Peoria's New Hope Apartments closes due to loss of federal funding

Closure leaves some residents without a place to stay, highlighting shortage of affordable housing options in the city

Mar. 3, 2026 at 5:15am

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New Hope Apartments, a supportive housing facility in Peoria, Illinois, has closed its doors due to a loss of federal funding. The closure has left around 5-15 residents without a place to stay, forcing them to seek shelter on the streets. Local outreach organizations like LULA worked to find alternative housing for many of the residents prior to the closure, but the city is facing a shortage of affordable housing options.

Why it matters

The closure of New Hope Apartments underscores the ongoing challenge of providing adequate and stable housing for vulnerable populations in Peoria. The loss of this supportive housing facility highlights the need for more sustainable funding sources and long-term solutions to address the city's affordable housing crisis.

The details

New Hope Apartments, operated by Phoenix Community Development Services, was home to more than 80 people as of last year. LULA co-founder Kshe Bernard said her organization and other outreach services were able to find alternative housing for many of the residents, but around 5-15 people were left without a place to go. Bernard spent the day outside the apartments offering tents, warm clothing, and other supplies to those who were forced onto the streets. City leaders have been working with groups like LULA to develop more housing plans, but the uncertainty of federal funding has hindered those efforts.

  • New Hope Apartments closed its doors on Monday, March 3, 2026.

The players

New Hope Apartments

A supportive housing facility in Peoria, Illinois that closed due to a loss of federal funding.

Phoenix Community Development Services

The organization that operated New Hope Apartments.

LULA

A local outreach organization that worked to find alternative housing for the residents of New Hope Apartments prior to the closure.

Kshe Bernard

The co-founder of LULA who spent the day outside the apartments offering supplies to those left without a place to stay.

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What they’re saying

“Everyone really, really tried to find exit plans for everyone, and we have this huge shortage of housing. To be forced outside with no home in this weather because of funding cuts is a systemic failure.”

— Kshe Bernard, LULA co-founder

What’s next

City leaders in Peoria are working with groups like LULA to develop more long-term housing plans, but the uncertainty of federal funding continues to hinder those efforts.

The takeaway

The closure of New Hope Apartments highlights the ongoing affordable housing crisis in Peoria and the need for more sustainable funding sources and comprehensive solutions to ensure vulnerable populations have access to stable and supportive housing options.