preserving affordable housing paired with essential case management and supportive services.

PSH combines affordable housing with tailored services that support individuals and families in achieving housing stability and improved health outcomes. Residents are typically households headed by people with disabilities, those who are at risk of homelessness, and those who require ongoing support to stay healthy and housed. The PSH model has consistently demonstrated success in improving residents’ well-being while reducing reliance on costly emergency systems. A major addition to this year’s round is the inclusion of funding from the Illinois Opioid Remediation Fund for PSH developments, specifically serving individuals with substance use and co-occurring disorders who are currently experiencing homelessness.

Developing and operating PSH demands a diverse range of knowledge and skills that may not be present within a single organization. IHDA encourages developments that leverage the strengths of multiple organizations and development partners and will carefully review the roles, responsibilities, and capacity (including financial capacity) of each entity involved in the project. Eligible applicants include non-profit, for-profit, and joint venture development teams.

The application process is competitive, and all development teams interested in applying for this funding opportunity are required to attend IHDA’s PSH Development Program informational webinar on Wednesday, August 6, from 11:00 a.m. to 12:00 p.m. Online registration for this session can be found here.

In addition, IHDA will be hosting a second webinar solely for developers and service providers interested in developing PSH utilizing Illinois Opioid Remediation Fund dollars. These funds carry additional geographic, income, and priority populations requirements than traditional PSH Development Program projects. IHDA staff will educate development teams on how to successfully plan and apply for a development with Illinois Opioid Remediation Fund dollars. This webinar will be held on Thursday, August 7, from 1:00 – 2:00 p.m. Online registration for this session can be found here.

Preliminary Project Assessments (PPAs) for this round of the PSH Development Program are due Wednesday, September 17. Full applications are anticipated to be due in late January 2026. Full program details, submission requirements, and application materials can be found on the IHDA website.

IHDA is a self-supporting and mission-driven state agency dedicated to financing the creation and preservation of affordable housing in Illinois. IHDA offers affordable mortgages and down payment assistance for homebuyers, provides financing for the development of affordable rental housing, and manages a variety of assistance programs to create communities where all Illinoisans can live, work, and thrive. Since it was established in 1967, IHDA has delivered more than $29 billion in state, federal, and leveraged financing to make possible the purchase, development, or rehabilitation of 335,750 homes and apartments for low- and middle-income households. For more information on IHDA programs, visit www.ihda.org.

Illinois e-News Release

Illinois Housing Development Authority Now Accepting Applications for Permanent Supportive Housing Funding

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