Efficient Housing Construction Grant

July 22, 2022


Note: The Illinois DCEO programs are subject to the State appropriation process, and while the Department can accept and review applications, it will not be able to award funding, issue Notices to Proceed, or execute/modify grants until a State budget is finalized. When funding is available, it will be announced on the Program Announcements Section of the Illinois Department of Commerce & Economic Opportunity website.

The Department of Commerce and Economic Opportunity (DCEO) provides grants through the Energy Efficient Affordable Housing Construction Program. Under this program, grants are provided to Illinois based non-profit and for-profit housing developers to include energy efficient building practices in the rehab or new construction of affordable housing units. This grant helps offset the incremental cost of going from typical construction to energy-efficient construction. Applications are available on the program web site above.

Projects must be targeted at households at or below 80% Average Median Income (AMI). Pre-application meetings are encouraged. Maximum grant amounts are as follows:


  • Single Family: $4,650/unit
  • Multi-Family Buildings <80 units: $4.60/square foot of living space or $4,650, whichever is less
  • Multi-Family Building >80 units: $4.35/square foot of living space or $4,650, whichever is less

New Construction:

  • Single Family: $4,150/living unit
  • Duplex: $6,700/duplex
  • 3-flat: $7,800/building
  • 4-flat: $8,900/building
  • 5-flat: $11,500/building
  • Multi-Family, <80 units: $4.35/square foot of living space
  • Multi-Family, >80 units: $4.10/square foot of living space

First implemented in 1988, the program has an average energy savings range from 50% to 75%.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Illinois
Incentive Type: Grant Program
Web Site: http://www.ilpha.org/
Administrator: Illinois Department of Commerce and Economic Opportunity
Start Date: 05/19/2006
Eligible Renewable/Other Technologies:
  • Clothes Washers
  • Dishwasher
  • Refrigerators/Freezers
  • Ceiling Fan
  • Water Heaters
  • Lighting
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Other EE
  • LED Lighting
Incentive Amount: Varies based on housing type and size
Maximum Incentive: Varies based on housing type and size
Equipment Requirements: Construction must meet DCEO energy standards laid out in program guidelines


Name: 20 ILCS 687/6-6
Effective Date: 8-20-2021
Expiration Date: 12-31-2025


Name: Don Falls
Address: 500 East Monroe Street
Springfield IL 62701-1643
Phone: (217) 785-1997
Email: don.falls@illinois.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.