103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2924
 
Introduced 1/26/2024, by Sen. Laura Ellman
 
SYNOPSIS AS INTRODUCED:

New Act
310 ILCS 65/5 from Ch. 67 1/2, par. 1255
 Creates the Family Home Ownership Act. Imposes a tax on certain partnerships, corporations, limited liability companies, or real estate investment trusts that purchase single-family residences. Provides that the amount of the tax is equal to 100% of the fair market value of the residence. Provides that the proceeds of the tax shall be deposited into the Illinois Affordable Housing Trust Fund for the purpose of providing rental and mortgage payment assistance. Requires hedge funds and other applicable taxpayers to reduce the number of single-family residences owned by the hedge fund over a 10-year period. Provides that, 10 years after the effective date of the Act, hedge funds may not own any applicable single-family residences. Provides that, 10 years after the effective date of the Act, applicable taxpayers other than hedge funds may not own more than 50 applicable single-family residences. Effective immediately.


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A BILL FOR
 
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1 AN ACT concerning home ownership.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the Family 
5Home Ownership Act.

6 Section 5. Definitions. As used in this Act, unless 
7otherwise stated, the following words or phrases have the 
8following meanings:
9 "Acquisition" means the acquisition of a majority 
10ownership interest in a single-family residence, regardless of 
11the percentage of that ownership interest.
12 "Applicable entity" means a partnership, corporation, 
13limited liability company, or real estate investment trust.
14 "Applicable entity" does not include:
15  (1) an organization described in Section 501(c)(3) of 
16 the Internal Revenue Code that is exempt from tax under 
17 Section 501(a) of the Internal Revenue Code; or
18  (2) an organization that is primarily engaged in the 
19 construction or rehabilitation of single-family 
20 residences.
21 "Applicable taxpayer" means any applicable entity that:
22  (1) manages funds pooled from investors; and
23  (2) is a fiduciary with respect to such investors.
 
 
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1 "Department" means the Department of Revenue.
2 "Disqualified sale" means any sale or transfer to:
3  (1) a corporation or other entity engaged in a trade 
4 or business; or 
5  (2) an individual who owns any other single-family 
6 residence at the time of the sale or transfer.
7 "Fair market value" means the amount for which a property 
8can be sold in the due course of business and trade, not under 
9duress, between a willing buyer and a willing seller.
10 "Hedge fund taxpayer" means, with respect to any taxable 
11year, any applicable taxpayer that has $25,000,000 or more in 
12net assets.
13 "Ownership" means a majority ownership interest in the 
14single-family residence, regardless of the percentage of that 
15ownership interest.
16 "Single-family residence" means residential property 
17consisting of 1 to 4 dwelling units.
18 "Single-family residence" does not include any 
19single-family residence that is not rented or leased and that 
20is used as the principal residence of any person who has an 
21ownership interest in the applicable taxpayer.

22 Section 10. Newly acquired single-family residences. The 
23acquisition of a single-family residence by an applicable 
24taxpayer on or after the effective date of this Act is subject 
25to a tax on the acquisition of the residence equal to 100% of 
 
 
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1the fair market value of the residence at the time of purchase. 
2The proceeds of the tax shall be deposited into the Illinois 
3Affordable Housing Trust Fund for the purpose of providing 
4rental and mortgage payment assistance.
5 The tax under this Section shall be paid by the applicable 
6taxpayer and shall be collected in the same manner as real 
7estate transfer taxes are collected under the Real Estate 
8Transfer Tax Law in the Property Tax Code, except that 
9provisions concerning the distribution of proceeds and 
10exemptions from the tax do not apply to the tax imposed under 
11this Section.

12 Section 15. Maximum permissible single-family residences. 
13 (a) The maximum number of single-family residences that 
14may be owned by a hedge fund taxpayer shall be determined as 
15follows:
16  (1) By December 31 of the first full calendar year to 
17 begin on or after the effective date of this Act, the 
18 number of single-family residences owned by a hedge fund 
19 taxpayer may not exceed 90% of the number of single-family 
20 residences owned by that taxpayer on the effective date of 
21 this Act.
22  (2) By December 31 of the second full calendar year to 
23 begin on or after the effective date of this Act, the 
24 number of single-family residences owned by a hedge fund 
25 taxpayer may not exceed 80% of the number of single-family 
 
 
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1 residences owned by that taxpayer on the effective date of 
2 this Act.
3  (3) By December 31 of the third full calendar year to 
4 begin on or after the effective date of this Act, the 
5 number of single-family residences owned by a hedge fund 
6 taxpayer may not exceed 70% of the number of single-family 
7 residences owned by that taxpayer on the effective date of 
8 this Act.
9  (4) By December 31 of the fourth full calendar year to 
10 begin on or after the effective date of this Act, the 
11 number of single-family residences owned by a hedge fund 
12 taxpayer may not exceed 60% of the number of single-family 
13 residences owned by that taxpayer on the effective date of 
14 this Act.
15  (5) By December 31 of the fifth full calendar year to 
16 begin on or after the effective date of this Act, the 
17 number of single-family residences owned by a hedge fund 
18 taxpayer may not exceed 50% of the number of single-family 
19 residences owned by that taxpayer on the effective date of 
20 this Act.
21  (6) By December 31 of the sixth full calendar year to 
22 begin on or after the effective date of this Act, the 
23 number of single-family residences owned by a hedge fund 
24 taxpayer may not exceed 40% of the number of single-family 
25 residences owned by that taxpayer on the effective date of 
26 this Act.
 
 
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1  (7) By December 31 of the seventh full calendar year 
2 to begin on or after the effective date of this Act, the 
3 number of single-family residences owned by a hedge fund 
4 taxpayer may not exceed 30% of the number of single-family 
5 residences owned by that taxpayer on the effective date of 
6 this Act.
7  (8) By December 31 of the eighth full calendar year to 
8 begin on or after the effective date of this Act, the 
9 number of single-family residences owned by a hedge fund 
10 taxpayer may not exceed 20% of the number of single-family 
11 residences owned by that taxpayer on the effective date of 
12 this Act.
13  (9) By December 31 of the ninth full calendar year to 
14 begin on or after the effective date of this Act, the 
15 number of single-family residences owned by a hedge fund 
16 taxpayer may not exceed 10% of the number of single-family 
17 residences owned by that taxpayer on the effective date of 
18 this Act.
19  (10) On and after December 31 of the tenth full 
20 calendar year to begin on or after the effective date of 
21 this Act, a hedge fund taxpayer may not own any 
22 single-family residences.
23 (b) The maximum number of single-family residences that 
24may be owned by an applicable taxpayer other than a hedge fund 
25taxpayer shall be determined as follows:
26  (1) By December 31 of the first full calendar year to 
 
 
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1 begin on or after the effective date of this Act, the 
2 number of single-family residences owned by an applicable 
3 taxpayer other than a hedge fund taxpayer may not exceed 
4 90% of the number of single-family residences owned by 
5 that taxpayer on the effective date of this Act plus 50 
6 single-family residences.
7  (2) By December 31 of the second full calendar year to 
8 begin on or after the effective date of this Act, the 
9 number of single-family residences owned by an applicable 
10 taxpayer other than a hedge fund taxpayer may not exceed 
11 80% of the number of single-family residences owned by 
12 that taxpayer on the effective date of this Act plus 50 
13 single-family residences.
14  (3) By December 31 of the third full calendar year to 
15 begin on or after the effective date of this Act, the 
16 number of single-family residences owned by an applicable 
17 taxpayer other than a hedge fund taxpayer may not exceed 
18 70% of the number of single-family residences owned by 
19 that taxpayer on the effective date of this Act plus 50 
20 single-family residences.
21  (4) By December 31 of the fourth full calendar year to 
22 begin on or after the effective date of this Act, the 
23 number of single-family residences owned by an applicable 
24 taxpayer other than a hedge fund taxpayer may not exceed 
25 60% of the number of single-family residences owned by 
26 that taxpayer on the effective date of this Act plus 50 
 
 
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1 single-family residences.
2  (5) By December 31 of the fifth full calendar year to 
3 begin on or after the effective date of this Act, the 
4 number of single-family residences owned by an applicable 
5 taxpayer other than a hedge fund taxpayer may not exceed 
6 50% of the number of single-family residences owned by 
7 that taxpayer on the effective date of this Act plus 50 
8 single-family residences.
9  (6) By December 31 of the sixth full calendar year to 
10 begin on or after the effective date of this Act, the 
11 number of single-family residences owned by an applicable 
12 taxpayer other than a hedge fund taxpayer may not exceed 
13 40% of the number of single-family residences owned by 
14 that taxpayer on the effective date of this Act plus 50 
15 single-family residences.
16  (7) By December 31 of the seventh full calendar year 
17 to begin on or after the effective date of this Act, the 
18 number of single-family residences owned by an applicable 
19 taxpayer other than a hedge fund taxpayer may not exceed 
20 30% of the number of single-family residences owned by 
21 that taxpayer on the effective date of this Act plus 50 
22 single-family residences.
23  (8) By December 31 of the eighth full calendar year to 
24 begin on or after the effective date of this Act, the 
25 number of single-family residences owned by an applicable 
26 taxpayer other than a hedge fund taxpayer may not exceed 
 
 
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1 20% of the number of single-family residences owned by 
2 that taxpayer on the effective date of this Act plus 50 
3 single-family residences.
4  (9) By December 31 of the ninth full calendar year to 
5 begin on or after the effective date of this Act, the 
6 number of single-family residences owned by an applicable 
7 taxpayer other than a hedge fund taxpayer may not exceed 
8 10% of the number of single-family residences owned by 
9 that taxpayer on the effective date of this Act plus 50 
10 single-family residences.
11  (10) On and after December 31 of the tenth full 
12 calendar year to begin on or after the effective date of 
13 this Act, a hedge fund taxpayer may not own more than 50 
14 applicable single-family residences.
15 (c) For the purpose of calculating the number of 
16single-family residences owned by a taxpayer during the 
17calendar year, a single-family residence that is sold or 
18transferred by the taxpayer in a disqualified sale during a 
19calendar year shall be treated as a single-family residence 
20that is owned by the applicable taxpayer as of the last day of 
21that calendar year.
22 (d) An applicable taxpayer who fails to meet the 
23requirements of this Section shall be subject to a $15,000 
24penalty on each single-family residence owned in excess of the 
25permissible maximum units for the taxable year to be deposited 
26into the Illinois Affordable Housing Trust Fund with the 
 
 
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1purpose of providing rental and mortgage payment assistance.

2 Section 20. Sale of applicable single-family residences; 
3right of first refusal.
4 (a) An applicable taxpayer that intends to sell a 
5single-family residence shall give notice to each tenant of 
6the single-family residence of the requirements of this Act 
7and of the applicable taxpayer's intent to sell the 
8single-family residence in which the tenant resides. The 
9notice under this subsection shall be mailed by certified 
10mail.
11 (b) Before an applicable taxpayer may sell a single-family 
12residence, the applicable taxpayer shall give notice to each 
13tenant of the residence, by certified mail, of any third-party 
14bona fide offer for sale that the taxpayer intends to accept. 
15The notice shall include the price and the terms and 
16conditions of the offer. The price shall be calculated as a 
17single lump sum amount that reflects (i) the total purchase 
18price or (ii) the present value of any installment payments 
19offered in lieu of cash payments.
20 (c) Upon receiving notice of any third-party bona fide 
21offer, the tenant of that residence shall have the right to 
22purchase the subject property for the purpose of continuing 
23the use of the property as their residence. The tenant shall: 
24(1) submit to the applicable taxpayer notice of their interest 
25in purchasing the applicable single-family residence; (2) 
 
 
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1submit to the applicable taxpayer a proposed purchase and sale 
2agreement on substantially equivalent terms and conditions as 
3the bona fide offer within 45 days after receipt of notice of 
4the bona fide offer; (3) obtain a binding commitment for any 
5necessary financing or guarantees within an additional 90 days 
6after execution of the purchase and sale agreement; and (4) 
7close on the purchase within an additional 90 days after the 
8end of the 90-day period under item (3). No applicable 
9taxpayer shall unreasonably refuse to enter into, or 
10unreasonably delay the execution or closing on, a purchase and 
11sale or lease agreement with tenants who have made a bona fide 
12offer to meet the price and substantially equivalent terms and 
13conditions of an offer for which notice is required to be given 
14under subsection (b). Failure of the tenants to submit such a 
15purchase and sale agreement within the first 45-day period, to 
16obtain a binding commitment for financing within the 
17additional 90-day period, or to close on the purchase within 
18the second 90-day period shall serve to terminate the rights 
19of such residents to purchase the applicable single-family 
20residence. The time periods provided in this Section may be 
21extended by agreement. Nothing in this Section shall be 
22construed to require an applicable taxpayer to provide 
23financing to tenants except to the extent such financing would 
24be provided to the third-party offeror.
25 (d) The right of first refusal created in this Section 
26shall inure to the tenants for the time periods set forth in 
 
 
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1this Section, beginning on the date of notice to the tenants 
2under paragraph (b). The effective period for the right of 
3first refusal shall obtain separately for each substantially 
4different bona fide offer to purchase the applicable 
5single-family residence, and for each offer substantially 
6equivalent to an offer made more than 3 months prior to the 
7later offer; provided however, that in the case of a 
8substantially equivalent offer made by a prospective buyer who 
9has previously made an offer for which notice to tenants was 
10required by subsection (b), the right of first refusal shall 
11obtain only if the subsequent offer is made more than 6 months 
12after the earlier offer. The right of first refusal shall not 
13apply with respect to any offer received by the applicable 
14taxpayer for which a notice is not required under subsection 
15(b). No right of first refusal shall apply to a government 
16taking by eminent domain or negotiated purchase, a forced sale 
17under a foreclosure by an unrelated third-party, transfer by 
18gift, devise, or operation of law, or a sale to a person who 
19would be an heir at law if there were to be a death intestate 
20of the property owner.
21 (e) If the tenants of the applicable single-family 
22residence are not the successful purchasers, the applicable 
23taxpayer shall provide evidence of compliance with this 
24Section by filing an affidavit of compliance with the 
25authority having jurisdiction within 7 days after the sale or 
26lease of the property.

 
 
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1 Section 25. Reporting.
2 (a) The Department of Revenue shall adopt rules to 
3administer and enforce the provisions of this Act. Those rules 
4shall require such reporting as the Department determines 
5necessary or appropriate to carry out the purposes of this 
6Act, including reporting with respect to:
7  (1) the dates on which single-family residences owned 
8 by an applicable taxpayer were acquired by such taxpayer,
9  (2) the dates on which single-family residences owned 
10 by an applicable taxpayer are sold by such taxpayer in 
11 accordance with this Act, and
12  (3) whether any person acquiring a single-family 
13 residence from an applicable taxpayer owns any other 
14 single-family residences.
15 (b) Any applicable taxpayer who fails to report in 
16accordance with this Section, or who fails to include correct 
17information in the report, shall, on notice and demand of the 
18Department, pay a penalty of $20,000 to be deposited into the 
19Illinois Affordable Housing Trust Fund with the purpose of 
20providing rental and mortgage payment assistance.
21 (c) No penalty shall be imposed under this Section with 
22respect to any failure if it is shown that such failure is due 
23to reasonable cause and not to willful neglect.

24 Section 900. The Illinois Affordable Housing Act is 
 
 
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1amended by changing Section 5 as follows:

2 (310 ILCS 65/5) (from Ch. 67 1/2, par. 1255)
3 Sec. 5. Illinois Affordable Housing Trust Fund. 
4 (a) There is hereby created the Illinois Affordable 
5Housing Trust Fund, hereafter referred to in this Act as the 
6"Trust Fund" to be held as a separate fund within the State 
7Treasury and to be administered by the Program Administrator. 
8The purpose of the Trust Fund is to finance projects of the 
9Illinois Affordable Housing Program as authorized and approved 
10by the Program Administrator. The Funding Agent shall 
11establish, within the Trust Fund, a General Account, a Bond 
12Account, a Commitment Account and a Development Credits 
13Account. The Funding Agent shall authorize distribution of 
14Trust Fund moneys to the Program Administrator or a payee 
15designated by the Program Administrator for purposes 
16authorized by this Act. After receipt of the Trust Fund moneys 
17by the Program Administrator or designated payee, the Program 
18Administrator shall ensure that all those moneys are expended 
19for a public purpose and only as authorized by this Act.
20 (b) Except as otherwise provided in Section 8(c) of this 
21Act, there shall be deposited in the Trust Fund such amounts as 
22may become available under the provisions of this Act, 
23including, but not limited to: 
24  (1) all receipts, including dividends, principal and 
25 interest repayments attributable to any loans or 
 
 
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1 agreements funded from the Trust Fund; 
2  (2) all proceeds of assets of whatever nature received 
3 by the Program Administrator, and attributable to default 
4 with respect to loans or agreements funded from the Trust 
5 Fund; 
6  (3) any appropriations, grants or gifts of funds or 
7 property, or financial or other aid from any federal or 
8 State agency or body, local government or any other public 
9 organization or private individual made to the Trust Fund; 
10  (4) any income received as a result of the investment 
11 of moneys in the Trust Fund; 
12  (5) all fees or charges collected by the Program 
13 Administrator or Funding Agent pursuant to this Act; 
14  (6) amounts as provided in Section 31-35 of the Real 
15 Estate Transfer Tax Law; 
16  (7) other funds as appropriated by the General 
17 Assembly; and 
18  (8) any income, less costs and fees associated with 
19 the Program Escrow, received by the Program Administrator 
20 that is derived from Trust Fund Moneys held in the Program 
21 Escrow prior to expenditure of such Trust Fund Moneys.
22 (c) Additional Trust Fund Purpose: Receipt and use of 
23federal funding for programs responding to the COVID-19 public 
24health emergency. Notwithstanding any other provision of this 
25Act or any other law limiting or directing the use of the Trust 
26Fund, the Trust Fund may receive, directly or indirectly, 
 
 
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1federal funds from the Homeowner Assistance Fund authorized 
2under Section 3206 of the federal American Rescue Plan Act of 
32021 (Public Law 117-2). Any such funds shall be deposited 
4into a Homeowner Assistance Account which shall be established 
5within the Trust Fund by the Funding Agent so that such funds 
6can be accounted for separately from other funds in the Trust 
7Fund. Such funds may be used only in the manner and for the 
8purposes authorized in Section 3206 of the American Rescue 
9Plan Act of 2021 and in related federal guidance. Also, the 
10Trust Fund may receive, directly or indirectly, federal funds 
11from the Emergency Rental Assistance Program authorized under 
12Section 3201 of the federal American Rescue Plan Act of 2021 
13and Section 501 of Subtitle A of Title V of Division N of the 
14Consolidated Appropriations Act, 2021 (Public Law 116-260). 
15Any such funds shall be deposited into an Emergency Rental 
16Assistance Account which shall be established within the Trust 
17Fund by the Funding Agent so that such funds can be accounted 
18for separately from other funds in the Trust Fund. Such funds 
19may be used only in the manner and for the purposes authorized 
20in Section 3201 of the American Rescue Plan Act of 2021 and in 
21related federal guidance. Expenditures under this subsection 
22(c) are subject to annual appropriation to the Funding Agent. 
23Unless used in this subsection (c), the defined terms set 
24forth in Section 3 shall not apply to funds received pursuant 
25to the American Rescue Plan Act of 2021. Notwithstanding any 
26other provision of this Act or any other law limiting or 
 
 
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1directing the use of the Trust Fund, funds received under the 
2American Rescue Plan Act of 2021 are not subject to the terms 
3and provisions of this Act except as specifically set forth in 
4this subsection (c). 
5 (d) Additional Trust Fund Purpose. The Trust Fund may also 
6receive moneys that are designated for deposit into the Trust 
7Fund as provided in the Family Home Ownership Act. Those 
8moneys may be used as provided in that Act. 
9(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 7-1-23.)