Illinois legislators are expected to return to Springfield soon to do some business in the lame-duck session, before the 102nd General Assembly is sworn in on Jan. 13, 2021. COVID-19 prevented the General Assembly from considering or passing much in 2020, so many constituencies will be clamoring for legislative action on their agendas.

Illinois REALTORS^® plans to get our voices heard above the din to pass a package of housing affordability and sustainability measures, important first steps that set the stage for the robust, proactive housing agenda we will be pursuing in the spring session.

The legislative package provides incentives and removes barriers for the creation of new or rehabilitated safe, decent and affordable housing.

The legislation:

• Offers significant reductions in the tax valuation of newly constructed or rehabilitated property. Housing providers will be able to reduce the equalized assessed value (EAV) of a property that is newly constructed or rehabbed and the owner keeps the rents “affordable.” The EAV will be reduced on a sliding scale up to a 35 percent reduction based on the percentage of units and length of time the units are kept affordable.
• Establishes a state income tax credit program that mirrors the popular, federal Low-Income Housing Tax Credit (LIHTC) program. There is high demand in the LIHTC program, which outstrips the current federal program’s allocations. The state legislation would attract investment to meet that excess demand and result in increased affordable housing construction in Illinois. According to the Illinois Housing Council, which also strongly supports this measure, a $35 million annual program could create 3,500 homes or apartments each year.
• Provides that a unit of local government may not prohibit the building or usage of “accessory dwelling units (ADUs)”, which are defined as an attached or detached dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence.
• Exempts from the state sales tax the purchase of building materials from suppliers in “disproportionally affected areas” if the building materials are to be incorporated into an affordable housing project.

While these proposals are not directly related to the pandemic, they will help some of the most vulnerable people in our society who were already struggling and have been hit hardest by the pandemic. These issues are ripe for consideration and passage so Illinois REALTORS® will be out there working and creating desperately needed housing opportunities.

The pursuit of these initiatives also sets the tone for the future.

During this past year, Illinois REALTORS® leadership and members rededicated ourselves to our core principles and mission of being agents for proactive, positive change through projects like our multi-faceted Diversity Initiative, of which this affordable housing package is one component.

Illinois REALTORS® is also working on a “big picture,” positive approach to the seemingly irreconcilable situation facing both landlords and renters regarding the eviction moratorium.

Unlike some tenant advocates that seek a narrow and punitive approach to the present and future situation, Illinois REALTORS® is trying to lead the way out of this mess with creative proposals that offer assistance and resolution, but also shared sacrifice and reasonableness on both sides of the landlord-tenant equation.

We’ll keep at it and keep you informed.