The City of Chicago is launching a $1 million loan program to kick start the city’s housing market.

It’s intended to help people snatch up existing homes, which flooded the market during the housing crash.

Mayor Richard Daley says the city is giving people $10,000 to $40,000 each to help them buy their first home.

DALEY: Home ownership is essential if you want to rebuild, not only Chicago, but America. Home ownership is the key and will always be the key for American and all of our communities.

Under the Home Purchase Assistance Program, people can apply to the city for loans based on their income.

The loans would be fully forgiven if buyers live in their home for a certain period, ranging from five to 30 years, depending on the size of the loan.

Daley says the $1 million for the program is coming out of the city’s general fund, and is now available to prospective home buyers. 

Chicago home sales are on the rise, though home prices continue to fall.