February 10, 2025 State Capitol Report
Illinois REALTORS® Working to Enhance Housing Stability and Affordability
Solutions would increase missing middle housing, reform restrictive zoning measures and regulations and help first-time homebuyers
SPRINGFIELD, IL (Feb. 10, 2025) – Illinois REALTORS® announced today five major legislative proposals it is supporting as part of its “Housing Stability & Affordability Initiative.”
These measures are aimed at addressing the dramatic housing shortage facing Illinois, particularly the varying range of affordable housing types known as “missing middle” homes.
As the state’s leading housing advocate, Illinois REALTORS® has been working to address the state’s housing shortage for the past several years. However, during this time without substantive public policies to resolve the issue, the problem has only worsened, with home prices skyrocketing almost 40 percent in only five years and the underproduction of new homes increasing.
During this legislative session, Illinois REALTORS® has increased it efforts and introduced its “Housing Stability & Affordability Initiative,” which includes bills it has worked with the Governor’s office and state legislators to develop, all aimed at increasing affordability and housing stability.
Specifically, these measures would increase housing supply, help first-time homebuyers and tackle zoning and local regulations that hinder growth.
“Illinois’ ongoing low housing inventory crisis has driven home prices higher in recent years, making homeownership less attainable to many and causing housing instability,” said Illinois REALTORS® President Tommy Choi.
In 2024, Illinois REALTORS® CEO Jeff Baker served on Gov. JB Pritzker’s Ad-Hoc Missing Middle Housing Solutions Advisory Committee to develop initiatives and policy solutions to bring more missing middle housing to the state.
Now Illinois REALTORS® is ramping up its efforts to work with legislators to advance its package of legislative initiatives to achieve that goal.
Illinois REALTORS Legislative Package
Elimination of zoning bans on accessory dwelling units – House Bill 1709, sponsored by Rep. Kam Buckner and Chief Co-Sponsor, Rep. Bob Rita, would prohibit cities and towns from banning accessory dwelling units (ADUs), a relatively easy option for increasing the state’s available housing supply. Because of their smaller size, ADUs are seen as a quick supply of affordable housing units.
Easing density restrictions in local zoning codes to create needed missing middle housing – House Bill 1814, also sponsored by Rep. Rita, would generate more housing supply by requiring municipalities to revise restrictions on large lots previously zoned for single-family homes to accommodate duplexes, townhouses and other missing middle-style homes. This legislation preserves single-family zoning and the detached, single family home typology – recognizing the importance of this class of building in comprehensive city planning. This bill is a commonsense alternative to more exaggerated proposals that try to ban single-family zoning all together.
Bring fairness and uniformity to impact fees – Senate Bill 1959, sponsored by Sen. Cristina Castro, would incentivize towns and cities to bring their local impact fees ordinances in compliance with state law. Municipal impact fees add to the cost of home building and are strictly regulated by state statute. Despite this, many municipalities have applied inflated impact fees outside of those parameters. Those affected – property owners, developers and home builders – are left with paying more to comply or walking away from their developments. This bill will bring consistency to the impact fee application process and clear the way for home builders to advance new housing projects.
Create a homebuyer savings account program with tax benefits – Senate Bill 148, also sponsored by Sen. Castro, would create the Illinois Homebuyer Savings Account Act, allowing for first-time and second-chance homebuyers to receive a tax deduction for money they save toward a home purchase. Single tax filers could create designated savings accounts and receive up to $5,000 in yearly tax deductions while married couples or joint filers could receive up to $10,000. The bill caps contributions and tax deductions over the lifetime of the account at $25,000 for single filers and $50,000 for joint filers.
Prohibit discriminatory crime-free housing ordinances statewide – House Bill 3110, sponsored by Rep. Jennifer Gong-Gershowitz, would ban crime-free housing ordinances that destabilize housing for vulnerable populations and violate both state and federal fair housing laws. Local crime free housing ordinances reflect the discriminatory practices of the 1950’s and 1960’s. These ordinances are used by municipalities to force housing providers to evict tenants if they or anyone in their household has any contact with law enforcement. Repeated studies have shown these ordinances have a disproportionate impact on underserved groups. While some argue these laws are a tool to decrease crime, there is no evidence to support that.
The cumulative effect of the housing shortage fuels instability and negatively impacts the state’s economy. The housing industry represents nearly a fifth of the state’s economy. But as inventory has plummeted, closed sales have fallen year over year, keeping over $1.3 billion out of our local economy in the last three years.
“A strong housing market that offers opportunities for all is essential,” said Illinois REALTORS® CEO Baker. “We are dedicated to advocating for public policy that encourages greater investment in a diverse range of housing options that provides the affordability and stability Illinois needs.”
Read more about the “Housing Stability & Affordability Initiative” at www.IllinoisRealtors.org/housing.
