Working to Enhance Housing Stability and Affordability

Another example of a sensible solution identified by the Governor’s Committee and included in the initiative is captured by HB 1814, sponsored by Rep. Bob Rita, the “Missing Middle Housing Act.” The legislation doesn’t just tackle density head-on; it combats negative gentrification and the implicit segregation that can be caused by traditional zoning practices.

Local zoning ordinances can be used positively to bring effective order to the layout of towns and cities. However, because zoning involves limiting the ways in which real property in certain areas can be used, which means it is also an unfortunate tool to promote segregation and further discrimination. It’s estimated that in most major cities, zoning codes ban multi-family housing, apartments, townhouses and duplexes in over 70 percent of their residential areas. Single-family zoning provisions essentially act as density limitations, which obviously decrease the overall housing supply. Worst of all though, in the wake of legal prohibitions on redlining, single-family zoning codes have been used as a mechanism to promote negative gentrification, limiting construction to newer, more expensive homes or encouraging informal patterns in demographic relocation.

HB 1814 provides for moderate increases in neighborhood density, without dramatic increases in the cost of living – or positive gentrification (the type that does not displace current residents, redefine the character of neighborhoods, or cause surrounding property values to increase at an unhealthy pace). By allowing more housing types on larger lots, developers and builders can design middle housing to meet the needs of tomorrow’s home buyers, while reducing sprawl and costly land acquisition costs.

SB 1959 would incentivize towns and cities to bring their local impact fee ordinances in compliance with state law. The bill, sponsored by Sen. Cristina Castro, seeks to tackle yet another unnecessary added cost to the home building process. It makes changes to the state’s existing impact fee law. While state law already sets the parameters for how towns implement and charge impact fees, SB 1959 aims to bring more fairness and uniformity to this critical development mechanism.

Today, municipalities may apply inflated impact fees outside of the parameters of state law with no repercussions. Those affected are left with only a few choices, all of which are designed to discourage protest – like simply paying higher than necessary fees for the ability to develop residential properties, suing the city for compliance, or abandoning their residential development project all together.

SB 1959 will not negatively impact any municipality that is currently in compliance with state law. Rather, the amendment proposes an incentive for towns and cities not in compliance to reform their local impact fee ordinances within the next 12-18 months. The effect of these changes will be to bring consistency to the impact fee application process and clear the way for home builders to engage on new projects.

Also, included in our initiative is SB 148, sponsored by Sen. Cristina Castro, the “Illinois Home Buyer Savings Accounts Act,” which will give first time homebuyers a leg up when saving for a new home. As housing supply across the state has continued to shrink and demand has increased, not only does housing instability increase, but the American Dream of homeownership becomes harder and harder to achieve. Those who have worked relentlessly to save for their first home often find themselves

unable to save enough to counter the ever-increasing prices of a home. SB 148 quite simply incentivizes and creates a tax advantage for saving for a home, allowing individuals and families to save up to $25,000 and $50,000, respectively, to put toward a down payment and closing costs.

Another local tool that has damaging, discriminatory effects are “crime-free housing” ordinances. The “Housing Stability & Affordability Initiative” looks to, once and for all, ban these discriminatory local laws with HB 3110, sponsored by Rep. Jennifer Gong-Gershowitz. The bill prohibits these local regulations, which are passed under the guise of crime reduction and community safety. In reality, these laws serve to promote discrimination, punish crime victims and fuel housing instability.

Crime-free housing ordinances require landlords to evict tenants for even the most minor “contact” with any form of law enforcement. Proponents argue that where there is law enforcement, there must be crime and therefore tenants connected to the presence of the police must be involved in criminal activity. Evidence has shown throughout the country that these laws are usually predicated on discriminatory motives or at least end up having discriminatory effects. The local laws focus primarily on minority and low-income renters and perpetuate housing instability for those who are already experiencing historic disinvestment in their communities and institutional inequities.

In recent years, the U.S. Department of Justice, HUD, and the Illinois Attorney General have forced a number of Illinois communities to roll back their ordinances as they blatantly violate fair housing laws. Illinois REALTORS® has advocated at the local level for 20 years for the abolishment of these policies and if this legislation becomes state law, it will effectively end them once and for all.