Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2115 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2115 Introduced 2/7/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED: New Act310 ILCS 65/5 from Ch. 67 1/2, par. 1255 Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax of 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of a single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as a residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately. LRB104 03306 HLH 13328 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2115 Introduced 2/7/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED: New Act310 ILCS 65/5 from Ch. 67 1/2, par. 1255 New Act 310 ILCS 65/5 from Ch. 67 1/2, par. 1255 Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax of 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of a single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as a residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately. LRB104 03306 HLH 13328 b LRB104 03306 HLH 13328 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2115 Introduced 2/7/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED:
3	3	New Act310 ILCS 65/5 from Ch. 67 1/2, par. 1255 New Act 310 ILCS 65/5 from Ch. 67 1/2, par. 1255
4	4	New Act
5	5	310 ILCS 65/5 from Ch. 67 1/2, par. 1255
6	6	Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax of 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of a single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as a residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately.
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9	9	A BILL FOR
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11	11	SB2115 LRB104 03306 HLH 13328 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the House
16	16	5 Illinois Families Act.
17	17	6 Section 5. Definitions. As used in this Act:
18	18	7 "Applicable taxpayer" means a taxpayer that is not:
19	19	8 (i) a mortgage note holder that owns a single-family
20	20	9 residence through foreclosure;
21	21	10 (ii) an organization that is described in Section
22	22	11 501(c)(3) and exempt from tax under Section 501(a);
23	23	12 (iii) an organization primarily engaged in the
24	24	13 construction or rehabilitation of single-family
25	25	14 residences; or
26	26	15 (iv) a person who owns federally subsidized housing.
27	27	16 "Disqualified sale" means a sale or transfer to:
28	28	17 (i) a corporation or entity engaged in a trade or
29	29	18 business;
30	30	19 (ii) a group of more than 2 individuals; or
31	31	20 (iii) a person who owns any other single-family
32	32	21 residence.
33	33	22 "Department" means the Department of Revenue.
34	34	23 "Single-family residence" means a residential property
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2115 Introduced 2/7/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED:
39	39	New Act310 ILCS 65/5 from Ch. 67 1/2, par. 1255 New Act 310 ILCS 65/5 from Ch. 67 1/2, par. 1255
40	40	New Act
41	41	310 ILCS 65/5 from Ch. 67 1/2, par. 1255
42	42	Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax of 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of a single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as a residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately.
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44	44	LRB104 03306 HLH 13328 b
45	45	A BILL FOR
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51	51	New Act
52	52	310 ILCS 65/5 from Ch. 67 1/2, par. 1255
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71	71	1 consisting of not more than 4 dwelling units.
72	72	2 "Own" means having a direct majority ownership interest in
73	73	3 the single-family residence.
74	74	4 Section 10. Excess single-family residences.
75	75	5 (a) There is imposed on each applicable taxpayer for each
76	76	6 taxable year a tax of 10% of the property value of each
77	77	7 single-family residence owned by the taxpayer as of the last
78	78	8 day of the taxable year in excess of 25 single-family
79	79	9 residences.
80	80	10 (b) The tax collected shall be deposited into the Illinois
81	81	11 Affordable Housing Trust Fund with the purpose of funding
82	82	12 housing programs for justice involved individuals and
83	83	13 providing rental and mortgage assistance.
84	84	14 Section 15. Special rule for certain sales. A
85	85	15 single-family residence that is sold or transferred in a
86	86	16 disqualified sale during the taxable year shall be treated as
87	87	17 a single-family residence that is owned by the applicable
88	88	18 taxpayer on of the last day of such taxable year.
89	89	19 Section 20. Reporting.
90	90	20 (a) The Department shall adopt rules to administer and
91	91	21 enforce the provisions of this Act. Those rules shall require
92	92	22 such reporting as the Department determines necessary or
93	93	23 appropriate to carry out the purposes of this Act, including
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104	104	1 reporting with respect to:
105	105	2 (i) the dates on which single-family residences owned
106	106	3 by an applicable taxpayer were acquired by the taxpayer;
107	107	4 (ii) the dates on which single-family residences owned
108	108	5 by an applicable taxpayer are sold by the taxpayer in
109	109	6 accordance with this Act; and
110	110	7 (iii) whether any person acquiring a single-family
111	111	8 residence from an applicable taxpayer owns any other
112	112	9 single-family residences.
113	113	10 (b) Any applicable taxpayer who fails to report in
114	114	11 accordance with this Section or who fails to include correct
115	115	12 information in the report shall pay a penalty of $50,000, on
116	116	13 notice and demand of the Department, to be deposited into the
117	117	14 Illinois Affordable Housing Trust Fund with the purpose of
118	118	15 funding housing programs for justice involved individuals and
119	119	16 providing rental and mortgage payment assistance.
120	120	17 (c) No penalty shall be imposed under this Section with
121	121	18 respect to any failure if it is shown that the failure is due
122	122	19 to reasonable cause and not to willful neglect.
123	123	20 Section 25. Sale of single-family residences; right of
124	124	21 first refusal.
125	125	22 (a) An applicable taxpayer shall give notice to each
126	126	23 tenant of an single-family residence of the taxpayer's intent
127	127	24 to sell the single-family residence in which the tenant
128	128	25 resides. The notice under this subsection shall be mailed by
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139	139	1 certified mail.
140	140	2 (b) Before an single-family residence may be sold, the
141	141	3 applicable taxpayer shall give notice to each tenant of the
142	142	4 residence, by certified mail, of any third-party bona fide
143	143	5 offer for sale that the taxpayer intends to accept. The notice
144	144	6 shall include the price and the terms and conditions of the
145	145	7 offer. The price shall be calculated as a single lump-sum
146	146	8 amount that reflects (i) the total purchase price of the
147	147	9 residence or (ii) the present value of any installment
148	148	10 payments offered in lieu of cash payments.
149	149	11 (c) Upon receiving notice of any third-party bona fide
150	150	12 offer, the tenant of that residence shall have the right to
151	151	13 purchase the subject property for the purpose of continuing
152	152	14 the use of the property as the tenant's residence. The tenant
153	153	15 shall (1) submit to the applicable taxpayer notice of the
154	154	16 tenant's interest in purchasing the single-family residence;
155	155	17 (2) submit to the applicable taxpayer a proposed purchase and
156	156	18 sale agreement on substantially equivalent terms and
157	157	19 conditions within 45 days after receipt of notice of the bona
158	158	20 fide offer made; (3) obtain a binding commitment for any
159	159	21 necessary financing or guarantees within an additional 90 days
160	160	22 after execution of the purchase and sale agreement; and (4)
161	161	23 close on the purchase within an additional 90 days after the
162	162	24 end of the 90-day period described in item (3).
163	163	25 No applicable taxpayer shall unreasonably refuse to enter
164	164	26 into, or unreasonably delay the execution or closing on, a
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175	175	1 purchase and sale or lease agreement with tenants who have
176	176	2 made a bona fide offer to meet the price and substantially
177	177	3 equivalent terms and conditions of an offer for which notice
178	178	4 is required to be given under to subsection (b). Failure of the
179	179	5 tenants to submit a purchase and sale agreement within the
180	180	6 first 45-day period, to obtain a binding commitment for
181	181	7 financing within the additional 90-day period, or to close on
182	182	8 the purchase within the second 90-day period shall serve to
183	183	9 terminate the rights of the residents to purchase the
184	184	10 single-family residence. The time periods provided in this
185	185	11 Section may be extended by agreement. Nothing in this Section
186	186	12 shall be construed to require an applicable taxpayer to
187	187	13 provide financing to tenants except to the extent the
188	188	14 financing would be provided to the third-party offeror.
189	189	15 (d) The right of first refusal created in this Section
190	190	16 shall inure to the tenants for the time periods set forth in
191	191	17 this Section, beginning on the date of notice to the tenants
192	192	18 under paragraph (b). The effective period for the right of
193	193	19 first refusal shall obtain separately for each substantially
194	194	20 different bona fide offer to purchase the single-family
195	195	21 residence, and for each offer substantially equivalent to an
196	196	22 offer made more than 3 months before the later offer;
197	197	23 provided, however, that in the case of a substantially
198	198	24 equivalent offer made by a prospective buyer who has
199	199	25 previously made an offer for which notice to tenants was
200	200	26 required by subsection (b), the right of first refusal shall
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211	211	1 obtain only if the subsequent offer is made more than 6 months
212	212	2 after the earlier offer. The right of first refusal shall not
213	213	3 apply with respect to any offer received by the applicable
214	214	4 taxpayer for which a notice is not required under subsection
215	215	5 (b). No right of first refusal shall apply to a government
216	216	6 taking by eminent domain or negotiated purchase, a forced sale
217	217	7 under a foreclosure by an unrelated third party, transfer by
218	218	8 gift, or devise by operation of law.
219	219	9 (e) If the tenants of the single-family residence are not
220	220	10 the successful purchasers, the applicable taxpayer shall
221	221	11 provide evidence of compliance with this Section by filing an
222	222	12 affidavit of compliance with the Department within 7 days
223	223	13 after the sale or lease.
224	224	14 Section 900. The Illinois Affordable Housing Act is
225	225	15 amended by changing Section 5 as follows:
226	226	16 (310 ILCS 65/5) (from Ch. 67 1/2, par. 1255)
227	227	17 Sec. 5. Illinois Affordable Housing Trust Fund.
228	228	18 (a) There is hereby created the Illinois Affordable
229	229	19 Housing Trust Fund, hereafter referred to in this Act as the
230	230	20 "Trust Fund" to be held as a separate fund within the State
231	231	21 Treasury and to be administered by the Program Administrator.
232	232	22 The purpose of the Trust Fund is to finance projects of the
233	233	23 Illinois Affordable Housing Program as authorized and approved
234	234	24 by the Program Administrator. The Funding Agent shall
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245	245	1 establish, within the Trust Fund, a General Account, a Bond
246	246	2 Account, a Commitment Account and a Development Credits
247	247	3 Account. The Funding Agent shall authorize distribution of
248	248	4 Trust Fund moneys to the Program Administrator or a payee
249	249	5 designated by the Program Administrator for purposes
250	250	6 authorized by this Act. After receipt of the Trust Fund moneys
251	251	7 by the Program Administrator or designated payee, the Program
252	252	8 Administrator shall ensure that all those moneys are expended
253	253	9 for a public purpose and only as authorized by this Act.
254	254	10 (b) Except as otherwise provided in Section 8(c) of this
255	255	11 Act, there shall be deposited in the Trust Fund such amounts as
256	256	12 may become available under the provisions of this Act,
257	257	13 including, but not limited to:
258	258	14 (1) all receipts, including dividends, principal and
259	259	15 interest repayments attributable to any loans or
260	260	16 agreements funded from the Trust Fund;
261	261	17 (2) all proceeds of assets of whatever nature received
262	262	18 by the Program Administrator, and attributable to default
263	263	19 with respect to loans or agreements funded from the Trust
264	264	20 Fund;
265	265	21 (3) any appropriations, grants or gifts of funds or
266	266	22 property, or financial or other aid from any federal or
267	267	23 State agency or body, local government or any other public
268	268	24 organization or private individual made to the Trust Fund;
269	269	25 (4) any income received as a result of the investment
270	270	26 of moneys in the Trust Fund;
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281	281	1 (5) all fees or charges collected by the Program
282	282	2 Administrator or Funding Agent pursuant to this Act;
283	283	3 (6) amounts as provided in Section 31-35 of the Real
284	284	4 Estate Transfer Tax Law;
285	285	5 (7) other funds as appropriated by the General
286	286	6 Assembly; and
287	287	7 (8) any income, less costs and fees associated with
288	288	8 the Program Escrow, received by the Program Administrator
289	289	9 that is derived from Trust Fund Moneys held in the Program
290	290	10 Escrow prior to expenditure of such Trust Fund Moneys.
291	291	11 (c) Additional Trust Fund Purpose: Receipt and use of
292	292	12 federal funding for programs responding to the COVID-19 public
293	293	13 health emergency. Notwithstanding any other provision of this
294	294	14 Act or any other law limiting or directing the use of the Trust
295	295	15 Fund, the Trust Fund may receive, directly or indirectly,
296	296	16 federal funds from the Homeowner Assistance Fund authorized
297	297	17 under Section 3206 of the federal American Rescue Plan Act of
298	298	18 2021 (Public Law 117-2). Any such funds shall be deposited
299	299	19 into a Homeowner Assistance Account which shall be established
300	300	20 within the Trust Fund by the Funding Agent so that such funds
301	301	21 can be accounted for separately from other funds in the Trust
302	302	22 Fund. Such funds may be used only in the manner and for the
303	303	23 purposes authorized in Section 3206 of the American Rescue
304	304	24 Plan Act of 2021 and in related federal guidance. Also, the
305	305	25 Trust Fund may receive, directly or indirectly, federal funds
306	306	26 from the Emergency Rental Assistance Program authorized under
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317	317	1 Section 3201 of the federal American Rescue Plan Act of 2021
318	318	2 and Section 501 of Subtitle A of Title V of Division N of the
319	319	3 Consolidated Appropriations Act, 2021 (Public Law 116260).
320	320	4 Any such funds shall be deposited into an Emergency Rental
321	321	5 Assistance Account which shall be established within the Trust
322	322	6 Fund by the Funding Agent so that such funds can be accounted
323	323	7 for separately from other funds in the Trust Fund. Such funds
324	324	8 may be used only in the manner and for the purposes authorized
325	325	9 in Section 3201 of the American Rescue Plan Act of 2021 and in
326	326	10 related federal guidance. Expenditures under this subsection
327	327	11 (c) are subject to annual appropriation to the Funding Agent.
328	328	12 Unless used in this subsection (c), the defined terms set
329	329	13 forth in Section 3 shall not apply to funds received pursuant
330	330	14 to the American Rescue Plan Act of 2021. Notwithstanding any
331	331	15 other provision of this Act or any other law limiting or
332	332	16 directing the use of the Trust Fund, funds received under the
333	333	17 American Rescue Plan Act of 2021 are not subject to the terms
334	334	18 and provisions of this Act except as specifically set forth in
335	335	19 this subsection (c).
336	336	20 (d) Additional Trust Fund Purpose. The Trust Fund may also
337	337	21 receive moneys that are designated for deposit into the Trust
338	338	22 Fund as provided in the House Illinois Families Act. Those
339	339	23 moneys may be used as provided in that Act.
340	340	24 (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 7-1-23.)
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