$DHS-NEIGHBORHOOD HOUSING

104th Regular Session Introduced by Willie Preston and 1 co-sponsor

Allocates a one-time $6,000,000 General Revenue grant to Illinois DHS for NHSC to expand equitable mortgage lending, rehab/development, and homebuyer subsidies in Chicago.

Pursuant to Senate Rule 3-9(b) / Referred to Assignments

Summary — SB 1401 (“$DHS‑NEIGHBORHOOD HOUSING”)

Status snapshot
- Bill number: SB 1401 (Illinois, 104th General Assembly)
- Introduced: Jan 31, 2025 (Sen. Willie Preston)
- Enacted: Signed by the Governor June 20, 2025
- Effective date (per bill text): July 1, 2025
- Companion: HB 1082

Note on source materials
- The provided document also contains text from other unrelated SB 1401 bills from other states (an Arizona “Pregnant Workers Protection Act” and a Hawaii retirement/vesting amendment). This summary concerns the Illinois appropriation titled “$DHS‑NEIGHBORHOOD HOUSING” (Neighborhood Housing Services of Chicago).

Purpose and intent
- To provide dedicated state funding to support neighborhood homeownership initiatives in Chicago by making a grant to Neighborhood Housing Services of Chicago (NHSC) via the Illinois Department of Human Services (DHS). The stated goals are to fund equitable mortgage lending, homeownership rehabilitation and development, and homebuyer subsidies/support.

Key provisions
- Appropriation: $6,000,000 (or so much as may be necessary) is appropriated from the State General Revenue Fund to the Department of Human Services.
- Use of funds: The grant to Neighborhood Housing Services of Chicago is designated for costs associated with:
- Equitable mortgage lending programs;
- Homeownership rehabilitation and development; and
- Homebuyer subsidies and support services.
- Administration: Funds flow through DHS as a grant to NHSC (bill text does not specify additional oversight, reporting, or matching requirements).

Who is affected
- Direct recipients: Neighborhood Housing Services of Chicago (grantee) and the Illinois Department of Human Services (administrator).
- Indirect beneficiaries: Low‑ and moderate‑income homebuyers in Chicago, households needing home rehabilitation, community developers/contractors engaged in rehab and development, and lenders/partners participating in equitable mortgage programs.

Fiscal and programmatic impact
- One‑time state expenditure of $6 million from the General Revenue Fund (amount subject to “so much as may be necessary” language).
- Intended to expand homeownership access, support neighborhood stabilization through rehab/development, and subsidize or assist first‑time/qualified buyers. The bill does not specify performance metrics, duration of grant, or required reporting in the text provided.

Implementation timeline
- Per bill text: takes effect July 1, 2025. (Signed June 20, 2025.)

Limitations / open questions
- The bill text provided does not detail grant terms, eligibility criteria for subrecipients or beneficiaries, required reporting, performance measures, or whether funds are a one‑time appropriation or start of ongoing support.
- Additional administrative rules or DHS grant agreements would be needed to define program operations and accountability.

For further detail
- Refer to the enacted bill text and any DHS grant agreement or program guidelines issued after enactment for specifics on eligibility, allowable costs, timelines, and reporting requirements.