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HB 3616

Relating to an appropriation for the Western Lane Fire and EMS Authority; prescribing an effective date.

2025 Regular Session Introduced by Boomer Wright

HB 3616 requires IHDA to collect/publish expanded housing affordability data, including the missing middle (80-140% AMI), while keeping the exemption test unchanged.

In committee upon adjournment.
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Bill Summary · HB 3616

HB 3616 — IHDA — Affordable Housing Exempt (Public Act 104-0319)

Status & Timeline
- Bill number: HB 3616
- Public Act: 104‑0319; Governor approved 8/15/2025
- Effective date: January 1, 2026
- Introduced: March 3, 2025; passed both chambers (concurrences and committee amendments noted)
- Sponsors: Rep. Will Guzzardi (primary), Sen. Graciela Guzmán (chief Senate sponsor); cosponsors include Kevin Schmidt, Thaddeus Jones, Amy Briel

Purpose
- Amend the Affordable Housing Planning and Appeal Act to (1) explicitly recognize the “missing middle” (households earning 80%–140% of area median income, AMI) in legislative findings and (2) require the Illinois Housing Development Authority (IHDA) to collect and publish expanded housing affordability data — including data on extremely low‑income and “missing middle” units — while preserving the existing test for exempting local governments from the Act.

Key provisions (what the law changes or requires)
1. Findings (Section 5)
- Adds a finding recognizing people earning 80%–140% of AMI as the “missing middle,” and that increasing housing choices for them helps preserve affordability and inclusive communities.

  1. Data collection & calculations (Section 20)

    • IHDA must assemble an inventory (using latest U.S. Census Bureau and other sources) of owner‑occupied and rental units affordable to households in specified AMI bands for each local government:
      • Extremely low income: units affordable at ≤30% of median income (owner and rental);
      • Lower income: owner units affordable at <80% of median; rental units affordable at <60% of median (these continue to be used in the exemption calculation);
      • Missing middle: owner units affordable at 80%–140% AMI; rental units affordable at 60%–80% AMI and 80%–140% AMI.
    • IHDA must compute percentages of (a) extremely low‑income affordable units and (b) “affordable middle” units per jurisdiction (units ÷ total year‑round housing units × 100).

  2. Publication and reporting

    • IHDA must publish the collected data for each local government and the State at least once every 5 years and compile the data into a report to the General Assembly.
    • Data on the 80%–140% AMI “missing middle” is explicitly for informational purposes and shall not affect the statutory determination of whether a local government is exempt from the Act.

  3. Exemption methodology retained

    • The existing exemption test remains: percentage of affordable units calculated by totaling owner units affordable at <80% AMI and rental units affordable at <60% AMI, divided by total year‑round units. Local governments notified as non‑exempt may appeal under the Act’s existing appeal provisions.

Who is affected
- Illinois Housing Development Authority (IHDA): new data collection, publication, and reporting obligations.
- Local governments: will be listed as exempt/non‑exempt as before; will receive additional jurisdictional affordability data.
- Developers, planners, advocates and policymakers: gain more granular public data on “missing middle” and extremely low‑income housing to inform planning and policy (though the new data does not change exemption determinations).
- Residents and housing researchers: increased transparency about local housing affordability by income bands.

Potential impact and limitations
- Impact: Improved state‑wide data on affordability for extremely low‑income and “missing middle” households can guide policy, planning, and development strategies to address gaps in workforce and retirement housing.
- Limitation: The added “missing middle” data is informational only and does not alter the exemption criteria or create new mandates on local governments; any policy effects will be indirect (via planning, advocacy, or future legislation).

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

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