Elk Grove Village to hold raffle for chance to buy new homes

Elk Grove Village Mayor Craig Johnson said, for the first time in 20 years, the village is finally building new homes, but you'll need to enter a raffle to be able to buy one.

Officials said the houses they plan to build for the Tonne Grove development are already in high demand. The raffle will be a way for people to get first dibs on one of 20 homes that will be built in an empty lot at 600 E. Elk Grove Blvd.

There are some requirements for the raffle, including being an Elk Grove Village resident. Johnson said he wants people who grew up in or currently live in the village to stay by buying brand new homes he said will be affordable.

Officials said the website where you can enter for a chance to buy one of the homes is already getting tons of traffic.

"I think most people were shocked and very appreciative of it. And, trust me, the response on the website since just Tuesday night, it's going over like gangbusters," Johnson said.

The mayor said he took the idea to build 20 single-family homes on the $1 million field to several home developers before finally getting a yes from Nick Papanicholas Jr.'s firm.

"There's an emotional return as much as a financial return," Papanicholas said.

Johnson and Papanicholas said their partnership stems from their decades of dedication to growing the northwest suburbs.

"I was a little nervous, because at the end of the day, if we did not have a substantial response and interest, we were going to have more homes than potential raffle participants, but in two days we're already up to 67 inquiries on our website," Papanicholas said.

The website shows three options at three price points, ranging from $466,000 to $508,000.

"It's going to be fairly priced, it's going to be a little more different than the usual big subdivision, but something we thought could meet the American dream," Johnson said.

People who enter have to show up in-person to the live raffle at village hall on July 18.

"It's going to be done by an independent company. They're going to come in. We're going to kind of treat it like the NFL Draft," Johnson said.

Raffle holders have to be prepared with a $2,500 cashier's check and a pre-approved mortgage offer.  Once called, they'll have five minutes to decide where they want their home built on a first-come first-served basis.

"If this works out well, it will not be the only little subdivision we build in this village, and my hope is Schaumburg, Hoffman Estates, Mount Prospect – all land-locked – can find ways to get a little more houses built within them," Johnson said.

If approved by the village's planning commission next month, construction will start by August and finish by next summer.

"So, a year from now, we'll have people already moving into Tonne Grove," Johnson said.