In mid-February, the Governor
delivered his State of the State address
and budget proposal for the 2027 State Fiscal Year. During his presentation,
Governor Pritzker shared his concerns about the availability and cost of
housing across Illinois, noting that “local regulations have made it too
difficult and costly to build new housing” and citing “bureaucratic red tape”
as an impediment to residential development activity. To combat these issues,
the Governor announced the Building Up Illinois Development (BUILD Plan), an
initiative to lower housing costs by making it more efficient and cost effect
to build housing in Illinois. This initiative includes several legislative
proposals that have since been introduced in the Illinois General Assembly.

House Bill 5626: Housing
Omnibus

HB
5626 is a 40-page omnibus bill that includes a host of amendments to the
Illinois Municipal Code and Illinois Counties Code addressing issues including
impact fees, “middle housing” development, accessory dwelling units (ADUs),
single-stair regulations, among others. In addition to HB 5626, several bills
have been introduced in the Illinois Senate which propose the same substantive
changes at an issue-by-issue level.

Senate Bill 4060: Middle
Housing & Statewide Standards

SB
4060 proposes several changes to the Illinois Municipal Code with the
express purpose of expanding housing choice and increasing the supply of
“middle housing,” which includes duplexes, triplexes, fourplexes, cottage
clusters, townhomes, attached courtyard housing, detached courtyard housing,
and stacked flat-plexes. If enacted, SB 4060 would limit the imposition of
local standards (including bulk, lot area, setbacks, and other restrictions)
that are not “clear and objective” as defined in the Bill. The Bill also
proposes to prohibit municipalities from enforcing standards that impose
requirements on middle housing that are more stringent than those applicable to
detached single-family units and restricts the use of “discretionary review,”
such as special use permitting and variations for middle housing unless the
same process is required for single-family homes.

Senate Bill 4061: Single-Stair
Reform

SB
4061 provides that, beginning January 1, 2027, no building code adopted by
a municipality may prohibit a residential building from having a single
stairway serving as an exit for all units if the building exhibits certain
features (limited height, sufficient automatic sprinkler installation, and
ample emergency escape and rescue openings for residents).

Senate Bill 4062: Statewide
Impact Fee Calculation

SB
4062 proposes a plan to implement statewide municipal impact fee
calculations. The Bill, if approved, would authorize and direct the Illinois
Department of Commerce and Economic Opportunity (IDCEO) to issue mandatory
statewide formulas, multipliers, and other tools for calculating and imposing
impact fees at the local level. The Bill sets forth several deadlines for
compliance with its provisions, including an overall 30-month timeframe for
municipalities to being calculating impact fees in accordance with the formulas
and guidance materials to be published by the IDCEO.

Senate Bill 4063: Third-Party
Plan Review

SB
4063 provides uniform deadlines for municipal building permit review and
inspections, proposing the following deadlines:

o  
Plan Review: