Municipality-Led Home Construction
Bellwood
Cook County
Established in 2012, Bellwood’s municipal home construction initiative revitalizes vacant, non-tax-generating properties by building new single-family homes and returning them to the tax rolls.
Background
Bellwood launched its municipal home construction initiative to address vacancies and improve property values following the 2008 housing market recession. Under the leadership of Mayor Frank Pasquale and then Chief of Staff Peter Tsiolis, Bellwood began purchasing vacant, non-tax-generating properties and explored ways to convert them into assets for the community. Mayor Andre F. Harvey continued and expanded the initiative upon his election in 2017.
Initially, Bellwood planned to partner with a private developer on the 1100 block of Bellwood Avenue. But when the developer withdrew unexpectedly after a ceremonial groundbreaking, the Village pivoted – choosing to directly finance and build homes incrementally. In doing so, Bellwood piloted a unique approach to public sector-led neighborhood revitalization.
How It Works
The Village started small, constructing two single-family homes. Using funds from a former Tax Increment Financing (TIF) district, Bellwood created a “revolving fund” replenished by home sales, enabling construction of additional properties over time.
Since 2012, the program has built 28 homes, including Randolph Estates, a subdivision on a former warehouse site. Early homes sold for $212,000–$238,000, while more recent ones have reached $459,000. None have gone into foreclosure. Homes range from 1,800 to 2,400 square feet, providing larger “move-up” options for families who might otherwise have left the community after outgrowing smaller homes. Most are brick, though some feature siding.
Bellwood credits much of its success to its collaborative approach, utilizing a construction manager, real estate broker, and Tsiolis’ economic development consulting firm Strategic Project Management, Inc. In addition, Bellwood has also worked with Cook County on site remediation for challenging locations like former gas stations and warehouse properties—efforts that added homes while eliminating environmental hazards.
Rather than aiming for profit, homes are priced to reflect market conditions for each individual home. In some cases, construction costs exceed sale prices, but Bellwood has recouped subsidies through the taxes generated on previously vacant lots that generated zero taxes, as well as the increased property values for both individual lots and neighboring homes.
To address the barrier of high property taxes in western Cook County – especially amid rising interest rates – Bellwood worked with Speaker Emanuel “Chris” Welch to pass legislation offering a 10-year property tax abatement for municipally built homes. The last three homes sold and the two currently under contract under the program have qualified for this incentive.
Considering additional vacant sites available, Bellwood sees potential to construct another 15-to-20 homes. Other Cook County municipalities have expressed interest in replicating this model to transform underutilized land and strengthen their housing markets.
Goal
To build much-needed larger homes into which residents’ families can grow, and to transform vacant properties into single-family homes that revitalize Bellwood’s housing market.
Target
Vacant and non-tax-generating properties in Bellwood.
Financing
Funds from a former TIF district created a revolving fund that is replenished through home sales.
Success
28 homes have been constructed and sold since 2012.
Lessons Learned
Starting small with just a few homes helped refine the process before scaling up. Strong leadership from the mayor and board has been critical to sustaining momentum. Municipal involvement can signal market viability, attract private investment, and support broader economic development.
Homes built through the Village of Bellwood’s single-family home initiative.
Contact Information
Village of Bellwood Economic Development Department, www.vil.bellwood.il.us
This case study was last updated in February, 2026.
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