March 10, 2023 State Capitol Report

This week was by far the busiest for your Illinois REALTORS® Legislative Team. With the March 10 (today) scheduled deadline for bills to be moved through the committee process, thousands of bills were heard during the week in hearings before today’s legislative deadline. Just this week the Illinois REALTORS® Legislative Team was involved in more than 100 bills in committee hearings that directly impacted REALTORS®. Below is a highlight of some of the major bills where Illinois REALTORS® either testified, filed a witness slip or monitored during this busy week. 

A Special Thank You!

On behalf of all REALTOR® members and the entire staff at Illinois REALTORS®, we would like to give a HUGE thank you to REALTOR® STEVE MYERS from Capital Area REALTORS®, who at the last minute agreed to testify on behalf of Illinois REALTORS® in opposition to Senate Bill 40 (Sen. Feigenholtz, D-6th, Chicago). SB 40 mandates developers provide all residential single and multi-family dwelling parking spaces to be equipped with a fully wired, very specific circuit electric vehicle charging receptacle for possible future use.  Due to the heavy volume of bills assigned to the Senate Judiciary Committee where SB 40 was posted, Steve sat patiently in the hearing room for four hours, waiting for our turn to testify. His testimony was informative, impactful and 100 percent “on-point” and we cannot thank Steve enough for taking the time from his busy schedule to perform this vital task for Illinois REALTORS®.  Unfortunately, the bill was voted out of committee which means Illinois REALTORS® will continue to work to defeat this legislation.   Thank you so very much Steve! Illinois REALTORS® has the best members in the world. 

Bill Considered this Week

Click the bill number to view additional information

The following bills advanced this week to 2nd Reading:

Housing

As reported in the Feb. 10, 2023, State Capitol Report, Illinois REALTORS® requested The Workforce Housing and Housing Stability Act to be introduced. Leader Marcus Evans introduced the bill in the House and this week the bill moved out of the House Housing Committee and is on 2nd Reading in the House. Because the bill outlines significant changes, HB 3152 has initiated many comments and concerns. Clearly, many discussions on this bill will continue surrounding this bill.

The current high housing demands began more than 10 years ago for many reasons and in the last two years we have witnessed accelerated effects of this problem due to historically low mortgage interest rates, healthy economic growth, and COVID-19. The result of this high-speed, textbook case of supply and demand has been an exacerbated crisis where statewide, there is an underproduction of at least 120,000 single-family homes and the Chicagoland area, a shortage of at least 48,000 new apartments.

Despite the severity of the current housing crisis, there are positive solutions we can implement to revise the tide. Illinois REALTORS® realizes that it will take a steadfast, extended period to bring back balance. This bill, written by our own CEO Jeff Baker, continues to move Illinois in the right direction and will contribute to the state’s overall housing supply.

There are four components our proposed solution. Here is a quick bird’s-eye view of the bill:

  • Re-configuration of the Illinois Home Buyers Savings Account Act. An earlier version of this Act was found to be difficult to navigate. Our version is simple and removes prior regulators from the equation.
  • Allows communities to adopt ordinances for Accessory Dwelling Units (ADUs) throughout the state and eliminates barriers to new home construction, specifically in restrictive zoning codes. This bill sets a boundary for municipalities to reconsider their zoning codes and maps following a federal proposal to increase grant scores for states that have reformed their zoning laws.
  • Following Governor Pritzker’s success of the Reimagining Electric Vehicles Act (REV), the bill creates a pilot program that incentivizes “missing middle” housing near REV projects. Following the anticipated success of the pilot program, it will be replicated throughout Illinois immediately.
  • Transforms the state’s existing impact fee law to bring fairness and uniformity to this critical development mechanism.  This bill incentivizes municipalities not in compliance to reform their local impact fee ordinances bringing consistency to clear the way for home builders to engage in new projects.

An abundance of studies indicate housing stability is a key component to nearly every issue facing this state ranging from raising more stable children, safer streets, less crime, stronger schools and increased economic opportunities. The state has indicated a strong public policy interest in investing in housing. This bill reflects that strong commitment and encourages our state’s leaders to continue investing in housing, to reverse the housing supply crisis and to bring housing stability to everyone in Illinois. Watch for continued updates on this bill.

New Construction

This bill creates the Electric Vehicle Charging Act to mandate all new residential developers provide all residential single and multi-family dwelling parking spaces with a fully wired, very specific circuit electric vehicle charging receptacle for possible future use adding significant costs to new construction at a time when housing supply is at an all-time low. Illinois REALTORS® provided testimony (See above) in opposition to SB 40 promoted by several environmental groups and Charge Point, manufacturer of charging stations. Unfortunately, the bill passed out of the Senate Judiciary Committee. Illinois REALTORS® will continue to either find common ground on this bill or will work to stop this legislation from passing in both chambers.  

In provisions requiring non-exempt local governments to approve an affordable housing plan, this bill provides that, in addition to other requirements, adds additional requirement of what must be included in the affordable housing plan. Illinois REALTORS® is monitoring our bill.

This bill amends the Counties Code to allow counties with a population of less than a million may establish minimum requirements for new building design and construction to lessen the risks caused by the new building design and construction to wildlife and sensitive habitats. Illinois REALTORS® has concerns with this legislation and will be working with the sponsor.  

This bill creates a statewide building code to include non-building code areas of the state.  Illinois is one of six states that does not have statewide code which does not allow the state to obtain federal grants.  This initiative was introduced in response to the tragic catastrophe in an Edwardsville Amazon building where several people were killed during a tornado because the building had not been required to have a storm shelter or safe space.  Following an amendment to the bill, Illinois REALTORS® continues to monitor this legislation. 

Seller Disclosure

This bill provides “clean-up” language to the Residential Real Property Disclosure Act by providing that the definition of “seller” does not include a beneficiary who has both (i) never occupied the residential real property and (ii) never had management responsibility for the residential real property. Illinois REALTORS® assisted with the language in this bill and supports HB 1837. 

This bill attempts to require sellers to disclose on the real estate disclosure form any discovered concentration of or unsafe conditions relating to lead paint, lead water pipes, lead plumbing pipes or lead in the soil.  Currently the law requires that “seller must disclose unsafe concentrations of or unsafe condition relating to lead paint, lead water pipes, lead plumbing pipes or lead in the soil on the premises.”  Illinois REALTORS® opposes this legislation in its current form. The sponsor has agreed to make changes to the bill on 2nd Reading.   

Title Insurance

This bill makes various changes to the Title Insurance Act including providing that no person or any legal entity can hold itself out to be a title insurance agent without first procuring a certificate of authority from IDFPR, rather than “unless duly registered by a title insurance company with IDFPR.” Makes additional changes. Illinois REALTORS® is monitoring this legislation and is in discussions with the title insurance organizations.  

Energy and Environment

This bill amends the Homeowners Energy Policy Statement Act by requiring any energy policy statement to explicitly include the minimum standards regarding the location, design and architectural requirements of solar energy systems. Prohibits HOAs from inquiring into a property owner’s energy usage, imposing conditions negatively impacting solar energy systems, not denying permission to install solar systems. Illinois REALTORS® is monitoring this bill.

This bill provides several new regulations for the Clean Air Act Permit Program (CAAPP) and/or Federally Enforceable State Operating Permit (FESOP) applicants in environmental justice areas. Additional regulations involve local siting approval requirements for permits, additional public hearings before a permit is issued, the requirement to complete an environmental justice assessment identifying the potential environmental and health impacts and the requirement to pay a $200,000 permitting fee. There are many concerns with this bill. Illinois REALTORS® is watching this legislation.  

Human Rights

This bill makes it a civil rights violation to refuse to engage in a real estate transaction based upon someone’s immigration status.  The bill makes other changes to the Human Rights Act. Illinois REALTORS® is monitoring this legislation. 

This bill provides that real estate appraisers shall not discriminate when preparing a Broker Price Opinion or Comparative Market Analysis for residential real estate. Illinois REALTORS® is continuing to work with IDFPR and the sponsor on this legislation.

This bill makes it a civil rights violation to refuse to engage in real estate transactions based on someone’s immigration status. After lengthy discussion and negotiations, Illinois REALTORS® no longer opposes this legislation. 

This bill would allow a formerly convicted person to petition the Illinois Department of Human Rights to be granted protected class status if that person meets specific condition. Illinois REALTORS® continues to work the sponsor of this bill. 

Landlord/Tenant

This bill creates the Tenant Radon Protection Act to allow tenants to break their rental lease if radon is found in their rental, allows tenant to conduct the test and provides for additional requirements. Illinois REALTORS® opposes SB 1929 and continues to work with the American Lung Association to remove some of this requirement from the bill.  

This bill will require the Security Deposit Act apply to all landlords and no longer only to property owners with 5 or more units. Illinois REALTORS® is monitoring this legislation.  

This bill amends the eviction article of the Code of Civil Procedure to allow for the automatic sealing of eviction records and makes additional changes. Illinois REALTORS® OPPOSES this legislation and continues to negotiate with the sponsor and housing advocates.  

This bill mandates that landlords cannot require only electronic rental payments. Illinois REALTORS® is monitoring this legislation. 

This bill requires all condo associations and landlords where most of the unit owners or renters are over 65 years of age to maintain the temperature of all common areas between 67 and 73 degrees or be fined $750 per day while violating this law. The sponsor agreed to continue to work on this bill before moving it from 2nd Reading to 3rd Reading. Illinois REALTORS® is monitoring this legislation.

This bill requires mobile home park owners that increase lot rent over 3 percent, to provide written justification for the increase, document why the increase is needed, and how the increase will be spend. Illinois REALTORS® is a member of a coalition which includes the Illinois Manufactured Housing Association (IMHA) and together we are all fighting RENT CONTROL. Illinois REALTORS® has joined IMHA in opposing SB 2727 which if passed could include all residential rentals. The sponsor has agreed to hold this bill on 2nd Reading so negotiations can continue.  

This bill codifies the Governor’s Executive Order 2021-21 by creating the Illinois Interagency Task Force on Homelessness. Illinois REALTORS® is monitoring this legislation.  

This bill allows a landlord to accept reusable tenant screening reports and provides requirements to be included in the reusable tenant screening report. Illinois REALTORS® is monitoring this legislation.  

This bill would allow municipalities to establish rent control for manufactured homes or manufactured home communities. This bill would allow rent control on a housing sector and Illinois REALTORS®  opposes this legislation. 

This bill creates the Limited-Equity Housing Cooperative Task Force Act to collect data regarding the needs of limited-equity housing co-ops with the goal of analyzing their potential in creating more affordable housing. Illinois REALTORS® is monitoring this legislation.

Next Week: At-A-Glance

Next week, only the House will be in session. They will primarily focus on moving bills from 2nd Reading to 3rd Reading (passage stage), which is part of the legislative process. Your Illinois REALTORS® Legislative Team will be focused on negotiating the bills with which we still have concerns. As always, stayed tuned for more updates with the State Capitol Report and with the number of issues we are up against this spring, make sure you are on “stand-by” to respond to any Calls for Action that will could be necessary. 

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Thank you for reading the March 10, 2023 State Capitol Report. Click here to read previous reports.