Abandoned Property Acquisition Program

Chicago Heights

Cook County

Launched in 2017, Chicago Heights’ “Abandoned Property Acquisition Program (APAP)” was created to eliminate abandoned, vacant, tax delinquent properties from the community and return homes to productive use without requiring public financing.

Background

Chicago Heights contained a significant number of abandoned, vacant, tax delinquent homes. These abandoned vacant properties diminished neighborhood stability, safety, and home values and reduced new homebuyers’ interest in the area.

To address these challenges, APAP was launched in 2017 as a method to promote private interest in home rehabilitation and ownership, thereby eliminating abandoned properties, returning tax delinquent properties to the tax rolls and returning once vacant homes to safe, livable, and marketable condition. The program efficiently leverages private investment by facilitating the transfer of properties to residents willing to rehabilitate them.

How It Works

Property Identification:

  • An APAP Applicant identifies a property he/she believes may qualify for the program.
  • The Chicago Heights Economic Development Corporation (CHEDC) conducts preliminary research on the property to determine eligibility.
  • Minimally, the property must be at least two years delinquent on tax or water bills. Obviously, the home must be abandoned with no one occupying it.
  • Pending foreclosures, recent mortgages or other recent litigation reflected by a title search will typically preclude a property from eligibility.

Acquisition Process:

  • Applicants meet with CHEDC staff to review the program’s contracts, obligations, risks, and responsibilities.
  • The applicant executes an APAP Agreement and submits an escrow payment of $5,000. ($10,000 for two PINs or buildings with three or more units).
  • Applicant provides proof of $50,000 in available funds for repairs (savings, loans, bank line of credit or other assets).
  • The applicant’s $5,000 escrow fee covers attorney fees to prosecute abandonment litigation in court, title fees and costs to clear back taxes.
  • The City retains attorneys to prosecute the property as abandoned; upon conclusion of the litigation a judicial deed is issued to the City. The City then conveys the property to the buyer.

Goal

Reduce vacant, tax delinquent properties and create attainable homeownership opportunities.

Target

All areas of the city. However, Beacon Hill and the East side neighborhoods possessed the highest vacancy rates.

Success

The city has closed on over 200 homes and over 100 homes are still pending in the court process.

Lessons Learned

Limit buyers to one property at a time to avoid overextension. Require timely inspections and escrowed repair funds to maintain program momentum.

Post Closing Process – Rehabilitation:

  • To prevent procrastination, buyers must complete a city inspection of the home within 30 days of acquiring the title.
  • The city code department establishes a repair escrow that the applicant must post to secure completion of the rehab in an amount equal to 10% of the rehab cost. Building Permits are issued.
  • Applicants must bring home up to code and obtain an occupancy certificate within one year.
  • Once rehabilitated, buyers may live in, sell, or rent the property – but “flipping” is expressly prohibited until the home is habitable and certified for occupancy.

Most buyers participating in the APAP program have chosen to either live in the rehabilitated home or sell it. On average, staff reports that it takes about a year for the city to acquire ownership of the property and six months to one year for the rehab to be completed. With a purchase price of $5,000 and typical repair costs of around $80,000, the program provides an attainable path to homeownership. Buyers can use personal funds for incremental repairs or work with a bank to secure financing.

Applications are processed on a first-come, first-served basis. When the program first launched, demand was very high. Today, with fewer vacant homes remaining, APAP is entering its later stages, with a smaller number of properties moving through the pipeline.

The program operates efficiently with a lean staff. One staff member coordinates the APAP program in addition to other economic development responsibilities. An additional staff member assists with intakes, and an attorney is contracted for court processes. Because the City does not invest directly in each property, APAP enables the municipality to return vacant homes to productive use without relying on public funds.

Contact Information

City of Chicago Heights Economic Development Corporation, www.chicagoheightsedc.org

This case study was last updated in February, 2026.

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