HB4852 104TH GENERAL ASSEMBLY

LRB104 18447 KTG 31889 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4852

Introduced , by Rep. Jed Davis

SYNOPSIS AS INTRODUCED:

New Act

Creates the Owner-Occupied Housing Incentive Act. Requires the Illinois Housing Development Authority to administer an owner-occupant housing incentive program that provides financial incentives to qualifying purchasers for the purchase of moderately priced owner-occupied homes. Requires the Authority to develop necessary forms, establish verification procedures, and adopt rules to implement the program that are consistent with the provisions of the Act. Requires the Authority to provide a $7,500 owner-occupant housing incentive to any qualifying purchaser of an eligible property. Provides that the owner-occupant housing incentive may be provided as a grant, closing cost credit, down payment assistance, or any other similar mechanism approved by the Authority, subject to available appropriations. Contains provisions concerning eligibility requirements; hardship exemptions; program restrictions; verification and compliance; and penalties and repayment. Provides that the Act shall be construed narrowly to promote owner-occupied home purchases and that nothing in the Act shall be interpreted to regulate or restrict lawful rental housing, landlord activity, or property ownership outside the scope of the incentive created under the Act. Effective immediately.

A BILL FOR

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 Owner-Occupied Housing Incentive Act.

Section 5. Legislative findings and purpose. The General Assembly finds that:

(1) Home ownership strengthens families, neighborhoods, and local communities.

(2) Rising housing costs and investor-driven purchasing have made it more difficult for individuals and families to purchase homes they intend to occupy as their primary residence.

(3) Targeted incentives for owner-occupied purchases can improve housing stability without disrupting the broader housing market.

The purpose of this Act is to provide a narrowly tailored housing incentive for purchasers who intend to live in the home they buy, while preventing use of the incentive by landlords, investors, or speculative purchasers.

Section 10. Definitions. As used in this Act:

"Authority" means the Illinois Housing Development Authority.

"Eligible property" means a residential dwelling unit intended for use as a single primary residence, but does not include: (1) multi-unit residential buildings; (2) properties containing 2 or more dwelling units; (3) properties purchased in whole by any entity other than a natural person; or (4) any property purchased by or titled in the name of a corporation, limited liability company, partnership, or similar non-natural-person entity, except a revocable living trust used solely for estate planning purposes by the occupant.

"Incentive" means the $7,500 financial benefit provided under Section 20.

"Owner-occupant" means a natural person who purchases an eligible property and intends to occupy the property as the purchaser's primary residence.

"Owner-occupant housing incentive" means a grant, credit, subsidy, or other financial assistance provided under this Act by the Authority.

"Primary residence" means the dwelling in which a person resides for the majority of the calendar year and which is listed as the person's primary residence for tax and legal purposes.

"Regional price cap" means a purchase price not exceeding 110% of the median sale price for single-family homes in the county in which the property is located, as determined annually by the Authority using publicly available market data.

"Straw buyer" means any individual who purchases property on behalf of, or for the beneficial use of, an investor entity.

Section 15. Administration. The Authority shall administer an owner-occupant housing incentive program that provides financial incentives to qualifying purchasers for the purchase of moderately priced owner-occupied homes. The Authority shall develop necessary forms, establish verification procedures, and adopt rules to implement the program that are consistent with the provisions of this Act.

Section 20. Incentive. The Authority shall provide a $7,500 owner-occupant housing incentive to any qualifying purchaser of an eligible property meeting the requirements of this Act. The owner-occupant housing incentive may be provided as a grant, closing cost credit, down payment assistance, or any other similar mechanism approved by the Authority. Owner-occupant housing incentives shall be distributed subject to available appropriations.

Section 25. Eligibility requirements. To qualify for an owner-occupant housing incentive, a purchaser must:

(1) be a natural person;

(2) purchase an eligible property under any applicable regional price cap established by the Authority;

(3) certify intent to occupy the property as the purchaser's primary residence for a minimum of 12 consecutive months following closing;

(4) be or intend to become an Illinois resident by the time of closing;

(5) not have purchased more than 2 residential properties in the preceding 3 years, excluding the purchaser's primary residence; and

(6) execute an owner-occupancy affidavit prescribed by the Authority.

Section 30. Hardship exemptions. A qualifying purchaser shall not be subject to repayment or penalty under Section 45 if the qualifying purchaser sells the property within 12 months due to:

(1) military orders, deployment, or permanent change of station;

(2) medical hardship, including serious illness or disability of the purchaser or a dependent household member;

(3) employment relocation requiring a move of more than 50 miles from the property; or

(4) material loss of income, defined as an involuntary reduction of household income of 20% or more, verified through documentation as required by the Authority.

Section 35. Restrictions.

(a) An owner-occupant housing incentive may not be awarded to any purchaser acting as a straw buyer or on behalf of another person or entity.

(b) An owner-occupant housing incentive may not be awarded for any property intended to be rented, leased, or otherwise occupied by a person other than the purchaser.

Section 40. Verification and compliance.

(a) The Authority may require documentation reasonably necessary to verify eligibility and continued compliance with this Act.

(b) The Authority may conduct targeted audits based on reasonable evidence of noncompliance.

Section 45. Penalties and repayment.

(a) If a purchaser fails to satisfy the owner-occupancy requirements of this Act and no hardship exemption applies, the purchaser shall: (1) repay the full owner-occupant housing incentive received; and (2) pay a civil penalty equal to 25% of the incentive amount.

(b) The Authority may request that the Attorney General bring a civil action to recover amounts owed under this Section.

(c) No lien shall be filed or recorded against an eligible property solely for repayment of an incentive or civil penalty under this Act.

Section 50. Construction.

(a) This Act shall be construed narrowly to promote owner-occupied home purchases.

(b) Nothing in this Act shall be interpreted to regulate or restrict lawful rental housing, landlord activity, or property ownership outside the scope of the incentive created by this Act.

(c) This Act does not create a private cause of action.

Section 99. Effective date. This Act takes effect upon becoming law.