March 21, 2025 State Capitol Report

The House and Senate were in Springfield for a full week of committee hearings and considerable floor action, in what was an extremely long and busy deadline week. Each day saw committees being posted for hearings multiple times a day and with very little advance notice. Below are highlights of bills that saw legislative action this week, including committee action on two bills in the Illinois REALTORS® Housing Stability & Affordability Initiative.

Illinois REALTORS® Housing Stability & Affordability Initiative

Learn more about the “Housing Stability & Affordability Initiative” at www.illinoisrealtors.org/housing.

ADU and “Missing Middle” housing initiatives included in the Illinois REALTORS® “Housing Stability and Affordability Initiative” passed out of the House Housing Committee

House Democrat Leader Rep. Bob Rita and Senior Director, State Government Affairs Jimmy Clayton testified in favor of HB 1813 and HB 1814 Thursday evening before the House Housing Committee. After providing testimony and answering questions from members of the committee, the committee voted to move HB 1813 with a vote of 18-0-0 and HB 1814 with a vote of 12-6-0 to 2nd reading and both bills will be favorably reported to the House Floor.

Illinois REALTORS® wants to give a special thank you to Leader Rita, the House Housing Committee, SLCs and all REALTOR® members who contacted legislators regarding these initiatives.

HB 1813  aims to be the first of many steps needed to remove unnecessary barriers to housing availability and development. The bill creates the “Local Accessory Dwelling Unit Act” to balance the need for more housing while ensuring safety standards. Under the direction of municipalities, ADUs offer a quick, affordable housing solution due to their size and ability to increase housing density without raising the cost of living dramatically. HB 1813 passed the House Housing Committee Thursday  with a (18-0-0) vote and will now be sent to the House Floor.

Through a collaboration with House Democratic Leaders, Rep. Kam Buckner (HB 1709 sponsor) and Rep. Bob Rita (HB 1813 sponsor), both HB 1709 and HB 1813 now have identical language with HB 1813 moving forward through legislative process. It was assigned to the House Housing Committee. HB 1813 aims to be the first of many steps needed to remove unnecessary barriers to housing availability and development. The bill creates the “Local Accessory Dwelling Unit Act” to balance the need for more housing while ensuring safety standards. Under the direction of municipalities, accessory dwelling units (ADUs) offer a quick, affordable housing solution due to their size and ability to increase housing density without raising the cost of living dramatically.

Your Illinois REALTOR® leadership, executives and the state legislative team are excited at the opportunity to present on just one component of the “Housing Stability and Affordability Initiative” and believe this small step on ADUs will have a great impact on boosting the inventory of affordable housing units. Please be ready for a REALTORS® member action request regarding HB 1813 next week. Until then, the message stays the same to all elected officials in Illinois – WE NEED MORE HOUSING! HB 1813 might be called for a hearing as soon as this Wednesday, March 19 in the House Housing Committee.

HB 1814 is one of the five bills included in the Illinois REALTORS® “Housing Stability & Affordability Initiative.” The legislation doesn’t just tackle density head-on; it combats negative gentrification and the implicit segregation that can be caused by traditional zoning practices. HB 1814 provides for moderate increases in neighborhood density, without dramatic increases in the cost of living – or positive gentrification (the type that does not displace current residents, redefine the character of neighborhoods, or cause surrounding property values to increase at an unhealthy pace). By allowing more housing types on larger lots, developers and builders can design “missing middle” housing to meet the needs of tomorrow’s home buyers, while reducing sprawl and costly land acquisition costs. HB 1814 was heard in the House Housing Committee Thursday and ultimately passed with a (12-6-0) vote and will be favorably sent to the House Floor.

Bills of Interest

The following pieces of legislation are bills your Illinois REALTORS® State Legislative Team are currently actively engaged in and saw legislative action this week.

Illinois REALTORS® has historically been OPPOSED to this idea, due to the massive and blatant infringement on private property rights. HB 1873 would go against Illinois common law and an Illinois Supreme Court decision. Illinois common law has recognized the distinction between property boundaries on a lake versus a river or a stream for over 100 years. Also, the Illinois common law of “reasonable use” does not apply to the use of surface water to enter the property of another “riparian” owner, but instead applies to “direct consumptive or diversionary uses of the water” of riparian owners. The circuit court, appellate court and Illinois Supreme court ruled that there is neither a precedent nor Illinois common law that grants a riparian owner on a non-navigable river or stream the right to use that waterway to cross the property of another riparian owner without that owner’s permission. HB 1873 included provisions that allowed the public, access to riparian owner’s private property, IF the original entrance to the connected waterway was done through a public access point. Illinois REALTORS® was part of a multi-organizational coalition that strongly OPPOSED HB 1873. Due to strong opposition from Illinois REALTORS® and other organizations, HB 1873 was not called for a hearing in the House Energy and Environment Committee and is not expected to move during this Spring Session.

HB 2729 is a “companion” bill to HB 1873 (Navigable Waters) and would have created the Riparian Protection and Water Quality Practices Act. This new Act would have required landowners who own property that is adjacent to a water body identified and mapped on a buffer-protection map to maintain a buffer to protect the state’s water resources. HB 2729 also included provisions for the installation of specific types of buffers, as well as, timelines for the completion of installations. Illinois REALTORS® strongly OPPOSED HB 2729 and the bill ultimately was never heard in the House Agriculture and Conservation Committee, has been re-referred to rules committee and is not to be considered this year.

Illinois REALTORS® along with several organizations are a part of a large multi-industry coalition that strongly OPPOSES this bill. SB 2401 attempts to undo a Supreme Court decision exempting various wetlands and streams from being under EPA’s jurisdiction. Illinois REALTORS® concerns were with the language regarding restrictions and requirements of residential development on private property. SB 2401 is an attempt to fill possible gaps in the protection of certain wetlands after the U.S. Supreme Court ruled that the government overreached in the exercise of its authority in the case Sackett v. EPA in 2023. These wetlands, referred to as non-jurisdictional wetlands because they do not fall under the jurisdiction of the U.S. Army Corps of Engineers, are oftentimes hard to identify, have minimal impact on drainage or environmental quality, and have the potential to impact virtually every sector of the economy if regulated in an ineffective manner.

We firmly OPPOSE this legislation due to the belief that passing this bill will create a serious threat to the use of private property in Illinois by imposing restrictions on landowners to do anything on their property that would affect any body of water.

SB 2401 was heard in the Senate Judiciary Committee on Wednesday, and was moved to 2nd reading with the understanding that the bill will not move forward before returning to committee with all parties in agreement. The REALTORS® State Legislative Team will remain as the lead opposition and actively engaged in any movement regarding SB 2401.

SB 1955 amends the Code of Civil Procedure. Provides that in the Eviction Article the term “impounded” has the meaning ascribed to the term in the Court Record and Document Accessibility Act. In that Article, replaces the term “seal” with “impound.” The bill is an initiative of the Chicago Bar Association to codify changes in criminal terminology into Illinois’ Civil Code. Illinois REALTORS® OPPOSES SB 1955 due to one very problematic section that can be found in the final paragraph of the 58-page bill. Sec (b-5) would change Illinois’s Civil Code to allow sealing or “impounding” of eviction files “upon agreement” of all parties. Even with the language stating “upon agreement” SB 1955 and in particular section (b-5) is an attempt to prevent the public from being able to see a perspective tenant’s eviction records. Illinois REALTORS® does not disagree with the bill’s intent or any other section of SB 1955 and believe that removing Sec (b-5) would not deter or diminish the overall legislative intent in anyway. Illinois REALTORS® appreciates the sponsors partnership on this issue and will continue to work to clarify this language to make sure future landlords have an opportunity to view eviction records and the State Legislative Team is currently involved in negotiations. The bill was heard in the Senate Judiciary Committee on Wednesday and moved to 2nd reading with an agreement to return the bill to committee with an amendment that removes the REALTORS® opposition. Illinois REALTORS® will continue negotiations, but will remain firm in any provisions that lead to permanent sealing of eviction records.

After numerous discussions with the proponents of SB 2265, the bill will remain in the Senate Judiciary Committee and is not expected to forward this year. This bill was introduced at the suggestion of the Legal Aid Society. They claim that frequently minors are added to eviction notices which is illegal. This harms minor tenants as they become of legal age to rent and have this blemish on their record. SB 2265 calls for the sealing of the eviction record. Historically, the REALTORS oppose strongly the sealing of eviction records so that future landlords have the ability to check everyone’s eviction past. Illinois REALTORS do want to harm the future of minors either. The bill remained in Senate the Senate Judiciary committee and is not expected to move forward this session. We will continue to discuss and offer possible solutions to this unfortunate situation.

HB 3526 prohibits a park owner from increasing rent more than 3 percent per year. Beginning in 2027, park owners may adjust rent annually to reflect a percentage equal to the percentage change in the consumer price index-u during the preceding 12-month calendar year that may not be more than a 5 percent increase in the 3 percent cap. This is RENT CONTROL and Illinois REALTORS® will be working the Illinois Manufactured Housing Association to OPPOSE this bill that is now on 2nd Reading in the House. We firmly OPPOSE RENT CONTROL all types of housing.

HB 3526 mandates that a manufactured housing park owner must notify a manufactured home owner in the park of a rent or fee increase if the increase is in excess of 3 percent above the current rent or in the Consumer Price Index, whichever is greater. Provides that if the rent or fee increase is greater than the percentage rate of rent in the Consumer Price Index, the park owner shall provide a written justification for the increase and make documentation available to all residents that shows the costs and commencement of work that justifies the rent or fee increase. Provides that in order for an increase in costs to justify such a rent or fee increase, for costs incurred for ordinary maintenance, property or real estate taxes, and utilities not directly paid by the manufactured home owner, the park owner must demonstrate that the work performed was necessary to meet the park owner’s warranty of habitability obligations and demonstrate that the rent or fee increase imposed was no more than was necessary to cover the actual and reasonable cost of the work performed. Illinois REALTORS OPPOSES this bill which remained in the House Housing Committee and is not expected to move forward this year.

HB 2559 would require the age of a roof to be disclosed in the property’s disclosure report. Illinois REALTORS® OPPOSES this legislation as it is currently written. The bill was sent to a subcommittee for further discussion. The sponsor of the bill and Illinois REALTORS® along with the Illinois Department of Professional and Financial Regulation (IDFPR), have pledged to work on this issue over the summer. We appreciate the sponsor working with us on this bill.

HB 2382 amends the Property Tax Code. In provisions concerning platted and subdivided but undeveloped property, provides that (i) beginning with the 2025 taxable year, no property’s assessed value shall be reduced to less than $150 under those provisions and (ii) beginning with the 2035 taxable year, no property shall be eligible for calculation of its assessed value under those provisions for more than a 10-year period. The bill passed out of the House Revenue Committee and moves to the full House.

HB 1176 mandates municipalities to include information on the tax bills of how TIF funds are used by the municipality. An amendment may be forthcoming from the sponsor to alleviate the potential burden on producing the information and added cost to the county treasurer. The bill is to be held on 2nd Reading until it is amended.

HB 1440 has been introduced to assist the Cook County Land Band which has 150 parcels on hold because some Cook County municipalities are refusing to issue tax stamps, inspect or issue appropriate certificates. This bill moved to 2nd Reading.

HB 3421 establishes a equity fund to provide that moneys in the fund be used exclusively for the purpose of paying the amount ordered for equity surplus payments to Illinois property owners who have lost their property by a recorded tax deed, except that, whenever the Illinois Treasurer determines that any such moneys in the equity fund exceed the amount required for the purpose of paying equity surplus payments resulting from property ownership being divested by tax deed, the Illinois Treasurer may transfer any such excess amounts from the equity fund to the General Revenue Fund. HB 3421 also provides for an irrevocable and continuing appropriation from Illinois tax lien purchasers for the purpose of paying equity surplus payments to the divested property upon the order of the Illinois Treasurer and for the purpose of paying equity surplus to the divested property owner. Sets forth an equity fund fee, $200 in Cook County and $150 in suburban & downstate counties calculation of the equity surplus, and an application process.  The bill is currently opposed by the Cook County President and Treasurer Office. The House Revenue Committee voted 13-7-0 to keep the bill on 2nd reading and not advance further in the legislative process.

Next Week At-A-Glance

Next week, only the House will be in Springfield and will primarily focus on floor action and moving bills from Second Reading to Third Reading. The legislative action and attention will shift next week from committee hearings to floor action, where we hope to continue to advance our “Housing Stability and Affordability Initiative” and as always…Stay Tuned!!

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