New program aims to build affordable homes on vacant Mt. Sterling lots
Published 2:35 pm Monday, August 10, 2026
MT. STERLING — Municipal leaders have partnered with a regional property organization to launch a new housing initiative aimed at transforming three vacant city lots into affordable, single-family homes.
The Central Illinois Land Bank Authority (CILBA) announced Monday that it is partnering with the city of Mt. Sterling for its “Vacant Lots to New Homes Initiative.” The program reduces land acquisition barriers and development risks to encourage residential construction in rural communities.
Under the initiative, the city will sell three municipal lots for $1 each to qualified developers through a competitive bidding process. The targeted properties are located at 502-504 West Washington Street, 121 East Coline Street, and 607 North Capitol Street.
To further lower upfront construction expenses, the city is waiving both permit application fees and utility tap fees for selected contractors.
“Everyone talks about the ‘Missing Middle’ housing crisis, and we need concrete strategies to get more homes built,” said Mt. Sterling Mayor Bill Burge. “Our goal is to have selected contractors build homes below $250k on these three vacant lots.”
City officials plan to evaluate applicants based on their construction track records and immediate financial readiness. The scoring system is designed to recruit experienced regional builders while ensuring selected contractors possess the resources required to bring the projects to completion.
“We’re happy to be working with CILBA on this new initiative so we can start seeing houses built on these vacant lots,” said City Administrator Vada Yingling, noting the city hopes to see three completed homes by the end of 2027 to accommodate local families.
The program marks an expansion of CILBA’s rural housing strategies across the state. Over the last five years, the authority has completed more than 125 community revitalization projects to address vacant, abandoned, or substandard properties in central Illinois. The organization launched a similar lot program in Casey earlier this year, transferring five properties to builders, and maintains active partnerships in Westville, Oakwood, Mattoon, Pontiac, and Jacksonville.
Experienced contractors can pick up or submit application packets at Mt. Sterling City Hall, located at 145 West Main Street. The deadline to submit competitive proposals is 1 p.m. Tuesday, September 1.
