Chicago homeowners behind on their 2023 or 2024 property taxes in Englewood, South Shore and the Lower West Side can now apply for up to $5,000 in debt relief under a new city pilot program. Mayor Brandon Johnson announced the launch of the $500,000 initiative, which is meant to help residents at risk of losing their homes to tax sale stay put.
How the Pilot Works
According to Chicago Defender, the Property Tax Debt Relief Pilot Program is designed to help homeowners manage unpaid tax year 2023 or 2024 property taxes before those debts push them toward tax sale. The city allocated $500,000 to create the grant program within a defined pilot zone, and qualifying homeowners can receive up to $5,000 apiece. To qualify, homeowners must own and live in the property as their primary residence, carry eligible unpaid 2023 or 2024 property taxes, and have household income at or below 100% of area median income. Applicants must also provide required personal information as part of the process.
The pilot is administered by United Way of Metro Chicago and 211 Metro Chicago, which connect residents with wrap-around services through 2-1-1 and other avenues, the same report notes. Sean Garrett of those organizations said the groups are partnering with the City of Chicago and Cook County to administer the assistance, and that United Way of Metro Chicago and 211 Metro Chicago aim to connect people with essential resources including food, housing, and health care more broadly. The application went live online this Thursday and remains open through November 30, though the outlet reports it may close earlier if funds run out. Residents can call 2-1-1 for live application support.
Where the Money Came From
Per the Chicago Defender's reporting, the pilot was funded primarily by proceeds the city recovered from litigation against Texas-based bus companies that transported new arrivals to Chicago. The city began suing those companies in 2023, alleging they violated Section 9-48-050(f) of the Chicago Municipal Code by unloading passengers without authorization, after uncoordinated buses from Texas brought new arrivals to the city over a span of nearly two years. The Department of Law filed enforcement actions against 95 bus companies that failed to comply with the ordinance. Several companies entered into settlement agreements that generated proceeds totaling $260,950, while the city obtained default judgments totaling $181,000 against companies that never appeared in court, the outlet reports.
Johnson said his administration would act to protect Black Chicagoans at risk of losing their homes and keep long-time residents rooted in their communities, according to the same account. The administration took what the report describes as affirmative legal action to recoup funds from the bus companies, and city officials are now mailing letters to homeowners who may qualify for the tax relief pilot, explaining how to apply. Living in one of the listed neighborhoods or receiving such a letter does not guarantee a reward through the pilot, the Defender notes. The pilot initially focuses on preidentified property index numbers tied to properties in a Jackson Park housing pilot community at risk of tax sale in December 2026 or March 2027.
Ties to the Jackson Park Housing Pilot
The relief program grew out of groundwork laid by the Jackson Park housing pilot ordinance, which was introduced by Ald. Desmon Yancy (5th) and established an anti-displacement framework meant to protect long-term residents from gentrification and rising housing costs around Jackson Park. Yancy said the pilot sought to ensure new investment did not displace people who had lived in the neighborhoods for generations, and that the property tax relief program gives homeowners a tool to stay in their homes and share in economic growth while preventing displacement, per the Chicago Defender.
The johnson administration says it will work with neighborhood organizations and local publications to notify potentially eligible homeowners and walk them through application steps, the outlet reports. Property tax assistance more broadly is meant to help residents maintain housing and shelter, with the pilot aiming to stabilize households by offsetting sharp tax increases and late bills while preventing displacement of long-time residents. Program information is posted at www.chicago.gov/ptdrp.
A Citywide Pattern of Tax Delinquency
The pilot's focus on Englewood, South Shore and the Lower West Side lines up with broader patterns documented elsewhere. A report from the Illinois Housing Development Authority's Property Tax Payment Plan Task Force found that Black and Brown homeowners on the South and West Sides of Cook County are especially negatively affected by the property-tax system's impact on home equity and generational wealth. The task force, created by Senate Bill 74 after it became Public Act 103-0369 in July 2023, reported that roughly 38,000 to 45,000 liens for unpaid taxes are offered to tax buyers annually, with about 10,000 typically sold to private buyers.
Separate data from the Institute for Housing Studies at DePaul University found 38,765 properties with forfeited tax certificates across Cook County as of December 2025, including 18,690 in Chicago and 20,075 in suburban Cook County. More than half of those countywide were vacant lots, and in Chicago, properties with one to four units and forfeited tax certificates were largely concentrated in South Side community areas including Englewood, West Englewood, Roseland and West Pullman.
A Separate County-Level Effort
Chicago's pilot isn't the only recent attempt to ease the property tax burden. Cook County announced its own $15 million homeowner relief fund last September, aimed at homeowners who experienced a substantial increase in property taxes in recent years, according to WTTW. Selected recipients received a one-time payment of $1,000, and applicants needed household income at or below 100% of the Cook County Area Median Income and had to live in the home as their primary residence. Accounts differ on the qualifying tax increase threshold: WTTW reported it required a property tax bill increase of at least 50% in one of the 2021, 2022 or 2023 tax years, while a Cook County government FAQ describes the threshold as 30% or more in the same tax years. If eligible applications exceeded available payments, WTTW reported that a final lottery would determine who received funds.
