Home builders put up just 58 single family homes and duplexes in the City of Bloomington last year. That’s less than the 66 built in 2024. City records indicated the value of the new construction in 2025 was $21.2 million. That’s not going to make much of a dent in the community-wide housing deficit of thousands of units.
“I think everything's a step in the right direction. What's on the horizon for housing in Bloomington is encouraging. But as any builder would tell you, if you want affordable housing, we have to have affordable building. That's where the two need to meet, from code enforcement and incentives,” said Mayor Dan Brady in a WGLT interview.
The city last year approved fee reductions for qualifying new housing projects, particularly for workforce housing and the “missing middle." It is willing to freeze the city portion of the property tax rate and offer commercial tax rebates for that new construction.
Brady agreed with a recent statement by realtor Ed Neaves, Managing Broker of Berkshire Hathaway Home Services, that the city has identified about 200 dilapidated houses fit for demolition or rehabilitation.
“I don't think it's just new construction alone. I think if you look at what we've done in some zoning issues, I think if you look what are doing in rehab [they] are all part of the puzzle.
Brady said just a few of the 200 will be tear-downs the city could help with.
“We're looking at somewhere around over $250,000 in proposed demolition dollars for an estimated 12 properties,” said Brady.
That money is 77% of the total city Community Development Block Grant [CDBG] money the council is dedicating to housing issues this year. Brady declined to say whether the city will dedicate a similar portion of CDBG funding to housing in the future.
“I don't know about a multi-year, but certainly we're going to do everything we can for the block grants, obviously, to not only continue, but for the strong showing that Bloomington has had in the way of a recipient,” said Brady.
The effort includes $317,000 for direct housing rehabilitation assistance on health, safety, accessibility and code issues, distributed on need-based criteria. Brady said the city will not just wait for applicants but will seek out prospects.
“This Action Plan is about protecting the housing we already have and supporting the residents who rely on it,” said Cordaryl Patrick, director of community impact enhancement, in a city news release. “By focusing CDBG resources on preservation, rehabilitation and housing stability, we are making strategic investments that strengthen neighborhoods and help residents remain safely housed.”
The largest single investment is $320,000 allocated to housing rehabilitation, including $317,000 for direct assistance to income qualified homeowners to address health, safety, accessibility and code issues, along with $3,000 for program administration.
In a recent presentation to the Mid-Illinois Realtors Association, Brady and City Manager Jeff Jurgens said the vacant property rehab money will focus on the near east side, Dimmitt’s Grove and Gridley Allin Pricket neighborhoods.
Other money will go to public housing improvements and housing-focused public services such as the Bridge project for unhoused people in Bloomington.
In the interview and to the realtors' association, the mayor also cited several potential or forthcoming projects:
Single family
- Beich Rd.: 15-acre single family development of 55+ units
- Maple Square project at Maple Hill Road: 24 units
- 800 N. Main St (city owned)
Multi family
- Empire Flats (Holladay): 207 units projected to be complete by 2028
- Wittenberg Woods Apartments: 56 units, potentially
- GJ Lofts: 182 apartments to be completed by 2027-28
Mixed residential
- Leslie Drive: A proposed mix of townhomes and apartments, potentially 50+ units
