Chicago is using lawsuit winnings in an unusual way: to help some homeowners avoid a tax sale.
A new pilot program could provide up to $5,000 to eligible residents who are behind on property taxes in three neighborhoods.
Here's what to know
According to ABC7 Chicago, Mayor Brandon Johnson's administration has introduced the Property Tax Debt Relief Pilot Program for homeowners whose unpaid Tax Year 2023 or 2024 bills have put them at risk of a tax sale.
The assistance is only available to homeowners in Englewood, South Shore, and the Lower West Side, and awards may reach $5,000. The money is intended to reduce tax debt before it brings households closer to losing their homes.
Applications stay open until November 20, but the program will stop accepting them earlier if it runs out of money.
The program aims to prevent displacement in neighborhoods where long-time residents may be vulnerable to rising costs, before unpaid taxes push them into the tax-sale process.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
More background
ABC7 Chicago reported that Chicago is paying for most of the pilot with money recovered through lawsuits against Texas bus companies that brought new arrivals to the city.
The city said the program is a half-million-dollar effort, and with awards of up to $5,000, it will serve a limited number of households.
Johnson cast the effort as part of a broader housing and equity agenda, linking unpaid property taxes to "ever-rising costs" and "growing threats of displacement." He also specifically identified Black Chicagoans as a group his administration wants to protect from losing homes.
What's being done?
The application window is open for homeowners in danger of a tax sale because they still owe 2023 or 2024 property taxes. If approved, they can receive up to $5,000 toward that bill.
People can apply at www.chicago.gov/ptdrp through November 20, unless the program runs out of funds before then.
"As working people contend with ever-rising costs and growing threats of displacement, my administration will stop at nothing to protect Black Chicagoans at risk of losing their homes while keeping long-time residents rooted in the communities they helped build," Johnson said.
Where can I learn more?
Chicago's pilot is one of several efforts to help homeowners keep up with property taxes and protect their equity. Related coverage looks at tax-sale protections, local relief funds, assessment challenges, and other ways owners can lower what they owe.
• In Illinois, a new tax law is protecting homeowners who have paid off mortgages.
• In Springfield, Massachusetts, a $1 million relief fund is helping seniors and disabled homeowners.
• Across eight states, older residents can trade town work for up to $1,500 off taxes.
• In Los Angeles County, some owners can seek property-tax relief when assessed values outpace reality.
• After steep valuation jumps, homeowners can appeal property-tax assessments and sometimes save $5,000 yearly.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
