Illinois Gov. J.B. Pritzker’s push to reshape the state’s housing landscape ended with nary a whimper last week, with no votes as National Homeownership Month began.
His sweeping Building Up Illinois Developments plan stalled before the legislature adjourned, leaving the most ambitious housing proposals with little room to maneuver until fall.
His plan sought to strip local governments of broad zoning authority, legalize missing-middle housing and accessory dwelling units statewide, and set hard deadlines for permit reviews. It also would have eliminated excessive parking minimums, allowed single-stair construction in buildings up to six stories and replaced unpredictable local impact fees with a uniform formula.
The stall is a reminder of how powerful – and intractable – municipalities can be when arguing that state mandates have no place in local planning decisions. But there have been victories.
In Texas, California, Florida, Colorado and other states, lawmakers have passed legislation that preempts local zoning authority. Even so, they have had to continue strengthening those laws to prevent local governments from circumventing them.
Pritzker’s plan wasn’t the only failed housing effort in the spring legislative session. A separate bill targeting large institutional investors scooping up homes passed the Senate but never reached a House floor vote.
Plans to fight on
At a news conference, Pritzker noted that some legislation takes years to pass. Illinois REALTORS have spent five years pushing for policies to address a housing shortage estimated at 270,000 units statewide.
“I believe that the people of Illinois want action on housing,” he said. “They want to make sure we make it easier for people to build homes.”
He vowed to continue his housing push, framing the Spring setback as a delay rather than a defeat.
Although most of his plan stalled, the state’s new budget includes the $250 million he sought when he unveiled his BUILD plan in February during his State of the State address. The funds target site preparation, middle housing development, and first-time homebuyer assistance.
How his plan stalled
The Illinois Municipal League led the charge against the package’s zoning elements, arguing that the plan would preempt zoning authority, which cities and villages consider a core function of self-governance. Suburban mayors were particularly vocal, with several holding news conferences in May to declare their opposition.
Pritzker’s plan would have allowed multifamily housing by right on residential lots larger than 2,500 square feet, legalized accessory dwelling units statewide, and standardized impact fee practices. Illinois REALTORS, which has spent more than five years pushing to expand housing opportunities, backed the effort.
Taking on institutional rental owners
In last-minute maneuvering, state Sen. Rachel Ventura moved to put Illinois on a nationwide legislative trend to limit institutional single-family ownership.
A bill that originated as a measure requiring menstrual hygiene dispensers in state buildings became the Restock the Block Act. Ventura’s amendment, filed May 31 and passed by the Senate that same day, gutted the original bill and replaced it with new language targeting institutional real estate investors owning 10 or more residential properties with $30 million or more in assets under management.
Those investors would pay an annual fee equal to 10% of each home’s property value beyond 10 properties, escalating to 50% as a portfolio of single-family holdings grows. They would also face a 90-day waiting period before purchasing any home listed for public sale, giving individual buyers first crack. Penalties for violations could reach $250,000.
Revenue would flow into the Illinois Affordable Housing Trust Fund to support public housing development and rental assistance.
The amended bill passed in the early morning hours of June 1, went to the House calendar, and did not move.
Pritzker’s BUILD plan and Ventura’s bill remain alive. The 104th General Assembly does not adjourn “sine die” – used to signify that a meeting, session, or case has been adjourned or suspended indefinitely, without a specific date set to reconvene – until January 2027, leaving open the possibility of action when lawmakers return for the fall veto session.
