Bill Text: IL SB1926 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Illinois Middle-Income Housing Grant Pilot Act. Provides that subject to appropriation for this purpose, the Illinois Housing Development Authority (Authority) shall establish and administer a 3-year Illinois Middle-Income Housing Grant Pilot Program to facilitate housing development in targeted communities across the State of Illinois. Provides that eligible grant applicants shall include developers specifically in any community with an authorized River Edge Redevelopment Zone. Provides that any community within this designation is eligible to apply to support projects within such communities. Permits the Authority to enter into a subcontract agreement with developers with qualified residences. Provides that awards can be used for both redevelopment and new development projects; and that grant proposals may be submitted to the Authority directly to be used as a part of a development agreement with an eligible developer. Contains provisions on rules to implement the pilot program, grant award amounts, project costs limits, and other matters. Creates the Illinois Middle-Income Housing Grant Pilot Program Fund to consist of any moneys appropriated for the pilot program. Amends the State Finance Act by adding the Illinois Middle-Income Housing Grant Pilot Program Fund to the list of State funds.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2025-02-27 - Added as Co-Sponsor Sen. Cristina Castro [SB1926 Detail]

Download: Illinois-2025-SB1926-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1926 Introduced 2/6/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.1030 new
Creates the Illinois Middle-Income Housing Grant Pilot Act. Provides that subject to appropriation for this purpose, the Illinois Housing Development Authority (Authority) shall establish and administer a 3-year Illinois Middle-Income Housing Grant Pilot Program to facilitate housing development in targeted communities across the State of Illinois. Provides that eligible grant applicants shall include developers specifically in any community with an authorized River Edge Redevelopment Zone. Provides that any community within this designation is eligible to apply to support projects within such communities. Permits the Authority to enter into a subcontract agreement with developers with qualified residences. Provides that awards can be used for both redevelopment and new development projects; and that grant proposals may be submitted to the Authority directly to be used as a part of a development agreement with an eligible developer. Contains provisions on rules to implement the pilot program, grant award amounts, project costs limits, and other matters. Creates the Illinois Middle-Income Housing Grant Pilot Program Fund to consist of any moneys appropriated for the pilot program. Amends the State Finance Act by adding the Illinois Middle-Income Housing Grant Pilot Program Fund to the list of State funds.
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A BILL FOR
SB1926 LRB104 11184 KTG 21266 b
AN ACT concerning housing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Middle-Income Housing Grant Pilot Act.
Section 5. Definitions. As used in this Act.
"Authority" means the Illinois Housing Development
Authority.
"Developer" includes for profit and nonprofit developers,
as well as land banks.
"Development costs" means any costs associated with the
construction or rehabilitation of a qualified residence.
"Household" means all persons using the qualified
residence as their principal place of residence upon the sale
or lease of the qualified residence by the developer.
"Household income" means the combined federal adjusted
gross income of the members of the household for the taxable
year immediately preceding the year in which the qualified
residence is sold or rented to the members of the household.
"Qualified residence" means a single-family residence that
(i) is new construction or has been rehabilitated with $30,000
or more in rehabilitative development costs incurred by the
taxpayer and (ii) is sold or rented under a contract with a

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term of one year or longer to one or more individuals with a
combined household income that exceeds 80% of the median
household income in Illinois but does not exceed 140% of the
median household income in Illinois. The residence must also
have at least a $1,000 local match investment.
Section 10. Illinois Middle-Income Housing Grant Pilot
Program.
(a) Subject to appropriation for this purpose, the
Authority shall establish and administer a 3-year Illinois
Middle-Income Housing Grant Pilot Program to facilitate
housing development in targeted communities across the State
of Illinois. Eligible grant applicants shall include
developers specifically in any community with an authorized
River Edge Redevelopment Zone. Any community within this
designation is eligible to apply to support projects within
such communities. The Authority may enter into a subcontract
agreement with developers with qualified residences.
Awards can be used for both redevelopment and new
development projects.
Grant proposals may be submitted to the Authority directly
to be used as a part of a development agreement with an
eligible developer.
(b) The Authority shall:
(1) Adopt rules to implement and administer the
Illinois Middle-Income Housing Grant Pilot Program,

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including rules concerning applications.
(2) Adopt rules for owner occupied housing,
substantially similar to the rental unit rules.
(3) Create a simple certification process for cities
to follow to ensure quick access to funds to facilitate
project development.
(4) Keep record of all requests, including requests
above and beyond current funding availability to
demonstrate statewide need.
(c) Grant awards shall be available for eligible
developers at $20,000 per unit, calculated as 10% of the
eligible cost of development up to $200,000.
(1) The overall cost of the project must remain less
than $300,000 per unit.
(2) Awards shall not exceed $1,000,000 per project.
(d) Developers must certify that rental units will be
available at or below the U.S. Department of Housing and Urban
Development's recommended price point for 140% of area median
income.
(1) The units must remain rented at such threshold for
10 years - as certified by the developer and city, and
submitted to the Authority.
(2) The Authority shall not require income
verification by a developer. This requirement shall only
apply to units for which the subsidy is utilized to ensure
a mix of incomes in housing developments.

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(e) The Illinois Middle-Income Housing Grant Pilot Program
Fund is created as a special fund in the State treasury. The
fund shall consist of any moneys appropriated to the Illinois
Housing Development Authority for the Illinois Middle-Income
Housing Grant Pilot Program and all interest earned on moneys
in the fund. Moneys in the Fund shall be expended for the
Illinois Middle-Income Housing Grant Pilot Program and for no
other purpose.
Section 15. The State Finance Act is amended by adding
Section 5.1030 as follows:
(30 ILCS 105/5.1030 new)
Sec. 5.1030. The Illinois Middle-Income Housing Grant
Pilot Program Fund.