As the Illinois General Assembly’s session comes to a close later this month, at least 10 real estate-related bills are moving toward the finish line.
Some are closer to passing than others, but most have sparked conversation about which regulations will help or hurt the industry. Catch up on what Illinois lawmakers have in store for the industry with this quick rundown
*indicates the bill has been passed by one chamber of the legislature. All other bills listed have not yet been passed by either chamber.
The Illinois Home Buyer Savings Accounts Act (Senate Bill 148)
This proposal, filed by Sen. Cristina Castro, is supported by statewide residential real estate trade group Illinois Realtors and would incentivize potential homebuyers to open a savings account set aside specifically for buying a house. Individuals could claim $5,000 in annual tax deductions while joint filers could claim up to $10,000. Over time, cumulative deductions would max out at $25,000 and $50,000 respectively.
In Chicago, median asking prices for residential listings reached a record high this month. The median asking price for newly listed homes in April was $384,250, passing the $380,000 threshold for the first time, according to Redfin.
Amends squatters’ rights* (Senate Bill 1563)
Sen. Lakesia Collins filed an amendment to the state’s code of civil procedure that would make it easier for police to remove squatters by bypassing lengthy eviction processes. The measure is supported by Illinois Realtors.
Squatters rights made headlines this month, when a man on the South Side of Chicago moved in with the squatters occupying his property. When faced with minimal legal recourse under state law, he eventually paid the squatters over $4,000 to vacate the property.
Amends local impact fees (Senate Bill 1959)
Towns that charge impact fees to developers could have to refund those fees if they do not comply with standards set by the state. The proposal, filed by Sen. Castro, is backed by Illinois Realtors as a way to ease building restrictions in certain municipalities.
Separately, a bill that allows municipalities to require impact fees that fund new school buildings, passed the Illinois House. It is largely seen as a response to an ongoing dispute between the real estate power family, The Wirtzes, and Lake County school districts, over the proposed Ivanhoe Village development which includes over 3,500 housing units.
Local Accessory Dwelling Unit Act (House Bill 1813)
This Illinois Realtors-backed bill would eliminate all zoning statewide that bans accessory dwelling units, also known as garage apartments or coach houses. Its intent, as filed by Rep. Bob Rita, is to increase housing supply statewide and potentially lower costs.
The Missing Middle Housing Act (House BIll 1814)
Although some cities and states have banned single-family zoning altogether, this proposal aims to take a more nuanced approach. Filed by Rep. Rita and backed by Illinois Realtors, it requires towns with over 25,000 residents to allow “all middle housing types,” on lots over 5,000 square feet, effectively eliminating single family zoning on large lots. The bill defines middle housing types as duplexes, triplexes, quadplexes, cottage clusters and townhouses.
Towns with populations between 10,000 and 25,000 would be required to allow a duplex on all single-family zoned lots.
Requiring landlords to report income information (House Bill 1827)
A proposed amendment to the state’s tax code would require owners of all “income producing properties,” to report income and expense data annually to the chief county assessment officer.
The Building Owners and Managers Association of Chicago opposes the bill because it would “mandate disclosure of commercial buildings’ confidential financial information under threat of penalty,” BOMA Chicago’s Director of External and Government Affairs Amy Masters said.
The Chicago Downtown Revitalization Task Force* (HB 2757)
This committee would be formed with the objective of identifying policies that are hindering the growth of Chicago’s population and economy. BOMA supports the bill, which is sponsored by Rep. Kimberly Du Buclet.
Elimination of crime-free housing ordinances (House Bill 3110)
Local “crime-free” housing ordinances require landlords to evict tenants for any contact with any form of law enforcement, regardless of the severity of the cause for the interaction. The ordinances have previously been targeted by the U.S. Department of Justice, the Department of Housing and Urban Development and the Illinois Attorney General for violating fair housing laws. The proposal claims the ordinances disproportionately affect low-income and minority renters and crime victims who call 911. It is sponsored by Rep. Jennifer Gong-Gershowitz and supported by Illinois Realtors.
In Illinois, 57 percent of municipalities with a population over 20,000 have such ordinances in place, according to data tracked by advocacy group Housing Action Illinois.
The Utility Data Access Act* (House Bill 3312)
This BOMA-supported proposal would require utility providers to report aggregated energy data to building owners. If passed, it would help landlords identify which buildings need energy efficiency upgrades without having to individually ask tenants to report energy data usage.
The measure would “help office buildings further advance their benchmarking and energy efficiency efforts,” Masters said.
Ban move-in fees and cap credit and background check fees at $20* (House Bill 3564)
Rep. Nabeela Syed’s proposal to ban move-in fees for renters and cap credit and background check fees as $20 has caused a stir among landlords and faces opposition from Illinois Realtors.
Move-in fees have escalated in Chicago over the past decade as a means to get around the city’s Residential Landlord and Tenant Ordinance which dictates strict policies regarding security deposits.
