Chicago Opens 400 Vacant Lots for Redevelopment

The city of Chicago hopes to open the gates to a wave of redevelopment in underinvested areas by offering more than 400 vacant properties for as little as $1, plus six-figure incentives for affordable housing.

Applications opened Tuesday through the city’s ChiBlockBuilder portal, marking the latest step in Mayor Brandon Johnson’s efforts to boost affordable housing and return disused land to productive use, Block Club reported.

The parcels include 54 lots in the city’s Missing Middle Infill Housing Initiative, launched last fall to support homeownership among middle-income residents. It started in October by selling off 44 vacant lots in Lawndale for $1 a piece for development of owner-occupied multifamily.

The collective estimated value of the city-owned properties in this round is $26 million, according to Johnson’s office. Applications are due by either May 15 or June 30, depending on the parcel.

The 54 lots are grouped into 11 clusters across Morgan Park, Chatham and South Chicago. The city may offer them at just $1 per lot, with up to $150,000 in financial assistance per unit for qualifying developers, aiming to incentivize projects that offer long-term affordability.

Some properties are being offered at below-market prices based on proposed use, while others will be sold at market rate for vertical construction, Planning Commissioner Ciere Boatright said.

The parcels include large redevelopment opportunities, such as an 8.2-acre tract at 1924 West 46th Street in the Stockyards Industrial Corridor. Valued at $3.3 million, the site is being marketed for commercial uses like retail, restaurants and grocery stores.

The program designates 33 lots for urban agriculture, 48 lots for affordable housing and 148 lots for market-rate housing, the Chicago Business Journal reported.

The Department of Planning and Development has gradually rolled out incentives for residential builders to deliver more attainable housing between subsidized and luxury price points, the so-called “missing middle.”

The city owns about 10,000 parcels of land, primarily on the South and West sides, that it has acquired through foreclosure due to demolition liens, Cook County’s tax scavenger sales, property condemnation and occasional direct purchases, among other means, according to its website. Many of the properties have been part of the city’s holdings since the early 1980s.

There are 375 lots marked as accepting applications.

By targeting affordable housing developers and private builders, the initiative seeks to balance revenue generation with broader neighborhood revitalization. City officials hope the latest offering will accelerate investment in underserved communities while also helping stabilize Chicago’s tax base.

— Judah Duke