2026 State Legislative Session Wrap-Up

by | Jun 2, 2026 | Advocacy Updates, Public Education & Organizing

Each year, Housing Action Illinois works at both the state and federal levels on a broad range of issues aligned with our core mission of creating an Illinois where everyone has a good, affordable place to call home. 

Housing was a higher profile issue than usual during the 2026 Illinois General Assembly session. Governor Pritzker’s BUILD proposal to support missing middle housing, an eight-bill affordable housing package from Senate Democrats, and growing public concern about affordability all kept housing in the spotlight during this year’s legislative debates. For most households, housing is their single largest monthly expense.

While actively supporting the BUILD proposal, Housing Action Illinois maintained our focus on the needs of people experiencing homelessness and others with the greatest affordability challenges. We’re glad to report that we, along with our partners and allies, achieved notable successes on these issues during the session, even though debate on BUILD and other proposals continues.

There are many ways you can get involved—you can help support this work by learning more, sharing this wrap up to help others learn more, signing up for our emails, making a donation, or becoming an organizational member.

Together, we can create an Illinois where everyone has a stable, affordable place to call home.

Budget Breakdown

General Assembly Rejects Proposed Cut to HOME Illinois

As the result of significant advocacy and education, the General Assembly rejected the proposed $10 million cut to the HOME Illinois Program to prevent and end homelessness and kept funding at the current level of $263.7 million.

Some tried to rationalize the cut by pointing to a lower demand for services. We pushed back, noting in the press and elsewhere that the State of Illinois’ own HOME Illinois plan has identified a shortage of 4,236 shelter beds, 10,428 rapid rehousing units, and 10,972 permanent supportive housing units in Illinois. More resources are needed to address these shortages.

We were disappointed that there was a $1.4 million reduction for the Supportive MI Housing line item that helps pay for services in supportive housing for people with severe mental illness.

Requests from our allies that were not funded included an increase for the Housing is Recovery Pilot Program to $10 million, as well as a funding request from the Home for Good Coalition to improve housing and support services for people returning from prison.

During the upcoming year and beyond, we will continue to advocate for the spending increases necessary to fully realize the goals of the HOME Illinois plan. Thank you to the Chicago Coalition to End Homelessness, Illinois Shelter Alliance, and the Supportive Housing Providers Association for partnering on this work, as well as all the organizations and individuals participating in their local Continuum of Care Network who advocated with us. Thanks also to State Representative Lindsey LaPointe and State Senator Adriane Johnson for being our lead champions in their respective chambers.

Budget Supported by Some Progressive Revenue Increases But Not Enough

As a member of the Illinois Revenue Alliance, we are pleased with the creation of a digital advertising tax that should bring in more than $1 billion in revenue to the state each year, as well as removal of one Trump-era tax break from our state tax code. However, the General Assembly should have done more, including full decoupling from all recent federal tax reductions for the wealthy and passing a billionaire wealth tax. Read the Illinois Revenue Alliance statement on passage of the FY27 state budget » 

Budget Wins from Our Partners and Allies

The Illinois Affordable Housing Tax Credit was extended for 10 years, with the annual allocation increase raised from 5% to 10%. Led by the Illinois Housing Council (IHC), this change —starting with $1.9 million in FY27—is estimated by IHC to help fund 9,856 new affordable rental homes over 5 years, including 1,341 additional homes beyond what would have been produced under the current growth rate. Passed as part of the revenue omnibus bill, these changes were originally included in legislation sponsored by Senator Mike Porfirio (SB 3738) and Representative Dee Avelar (HB 4413).

The capital budget included $250 million for missing middle and affordable housing programs, originally proposed by Governor Pritzker as part of the BUILD proposal. We also supported this as part of advocacy on the BUILD legislative package. Funding is allocated across housing development ($100 million), related infrastructure improvements ($100 million), and down payment assistance for homebuyers ($50 million).

Schools serving students and families experiencing homelessness received new state funding, with a $2 million increase for local public school districts and $2.5 million for state-funded universities. The Chicago Coalition to End Homelessness, working with Representative Laura Faver Dias and others, successfully advocated for this funding.

Major Tax Sale Reforms to Help Homeowners Keep Their Equity and Their Homes

HB 4537: Chief Sponsors: Senator Celina Villanueva and Representative Curtis Tarver

This legislation is the most sweeping reform to Illinois’ property tax sale in decades, and passing it represents three years of sustained advocacy by Housing Action Illinois and our partners. 

HB 4537 will put Illinois into compliance with a 2023 U.S. Supreme Court decision, Tyler v. Hennepin, which found it unconstitutional for states to allow property owners to lose their home without any opportunity to recover remaining equity after the tax debt is paid. The bill creates additional fees paid by private tax buyers to support two different funds to compensate property owners—one for recent claims and another for claims going back as far as ten years. A competitive auction system of properties subject to tax foreclosure will be established and  used to determine compensation for lost equity.

However, additional reforms in the bill should make this an increasingly rare occurrence, including, but not limited to improved notice requirements that encourage people to contact a HUD approved housing counseling agency and increasing the amount of time that residential property owners have to pay back taxes that have been sold from 2.5 years to 3 years. 

Private Tax Buying to be Phased Out in Cook County and Beyond

HB 4537’s most significant step toward addressing the injustices of the tax sale system is ending  private tax buying in Cook County. This will take effect at the seventh tax sale after legislation becomes effective, which should be in 2031. At that time, Cook County will start acquiring all the tax liens that would otherwise be offered to sale to private tax buyers, making paying delinquent taxes more affordable through payment plans, interest fee waivers, and other permissible means made possible by previous state law changes. Other counties will have this option, as well.

Between now and 2031, this bill directs Cook County to establish a pilot program for Cook County to acquire the tax liens for up to 100 homeowners each year, without them ever being offered for sale to private tax buyers. The pilot program will focus on homeowners with the lowest home values as a means of supporting homeowners who are most likely to have the lowest incomes and the most challenges affording their property taxes.

Compensating Homeowners with Existing Claims Still resolved

While HB 4537 does create limited new revenue to help pay past claims for lost equity, an ongoing issue will be determining how to compensate all homeowners and others with past and existing claims. Cook County was recently found liable by the courts for not adequately compensating nearly 2,500 homeowners who lost the actual properties as well as the equity they’d built in those homes after their delinquent property taxes had been sold. Multiple other court cases on this issue continue to be litigated against counties, tax buyers and the State of Illinois. 

Thanks to our legislative champions, Senator Celina Villanueva and Representative Curtis Tarver, for taking the time to pass strong, comprehensive reforms. In addition to the offices of Cook County President Toni Preckwinkle and Cook County Treasurer Maria Pappas, our key partners included AARP, Center for Community Progress, Chicago Community Trust, National Consumer Law Center and Neighborhood Housing Services of Chicago.

Read Chicago Tribune coverage on the passage on Tyler v. Hennepin reform in Illinois. Also see previous coverage on how the injustices of the tax sale system, particularly how tax sales have taken wealth and stability from Black homeowners and communities. 

Rental Affordability and Fee Transparency Act Passes

HB 3564: Chief Sponsors: Representative Nabeela Syed and Senator Mike Simmons

This legislation, which passed the General Assembly in April, requires that landlords place all non-optional fees on the first page of the rental agreement, and prohibits 11 different junk fees that are simply unnecessary. The legislation works to ensure that fees are fair and transparent. A “trailer bill,” or subsequent technical bill (HB 5234), changed the effective date of this new law to January 1, 2027. 

Our partners included Law Center for Better Housing, New Moms, Supportive Housing Providers Association, and Uptown People’s Law Center.

To learn more, see Senator Simmons’ press release on passage of the legislation, as well as our fact sheet. Thank you to our chief sponsors and other supporters in the General Assembly. 

More Good Bills That Passed

Additional positive housing-related bills that passed the General Assembly due to the work of others include:

Preventing and Ending Homelessness

  • HB 4137: Sponsored by Representative Michelle Mussman and Senator Karina Villa, this bill amends the Education for Homeless Children Act to allow a school district to provide for an extended motel stay for a child who is homeless or at risk of becoming homeless.

Homeowner Support

  • HB 4273: Sponsored by Representative Thaddeus Jones and Senator Michael Hastings, this legislation prohibits homeowners’ insurance companies from increasing premiums by more than 10% without first notifying the consumer 60 days prior. This gives consumers the necessary time to shop around and find a better rate. The bill prohibits premiums from being excessive, inadequate or unfairly discriminatory. See Senator Hastings’ press release.
  • HB 4456: Sponsored by Representative Laura Faver Dias and Senator Adriane Johnson, this legislation protects Illinois’ existing low-income discount rates for electric and gas utility service, expands eligibility for the Low-Income Home Energy Assistance Program (LIHEAP), and stops a 16 cent per bill increase in a rider on gas and electric bills from taking effect in 2027. Advocated for by the Illinois Association of Community Action Agencies and Legal Action Chicago.
  • SB 3925: Sponsored by Senator Mike Porfirio and Representative Angelica Guerrero-Cuellar, this legislation allows locally created Home Equity Assurance Commission to establish a program to provide a one-time per household direct relief payment to a member who owns a residence that is subject to flood damage.
  • HB 5449: Sponsored by Representative Rita Mayfield and Senator Robert Martwick, this legislation makes changes to state law to require that condominium and other common interest community association boards provide more easily accessible association business and financial information to homeowners.
  • HB 4896: Sponsored by Representative Jennifer Gong-Gershowitz and Senator Robert Martwick, the bill will help a person who has inherited a property with other family members petition for sole ownership, if need be. For example, in cases where only one family member lives in the home, pays the bills and taxes and takes care of it. If one or more other family members has disappeared or just doesn’t engage, the person living in the home is often stuck—they can’t fix up the property, get a loan, or sell it without the permission of others. This legislation solves for this and related situations. Advocated for by Legal Action Chicago.

Protecting Against Discrimination

  • SB 3777: Sponsored by Senator Adriane Johnson and Representative Justin Slaughter, this legislation expands “disparate impact” civil rights protections for Illinoisans in the areas of employment, public accommodations, and access to financial credit. These protections related to housing were previously passed into law in 2024 through an effort led by Illinois Attorney General Kwame Raoul. Advocated for the Illinois Department of Human Rights and Disparate Impact Coalition, of which Housing Action Illinois is a member.

Support for Local Governments

  • HB4571: Sponsored by Representative Marti Deuter and Senator Laura Ellman, this legislation amends the Counties Code to allow DuPage and Will Counties to invest county financial resources in affordable and missing middle housing.

We encourage Governor Pritzker to sign all the state legislation summarized here into state law.

Still in Progress

Our legislation to restrict local Public Housing Authorities and private owners of federal subsidized housing from implementing a proposed federal rule allowing time limits and work requirements, HB 4377, passed both chambers. However, on the final day of the session, additional good, but unrelated, housing provisions were added to the bill, which has slowed its passage. 

Thanks to Representative Maurice West, Senator Ram Villivalamam and Senator Graciela Guzmán, as well as Impact for Equity, for their work with us on this during the session. All have committed to helping us pass this bill before the end of the 104th General Assembly.

We will also continue to work to pass legislation regulating enforcement of local so-called “crime-free housing and nuisance ordinances” and “camping ban” ordinances that criminalize people experiencing homelessness. We will also work with partners to increase support for Governor Pritzker’s BUILD proposal, particularly by supporting  thoughtfully designed provisions that will promote increasing the supply of housing overall, while also making sure local communities maintain tools to require affordability and protect existing community residents from displacement. 

Help us build on this momentum: