Peoria accepts $475,000 IHDA Strong Communities grant to expand demolition and land-bank work

The Peoria City Council on June 10 accepted a $475,000 increase and extension to a Strong Communities Program grant from the Illinois Housing Development Authority (IHDA) to support demolition and follow-on redevelopment work.

Community Development Director Doolin told the council the city previously received about $712,000 for demolition under the Strong Communities Program and was asked by IHDA to absorb additional funds that other grantees did not spend in time; the extra money must be spent quickly because it originates from American Rescue Plan allocations administered by the state.

“Over the last 10 years, we have torn down about 950 vacant, abandoned houses in our community. The remarkable thing in the last three years is we’ve torn down about 450 of those 950 houses,” Director Doolin said, noting staff and legal department efforts to accelerate demolitions.

Council members discussed next steps for cleared lots and stressed the city’s strategy of acquiring parcels in clusters to make redevelopment attractive to builders. Director Doolin and council members cited two near-term projects taking advantage of cleared lots: Churchview Gardens, a roughly 60-unit affordable housing development on the South End, and a Habitat for Humanity project tied to demolition of the McKinley site that received a congressional earmark and is expected to yield roughly 20 homeownership opportunities when completed.

Council Member Cyr asked whether the city has a plan for the large number of cleared lots; Director Doolin and others said the land bank’s strategy is to accumulate contiguous parcels for clustered redevelopment and coordinate infrastructure improvements that make sites viable for housing. Council Member Jackson urged a mixed-housing approach, saying both rental and homeownership will be needed in neighborhoods that have experienced long-term disinvestment.

Council Member Riggenbach moved approval of item 25-148A, to accept the grant increase; Council Member Jackson seconded. The council approved item A unanimously and then unanimously adopted an ordinance amending the 2025 revised budget to recognize the $475,000 grant increase (item 25-148B).

Speakers urged continued coordination with state agencies. Council members and staff noted that Illinois Department of Transportation projects — including $44 million in infrastructure improvements referenced by staff — will help make some redevelopment corridors more attractive to developers. Corporation Counsel and legal staff were publicly thanked for processing the statutory notices and court filings required for property acquisition and demolition.

The grant and budget amendment were approved without dissent; staff said they would proceed with demolition work and continued land-bank strategies intended to prepare sites for housing and other follow-on uses.