April 12, 2024 State Capitol Report

REALTOR® Voice Heard Loud and Clear!

Thank you to the over 700 Illinois REALTORS® members that came down to Springfield and made our Capitol Conference a resounding success. We have heard from several legislators commending our members for their strong showing in numbers, but also and more importantly the impression you made on them with your engagement, professionalism, and conduct. We are very proud of our REALTOR® family and you showed exactly why!!!

The House and Senate were both in Springfield this week. Today was the deadline for Substantive Senate Bills to be moved to 3rd reading, heard on the Senate floor, and voted on, before having to duplicate the entire legislative process in the opposite chamber. The Senate focused on passing bills on the floor in their chamber, while the House focused primarily on bills in committee. Your Illinois REALTORS® Legislative Team remains involved in negotiations and discussions on several pieces of legislation. Below is a highlight of the bills we continue to follow closely that saw legislative action this week.

Bills of Interest

These bills (HB 5432 | SB 3680) focus on preserving housing stability and ban outright any so-called local crime-free housing ordinance invalid and unenforceable.  It would prohibit any municipality from creating a new similar regulation.  With the passage of this legislation, municipalities and counties would no longer be able to require property owners to impose a penalty on a property owner or landlord for failure to evict, or refuse to renew, or violate any state or federal law.  Although no legislative action was taken on either of these bills this week, numerous discussions took place and continue to take place on this number one priority for the Illinois REALTORS®. 

As an Illinois REALTORS® member, YOU are encouraged to contact your mayor and Chief of Police to help them understand the vital importance of the legislation. 

Through a collaborative relationship with IDFPR, Illinois REALTORS® has had a big hand in this agreed bill to amend the Real Estate License Act to make several changes:

  • Written brokerage agreements will now be required when a licensee acts as an agent for buyers and/or sellers.
  • Brokers seeking to upgrade their licenses will only be required to take an Illinois state-specific exam to obtain a managing broker license.
  • Fair Housing CE—Mandatory Core CE Hours will increase from 4 to 6 where two of the six will be mandatory Fair Housing-related courses.
  • Added language to highlight and support the independent contractor relationship for a licensee conducting brokerage business when that is the nature of the agreement between the sponsoring broker and the licensee.
  • Making it a violation not to have a written brokerage agreement.
  • And added IDFPR’s initiatives:
    • Going away from broker reciprocity in favor of an endorsement program for nonresident licenses to obtain an Illinois license upon completion of certain requirements.
    • Several cleanups for departmental consistency

There is an identical bill in the House (HB 5551) which did not move this week.  SB 3740 passed the Senate this week unanimously on Friday and has arrived in the House for further action.  Illinois REALTORS ® wholeheartedly SUPPORTS this important legislation.

This bill has been introduced at the suggestion of the Illinois REALTORS® to highlight that in a sale of a condominium unit by a unit owner, no condo association may exercise any right of refusal, option to purchase, or right to disapprove the sale not only on the basis that the purchaser’s financing is guaranteed by the Federal Housing Administration or for a discriminatory or otherwise unlawful purpose. Illinois REALTOR® SUPPORTS this important legislation that moved to Third Reading in the House.

We continue to be a part of a multi-industry coalition opposing this bill that attempts to go beyond the previous definition of the Clean Waters of the United States (WOTUS) to include the following additional economic stifling requirements and implications: 

  • Allows anyone from any state to bring private right of action to a landowner before the Illinois Pollution Control Board
  • Requires landowners and companies to determine through a consultant if they need a permit from Illinois Department of Natural Resources prior to receiving a permit from the state agency
  • Regulates all accumulation of water, regardless of size
  • Imposes significant $10,000 per day penalties on an unknowing home/property owner

This bill amends the Illinois Human Rights Act to change the definition of “real estate transition” to include any act that “otherwise makes unavailable” such a transaction or alters a person’s right to real property.  The bill is attempting to “codify” federal court rulings regarding discriminatory effect.  The bill is an initiative of the Illinois Attorney General’s office and the Illinois Department of Human Rights.  At this moment, the Illinois REALTORS® continue to oppose this bill.  We have offered an amendment.  The bill moved to Third Reading in the House as all the interested parties continue to work towards an agreement.  

This bill requires the Illinois Department of Human Rights to create a domestic violence victim’s summary of rights on the first page of residential leases.  At our suggestion, the bill was amended to change the effective date to Jan 1, 2026, giving landlords time to prepare new leases.  The bill passed the Senate on Friday unanimously and has arrived in the Senate.  Rep. Theresa Mah is the House sponsor.  With the amendment, Illinois REALTORS® is neutral.

This bill requires mobile home park owners attempting to sell the park to give 60 days notice to residents to allow them time to purchase the park.  An amendment changed the original language from one year to 60 days, and with this amendment, the Illinois REALTORS® is neutral.  The bill moved to the House and is sponsored by Rep. Dave Vella.

This bill requires landlords to disclose that property is in FEMA’s Flood Hazard Area and disclose all historical flooding in lower levels.  The bill passed the Senate unanimously and arrived in the House.  The House sponsor is Rep. Abdelnasser Rashid.  Illinois REALTORS® is neutral. 

In provisions concerning the Historic Residence Assessment Freeze Law, this bill provides that the fair cash value of the property shall be based on the final determination by the assessment officer, board of review, Property Tax Appeal Board, or court. Provides that, after the expiration of the 8-year valuation period, if the current fair cash value is less than the adjusted base year valuation, then the assessment shall be based on the current fair cash value. Provides that these changes are declarative of existing law.  Illinois REALTORS® is neutral.

This bill amends the Property Tax Code to provide that no interest or penalties shall be imposed with respect to property that is included in a decedent’s probate estate at the time of a delinquency if the representative of the decedent’s estate applies with the county treasurer for a waiver of those amounts and is granted that waiver. Provides that the waiver shall apply beginning on the date of the decedent’s death until the earlier of either: (i) the date on which the property is sold, transferred, or conveyed or (ii) the date on which the estate is closed.  Illinois REALTORS® supports this bill that passed the Senate unanimously and will be sponsored in the House by Rep. C.D. Davidsmeyer.

This bill amends the Real Estate Transfer Tax Law in the Property Tax Code. Provides that paper revenue stamps shall be phased out by December 31, 2025. Requires counties to issue electronic revenue stamps or alternative indicia thereafter. Effective immediately. Illinois REALTORS® supports this legislation. The bill passed the Senate and has arrived in the House where Rep. Stephanie Kifowit will sponsor.

This bill amends the Landlord and Tenant Act to prohibit a landlord from charging a prospective tenant an application screening fee if the prospective tenant provides a reusable tenant screening report that meets the following criteria: (i) the report was prepared within the previous 30 days by a consumer credit reporting agency at the request and expense of a prospective tenant; (ii) the report is made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer credit reporting agency; and (iii) the report is available to the landlord at no cost to access or use.  The bill moved to Third Reading in the House.  Illinois REALTORS® is neutral. 

A Special Thank You!

On behalf of REALTOR® members and staff, a big Thank You goes to all our State Legislative Contacts. Illinois REALTOR® “SLC’s” went above and beyond this year in representing their REALTOR® colleagues, local and state associations, and the real estate industry. Thank you again for your dedication and all the hard work that went into preparing for this vital event and carrying out such an impactful role.

You did a great job and deserved to be congratulated!  We could not have done this without you!

Next Week At-A-Glance

Next week, the House and Senate will be in session. Friday, April 19 is the deadline for House Bills to be voted on and passed on the floor in their chamber. It will be another busy week in Springfield. Your Illinois REALTORS® Legislative team will continue to work with the sponsors of all proposed legislation possibly affecting the real estate industry.

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