SB 3497 creates the Illinois Homebuyer Savings Account Act, which allows for homebuyers to receive a tax deduction for funds they save and put toward their first home purchase. Single tax filers may create designated savings accounts and receive a tax deduction of up to $5,000 per year, while married couples or those filing jointly can receive up to $10,000 in deductions each year for contributions to their account. The bill caps tax deductions over the lifetime of the account at $25,000 for single filers and $50,000 for joint filers.

“Illinois used to have a program that incentivized saving for a first home, but it was administratively difficult and eliminated. SB 3479’s focus is to create an easy-to-understand process that banks and the state can easily administer,” said Chief Sponsor Sen. Castro.

Building off the state’s success in attracting more components in the electric vehicle manufacturing industry to locate here, SB 3769 addresses the massive shortage of “missing middle” housing, a category of homes that includes starter homes.

“The Governor has already seen success in bringing electric vehicle businesses to the state and we’ve already seen the benefits from the Reimagining Energy and Vehicles Act that the Governor championed in 2021,” Sen. Castro said of the bill. “The only way the workers at these facilities will have a real path to homeownership is if we build – a lot.” SB 3769 creates a pilot program for grants that will make it more economical for starter homes to be built near the electric vehicle projects supported by the REV Act.

The final bill in the package, HB 5432, focuses on preserving housing stability and bans any so-called local crime-free housing ordinance. Chief Sponsor Rep. Gong-Gershowitz states:

“These local ‘crime-free housing’ regulations inflict undue harm on low-income families, particularly in marginalized and disenfranchised communities. These ordinances force housing providers to evict a family if they or anyone within their household has any contact with law enforcement – even if they did nothing wrong,” said Gong-Gershowitz. “These laws typically serve discriminatory purposes, hurt the very people we should be trying to help and exacerbate the ever-increasing housing instability we see in Illinois.”

Studies have shown that in addition to having a disproportionate effect on minorities, these local laws don’t actually decrease crime. HB 5432 would render any existing version of a local crime-free housing ordinance invalid and unenforceable and would prohibit any municipality from creating a new, similar regulation.

“Illinois REALTORS® believes that EVERYONE deserves the American Dream of homeownership,” said Illinois REALTORS® President Silver. “As the state’s largest housing advocate, we’re committed to helping provide positive public policy solutions that increase housing stability and ensure everyone has the opportunity to realize the benefits of homeownership.”