Illinois Senate Debates Governor's Affordable Housing Plan as Municipal Leaders Fight for Local Control

Illinois lawmakers questioned affordable housing advocates and municipal leaders Thursday on a proposal to overhaul the state's residential zoning laws. The Building Up Illinois Developments, or BUILD, plan has not moved in the legislature despite the passage of House and Senate deadlines for bills, according to Capitol News Illinois.

The proposal aims to address a statewide housing shortage of roughly 142,000 units and meet demand for 225,000 units over the next five years, according to data from the governor's office.

Oral testimony on the six BUILD bills lasted nearly three hours during a Senate Executive Committee hearing. The committee said the meeting would not lead to a vote on the bills but aimed to focus on feedback and best practices. The legislative session is scheduled to conclude on May 31.

Among the most ambitious provisions is the ability of property owners to construct middle housing, or multi-dwelling units such as duplexes, triplexes and fourplexes, on lots restricted to single-family homes under current zoning codes.

The six bills would allow for the construction of middle housing, permit multi-family dwellings to be constructed with a single stairwell, establish a statewide formula for calculating impact fees, expedite timelines by allowing third-party inspectors, do away with parking requirements based on number of tenants and allow property owners to lease accessory dwelling units to outside renters.

Supporters see the plan as a market-driven solution to Illinois' growing affordability problem. Increasing supply by cutting regulatory red tape would temper exorbitant housing and living costs across the state.

Emily Bloom-Carlin, director of housing and community development at the Metropolitan Planning Council, testified that constructing additional units in certain neighborhoods, along with a proposed $250 million capital grant to assist first-time and low- and middle-income homebuyers, may increase school district revenues and improve local infrastructure.

"When the rules make room for smaller, more varied homes, more of them get built and affordability improves," Bloom-Carlin said. "BUILD is a careful, tested, common-sense response to a problem that has been decades in the making."

Illinois REALTORS CEO Jeff Baker framed the legislation in the context of economic opportunity.

"This package of legislation represents one of the most meaningful and impactful policy shifts our state has made toward making the American Dream realistic to everyone in this state that desires it," Baker said.

Opponents were less flowery. Illinois Municipal League CEO and former Carbondale Mayor Brad Cole said the league's objections stemmed from the state going over the heads of local authorities to impose new statewide zoning regulations.

"The core issue for us is the preemption of local authority, and that also means the preemption of local input," Cole said.

Cole referenced earlier testimony from a proponent of the legislation, establishing a mantra that other BUILD opponents repeated throughout the hearing.

"Somebody earlier indicated that a one-size-fits-all approach does not work," Cole said. "And we agree!"

Isabel Cabrera, a Mexican immigrant and Chicago resident who had to relocate from the Logan Square neighborhood due to affordability concerns, argued that simply building more housing units will not result in lower costs. Instead, Cabrera feared that more people in her community would be displaced.

"Density without affordability is not justice," Cabrera said. "It's gentrification."

Many opponents indicated they were not opposed to the entire BUILD proposal, but that key aspects needed refinement to more directly address affordability concerns.

Daniel Lauber, an attorney from Chicago's west suburbs, echoed this and lamented the legislative product before the committee, arguing that rezoning, as described in Senate Bill 4060, will change the character of neighborhoods across the state.

"I love the goals of SB4060," Lauber said. "But the devil is in the details, and sadly, SB4060 is not ready for primetime."

Sen. Omar Aquino, D-Chicago, inquired about protections against market pressures that may arise from the construction of additional units in neighborhoods. Aquino said he and his wife recently sold their home and moved into a multigenerational home due to affordability concerns.

Similarly, Sen. Donald DeWitte, R-St. Charles, raised concerns about changing land values that could negatively affect current homeowners.

Olivia Ortega, the governor's director of housing solutions, indicated that the land value component will be addressed by the $250 million capital investment but stated that market protections had not been included in the introduced legislation.

Nicole Milovich-Walters, mayor of Palos Park, said the legislation needs to be thought through more carefully and does not take into account how communities were created.

"We were developed intentionally over the last 114 years to keep open space. And giving up the idea of giving up our zoning rights and how we do things, it could be detrimental in many ways to Palos Park," Milovich-Walters said.

Jim Dodge, mayor of Orland Park, said the legislation needs some work and his primary concern is how it would impact infrastructure.

"If we start adding a lot more housing, that's going to impact flooding and stormwater management and other public services. So we need to think those things through," Dodge said.

There are concerns about impeding local control from officials and residents like Jay Vincent.

"In the end, we want to have a say in what is built in Palos Park," Vincent said. "We just updated our code here in Palos Park and had great public participation throughout the community, and we really appreciate having a say on what gets built in our community."

Ortega responded to concerns during the hearing, explaining that communities would still guide the design of their neighborhoods.

"If your community is used to duplexes or four-flats, you can design standards to support those forms. If your neighborhoods are primarily single-family homes, you can shape how smaller-scale options like cottage homes fit into those areas," Ortega said.

Changes would also be made to the timelines in which housing permit reviews and inspections have to be conducted to prevent project delays. If deadlines are missed, third-party review would be allowed.

Another bill would limit how much parking cities in Illinois are allowed to require for new housing. For multifamily buildings, cities can require no more than half a parking space per unit.

Currently, buildings taller than three stories must have two separate exit stairways, but one of the bills would allow apartment buildings up to six stories to have a single exit stairway. The governor's staff said that would expand the types of housing units that could be designed.