April 24, 2026 State Capitol Report

Another big week in Springfield for the Illinois REALTORS®! Only the House was in session this week. However, the Senate Executive Committee convened a four-and-a-half-hour virtual hearing on Thursday, covering two major topics: the BUILD Plan and a series of bills that would negatively impact real estate sale transactions and Illinois’ rental housing providers. The hearings were informational only, so no vote was taken to move any of the bills forward.

BUILD Plan Hearing

The hearing began with discussion of the six Senate bills that make up BUILD Plan. Illinois REALTORS® CEO Jeff Baker testified in support of the package. Senators raised a range of questions related to local control, parking requirements, property taxes, historic property, utilities, and impact fees.

As mentioned above, this was a subject matter-only hearing, no votes were taken. Both proponents and opponents expressed a willingness to continue discussions and work collaboratively moving forward.

Office of the Governor’s BUILD Plan Package:

  • SB 4060 (Sen. M. Hunter) – Missing Middle Development
  • SB 4061 (Sen. S. Feigenholtz) – Single Stairway Buildings
  • SB 4062 (Sen. C. Castro) – Standardized Impact Fees
  • SB 4063 (Sen. L. Ellman) – Third-Party Review and Inspection
  • SB 4064 (Sen. J. Cervantes) – Minimum Parking Spaces
  • SB 4071 (Sen. R. Martwick) – ADUs in Single-Family Zones

Other Legislation

The second portion of the hearing—also subject matter only—focused on a series of landlord/tenant proposals and proposals that would hamper real estate transactions. Illinois REALTORS® Vice President of Governmental Affairs Melia Carter testified in opposition to seven of these measures.

This bill seeks to prohibit real estate licensees from charging brokerage fees to tenants when there has not been a dual agency agreement in place.  This issue is already addressed under the Illinois Real Estate License Act. Illinois REALTORS® testified in opposition on the bill, but has committed to working with the sponsor on concerns raised in his district.

This bill requires landlords to offer tenants the option of reporting rental payment history to a credit agency. The bill contains problematic language allowing landlords to charge a fee to recoup any costs but provides no avenue requiring tenants to pay it. Illinois REALTORS® opposes the bill, noting that landlords are not credit reporting agencies and may lack the resources or expertise to comply. The sponsor has expressed interest in continued discussions.

This proposal would implement rent control and cap security deposits. Illinois REALTORS® strongly opposes rent control, citing research showing it reduces housing supply, discourages investment, and can distort the rental market.  The bill further caps security deposit amounts which is also problematic.

The bill allows for certain eviction records to be sealed if rent is paid on time. Illinois REALTORS® opposes the bill, emphasizing the importance of transparency for property owners when evaluating prospective tenants.

Both bills ( SB 3762 | SB 3674) would grant tenants or tenant organizations a right of first refusal when a rental property is sold. Similar policies have faced challenges in practice, including delays and financing obstacles. Illinois REALTORS® opposes both measures.

The bill imposes a 10 percent annual fee on the property value of each property owned for investors holding more than 10 single-family homes or eight multi-family properties. Illinois REALTORS® believes this is a back door property tax disguised as a fee that is bypassing the proper taxing authority process. While intended to address institutional investment, current data suggests that this is not a widespread issue in Illinois.  A similar House proposal has been paused to allow for additional review and stakeholder engagement over the summer.

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