Pritzker housing proposal partly stalls amid overreach concerns from localities

By Sean Reed | The Center Square
The Center Square

(The Center Square) – Though the entire affordable housing initiative from Gov. J.B. Pritzker didn’t make it through the General Assembly this session, roughly $250 million was included in the state’s 2027 budget for parts of the development plan.

The reason stated for the lack of full passage is pushback from municipal leaders over what has been described as the state overstepping local authority.

“That includes $100 million for local infrastructure support to expand housing development. $100 million for missing middle and affordable homes, $50 million for new home buyer and first time home buyer assistance,” Pritzker said.

Lawmakers and the governor have said there’s also more work to be done over the summer to bring more affordable housing to the state.

The Illinois Municipal League, a coalition of local governments across the state, posed opposition to a proposal that would have imposed new zoning rules statewide. The group argued in hearings the proposal was an overreach.

Pritzker said the measure isn’t how those in opposition have described.

“I know that it’s been characterized as a massive taking of power from local government, it isn’t,” Pritzker said. ”And it isn’t just low-income housing, it’s also middle housing as we’ve been talking about. Housing for working families and middle-class families, they cannot get today because of policies in individual communities.”

Senate Bill 635, The “Faith-Based Housing and Mixed-Use By-Right” act imposes the described statewide zoning rules. It passed the Senate Executive Committee before the start of the long legislative weekend, but has been tabled for now, according to Sen. Cristina Castro, D-Elgin.

“Sen. Feigenholtz and Brad Cole from the IML have reached an agreement here,” Castro said. “It’ll be held on the floor as the two will work through the summer uh on this issue. I just wanted to make that clear that we will hold this on the floor.”

Another progressive housing proposal also stalled in the final hours of the legislative session.

House Bill 2783, the “Restock the Block” act would, in theory, attempt to shut private equity out of the housing market.

It would place an annual fee on large real estate investment firms owning at least 10 residential properties in the state, with exclusions for real estate developers, community land trusts and debt collectors.

The fee begins at 10% of each property’s assessed value, and scales in 10% increments for every 10 residential properties owned, capped at 50%.

The measure passed the Senate in the early hours of Monday, sending it back to the House for a vote to agree on amendments made in the Senate. The House, however, did not take the law up before adjourning until the fall veto session.

Because the bill just requires a single vote during the veto session, there is a chance it could still be passed in October.