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HB 2816

PROPERTY-FOREIGN NATIONALS

104th Regular Session Introduced by Chris Miller

HB 2816 bars noncitizens from buying public or private Illinois real estate, broadly defined to include foreign nationals/entities; requires CGFA report and sunsets after 5 years.

Referred to Rules Committee
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Bill Summary · HB 2816

Summary — HB 2816 (Property — Foreign Nationals) — Illinois (Introduced 2025)

Note: The materials provided also included unrelated text from an Arizona appropriations bill (also numbered HB 2816). This summary covers the Illinois measure titled broadly “Property Owned by Noncitizens,” as reflected in the Illinois legislative text and actions.

Main purpose

HB 2816 would amend the Property Owned By Noncitizens Act to (1) require the Governor to prohibit the purchase of public or private real estate in Illinois by “noncitizens,” and (2) require the Commission on Government Forecasting and Accountability (CGFA) to report on noncitizen real‑estate ownership and offer recommendations. The prohibition is temporary and the section sunsets (is repealed) five years after the bill’s effective date.

Key provisions

  • Adds a new Section 7.5 to the Property Owned By Noncitizens Act.
  • Prohibition: “Notwithstanding Section 7 or any other provision of law,” the Governor must take necessary actions, beginning on the bill’s effective date, to prohibit noncitizens from purchasing public or private real estate in Illinois.
  • Definition of “noncitizen”: broadly defined to include
    • any foreign national, foreign government, or foreign entity; and
    • any entity over which control is exercised (or exercisable) by a foreign national, foreign government, or foreign entity.
    • “Entity” expressly includes corporations, partnerships, or other associations, including those substantially or beneficially owned by nationals of any foreign country.
  • CGFA report: Within 6 months of the bill’s effective date, CGFA must submit to the General Assembly a report that:
    1. details the history of purchases of public and private real estate in Illinois by noncitizens;
    2. provides information on the percentage of Illinois real estate owned by noncitizens; and
    3. offers recommendations to make it easier for citizens and harder for noncitizens to acquire real estate in the State (explicitly including farmland).
  • Sunset: The new Section 7.5 is automatically repealed 5 years after the act’s effective date.
  • Conforming changes: The bill makes conforming edits to existing statutory language.

Who would be affected

  • Directly affected: foreign nationals, foreign governments, foreign entities, and any U.S. or foreign entities controlled by such parties that would seek to purchase Illinois real estate.
  • Indirectly affected: Illinois property sellers, real‑estate brokers, farmland owners, local governments, and agencies involved in land transactions or enforcement.
  • State government: the Governor’s office (to implement prohibitions) and CGFA (to prepare the required report).

Procedural status & timeline

  • Introduced in the Illinois House (Rep. Chris Miller): 2/6/2025 (first reading).
  • Subsequent procedural entries show readings and committee referrals (e.g., referred to Rules Committee; later docketing shows readings in February and referral to Public Health in March).
  • CGFA report required within 6 months after the bill’s effective date.
  • The prohibition provision would be in force from the act’s effective date until it is repealed 5 years later.

Potential legal and practical considerations

  • Scope: The bill targets both public and private real estate and has a broad definition of “noncitizen.”
  • Implementation: The Governor is directed to “take such actions as may be necessary,” which could involve executive orders, administrative rules, or coordination with state agencies — details are not specified.
  • Legal risks: Such a prohibition could raise constitutional or federal preemption issues (e.g., commerce clause, equal protection, treaty or immigration law conflicts) and may be subject to judicial review.
  • Market impacts: If enacted, the measure could affect demand for Illinois real estate, foreign investment patterns (including farmland), and transaction processes (title review, disclosures, enforcement mechanisms).

This summary focuses on the substantive changes proposed. For legal interpretation or assessment of constitutionality, consult counsel or legislative legal staff.

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

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