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HB 3466

PROP TX-AFFORDABLE HOUSING

104th Regular Session Introduced by Marti Deuter and 11 co-sponsors

Provides a 10-year property tax reduction for eligible new or substantially rehabilitated affordable rental multifamily housing (7+ units) to spur construction.

Added Co-Sponsor Rep. Aarón M. Ortíz
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Bill Summary · HB 3466

HB 3466 — PROP TX‑AFFORDABLE HOUSING (35 ILCS 200/15‑178) — Summary

Status: Introduced Feb. 2025 by Rep. Will Guzzardi; added multiple co‑sponsors. Passed the House (May 8, 2025). Companion: SB 1007.

Purpose

To strengthen and clarify Illinois’ affordable housing special assessment programs by (1) preserving benefits for properties already approved for reduced assessed valuation, (2) ensuring broad eligibility for qualifying affordable rental housing (new construction and substantial rehabilitation), and (3) improving administrative transparency and statewide standards for program eligibility.

Key provisions

  • Amends Section 15‑178 of the Property Tax Code to govern special assessment programs that reduce assessed value for affordable rental housing.
  • Grants a 10‑taxable‑year special assessment reduction for eligible newly constructed or substantially rehabilitated multifamily residential property placed in service.
  • Eligibility limited to multifamily buildings with 7 or more rental units that meet qualifying construction or rehabilitation standards and the program’s application requirements.
  • Counties with fewer than 3,000,000 residents may opt out of one or both special assessment programs by a majority county board ordinance. HOWEVER:
    • A county’s subsequent opt‑out may not disqualify or shorten the maximum eligibility period for any property that was already approved to receive a reduced valuation before the opt‑out.
    • If an owner is approved for reduced valuation prior to December 31, 2037 (and the statutory provisions are not later extended), that approval also may not be disqualified or shortened.
  • The special assessment programs must be available regardless of whether a property is receiving other public financing/subsidies or is subject to regulatory agreements with a public entity.
  • If a chief county assessment officer has not created application forms, they must accept and make available application forms provided by the Illinois Department of Revenue; application materials and program requirements must be posted on a county website (if one exists) or made available at the county assessment office.
  • The Illinois Housing Development Authority (IHDA) must annually calculate and publish on its website the statewide minimum per‑square‑foot rehabilitation/construction expenditure requirements needed to qualify, including historical annual requirements starting with calendar year 2021.
  • A property granted a reduction under one special assessment program may not receive another simultaneous special assessment under this section.

Who is affected

  • Developers and owners of newly constructed or substantially rehabilitated affordable multifamily rental housing (7+ units).
  • Renters in qualifying affordable units (through preserved rent/income commitments).
  • County chief assessment officers and county boards (administration, opt‑out decisions).
  • IHDA and the Illinois Department of Revenue (new publication/administrative duties).

Legislative/timing notes

  • Bill filed and moved through multiple committees and hearings in spring 2025; passed the House May 8, 2025 and was referred to further legislative action.
  • The bill preserves approvals made before Dec. 31, 2037; otherwise the program language may expire unless extended by later legislation.

Potential impacts

  • Incentivizes construction and substantial rehabilitation of affordable rental units by reducing property tax burdens for a 10‑year period.
  • Broad eligibility language reduces barriers for projects that also receive other public financing.
  • Adds administrative responsibilities for counties, IHDA and IDOR to publish standards and make uniform application materials available.

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

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