Introduction of BUILD Plan Legislation Proposes Statewide Housing Development Reform
In mid-February, the Governor delivered his State of the State address and budget proposal for the 2027 State Fiscal Year. During his presentation, Governor Pritzker shared his concerns about the availability and cost of housing across Illinois, noting that “local regulations have made it too difficult and costly to build new housing” and citing “bureaucratic red tape” as an impediment to residential development activity. To combat these issues, the Governor announced the Building Up Illinois Development (BUILD Plan), an initiative to lower housing costs by making it more efficient and cost effect to build housing in Illinois. This initiative includes several legislative proposals that have since been introduced in the Illinois General Assembly.
House Bill 5626: Housing Omnibus
HB 5626 is a 40-page omnibus bill that includes a host of amendments to the Illinois Municipal Code and Illinois Counties Code addressing issues including impact fees, “middle housing” development, accessory dwelling units (ADUs), single-stair regulations, among others. In addition to HB 5626, several bills have been introduced in the Illinois Senate which propose the same substantive changes at an issue-by-issue level.
Senate Bill 4060: Middle Housing & Statewide Standards
SB 4060 proposes several changes to the Illinois Municipal Code with the express purpose of expanding housing choice and increasing the supply of “middle housing,” which includes duplexes, triplexes, fourplexes, cottage clusters, townhomes, attached courtyard housing, detached courtyard housing, and stacked flat-plexes. If enacted, SB 4060 would limit the imposition of local standards (including bulk, lot area, setbacks, and other restrictions) that are not “clear and objective” as defined in the Bill. The Bill also proposes to prohibit municipalities from enforcing standards that impose requirements on middle housing that are more stringent than those applicable to detached single-family units and restricts the use of “discretionary review,” such as special use permitting and variations for middle housing unless the same process is required for single-family homes.
Senate Bill 4061: Single-Stair Reform
SB 4061 provides that, beginning January 1, 2027, no building code adopted by a municipality may prohibit a residential building from having a single stairway serving as an exit for all units if the building exhibits certain features (limited height, sufficient automatic sprinkler installation, and ample emergency escape and rescue openings for residents).
Senate Bill 4062: Statewide Impact Fee Calculation
SB 4062 proposes a plan to implement statewide municipal impact fee calculations. The Bill, if approved, would authorize and direct the Illinois Department of Commerce and Economic Opportunity (IDCEO) to issue mandatory statewide formulas, multipliers, and other tools for calculating and imposing impact fees at the local level. The Bill sets forth several deadlines for compliance with its provisions, including an overall 30-month timeframe for municipalities to being calculating impact fees in accordance with the formulas and guidance materials to be published by the IDCEO.
Senate Bill 4063: Third-Party Plan Review
SB 4063 provides uniform deadlines for municipal building permit review and inspections, proposing the following deadlines:
o
Plan Review:
§
A municipality must complete its initial plan
review (undefined term) within 15 business days after
receipt of an application for a 1-family or 2-family residential project.
§
A municipality must complete its initial plan
review (undefined term) within 30 business days after
receipt of an application for a multifamily, mixed-use, or commercial project.
§
Any subsequent reviews must be completed within 10
business days of the revisions being submitted.
o Inspections: a municipality must conduct any required inspection within 2 business days of receiving a request.
Under SB 4063, if a municipality failed to comply with the plan review and inspection deadlines, an applicant would be able to retain a qualified third-party professional to conduct the review or inspection. These professionals must be licensed architects or engineers and be certified under one of several national building code standards. Upon submission of third-party plan reviews and inspection reports, municipalities would be limited in their ability to audit the reviews and impose additional standards for projects
Senate Bill 4064: Parking
Reform
SB 4064 proposes to limit municipal parking requirements starting January 1, 2027. Specifically municipalities would be prohibited from requiring more than 0.5 parking space per multifamily dwelling, or more than 1 parking space per single-family home. Municipalities would also be restricted from establishing parking minimums for certain uses including affordable housing projects, dwellings smaller than 1,500 square feet, and others.
Senate Bill 4071: Accessory Dwelling Units (ADUs)
SB 4071 provides that every municipality must permit ADUs in all zoning districts allowing single-family dwellings without additional requirements related to lot size, setbacks, aesthetic standards, design review, frontage, space limitations, or controls beyond those imposed for single-family homes. The Bill also limits other ADU regulations, including by prohibiting municipalities from requiring a familial relationship between occupants of an ADU and the principal structure on a lot.
Again, the proposals in Senate Bills 4060–4064 and Senate Bill 4071 have also been introduced in the Illinois House through House Bill 5626. All of the legislative initiatives summarized above also include express language preempting home rule units from regulating in a manner more restrictive to the various housing initiatives than provided in the bills. Readers should note that these bills were only recently introduced, and some (or all) may be subject to amendments, debate, and delays as they make their way through the General Assembly. We will be tracking this legislation to provide key updates as the spring legislative session gets underway.
Post Authored by Erin Monforti, Ancel
Glink
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