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HB 3269

HOUSING EQUITY-AFFORDABILITY

104th Regular Session Introduced by Carol Ammons and 8 co-sponsors

Creates a new funding stream by taxing landlords with >5 units 5% of rent above $1,200 to fund downpayment assistance and a homeownership program for eligible renters.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3269

Summary — HB 3269 (Housing Equity, Affordability, and Development Act)

Status snapshot
- Introduced: February 18, 2025 (filed Feb 25, 2025)
- Current status: Rule 19(a) / Re‑referred to Rules Committee; placed on General State Calendar (May 13, 2025)
- Companion bill: SB 2089
- Statutory change: Adds 30 ILCS 105/5.1030 (new Housing Equity, Affordability, and Development Fund)

Purpose
- Create a dedicated revenue stream to fund home‑purchase assistance by assessing a fee on larger landlords and directing proceeds into a new Housing Equity, Affordability, and Development Fund administered under the Illinois Housing Development Authority (IHDA).

Key provisions
1. Fee on larger landlords
- The Illinois Department of Revenue will collect a fee from landlords owning more than 5 units.
- Fee amount: 5% of the difference between a unit’s monthly rental income and $1,200 (i.e., 5% × (monthly rent − $1,200)), applied only when the monthly rental income for the unit exceeds $1,200.
- Revenue is paid into the newly created Housing Equity, Affordability, and Development Fund.
- The Department of Revenue may adopt rules to implement fee collection.

  1. Definition of tenant payments to the landlord

    • “Tenant payments to the landlord” means the 3‑month average of monthly amounts the tenant actually pays to the landlord or agent, including:
      • Rent;
      • Required maintenance fees and pet fees;
      • One‑twelfth of move‑in fees, credit check fees, application fees, and other recurring one‑time fees applied to every tenant;
      • Transaction and required utility fees where applicable.

  2. Housing Independence Program (IHDA)

    • IHDA shall establish a program to assist eligible households to purchase homes using Fund resources.
    • Eligibility:
      • Household’s tenant payments to the landlord have exceeded 30% of household income for a continuous 12‑month period; and
      • Household income is less than 3.33 times the median rent for their metropolitan area (or, if not in a metro area, 3.33 times the median rent of the closest metro area).
    • Assistance cap: up to $15,000 per household.
    • IHDA may adopt rules to administer the program.

Who is affected
- Landlords/owners with more than five rental units statewide: subject to the 5% fee on rents above $1,200 per unit.
- Renters/households: those meeting the specified rent‑burden and income criteria may be eligible for up to $15,000 in home‑purchase assistance.
- State agencies: Department of Revenue (fee collection) and IHDA (program administration and rulemaking).

Procedural & fiscal notes
- The bill creates a new dedicated fund (30 ILCS 105/5.1030) to receive fee revenue. Actual revenue and fiscal impact depend on the number of affected units and prevailing rents; the bill does not include explicit revenue estimates.
- Both the Department of Revenue and IHDA are authorized to adopt implementing rules.
- Legislative progress: passed favorably as substituted in committee (April 28, 2025) and subsequently moved to calendars; currently re‑referred to Rules Committee under Rule 19(a).

Potential effects (neutral framing)
- Generates a new funding source aimed at supporting pathways from renting to homeownership for rent‑burdened households.
- Imposes an ongoing fee obligation on larger landlords for units renting above $1,200; how landlords respond (absorb cost, pass through to tenants, sell units, or adjust investment plans) will influence market outcomes and revenue yield.

Compiled from official sources — confirm details with the bill’s official record.

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