Elgin Gets Second $400,000 State Grant to Expand Hotel Shelter for Homeless Residents
Elgin received a second $400,000 state grant to continue housing homeless residents at the Lexington Inn and Suites. The city is now searching for a nonprofit to take over operations of the 96-room hotel.
A second state grant keeps beds open at the Lexington Inn
The city of Elgin has received a second $400,000 state grant to continue housing homeless residents at the Lexington Inn and Suites on Dundee Avenue.
The funding comes through the Illinois Department of Human Services under the Housing and Supportive Services Legislative Add-Ons program. State Rep. Anna Moeller, a Democrat from Elgin, secured the award, according to city officials. A first grant of the same amount was awarded in 2025.
"The grant helps cover housing and operational costs, enabling the city to connect program participants with case management and supportive services through the Association for Individual Development (AID)," city spokesperson Josie Beecher-Crotty said, according to the Daily Herald.
From encampment to hotel rooms
Elgin launched the Unsheltered Pilot Project after shutting down a large homeless encampment in 2024 due to dangerous conditions, Beecher-Crotty said. The city moved some of the displaced residents into 50 rented rooms at the 96-room Lexington Inn.
Between 32 and 41 residents currently live at the hotel, Beecher-Crotty said. They receive services aimed at helping them resolve the situations that led to their homelessness and eventually return to self-sufficiency.
The program also received a separate $1.8 million state grant that covers both housing and case management costs, she has previously said.
Who runs the shelter and what comes next
The city's long-term goal is to purchase the hotel and hand operations over to an outside nonprofit agency, Beecher-Crotty said. Officials are currently reviewing responses to a request for proposals seeking "an experienced, mission-aligned organization to assume ownership and operation of a 96-room hotel as a low-barrier, non-congregate homeless shelter with wraparound services and 24/7 staffing."
"The city continues to evaluate its options as it works toward a solution that best meets the needs of program participants and the community," Beecher-Crotty said.
Any expansion of the program depends on which organization the city selects, how much funding becomes available, and the capacity of service providers, she said.
While the city provides the shelter space, partner organizations deliver the services. AID, the Ecker Center for Behavioral Health and other nonprofits offer job training, mental health assistance, counseling, case management and meals to residents.
The hotel is located at 1585 Dundee Ave. in Elgin.