HB5457 104TH GENERAL ASSEMBLY

LRB104 16663 RTM 30067 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5457

Introduced 2/13/2026, by Rep. Jed Davis

SYNOPSIS AS INTRODUCED:

New Act

Creates the Home Construction Cost Reduction Act. Provides that the Act shall only apply to single-family homes. Provides that municipalities may not prohibit factory-built, single-family homes that comply with (1) a national building safety code; (2) rules adopted by State agencies that satisfy the requirements of the Act; and (3) all local architectural, aesthetic, and design standards applicable to site-built homes in the same district. Provides that a State agency may not impose requirements on home construction that are inconsistent with any national building safety code unless the State agency provides (i) a housing cost impact statement; (ii) a compelling public safety concern that would be addressed by the additional requirements; and (iii) notice to the General Assembly in the manner specified in the Act. Provides that each housing cost impact statement shall include (1) an estimate, in dollars, of how the proposed rule would increase the cost to construct a single-family home or factory-built home; (2) an estimate of how the proposed rule would increase the time required to construct a single-family home or factory-built home; (3) a description of how the proposed rule deviates from national building safety codes; (4) whether a lower-cost compliance alternative to the proposed rule exists; and (5) whether the requirements of the proposed rule would disproportionately affect rural or low-income homebuyers. Provides that a rule adopted after the effective date of the Act without a housing cost impact statement is void. Provides that, if a State agency fails to approve or deny a construction-related permit within 45 days, then the permit is deemed approved. Provides that the State shall waive all State-level permitting, inspection, and plan review fees for the construction of starter homes. Provides that a State agency may not increase any permitting, inspection, or plan review fee applicable to the construction of single-family homes for 5 years following the effective date of the Act. Provides that, on or before January 31 of each year, the Department of Commerce and Economic Opportunity shall submit a written report containing specified information to the General Assembly. Provides that the Act is repealed 5 years after the effective date of the Act. Effective immediately.

A BILL FOR

AN ACT concerning safety.

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 Illinois Home Construction Cost Reduction Act.

Section 5. Legislative intent. The General Assembly recognizes the common public interest in promoting homeownership, protecting working families, advancing regulatory transparency, protecting public safety, and reducing the cost of constructing single-family homes in Illinois by:

(1) limiting Illinois-specific construction of energy modules that exceed the standards of the United States Department of Housing and Urban Development or the International Residential Code;

(2) preventing unnecessary regulatory expansion;

(3) requiring clear disclosure of cost impacts; and

(4) providing fee relief for the construction of starter homes.

Section 10. Applicability. This Act applies only to single-family homes and within zoning districts that allow single-family homes. This Act neither requires nor authorizes duplexes, multifamily homes, accessory dwelling units, town homes, or increased residential density. Moreover, this Act does not compel a municipality to allow any form of multifamily construction and it does not override existing zoning districts, historic districts, or overlay or subdivision requirements.

Section 15. Definitions. As used in this Act:

"Factory-built home" includes modular, manufactured, and panelized homes that comply with a national building safety code.

"Session day" means a calendar day in which either chamber of the Illinois General Assembly is scheduled to convene in regular session, veto session, special session, or joint session.

"Housing cost impact statement" means the cost analysis required for new regulations.

"National building safety code" means a set of safety standards produced by a national or multinational entity that has been adopted as a standard by states and units of local government in the United States. "National building safety code" includes, but is not limited to, the Manufactured Home Construction Safety Code established by the United States Department of Housing and Urban Development and the International Building Code and the International Residential Code established by the International Code Council.

"Single-family home" means a detached, single-family residential structure.

"Starter home" means a single-family home containing not more than 1,600 square feet of heated living space.

Section 20. Factory-built home acceptance with local architectural control. A municipality may not prohibit factory-built single-family homes that comply with:

(1) a national building safety code;

(2) rules adopted by State agencies that satisfy the requirements of this Act; and

(3) all local architectural, aesthetic, and design standards applicable to site-built homes in the same district.

Section 25. Material neutrality. A municipality may not prohibit the use of building materials that comply with a national building safety code and conform to local design standards, including, but not limited to, brick and stone ratios, facade requirements, and roof pitch.

Section 30. Prerequisites to construction-related rulemaking.

(a) A State agency may not file for publication in the Illinois Register any proposed rule or amendment that would impose requirements on home construction that are inconsistent with any national building safety code unless the State agency first provides to the Joint Committee on Administrative Rules (i) a housing cost impact statement and (ii) a compelling public safety concern that would be addressed by the additional requirements. This subsection (a) applies to, but is not limited to, EV charger readiness mandates, electric HVAC-only rules, solar-ready or battery-ready mandates, Illinois-only insulation standards, and stormwater requirements.

(b) A State agency may not impose any mandate on a factory-built home that is more restrictive than the mandate applicable to an on-site constructed single-family home. A factory-built home shall be accepted as meeting this State's construction standards if it complies with a national building safety code and the requirements of this Act.

Section 35. House cost impact statements.

(a) Before adopting, amending, or implementing any rule, regulation, interpretation, or guidance affecting single-family homes or factory-built homes, State agencies shall prepare a housing cost impact statement. Each housing cost impact statement shall include:

(1) an estimate, in dollars, of how the proposed rule would increase the cost to construct a single-family home or factory-built home;

(2) an estimate of how the proposed rule would increase the time required to construct a single-family home or factory-built home;

(3) a description of how the proposed rule deviates from national building safety codes;

(4) a description of whether a lower-cost compliance alternative to the proposed rule exists; and

(5) a description of whether the requirements of the proposed rule would disproportionately affect rural or low-income homebuyers.

(b) A State agency may not enforce a rule that affects the construction of a single-family home that complies with a national building safety code unless the State agency provides the General Assembly with notice of the rule's adoption. The notice must be provided to the General Assembly at least 20 session days before enforcement. If enforcing the rule is estimated to increase the cost to construct a single-family home or factory-built home by $3,500 or more, then the notice must be provided to the General Assembly at least 40 session days before enforcement.

(c) Each housing cost impact statement shall be:

(1) published on the State agency's website;

(2) submitted to the General Assembly; and

(3) maintained in a publicly accessible archive for no less than 10 years.

(d) A rule adopted after the effective date of this Act without a housing cost impact statement that complies with the requirements of this Section is void.

Section 40. Permit timeline. State agencies shall approve or deny construction-related permits within 45 days. Failure to act within the 45 days shall be deemed as approval of the permit.

Section 45. Fee reductions and waivers. The State shall waive all State-level permitting, inspection, and plan review fees for the construction of starter homes. A State agency may not increase any permitting, inspection, or plan review fee applicable to the construction of single-family homes for 5 years following the effective date of this Act. A State agency may not create, rename, or reclassify any fee to circumvent this Section.

Section 50. Basement requirements. A municipality may approve single-family homes with single-grade or other non-basement designs if the designs are consistent with (i) a national building safety code and (ii) standard engineering practices.

Section 55. Licensure, training, or inspection mandates. State agencies may not add new certifications, licenses, specialty inspections, or training requirements that exceed the requirements of national building safety codes.

Section 60. Private cause of action; existing remedies. Neither this Act nor any rules adopted under this Act:

(1) provide a private cause of action for damages or create a standard of care, obligation, or duty that provides a basis for a private cause of action for damages; or

(2) abrogate a statutory or common law cause of action, administrative remedy, or defense otherwise available and existing before the effective date of this Act.

Section 65. Anti-speculation and local option protections. A municipality may, by ordinance, provide for an expedited permitting process or otherwise expedite the approval of an applicant's permit to construct a single-family home if the applicant intends to own and occupy the property.

Section 70. Rulemaking restriction.

(a) State agencies shall not reinterpret, expand, or modify this Act through administrative rulemaking or by redesignating mandates as guidelines. State agencies shall not issue interpretations, technical advisories, informal policies, or non-rulemaking directives with the intention or result of subverting this Act.

(b) A State agency may not condition inspections or the approval of permits on compliance with requirements that exceed any national building safety code, unless the requirements are imposed by a rule adopted in compliance with this Act.

(c) State agencies shall repeal any rule, mandate, or requirement that exceeds all national building safety codes within 18 months after the effective date of this Act. The Department of Commerce and Economic Opportunity shall publish a public list of repealed mandates.

(d) Any directive issued in violation of this Section is void.

Section 75. Annual report from the Department of Commerce and Economic Opportunity.

(a) On or before January 31 of each year, the Department of Commerce and Economic Opportunity shall submit a written report to the General Assembly, which shall include:

(1) an estimate, in dollars, of how much the Act has reduced the cost to build a single-family home;

(2) the number of fees waivers granted because of the Act;

(3) the number of housing cost impact statements produced by State agencies;

(4) an estimate of the number of mandates avoided because of the Act;

(5) a summary of State agency compliance with the Act; and

(6) recommendations for modifications to the Act, including extending the repeal date of the Act.

(b) The report issued under this Section shall not exceed 3 pages.

Section 95. Repeal. This Act is repealed 5 years after the effective date of this Act.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

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