Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1261 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1261 Introduced 1/28/2025, by Sen. Graciela Guzmn SYNOPSIS AS INTRODUCED: New Act Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately. LRB104 08294 KTG 18345 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1261 Introduced 1/28/2025, by Sen. Graciela Guzmn SYNOPSIS AS INTRODUCED: New Act New Act Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately. LRB104 08294 KTG 18345 b LRB104 08294 KTG 18345 b A BILL FOR
	2	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1261 Introduced 1/28/2025, by Sen. Graciela Guzmn SYNOPSIS AS INTRODUCED:
	3	+	New Act New Act
	4	+	New Act
	5	+	Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.
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	8	+	A BILL FOR
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3	11		1 AN ACT concerning housing.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6	14		4 Section 1. Short title. This Act may be cited as the
7	15		5 Community Land Trust Home Ownership Act.
8	16		6 Section 5. Purposes. The purposes of this Act are to
9	17		7 ensure access to affordable housing loan products, grants, and
10	18		8 other types of assistance for buyers and owners of housing
11	19		9 located in a community land trust or other leasehold ownership
12	20		10 structure with a ground lease between the buyer or owner and a
13	21		11 501(c)(3) organization.
14	22		12 Section 10. Findings. The General Assembly finds the
15	23		13 following:
16		-	14 (1) The State of Illinois is facing an affordable
17		-	15 ~~housing~~ crisis.
18		-	16 (2) Homeownership is the ~~principal way families build~~
19		-	17 wealth~~, yet homeownership is most inaccessible to~~
20		-	18 ~~communities of color in Illinois, who are 1~~.~~6 times less~~
21		-	19 ~~likely than white people to be homeowners.~~
22		-	20 ~~(3) Homeownership serves as a~~ critical ~~tool to close~~
23		-	21 the ~~racial wealth~~ gap ~~by enabling historically excluded~~
24		-	22 ~~families to build generational wealth.~~
	24	+	14 (1) The State of Illinois is facing an affordable housing
	25	+	15 crisis.
	26	+	16 (2) Homeownership serves as a critical tool to close the
	27	+	17 racial wealth gap by enabling historically excluded families
	28	+	18 to build generational wealth.
	29	+	19 (3) Community land trusts and other ownership structures
	30	+	20 that promote long-term affordability are critical housing
	31	+	21 options that can reduce the affordable housing gap.
	32	+	22 (4) Community land trusts and other ownership structures
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33		-	1 (4) Community land trusts and other ownership
34		-	2 structures that promote long-term affordability are
35		-	3 critical housing options that can reduce the affordable
36		-	4 housing gap.
37		-	5 (5) Community land trusts and other ownership
38		-	6 structures that promote long-term affordability curb
39		-	7 displacement and foster generational wealth by creating
40		-	8 opportunities for homeownership to remain affordable for
41		-	9 generations.
42		-	10 (6) Community land trusts and other ownership
43		-	11 structures that promote long-term affordability preserve
44		-	12 naturally occurring affordable housing by closing the
45		-	13 affordability gap so that low-to-moderate income
46		-	14 households can live in high opportunity neighborhoods.
47		-	15 (7) The property tax sale system contributes to the
48		-	16 racial wealth gap in homeownership by transferring home
49		-	17 equity from communities of color to investors, threatening
50		-	18 community stability, and increasing housing costs.
51		-	19 (8) Community land trusts can be a powerful solution
52		-	20 for homeowners facing delinquent property taxes or other
53		-	21 financial threats to continued homeownership that keeps
54		-	22 residents in their homes and creates permanently
55		-	23 affordable properties for future buyers.
56		-	24 (9) Local community land trusts currently operate to
57		-	25 successfully preserve and create affordable housing in
58		-	26 urban areas in Illinois, but there is need for centralized
	36	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1261 Introduced 1/28/2025, by Sen. Graciela Guzmn SYNOPSIS AS INTRODUCED:
	37	+	New Act New Act
	38	+	New Act
	39	+	Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.
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	42	+	A BILL FOR
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	48	+	New Act
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69		-	1 support and coordination for the establishment of local
70		-	2 community land trusts across the State.
71		-	3 Section 15. Definitions. As used in this Act:
72		-	4 "501(c)(3) organization" means a nonprofit organization
73		-	5 that is exempt or qualified for exemption from taxation under
74		-	6 Section 501(c)(3) of the Internal Revenue Code of 1986.
75		-	7 "Community land trust" means a 501(c)(3) organization
76		-	8 governed by a board of community land trusts residents,
77		-	9 community residents, and public representatives that provide
78		-	10 permanent or long-term affordability and shared equity
79		-	11 homeownership opportunities.
80		-	12 "Task Force" means the Community Land Trust Task Force.
81		-	13 Section 20. Eligibility for homeownership programs. The
82		-	14 Illinois Housing Development Authority's homeownership
83		-	15 programs, including loan products, grants, and other types of
84		-	16 assistance, shall be made available to home buyers and owners
85		-	17 seeking to purchase or maintain housing where a leasehold
86		-	18 interest in real property is held by a community land trust or
87		-	19 other 501(c)(3) organization for the purposes of promoting
88		-	20 long-term affordability, preservation of affordable housing,
89		-	21 or community revitalization efforts. Any other type of seller,
90		-	22 including for-profit or private sellers of homes, through
91		-	23 leasehold agreements, such as installment contracts, contract
92		-	24 for deeds, or any other type of purchase or ownership
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103		-	1 structure, shall not be eligible under this Section.
104		-	2 Section 25. Rulemaking. Within 90 days after the effective
105		-	3 date of this Act, the Illinois Housing Development Authority
106		-	4 shall propose new or amended administrative rules that will
107		-	5 make the Authority's homeownership programs consistent with
108		-	6 the purposes of this Act.
109		-	7 Section 30. Community Land Trust Task Force.
110		-	8 (a) The Community Land Trust Task Force is created within
111		-	9 the Illinois Housing Development Authority to explore the
112		-	10 findings of the 2024 Community Land Trust Report. The Task
113		-	11 Force shall consist of the following members:
114		-	12 (1) The Governor, or his or her designee.
115		-	13 (2) The Executive Director of the Illinois Housing
116		-	14 Development Authority, or his or her designee.
117		-	15 (3) The Director of Revenue, or his or her designee.
118		-	16 (4) The Secretary of Human Services, or his or her
119		-	17 designee.
120		-	18 (5) The Director of Commerce and Economic Opportunity,
121		-	19 or his or her designee.
122		-	20 (6) One member representing the Governor's Office of
123		-	21 Management and Budget, appointed by the Governor.
124		-	22 (7) One member of the Senate, appointed by the
125		-	23 President of the Senate.
126		-	24 (8) One member of the Senate, appointed by the
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	67	+	1 that promote long-term affordability curb displacement and
	68	+	2 foster generational wealth by creating opportunities for
	69	+	3 homeownership to remain affordable for generations.
	70	+	4 (5) Community land trusts and other ownership structures
	71	+	5 that promote long-term affordability preserve naturally
	72	+	6 occurring affordable housing by closing the affordability gap
	73	+	7 so that low-to-moderate income households can live in high
	74	+	8 opportunity neighborhoods.
	75	+	9 Section 15. Definitions. As used in this Act:
	76	+	10 "Authority" means the Illinois Housing Development
	77	+	11 Authority.
	78	+	12 "Community land trust" means a 501(c)(3) organization
	79	+	13 governed by a board of community land trusts residents,
	80	+	14 community residents, and public representatives that provides
	81	+	15 permanent or long-term affordability and shared equity
	82	+	16 homeownership opportunities.
	83	+	17 "501(c)(3) organization" means a nonprofit organization
	84	+	18 that is exempt or qualified for exemption from taxation
	85	+	19 pursuant to Section 501(c)(3) of the Internal Revenue Code of
	86	+	20 1986.
	87	+	21 Section 20. Eligibility for Authority homeownership
	88	+	22 programs. The Authority's homeownership programs, including
	89	+	23 loan products, grants, and other types of assistance, shall be
	90	+	24 made available to home buyers and owners seeking to purchase
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137		-	1 Minority Leader of the Senate.
138		-	2 (9) One member of the House of Representatives,
139		-	3 appointed by the Speaker of the House of Representatives.
140		-	4 (10) One member of the House of Representatives,
141		-	5 appointed by the Minority Leader of the House of
142		-	6 Representatives.
143		-	7 (11) One representative from each of the 4
144		-	8 Illinois-based community land trusts that were established
145		-	9 for the purpose of supporting affordable housing,
146		-	10 appointed by the Governor.
147		-	11 (12) One representative of a university located in
148		-	12 Illinois who has expertise on housing studies, appointed
149		-	13 by the Governor.
150		-	14 (13) One member representing a national laboratory
151		-	15 that provides technical support to advance affordable
152		-	16 housing solutions, appointed by the Governor.
153		-	17 (14) One member representing a statewide organization
154		-	18 that advocates for affordable housing in Illinois,
155		-	19 appointed by the Governor.
156		-	20 (15) One member from the nongovernmental sector,
157		-	21 appointed by the Governor.
158		-	22 (b) All members of the Task Force shall serve without
159		-	23 compensation. Task Force members shall be appointed within 30
160		-	24 days after the effective date of this Act. If a vacancy occurs
161		-	25 in the membership, a replacement shall be appointed by the
162		-	26 co-chairs of the Task Force.
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	101	+	1 or maintain housing where a leasehold interest in real
	102	+	2 property is held by a community land trust or other 501(c)(3)
	103	+	3 organization for the purposes of promoting long-term
	104	+	4 affordability, preservation of affordable housing, or
	105	+	5 community revitalization efforts. Any other type of seller,
	106	+	6 including for-profit or private sellers of homes, through
	107	+	7 leasehold agreements, such as installment contracts, contract
	108	+	8 for deeds, or any other type of purchase or ownership
	109	+	9 structure, shall not be eligible under this Section.
	110	+	10 Section 25. Rulemaking. Within 90 days after the effective
	111	+	11 date of this Act, the Authority shall propose new or amended
	112	+	12 administrative rules that will make the Authority's
	113	+	13 homeownership programs consistent with the purposes of this
	114	+	14 Act.
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173		-	1 (c) The following individuals shall serve as co-chairs of
174		-	2 the Task Force:
175		-	3 (1) the Executive Director of the Illinois Housing
176		-	4 Development Authority, or his or her designee;
177		-	5 (2) the member of the Senate appointed by the
178		-	6 President of the Senate; and
179		-	7 (3) the member of the House of Representatives
180		-	8 appointed by the Speaker of the House of Representatives.
181		-	9 (d) The member from the nongovernmental sector shall serve
182		-	10 as vice-chair of the Task Force.
183		-	11 Section 35. Administrative support. The Illinois Housing
184		-	12 Development Authority shall provide administrative and
185		-	13 technical support to the Task Force, be responsible for
186		-	14 administering the Task Force's operations, and ensure that the
187		-	15 duties of the Task Force are completed.
188		-	16 Section 40. Meetings. The Task Force shall hold its
189		-	17 initial meeting within 60 days after the effective date of
190		-	18 this Act. The Task Force shall convene and meet at the call of
191		-	19 the co-chairs and shall meet as frequently as necessary to
192		-	20 carry out its duties under Section 45.
193		-	21 Section 45. Duties. The Community Land Trust Task Force
194		-	22 shall:
195		-	23 (1) implement the 2024 Community Land Trust Task Force
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206		-	1 Report recommendations including, but not limited to:
207		-	2 (A) exploring funding mechanisms currently
208		-	3 existing through the State as well as identifying new
209		-	4 revenue streams including, but not limited to, bond
210		-	5 issuance, innovation funding, real estate transfer
211		-	6 tax, and the Illinois Affordable Housing Trust Fund;
212		-	7 (B) considering the incorporation of community
213		-	8 land trusts into the local tax sale process;
214		-	9 (C) exploring methods for providing technical
215		-	10 assistance support to emerging community land trusts;
216		-	11 (D) evaluating different approaches to community
217		-	12 land trust centralization; and
218		-	13 (E) ensuring statewide use of existing tax
219		-	14 assessment language and adjusting policy to ease
220		-	15 burdens on community land trusts and community land
221		-	16 trust owners;
222		-	17 (2) study the use of community land trusts as a tool to
223		-	18 create permanently affordable housing, including as an
224		-	19 alternative to property tax sales;
225		-	20 (3) increase the number of State grants for
226		-	21 organizational capacity-building and housing development,
227		-	22 with spending rules tailored to the needs of community
228		-	23 land trusts and the size of community land trust projects;
229		-	24 (4) promote innovative sources of dedicated funding
230		-	25 and property for community land trusts;
231		-	26 (5) leverage rising industry and catalytic projects to
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242		-	1 generate revenue for lasting affordable housing; and
243		-	2 (6) encourage partnerships between community land
244		-	3 trusts and land banks.
245		-	4 Section 50. Report. The Task Force shall submit periodic
246		-	5 reports to the Governor and General Assembly covering the Task
247		-	6 Force's investigation into community land trusts and the Task
248		-	7 Force's duties under Section 45. These reports shall be made
249		-	8 available on the Illinois Housing Development Authority's
250		-	9 website for viewing by the general public.
251		-	10 Section 99. Effective date. This Act takes effect upon
252		-	11 becoming law.
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