WeVote
Log In

Bill

Bill

SB 1926

MID-INCOME HOUSING GRANT PILOT

104th Regular Session Introduced by Cristina Castro and 4 co-sponsors

Creates a 3-year IHDA-administered grant pilot to support middle-income single-family housing in targeted Illinois zones with grants up to $20k per unit and caps.

Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
0
WeVote Research Nonpartisan
Bill Summary · SB 1926

SB 1926 — Illinois Middle‑Income Housing Grant Pilot Act (Senate Amendment 001)

Purpose

Establishes a 3‑year pilot grant program to spur construction and rehabilitation of single‑family, middle‑income housing in targeted Illinois communities — with a focus on municipalities that have an authorized River Edge Redevelopment Zone. The program is administered by the Illinois Housing Development Authority (IHDA) and funded only as appropriated.

Key provisions

  • Creates the Illinois Middle‑Income Housing Grant Pilot Program (3 years) and a dedicated special fund in the State treasury for appropriations and earned interest.
  • IHDA to administer the program, adopt implementing rules, create a streamlined city certification process, and keep records of requests (including demand exceeding available funding).
  • Eligible applicants: developers (for‑profit and nonprofit) and land banks; municipalities may apply or use grants as part of development agreements with eligible developers.
  • Eligible units: single‑family residences that are either new construction or rehabilitated with at least $30,000 in development/rehabilitation costs and have at least a $1,000 local match.
    • Owner‑occupied units: sold under a contract ≥1 year to households with combined federal adjusted gross income >80% but ≤140% of Illinois median household income.
    • Rental units: developers must certify rents will be at or below HUD’s price point for 140% of area median income; units must remain at that threshold for 10 years (certified by developer and city and submitted to IHDA).
  • Income verification: IHDA shall not require income verification by a developer in general; verification requirement applies where subsidy is used to ensure an income mix within developments.

Financial limits and awards

  • Per‑unit grant: $20,000 per unit (described as 10% of eligible development cost, capped against eligible cost up to $200,000).
  • Per‑unit total project cost must be less than $300,000.
  • Per‑project award cap: $1,000,000.
  • Awards may be used for both redevelopment and new development projects.
  • Grants are subject to appropriation from the General Assembly.

Who is affected

  • Developers (for‑profit, nonprofit, land banks) and municipalities in communities with an authorized River Edge Redevelopment Zone are primary beneficiaries/participants.
  • Households with incomes between 80% and 140% of Illinois median household income (buyer units) and renters at or below 140% AMI (rental units) are targeted occupants.
  • IHDA will handle program administration and rulemaking.

Procedural status / timeline

  • Introduced by Sen. Michael W. Halpin (primary) with cosponsors Sen. Patrick J. Joyce, Sen. Paul Faraci, Sen. David Koehler, and Sen. Cristina Castro.
  • Companion: HB 3457.
  • Key actions: First reading Feb–Mar 2025; multiple committee referrals and a Senate Committee Amendment No. 1 filed (Mar 4, 2025). Re‑referred to Assignments under Rule 3‑9(a) on June 2, 2025. Various committee deadlines were set in spring 2025.

Potential impact / considerations

  • Intends to incentivize middle‑income housing production in targeted redevelopment zones by reducing per‑unit development costs.
  • Scale and effectiveness depend on appropriations, uptake by eligible communities/developers, and interaction with local incentives.
  • Program design limits (per‑unit and per‑project caps, 10‑year rent/occupancy commitments) aim to preserve affordability for a defined middle‑income band while limiting state exposure.
  • Minimal income‑verification requirements (except when subsidy is used) may reduce administrative burden but could raise questions about compliance monitoring.

For more detail, see the full text of Senate Bill 1926 and Senate Amendment 001 as filed (LRB10411184KTG23382a).

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

Sign in to ask a question.