Residential Conversion

Applications are not currently being accepted for this program.


The Residential Conversion Grant (also commonly known as Multi-Family De-Conversion program) is designed to provide funding for converting non-conforming multiple unit residences back to their original use. This is an incentive grant program that is not only intended to compensate property owners for the work required remove the additional non-conforming residential unit, but also for the loss of rental income following the conversion.

Amount of Funds

The reimbursement program provides participating property owners $25,000 for converting a two-unit building and $30,000 per unit removed for buildings with three or more units. An additional $3,000 per unit removed is available for buildings located within certain census tracts (please refer to the priorities below for more information).

Eligible Uses of Funds 

The program provides funding for construction expenses related to the conversion of the property. Conversion work includes removal of electrical / gas meters, kitchens and associated plumbing, exterior stairwells and secondary exits, and off-street parking.


Properties eligible for participation are limited to:

  • Properties that contain lawful, but non-conforming multiple-family residential units
  • Rental properties currently licensed by the City of Elgin
  • Properties that will be converted to their original, conforming residential use
  • Properties outside a floodplain

The program is available to private individuals, corporations, and not-for-profit organizations. Eligible participants include owners of record, mortgagees, and owners with a beneficial interest in a trust.


  • Applications are not currently available

Review of Applications

Applications submitted for the program will be selected and sorted according to the following priorities:

  • Priority 1 – Owner-occupied prioritized over non-owner occupied rental property. (Owners occupying their property have a greater vested interest in the improvement of their properties)
  • Priority 2 – Two-unit property prioritized over multi-unit property. (Grants given to two-unit properties at $25,000 allow the benefit of the program to be realized by a greater number of properties. In addition to the larger number of two-unit properties that have the potential to be converted, the conversion of a two-unit property to a single-family home makes a property more viable for re-sale.)
  • Priority 3 – Date the application was submitted. (Applications submitted at an earlier date will receive higher priority. This is to accommodate the applications that are currently on a Waiting List to participate in the program.)
  • Priority 4 – Located within U.S. Census Tracts 8546 and 8514. These census tracts contain a demographic where over 50% of households are of a low to moderate income, and where 15-33% of low–income housing units are determined to be overcrowded. The definition of overcrowding is based on measures defined by the U.S. Department of Housing and Urban Development (HUD) that funds the U.S. Census Bureau to conduct the American Housing Survey (AHS). The measures of overcrowding include persons-per-room (PPR), persons-per-bedroom (PPB), and unit square footage-per-person (USFPP).