* From the governor’s office…

Unlock existing housing potential in communities across Illinois:

• Legalize a wider range of family friendly housing types (duplexes, triplexes, four-flats, etc.) statewide, expanding access to homes families can afford.
• Allow homeowners to boost their income and increase housing supply by allowing them to add Accessory Dwelling Units (ADUs, like granny flats, backyard cottages, or above-garage apartments) to existing property.
• Let developers build more housing with fewer and more sensible parking space requirements.

Cut red tape to build housing faster and more economical:

• Streamline the permitting process to give developers clear, predictable timelines for housing permit reviews and inspections
• Allow developers to use a qualified third-party who follows all applicable local and state standards to sign off on permits when local delays occur – relieving pressure for local governments.
• Standardize impact fee practices, which increase predictability for developers while preserving local decision-making.
• Modernize outdated building codes to maintain resident safety, free up space for more housing, and drive down costs

$250 Million in capital investment and grants to spur development and support homeownership:

• $150 million administered by the Illinois Housing Development Authority (IHDA):
o $100 million: Capital funding to support middle housing construction.
o $50 million: Down payment assistance for first-time homebuyers.

• $100 million administered by the Illinois Department of Commerce and Economic Opportunity (DCEO): Capital grant funding for municipalities to remove upfront infrastructure barriers that hinder viable housing projects, for example, funding for stormwater improvements, sewer, and site access improvements.

On to yesterday’s react from major organizations.

* Abundant Housing Illinois…

Today, Governor JB Pritzker proposed new state housing legislation in his State of the State address, promising to lift outdated zoning rules that limit affordable home options. The proposed legislation would create clear and consistent statewide standards for building the homes needed to address Illinois’ current housing shortage and affordability crisis.

“Families across Illinois are struggling to find homes they can afford, and this statewide crisis demands a statewide solution,” said Ben Wolfenstein, Director of State Policy for YIMBY Illinois, a statewide organization advocating for more affordable and abundant homes. “For too long, municipalities have exploited byzantine zoning regulations to exclude all but the wealthiest homeowners. This new legislation will level the playing field and ensure that families and workers can find more affordable options, like modest townhomes or coach houses, in the communities of their choosing.”

In his speech, Governor Pritzker said, “The problem is clear, rent is too high, and homeownership is too far out of reach. The cause is clear, too: we are not building enough homes fast enough.” YIMBY Illinois agrees. The Governor’s proposal will cut red tape and encourage construction of more homes for working families with measures that:

• Prohibit local governments from banning modest home types. Currently, many neighborhoods ban smaller homes that are inherently more affordable, like coach houses (also known as “accessory dwelling units”), two-flats or three-flats, and instead only allow massive “McMansions” that regular working people can’t afford.
• Cut red tape and reduce convoluted approval processes that slow home building and raise the cost of housing. Currently, unnecessary bureaucracy and discretionary approvals force local home builders to jump through hoops and pay fees that delay or drive up the costs for new homes, even preventing homes from being built at all.

“Some cities are fighting these changes, but we can’t let a vocal minority pull up the ladder behind them and deny our communities the housing we urgently need,” Wolfenstein added. “Many of the municipalities criticizing this legislation already refuse to comply with the state’s Affordable Housing Planning and Appeals Act and continue to oppose any policy that could open their wealthy, exclusive communities to more neighbors. We can’t afford to let a broken status quo dictate our state’s future—it’s time for bold action to address the housing shortage.”

* Illinois Municipal League…

Governor JB Pritzker’s proposal in today’s State of the State Address includes provisions establishing statewide zoning standards, including minimum lot sizes, increased residential density allowances, legalization of accessory dwelling units, limitations on parking requirements and changes affecting local development review and inspection processes. These proposals also reference the creation of a statewide formula related to impact fees.

IML recognizes that housing costs and supply challenges are impacting communities and municipal leaders share the goal of expanding housing opportunities for all. While the proposed capital investment in housing and municipal infrastructure are both necessary and appreciated, the regulatory infringements represent a significant shift in longstanding local zoning and land use authority based on the unique needs, capacity and priorities of individual communities.

“This is a broad preemption of authority on an issue that is entirely local,” said IML Chief Executive Officer Brad Cole. “Promoting positive local development builds good communities. Zoning and land use decisions are best made locally by the leaders elected in those communities. To the extent there are concerns, rightfully, is an issue with the cost or availability of housing in Illinois, the issue is not caused by comprehensive planning and local zoning. This is another example of where one-size-fits-all statewide mandates are unworkable and will damage communities.”

Illinois communities vary widely in geography, population density, infrastructure capacity and housing demand. Uniform statewide standards cannot adequately reflect those differences or the planning efforts underway or completed in many municipalities.

Local officials look forward to reviewing the full legislative language of any proposals and engaging with the Governor’s Office and members of the General Assembly to ensure that reforms balance statewide policy goals with the preservation of local authority for land use and zoning.

* Illinois Realtors…

“For the past six years, our members have been the leading voice at the Capitol and in local city and village halls advocating for common-sense solutions to our state’s housing crisis,” said Illinois REALTORS CEO Jeff Baker. “We are pleased to see the Governor embrace the roadmap we have proposed—specifically the expansion of ADUs and zoning flexibility for ‘missing middle’ housing.”

The measures highlighted in today’s state budget address mirror the core pillars of Illinois REALTORS’ legislative platform since 2020. Since then, Illinois REALTORS has met with hundreds of local and state officials to discuss these initiatives. In 2024, Baker served on the Governor’s Ad-Hoc Missing Middle Housing Solutions Advisory Committee.

In December 2024, Baker spoke at the Governor’s announcement of the housing solutions reporter and reminded everyone that this is about strengthening Illinois’ housing economy for all Illinois families. “Our state’s housing shortage destabilizes families and communities. It doesn’t just prevent us from realizing the American Dream of homeownership, it drives some of out the housing market all together.”

Jeff Kolbus, Illinois REALTORS Board President added: “While we have been proposing these measures for years, having the Governor’s support is a significant turning point. We look forward to working alongside the administration and the legislature to ensure these association-backed priorities become law.

Illinois REALTORS is a voluntary trade association whose over 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.

* A Just Harvest…

(W)e cannot build our way out of the housing affordability crisis. Even the governor made a distinction in his proposal to reduce barriers to development that it was separate from addressing affordable housing, and rightly so. Just building supply is not enough. A third of all Illinoisans and half of all Chicagoans are rent-burdened, paying more than 30% of their income in rent. We must do all we can to make at least half of all housing created be affordable if we’re to catch up. Just building more luxury housing isn’t a solution.

* Chicagoland Apartment Association…

At a time when affordability is a top priority, the Chicagoland Apartment Association strongly supports efforts that address the root causes of Illinois’ housing affordability challenges. Governor Pritzker’s Building Up Illinois Developments (BUILD Illinois) proposal represents a meaningful step toward modernizing our state’s housing policy framework. By streamlining zoning restrictions, allowing for greater development, reducing barriers such as lengthy permitting timelines, and investing in infrastructure, BUILD Illinois moves the conversation toward practical, long-term solutions that expand housing supply. Encouraging the development of accessory dwelling units (ADUs), multifamily and other middle housing options will help meet demand across a range of income levels while strengthening neighborhoods and supporting economic growth. Strategic capital investments through infrastructure grants and housing development programs will further reduce financial barriers that often prevent projects from moving forward.

Republican gubernatorial candidate Ted Dabrowski answered a question about the proposal yesterday. I wanted to use it, but the BlueRoomStream video has since been deleted.

Anyway, discuss.