SB0640sam002 104TH GENERAL ASSEMBLY

Sen. Mattie Hunter

Filed: 5/29/2026

10400SB0640sam002 LRB104 06918 TRT 38506 a

AMENDMENT TO SENATE BILL 640

AMENDMENT NO. ______. Amend Senate Bill 640 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Housing Development Act is amended by adding Section 7.34 as follows:

(20 ILCS 3805/7.34 new)

Sec. 7.34. Grants and Technical Assistance.

(a) As used in this Section, "middle housing" has the meaning given in Section 11-13.1-5 of the Illinois Municipal Code and the meaning given in Section 5-47005 of the Counties Code, as applicable.

(b) The Authority may administer grants and provide technical assistance resources to support units of local government with the adoption of conforming zoning ordinances in accordance with this Act, and to otherwise incentivize middle housing developments. The Authority may enter into intergovernmental agreements and other agreements with not-for-profit organizations as necessary to provide technical assistance resources to qualifying units of local government, and small and underrepresented developers. The technical assistance resources may include, but are not limited to:

(1) model ordinances or other resources to support units of local government with the adoption of conforming zoning amendments;

(2) capacity-building grant incentives for units of local government and land banks that acquire, remediate, or stabilize deteriorated land for the purposes of creating low-cost opportunities for middle-income housing development;

(3) programming and resources to connect and coordinate units of local government with middle housing developers;

(4) existing Authority grant funds and other resources dedicated to equipping developers and units of local government with the proper skills, support, and training to enter and succeed in the middle housing development space;

(5) targeted assistance for small or underrepresented developers or units of local governments to train them in deal structuring, navigating State programs and property management, and other qualifications necessary for middle housing developments and project management.

(c) The Authority may adopt rules necessary to implement and administer this Section.

Section 10. The Energy Efficient Building Act is amended by changing Section 20 as follows:

(20 ILCS 3125/20)

Sec. 20. Applicability.

(a) The Board shall review and adopt the Code within one year after its publication. The Code shall take effect within 6 months after it is adopted by the Board, except that, beginning January 1, 2012, the Code adopted in 2012 shall take effect on January 1, 2013. Except as otherwise provided in this Act, the Code shall apply to (i) any new building or structure in this State for which a building permit application is received by a municipality or county and (ii) beginning on August 3, 2018 (the effective date of Public Act 100-729) this amendatory Act of the 100th General Assembly, each State facility specified in Section 4.01 of the Capital Development Board Act. In the case of any addition, alteration, renovation, or repair to an existing residential or commercial structure, the Code adopted under this Act applies only to the portions of that structure that are being added, altered, renovated, or repaired. The changes made to this Section by Public Act 97-1033 this amendatory Act of the 97th General Assembly shall in no way invalidate or otherwise affect contracts entered into on or before August 17, 2012 (the effective date of Public Act 97-1033) this amendatory Act of the 97th General Assembly.

(b) The following buildings shall be exempt from the Code:

(1) Buildings otherwise exempt from the provisions of a locally adopted building code and buildings that do not contain a conditioned space.

(2) Buildings that do not use either electricity or fossil fuel for comfort conditioning. For purposes of determining whether this exemption applies, a building will be presumed to be heated by electricity, even in the absence of equipment used for electric comfort heating, whenever the building is provided with electrical service in excess of 100 amps, unless the code enforcement official determines that this electrical service is necessary for purposes other than providing electric comfort heating.

(3) Historic buildings. This exemption shall apply to those buildings that are listed on the National Register of Historic Places or the Illinois Register of Historic Places, and to those buildings that have been designated as historically significant by a local governing body that is authorized to make such designations.

(4) (Blank).

(5) Other buildings specified as exempt by the International Energy Conservation Code.

(b-5) Notwithstanding any provision of the Illinois Energy Conservation Code, for a period of no more than 10 years after the effective date of this amendatory Act of the 104th General Assembly, residential developments consisting exclusively of middle housing, as defined in Section 11-13.1-5 of the Illinois Municipal Code or Section 5-47005 of the Counties Code, as applicable, may, with respect to Section R402 of the Illinois Energy Conservation Code relating to building thermal envelope requirements, elect to comply with the building thermal envelope requirements of Section R402 of the 2018 Illinois Energy Conservation Code or any Code editions subsequently adopted by the Board, in lieu of complying with the building thermal envelope requirements of the most current Illinois Energy Conservation Code adopted by the Board.

(c) Additions, alterations, renovations, or repairs to an existing building, building system, or portion thereof shall conform to the provisions of the Code as they relate to new construction without requiring the unaltered portion of the existing building or building system to comply with the Code. The following need not comply with the Code, provided that the energy use of the building is not increased: (i) storm windows installed over existing fenestration, (ii) glass-only replacements in an existing sash and frame, (iii) existing ceiling, wall, or floor cavities exposed during construction, provided that these cavities are filled with insulation, and (iv) construction where the existing roof, wall, or floor is not exposed.

(d) A unit of local government that does not regulate energy efficient building standards is not required to adopt, enforce, or administer the Code; however, any energy efficient building standards adopted by a unit of local government must comply with this Act. If a unit of local government does not regulate energy efficient building standards, any construction, renovation, or addition to buildings or structures is subject to the provisions contained in this Act.

(Source: P.A. 102-662, eff. 9-15-21.)

Section 15. The Counties Code is amended by adding Division 5-47 as follows:

(55 ILCS 5/Art. 5 Div. 47 heading new)

Division 47. MIDDLE HOUSING

(55 ILCS 5/5-47001 new)

Sec. 5-47001. Purpose. The purpose of this Division is to expand housing choice, increase the supply of attainable housing, and establish uniform statewide standards for middle housing production while preserving reasonable, non-exclusionary county design and siting authority.

(55 ILCS 5/5-47005 new)

Sec. 5-47005. Definitions. As used in this Division:

"Attached courtyard housing" means a form of middle housing consisting of 2 or more attached dwelling units arranged to face a shared common courtyard, where each unit has a primary entrance oriented toward the courtyard and the courtyard provides pedestrian access, light, air, and shared open space for the dwelling units.

"Clear and objective standard" means a standard that does not require discretionary judgment in its interpretation or application and that applies uniformly to all applicants.

"Common courtyard" means a landscaped or hardscaped area accessible to multiple dwelling units that provides pedestrian access and passive or active recreation.

"Cottage cluster" means a grouping of 3 or more detached or semi-detached dwelling units on a shared lot or parcel, arranged around common open space, and served by shared pedestrian or vehicular access.

"Detached courtyard housing" means a form of middle housing consisting of 2 or more detached dwelling units located on a shared lot or parcel and arranged to face a shared common courtyard, where each unit has a primary entrance oriented toward the courtyard and the courtyard provides pedestrian access, light, air, and shared open space for the dwelling units.

"Discretionary review" means any land-use or development approval that requires the exercise of subjective judgment by a legislative body, planning commission, zoning board of appeals, architectural review board, or similar body, including, but not limited to, special uses, conditional uses, variances, planned unit developments, or non-objective design review. "Discretionary review" does not include:

(1) ministerial building permit review for compliance with clear and objective standards;

(2) historic preservation review required solely for the demolition of a structure designated as a local, State, or national historic landmark or contributing to a local landmark; or

(3) environmental or safety review required by State or federal law.

"Middle housing" means:

(1) duplexes;

(2) triplexes;

(3) fourplexes;

(4) cottage clusters;

(5) townhouses;

(6) attached courtyard housing;

(7) detached courtyard housing;

(8) stacked flat plexes; and

(9) single family dwellings on lots of not more than 2,500 square feet.

"Middle housing land division" means the division of land containing middle housing to allow fee-simple ownership of one or more dwelling units consistent with Section 5-47030.

"Mission-driven developer" means a nonprofit corporation, public body, or entity controlled by a nonprofit corporation or public body whose primary purpose includes the development, preservation, or operation of affordable housing.

"Pedestrian path" means a walkway that connects at least one building entrance to a public or private street and that complies with the provisions of the federal Americans with Disabilities Act of 1990 and its implementing regulations.

"Residential zoning district" means any county zoning district in which detached single-family dwellings are a permitted use. "Residential zoning district" does not include any county zoning district zoned for agriculture.

"Stacked flat plexes" means a middle-housing building type that contains between 2 and 6 dwelling units, that has units arranged in vertical tiers accessible by shared or individual entrances, and that is designed to be similar in scale and massing to a detached single-family house.

(55 ILCS 5/5-47010 new)

Sec. 5-47010. Statewide middle-housing entitlements.

(a) This Section applies to every residential zoning district in every county with zoning authority under this Code.

(b) A county may not require a minimum lot area of more than 2,500 square feet for detached single-family dwellings in any residential zoning district that permits detached single-family dwellings.

(c) The following residential unit allowances are permitted on any lot located in a residential zoning district that permits detached single-family dwellings:

(1) At least one detached single-family dwelling unit is permitted as of right on any lot with an area of not more than 2,500 square feet.

(2) Up to 4 dwelling units are permitted as of right on any lot with an area of more than 2,500 square feet and not more than 7,500 square feet.

(3) Up to 6 dwelling units are permitted as of right on any lot with an area of more than 7,500 square feet, provided that the development satisfies the affordability, community land trust or shared-equity ownership, or mission-driven developer requirements in Section 5-47040, unless the county has elected by ordinance not to apply the affordability requirements under Section 5-47040.

(d) Counties may authorize unit counts or densities that exceed the allowances established in this Section but may not reduce them.

(e) Beginning June 1, 2027, the development of middle housing is authorized in accordance with the provisions of this Division. To conform to this Section, counties may adopt, by ordinance, clear and objective standards for middle housing development that govern form and placement of middle housing so long as those standards do not have the effect of prohibiting or materially impeding the development of middle housing. In any county that does not adopt specific clear and objective standards for middle housing, or adopts, enforces, or applies standards that are in violation of this Division, permits to develop middle housing shall be reviewed according to the default clear and objective standards established in Section 5-47025. County ordinances may ensure developments comply with the existing context of the neighborhood, through clear and objective standards for middle housing development, including, but not limited to, bulk, lot area, green space, height, floor-area ratio, lot coverage, access, unit size, building separation, and design. County standards may not individually or cumulatively have the effect of prohibiting or materially impeding the development of middle housing or unreasonably delaying development of the minimum dwelling unit allowances established under this Division.

(f) A county may not adopt, enforce, or apply automobile parking regulations, including regulations regarding off-street parking, that have the effect of prohibiting or materially impeding the development of middle housing. Nothing in this subsection limits the application of clear and objective standards required for emergency vehicle access, accessibility for persons with disabilities, fire and life safety code compliance, or building code compliance, provided that such standards shall not be used to impose off-street parking requirements that prohibit, materially impede, or unreasonably delay middle housing authorized under this Division.

(g) For the first 12 months after the effective date of this amendatory Act of the 104th General Assembly, counties may continue to review middle-housing permit applications under existing local standards. During this period, counties may not adopt, enforce, or apply new standards that reduce the minimum dwelling-unit entitlements set forth in subsections (b) and (c). Beginning immediately after the 12-month period, any county ordinance that conflicts with subsection (b) or (c) is void and unenforceable to the extent of the conflict. After the transition period if:

(1) a county has adopted conforming zoning standards under Section 5-47035, then the building permit applications shall be reviewed under the county's updated zoning code; and

(2) a county has not adopted conforming amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly, then the building permit applications shall be reviewed under the default clear-and-objective standards in Section 5-47025.

(h) Any residential zoning district that permits detached single-family dwellings shall also permit the dwelling unit allowance required under this Section, regardless of zoning classification or district name.

(i) Nothing in this Section shall be construed to conflict with existing residential development projects for which contracts or agreements were executed prior to the effective date of this amendatory Act of the 104th General Assembly. Projects shall not be changed to conform with the middle housing entitlements outlined in this Division, unless requested by the developer and authorized to do so by the county board of a county.

(55 ILCS 5/5-47015 new)

Sec. 5-47015. Conversion of existing residential structures.

(a) A county must allow an existing principal residential structure to be converted to any middle-housing type up to the maximum units permitted under Section 5-47010 if:

(1) the structure is not expanded by more than 50% of its existing floor area or more than 1,200 square feet, whichever is greater; and

(2) the conversion complies with applicable building codes and preservation or landmark laws.

(b) A compliant conversion is not subject to site-development standards that apply only to new construction.

(55 ILCS 5/5-47020 new)

Sec. 5-47020. Other local development and design standards.

(a) Counties may not require any form of discretionary review for middle housing developments, including, but not limited to, special use permits, planned unit developments, public hearings, or discretionary design review, unless the same review is required for detached single-family dwellings.

(b) A county may require middle housing to comply with generally applicable local health and safety, building, fire, environmental, sewer, and stormwater regulations, and may deny an application for a building permit that does not comply with such regulations. A county may not adopt, enforce, or apply such regulations in a manner that has the effect of prohibiting or materially impeding the development of middle housing, including through categorical restrictions or the imposition of standards that cannot be reasonably satisfied on a typical residential lot.

(55 ILCS 5/5-47025 new)

Sec. 5-47025. Default clear and objective standards.

(a) This Section applies in any county that fails to adopt conforming zoning amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(b) A county's minimum setbacks for dwellings shall not exceed 10 feet from the front of the dwelling; 5 feet from either side of the dwelling; 10 feet from the rear of the dwelling; or 10 feet from the corner of the corner-lot street. Counties may not impose a maximum building height of less than 35 feet. The maximum lot-coverage limit shall not be less than 60%. The maximum floor-area-ratio limit shall not be less than 1.5. The minimum separation between structures on the same lot shall not exceed 6 feet, except as required by the State Building Code.

(c) Access to a dwelling via an alley or shared driveway must be permitted. The county's maximum driveway widths must not exceed 10 feet for one-way access or 20 feet for 2-way access. No minimum street-frontage applies if access exists via an easement or alley. No more than one driveway may be required per development.

(d) Middle housing developments shall be subject to the same design standards as single-family dwellings, except as follows:

(1) Design standards for cottage clusters include the following standards:

(A) The minimum unit size shall be at least 400 square feet.

(B) Cottage clusters shall contain a common open space of at least 150 square feet per unit.

(C) Automobile parking in cottage clusters may be consolidated.

(D) Cottage clusters shall contain pedestrian paths required, as needed, for fire safety and life safety.

(2) Complexes of between 2 and 6 units may occupy the same building envelope allowed for a detached single-family dwelling under this Section. Counties may not require complexes of between 2 and 6 units to have design differentiation from single-family structures.

(3) The design standards for townhomes may not require minimum rear setbacks greater than 10 feet, except that lots with rear alley access shall not be required to have minimum rear setbacks greater than 0 feet. The design standards for townhomes shall include minimum setbacks at a common wall property line of greater than 0 feet.

(4) Existing buildings may be converted to up to 6 units of middle housing without triggering standards applicable only to new construction, other than life-safety codes. A building's existing nonconformities need not be corrected.

(e) Counties shall approve middle housing land divisions that enable fee-simple ownership, as authorized by the Plat Act, notwithstanding any local zoning ordinance pertaining to land division, subdivision, or platting. Lot-size, dimension, and frontage requirements shall not preclude the divisions of land. Shared areas may be governed by easements, covenants, or owners' associations.

(55 ILCS 5/5-47030 new)

Sec. 5-47030. Middle-housing land divisions. Counties shall approve middle-housing land divisions that enable fee-simple ownership, in accordance with the Plat Act, notwithstanding any local zoning ordinance pertaining to land division, subdivision, or platting, if the land division application demonstrates that:

(1) each lot or parcel contains at least one dwelling unit;

(2) private and common areas, access ways, and shared facilities are protected by recorded easements or agreements;

(3) the proposed middle-housing land division does not conflict with the county's building safety codes; and

(4) the middle-housing land division preserves the ability to meet applicable standards under this Division.

The middle-housing land division shall not be denied based on minimum lot-size, density, or similar standards.

(55 ILCS 5/5-47035 new)

Sec. 5-47035. County requirements.

(a) Each county must amend its zoning ordinance to conform to this Division within 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(b) If a county fails to adopt conforming amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly, then the default clear and objective standards in Section 5-47025 shall automatically apply.

(c) Any county ordinance that conflicts with this Division is void and unenforceable to the extent of the conflict beginning 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(d) During the first 12 months after the effective date of this amendatory Act of the 104th General Assembly, counties may continue to review middle-housing permit applications under existing local standards. No county may adopt, enforce, or apply new standards during this period that reduce the minimum dwelling-unit entitlements in subsection (c) of Section 5-47010.

(e) Any person or entity aggrieved by a county's action or inaction alleged to violate this Division may bring an action for declaratory or injunctive relief in a court of competent jurisdiction. If the court finds that a county has violated this Division, then the court shall award reasonable attorney's fees and costs to the prevailing plaintiff. Nothing in this subsection shall be construed to limit any other remedies available at law or in equity.

(55 ILCS 5/5-47040 new)

Sec. 5-47040. Middle income affordability.

(a) A county shall allow up to 6 dwelling units by right on a lot of more than 7,500 square feet if the development satisfies at least one of the following:

(1) at least 2 dwelling units are affordable to households earning at or below 120% of area median income or at a deeper level of affordability if required by the county;

(2) the development is owned or developed by a community land trust or shared-equity housing organization; or

(3) the development is undertaken by a mission-driven developer.

(b) An affordable unit shall remain affordable for a period established by the county. A county may require the 2 affordable dwelling units under paragraph (1) of subsection (a) to be affordable at a level deeper than 120% of area median income, provided that such requirement applies only to those 2 units and does not preclude development otherwise authorized under this Section.

(c) A county may, by ordinance, elect not to apply the affordability requirements established in subsection (a) of this Section. A county that makes such an election shall continue to allow 6 dwelling units by right on lots of more than 7,500 square feet without requiring any dwelling unit to be affordable under this Section.

(55 ILCS 5/5-47045 new)

Sec. 5-47045. Building code alternatives for starter homes and middle housing.

(a) Notwithstanding Sections 20 and 25 of the Electric Vehicle Charging Act, middle housing developments and newly constructed single-family dwellings of not more than 1,500 square feet shall be exempt from any requirement that parking spaces be constructed or designated as EV-capable, EV-ready, or equipped with electric vehicle supply equipment (EVSE).

(b) Notwithstanding any provision of the Illinois Energy Conservation Code, for a period of no more than 10 years from the effective date of this amendatory Act of the 104th General Assembly, residential developments consisting exclusively of middle housing, as defined in Section 5-47005 of the Counties Code, may, with respect to Section R402 of the Illinois Energy Conservation Code relating to building thermal envelope requirements, elect to comply with the building thermal-envelope requirements of Section R402 of the 2018 Illinois Energy Conservation Code or any Code editions subsequently adopted by the Capital Development Board, in lieu of complying with the building thermal envelope requirements of the most current Illinois Energy Conservation Code adopted by the Capital Development Board.

(55 ILCS 5/5-47050 new)

Sec. 5-47050. Associations; prohibitions. Notwithstanding any provision of this Division or other provision of law, the adoption, enforcement, or application of a bylaw or exercise of any power by the governing entity of a homeowners' association, common interest community association, or condominium unit owners' association which has the effect of prohibiting or materially impeding the development of middle housing is expressly prohibited.

(55 ILCS 5/5-47055 new)

Sec. 5-47055. Conflict. In case of any conflict between the provisions of this Division and Division 5-12, the provisions of this Division shall prevail and control.

(55 ILCS 5/5-47060 new)

Sec. 5-47060. Home rule. A home rule unit may not regulate middle housing in a manner inconsistent with this Division. This Division is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 20. The Illinois Municipal Code is amended by adding Division 13.1 as follows:

(65 ILCS 5/Art. 11 Div. 13.1 heading new)

Division 13.1. MIDDLE HOUSING

(65 ILCS 5/11-13.1-1 new)

Sec. 11-13.1-1. Purpose. The purpose of this Division is to expand housing choice, increase the supply of attainable housing, and establish uniform statewide standards for middle housing production while preserving reasonable, non-exclusionary municipal design and siting authority. Nothing in this Division shall be construed to supersede or limit any affordable requirements ordinance or any similar municipal preservation, anti-displacement, or anti-gentrification ordinance adopted prior to the effective date of this amendatory Act of the 104th General Assembly, solely with respect to a residential structure with 2 to 4 dwelling units as provided in Section 11-13.1-50.

(65 ILCS 5/11-13.1-5 new)

Sec. 11-13.1-5. Definitions. As used in this Division:

"Attached courtyard housing" means a form of middle housing consisting of 2 or more attached dwelling units arranged to face a shared common courtyard, where each unit has a primary entrance oriented toward the courtyard and the courtyard provides pedestrian access, light, air, and shared open space for the dwelling units.

"Clear and objective standard" means a standard that does not require discretionary judgment in its interpretation or application and that applies uniformly to all applicants.

"Common courtyard" means a landscaped or hardscaped area accessible to multiple dwelling units that provides pedestrian access and passive or active recreation.

"Cottage cluster" means a grouping of 3 or more detached or semi-detached dwelling units on a shared lot or parcel, arranged around common open space, and served by shared pedestrian or vehicular access.

"Detached courtyard housing" means a form of middle housing consisting of 2 or more detached dwelling units located on a shared lot or parcel and arranged to face a shared common courtyard, where each unit has a primary entrance oriented toward the courtyard and the courtyard provides pedestrian access, light, air, and shared open space for the dwelling units.

"Discretionary review" means any land-use or development approval that requires the exercise of subjective judgment by a legislative body, planning commission, zoning board of appeals, architectural review board, or similar body, including, but not limited to, special uses, conditional uses, variances, planned unit developments, or non-objective design review. "Discretionary review" does not include:

(1) ministerial building permit review for compliance with clear and objective standards;

(2) historic preservation review required solely for the demolition of a structure designated as a local, State, or national historic landmark or contributing to a local landmark district; or

(3) environmental or safety review required by State or federal law.

"Middle housing" means:

(1) duplexes;

(2) triplexes;

(3) fourplexes;

(4) cottage clusters;

(5) townhouses;

(6) attached courtyard housing;

(7) detached courtyard housing;

(8) stacked flat plexes; and

(9) single family dwellings on lots of not more than 2,500 square feet.

"Middle housing land division" means the division of land containing middle housing to allow fee-simple ownership of one or more dwelling units consistent with Section 11-13.1-30.

"Mission-driven developer" means a nonprofit corporation, public body, or entity controlled by a nonprofit corporation or public body whose primary purpose includes the development, preservation, or operation of affordable housing.

"Pedestrian path" means a walkway connecting at least one building entrance to a public or private street and the walkway complies with the provisions of the federal Americans with Disabilities Act of 1990 and its implementing regulations.

"Residential zoning district" means any municipal zoning district in which detached single-family dwellings are a permitted use. "Residential zoning district" does not include any municipal zoning district zoned for agriculture.

"Stacked flat plexes" means a middle-housing building type that contains between 2 and 6 dwelling units, that has units arranged in vertical tiers accessible by shared or individual entrances, and that is designed to be similar in scale and massing to a detached single-family house.

(65 ILCS 5/11-13.1-10 new)

Sec. 11-13.1-10. Statewide middle-housing entitlements.

(a) This Section applies to every residential zoning district in every municipality with zoning authority under this Code.

(b) A municipality may not require a minimum lot area of more than 2,500 square feet for detached single-family dwellings in any residential zoning district that permits detached single-family dwellings.

(c) The following residential unit allowances are permitted on any lot located in a residential zoning district that permits detached single-family dwellings:

(1) At least one detached single-family dwelling unit shall be permitted as of right on any lot with an area of not more than 2,500 square feet.

(2) Up to 4 dwelling units are permitted as of right on any lot with an area of more than 2,500 square feet and not more than 7,500 square feet.

(3) Up to 6 dwelling units are permitted as of right on any lot with an area of more than 7,500 square feet, provided that the development satisfies the affordability, community land trust or shared-equity ownership, or mission-driven developer requirements in Section 11-13.1-40, unless the municipality has elected by ordinance not to apply the affordability requirements in Section 11-13.1-40.

(d) Municipalities may authorize unit counts or densities that exceed the allowances established in this Section but may not reduce them.

(e) Beginning June 1, 2027, the development of middle housing is authorized in accordance with the provisions of this Division. To conform to this Section, municipalities may adopt, by ordinance, clear and objective standards for middle housing development that govern form and placement of middle housing so long as those standards do not have the effect of prohibiting or materially impeding the development of middle housing. In any municipality that does not adopt specific clear and objective standards for middle housing, or adopts, enforces, or applies standards that are in violation of this Code, permits to develop middle housing shall be reviewed according to the default clear and objective standards established in Section 11-13.1-25. Municipal ordinances may ensure developments comply with the existing context of the neighborhood, through clear and objective standards for middle housing development, including, but not limited to, bulk, lot area, green space, height, floor-area ratio, lot coverage, access, unit size, building separation, and design. Municipal standards may not individually or cumulatively have the effect of prohibiting or materially impeding the development of middle housing or unreasonably delaying development of the minimum dwelling unit allowances established under this Division.

(f) A municipality may not adopt, enforce, or apply automobile parking regulations, including regulations regarding off-street parking, that have the effect of prohibiting or materially impeding the development of middle housing. Nothing in this subsection limits the application of clear and objective standards required for emergency vehicle access, accessibility for persons with disabilities, fire and life safety code compliance, or building code compliance, provided that such standards shall not be used to impose off-street parking requirements that prohibit, materially impede or unreasonably delay middle housing authorized under this Division.

(g) For the first 12 months after the effective date of this amendatory Act of the 104th General Assembly, municipalities may continue to review middle-housing permit applications under existing local standards. During this period, municipalities may not adopt, enforce, or apply new standards that reduce the minimum dwelling-unit entitlements set forth in subsections (b) and (c). Beginning immediately after the 12-month period, any municipal ordinance that conflicts with subsection (b) or (c) is void and unenforceable to the extent of the conflict. After the transition period if:

(1) a municipality has adopted conforming zoning amendments under Section 11-13.1-35, then the building permit applications shall be reviewed under the municipality's updated zoning code; and

(2) a municipality has not adopted conforming amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly, then the building permit applications shall be reviewed under the default clear-and-objective standards in Section 11-13.1-25.

(h) Any residential zoning district that permits detached single-family dwellings shall also permit the dwelling unit allowance required under this Section, regardless of zoning classification or district name.

(i) Nothing in this Section shall be construed to conflict with existing residential development projects for which contracts or agreements were executed prior to the effective date of this amendatory Act of the 104th General Assembly. Projects shall not be changed to conform with the middle housing entitlements outlined in this Division, unless requested by the developer and authorized to do so by the corporate authorities of a municipality.

(65 ILCS 5/11-13.1-15 new)

Sec. 11-13.1-15. Conversion of existing residential structures.

(a) A municipality must allow an existing principal residential structure to be converted to any middle-housing type up to the maximum units permitted under Section 11-13.1-10 if:

(1) the structure is not expanded by more than 50% of its existing floor area or more than 1,200 square feet, whichever is greater; and

(2) the conversion complies with applicable building codes and preservation or landmark laws.

(b) A compliant conversion is not subject to site-development standards that apply only to new construction.

(65 ILCS 5/11-13.1-20 new)

Sec. 11-13.1-20. Other local development and design standards.

(a) Municipalities may not require any form of discretionary review for middle housing developments, including, but not limited to, special use permits, planned unit developments, public hearings, or discretionary design review, unless the same review is required for detached single-family dwellings.

(b) A municipality may require middle housing to comply with generally applicable local health and safety, building, fire, environmental, sewer, and stormwater regulations, and may deny an application for a building permit that does not comply with such regulations. A municipality may not adopt, enforce, or apply such regulations in a manner that has the effect of prohibiting or materially impeding the development of middle housing, including through categorical restrictions or the imposition of standards that cannot be reasonably satisfied on a typical residential lot.

(65 ILCS 5/11-13.1-25 new)

Sec. 11-13.1-25. Default clear and objective standards.

(a) This Section applies in any municipality that fails to adopt conforming zoning amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(b) A municipality's minimum setbacks for dwellings shall not exceed 10 feet from the front of the dwelling; 5 feet from either side of the dwelling; 10 feet from the rear of the dwelling; or 10 feet from the corner of the corner-lot street. Municipalities may not impose a maximum building height of less than 35 feet. The maximum lot-coverage limit shall not be less than 60%. The maximum floor-area-ratio limit shall not be less than 1.5. The minimum separation between structures on the same lot shall not exceed 6 feet, except as required by the State Building Code.

(c) Access to a dwelling via an alley or shared driveway must be permitted. The municipality's maximum driveway widths must not exceed 10 feet for one-way access or 20 feet for 2-way access. No minimum street-frontage applies if access exists via an easement or alley. No more than one driveway may be required per development.

(d) Middle housing developments shall be subject to the same design standards as single-family dwellings, except as follows:

(1) Design standards for cottage clusters include the following standards:

(A) The minimum unit size shall be at least 400 square feet.

(B) Cottage clusters shall contain a common open space of at least 150 square feet per unit.

(C) Automobile parking in cottage clusters may be consolidated.

(D) Cottage clusters shall contain pedestrian paths required, as needed, for fire safety and life safety.

(2) Complexes of between 2 and 6 units may occupy the same building envelope allowed for a detached single-family dwelling under this Section. Municipalities may not require complexes of between 2 and 6 units to have design differentiation from single-family structures.

(3) The design standards for townhomes may not require minimum rear setbacks greater than 10 feet, except that lots with rear alley access shall not be required to have minimum rear setbacks greater than 0 feet. The design standards for townhomes shall include minimum setbacks at a common wall property line of greater than 0 feet.

(4) Existing buildings may be converted to up to 6 units of middle housing without triggering standards applicable only to new construction, other than life-safety codes. A building's existing nonconformities need not be corrected.

(e) Municipalities shall approve middle housing land divisions that enable fee-simple ownership, as authorized by the Plat Act, notwithstanding any local zoning ordinance pertaining to land division, subdivision, or platting. Lot-size, dimension, and frontage requirements shall not preclude the divisions of land. Shared areas may be governed by easements, covenants, or owners' associations.

(65 ILCS 5/11-13.1-30 new)

Sec. 11-13.1-30. Middle-housing land divisions. Municipalities shall approve middle-housing land divisions that enable fee-simple ownership, in accordance with the Plat Act, notwithstanding any local zoning ordinance pertaining to land division, subdivision, or platting, if the land division application demonstrates that:

(1) each lot or parcel contains at least one dwelling unit;

(2) private and common areas, access ways, and shared facilities are protected by recorded easements or agreements;

(3) the proposed middle-housing land division does not conflict with the municipality's building safety codes; and

(4) the middle-housing land division preserves the ability to meet applicable standards under this Division.

A middle-housing land division shall not be denied based on minimum lot-size, density, or similar standards.

(65 ILCS 5/11-13.1-35 new)

Sec. 11-13.1-35. Municipality requirements.

(a) Each municipality must amend its zoning ordinance to conform to this Division within 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(b) If a municipality fails to adopt conforming amendments within 12 months after the effective date of this amendatory Act of the 104th General Assembly, then the default clear-and-objective standards in Section 11-13.1-25 shall automatically apply.

(c) Any municipal ordinance that conflicts with this Division is void and unenforceable to the extent of the conflict beginning 12 months after the effective date of this amendatory Act of the 104th General Assembly.

(d) During the first 12 months after the effective date of this amendatory Act of the 104th General Assembly, municipalities may continue to review middle-housing building permit applications under existing local standards. No municipality may adopt, enforce, or apply new standards during this period that reduce the minimum dwelling-unit entitlements in subsection (c) of Section 11-13.1-10.

(e) Any person or entity aggrieved by a municipality's action or inaction alleged to violate this Division may bring an action for declaratory or injunctive relief in a court of competent jurisdiction. If the court finds that a municipality has violated this Division, then the court shall award reasonable attorney's fees and costs to the prevailing plaintiff. Nothing in this subsection shall be construed to limit any other remedies available at law or in equity.

(65 ILCS 5/11-13.1-40 new)

Sec. 11-13.1-40. Middle income affordability.

(a) A municipality shall allow up to 6 dwelling units by right on a lot of more than 7,500 square feet if the development satisfies at least one of the following:

(1) at least 2 dwelling units are affordable to households earning at or below 120% of area median income or at a deeper level of affordability if required by the municipality;

(2) the development is owned or developed by a community land trust or shared-equity housing organization; or

(3) the development is undertaken by a mission-driven developer.

(b) An affordable unit shall remain affordable for a period established by the municipality. A municipality may require the 2 affordable dwelling units under paragraph (1) of subsection (a) to be affordable at a level deeper than 120% of area median income, provided that such requirement applies only to those 2 units and does not preclude development otherwise authorized under this Section.

(c) A municipality may, by ordinance, elect not to apply the affordability requirements established in subsection (a) of this Section. A municipality that makes such an election shall continue to allow 6 dwelling units by right on lots of more than 7,500 square feet without requiring any dwelling unit to be affordable under this Section.

(65 ILCS 5/11-13.1-45 new)

Sec. 11-13.1-45. Building code alternatives for starter homes and middle housing.

(a) Notwithstanding Sections 20 and 25 of the Electric Vehicle Charging Act, middle housing developments and newly constructed single-family dwellings of not more than 1,500 square feet shall be exempt from any requirement that parking spaces be constructed or designated as EV-capable, EV-ready, or equipped with electric vehicle supply equipment (EVSE).

(b) Notwithstanding any provision of the Illinois Energy Conservation Code, for a period of no more than 10 years from the effective date of this amendatory Act of the 104th General Assembly, residential developments consisting exclusively of middle housing, as defined in Section 11-13.1-5 of the Illinois Municipal Code, may, with respect to Section R402 of the Illinois Energy Conservation Code relating to building thermal envelope requirements, elect to comply with the building thermal envelope requirements of Section R402 of the 2018 Illinois Energy Conservation Code or any Code editions subsequently adopted by the Capital Development Board, in lieu of complying with the building thermal envelope requirements of the most current Illinois Energy Conservation Code adopted by the Capital Development Board.

(65 ILCS 5/11-13.1-50 new)

Sec. 11-13.1-50. Protection of existing small rental housing.

(a) A municipality may, by ordinance, designate an area as a protected small rental housing area. This Section applies only to development authorized under this Code on parcels located within a geographic area that has been designated by ordinance of a municipality as a protected small rental housing area. Any area currently designated as a protected area under a municipal preservation, anti-displacement, or anti-gentrification ordinance adopted prior to the effective date of this amendatory Act of the 104th General Assembly shall be automatically opted into the requirements of this Section, unless a municipality adopts an ordinance removing the designated area from this Section. Nothing in this subsection shall be construed to authorize a municipality to apply any ordinance to prohibit, condition, delay, or restrict a development authorized under this Division except with respect to a residential structure with 2 to 4 dwelling units as provided in this Section.

(b) As used in this Section:

"Preceding 3 years" means the 36-month period before the date a complete application for development is submitted.

"Protected small rental housing area" means a geographic area designated by ordinance under subsection (j) of this Section.

"Residential structure with 2 to 4 dwelling units" means a building containing 2, 3, or 4 legal dwelling units, whether attached or detached. "Residential structure with 2 to 4 dwelling units" includes buildings with nonconforming units lawfully established under prior zoning or building codes.

"Tenant" means a person entitled to occupy a dwelling unit pursuant to a lease or other agreement, whether written or oral, including a month-to-month tenancy or holdover tenancy.

"Withdrawn from the rental market" means a dwelling unit that was previously occupied by a tenant and is no longer offered for residential rental use, including through termination of tenancy, non-renewal of a lease, conversion to another use, or removal from the rental market in anticipation of redevelopment.

(c) Within a protected small rental housing area, a development authorized under this Code may not be approved on a site that contains, or contained within the preceding 3 years, a residential structure with 2 to 4 dwelling units if one or more dwelling units in the structure were:

(1) occupied by a tenant; or

(2) withdrawn from the rental market.

(d) Subsection (c) shall not apply where:

(1) demolition of the structure was initiated or mandated by the municipality or other governmental body; or

(2) the structure has been determined by a local building official to be unsafe or uninhabitable pursuant to applicable building or health codes.

(e) Subsection (c) shall not apply to a development that consists solely of additions, interior conversions, vertical expansions, or accessory structures, including accessory dwelling units, provided that the existing residential structure is retained and no existing dwelling units are removed or reduced in number.

(f) Where demolition of a structure is permitted under this Section, the redevelopment shall include no fewer dwelling units than existed on the site within the preceding 3 years.

(g) Within a protected small rental housing area, a development authorized under this Act may not reduce the number of dwelling units on a site containing a residential structure with 2 to 4 dwelling units.

(h) Nothing in this Section shall be construed to:

(1) prohibit development on vacant land that did not contain a residential structure with 2 to 4 dwelling units within the preceding 3 years;

(2) prohibit development on property that has not contained a tenant-occupied dwelling unit within the preceding 3 years; or

(3) limit the authority of a local government to enforce generally applicable health and safety regulations consistent with this Code.

(i) An applicant shall certify, under penalty of perjury, whether any dwelling units on the site were occupied by tenants or withdrawn from the rental market within the preceding 3 years. A local government may rely on such certification in determining compliance.

(j) A municipality designating a protected small rental housing area shall do so by ordinance that:

(1) identifies the geographic boundaries of the area; and

(2) includes a statement of findings demonstrating that the area is experiencing, or is at risk of experiencing, displacement of tenants or loss of a residential structure with 2 to 4 dwelling units. The findings may be based on locally determined criteria, including, but not limited to:

(A) concentrations of tenant-occupied residential structures with 2 to 4 dwelling units;

(B) recent or anticipated redevelopment activity;

(C) increases in rents or property values;

(D) designation under an Affordable Requirements Ordinance or similar preservation or anti-displacement framework; or

(E) other locally relevant indicators of housing instability or displacement risk. Designation shall be applied uniformly within the designated area and may not be applied on a parcel-by-parcel basis.

(65 ILCS 5/11-13.1-55 new)

Sec. 11-13.1-55. Associations; prohibitions. Notwithstanding any provision of this Division or other provision of law, the adoption, enforcement, or application of a bylaw or exercise of any power by the governing entity of a homeowners' association, common interest community association, or condominium unit owners' association that has the effect of prohibiting or materially impeding the development of middle housing is expressly prohibited.

(65 ILCS 5/11-13.1-60 new)

Sec. 11-13.1-60. Conflict. In case of any conflict between the provisions of this Division and Division 11-13, the provisions of this Division shall prevail and control.

(65 ILCS 5/11-13.1-65 new)

Sec. 11-13.1-65. Home rule. A home rule unit may not regulate middle housing in a manner inconsistent with this Division. This Division is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 25.The Community Land Trust Home Ownership Act is amended by changing Section 15 and by adding Section 23 as follows:

(310 ILCS 130/15)

Sec. 15. Definitions. As used in this Act:

"501(c)(3) organization" means a nonprofit organization that is exempt or qualified for exemption from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986.

"Authority" means the Illinois Housing Development Authority.

"Income-qualified household" means a household meeting the income limits established by the Authority by rule, which may vary by rental or ownership structure, geography, household size, funding source, or program purpose.

"Community land trust" means a 501(c)(3) organization governed by a board of community land trusts residents, community residents, and public representatives that provide permanent or long-term affordability and shared equity homeownership opportunities.

"Permanently affordable housing" means housing subject to a ground lease, deed restriction, covenant, regulatory agreement, resale restriction, rent restriction, or other legally enforceable affordability mechanism with a term of (i) not less than 99 years or (ii) indefinite duration.

"Steward" means to (i) ensure compliance with requirements applicable to a community land trust pursuant to this Act; (ii) adhere to a mission of permanent or long-term affordability; (iii) manage or coordinate the physical property, including operations, maintenance, repairs, reserves, and asset management; and (iv) facilitate access to or provide homeownership or rental resources and support for residents, as applicable, including, but not limited to, financial counseling and foreclosure prevention.

(Source: P.A. 104-370, eff. 8-15-25.)

(310 ILCS 130/23 new)

Sec. 23. Community Land Trust Housing Fund.

(a) Subject to appropriation, the Authority shall establish and administer a Community Land Trust Housing Fund to provide grants, forgivable loans, recoverable grants, loans, or other financial assistance to eligible community land trusts for the acquisition, rehabilitation, construction, preservation, and long-term stewardship of permanently affordable housing.

(b) Assistance from the Fund may be used for costs associated with creating, preserving, or stewarding permanently affordable housing, including, but not limited to:

(1) the acquisition of land, housing, or interests in real property;

(2) the rehabilitation, repair, construction, adaptive reuse, or preservation of housing;

(3) the predevelopment costs, due diligence, title work, legal services, architectural and engineering services, environmental review, appraisal, and other project planning costs;

(4) affordability write-downs, gap financing, or other assistance necessary to reduce rents or sale prices to levels affordable to income-qualified households;

(5) homebuyer assistance, including down payment assistance, closing cost assistance, or other assistance necessary to facilitate shared-equity homeownership;

(6) stewardship reserves, operating reserves, replacement reserves, compliance monitoring, resale administration, foreclosure prevention, resident support, and other activities necessary to preserve long-term affordability;

(7) the increase or improvement of operational and organizational capacity, including hiring personnel, developing structures of governance, and establishing policies and procedures;

(8) technical assistance and training; and

(9) the acquisition, stabilization, or disposition activities carried out in partnership with land banks, units of local government, or other eligible entities to convert vacant, abandoned, tax-delinquent, distressed, or publicly owned property into permanently affordable housing.

(c) Housing assisted under this Section shall require, on a continual basis, occupancy or rental by or resale or transfer to income-qualified households, except as otherwise permitted by administrative rule of the Authority to address foreclosure, inheritance, casualty loss, or other circumstances necessary to preserve the housing and the public investment.

(d) The Authority may prioritize projects based on one or more of the following factors if the project:

(1) creates or preserves affordable homeownership opportunities;

(2) creates or preserves affordable rental housing owned, controlled, or stewarded by a community land trust;

(3) preserves small multifamily housing, naturally occurring affordable housing, or housing at risk of loss due to rising costs, vacancy, abandonment, or conversion;

(4) makes use of vacant, abandoned, tax-delinquent, distressed, or publicly owned property;

(5) serves households at risk of displacement or households facing barriers to homeownership or stable rental housing;

(6) leverages other public, private, philanthropic, federal, local, or employer-assisted resources;

(7) expands community land trust housing capacity in underserved communities or regions of the State; or

(8) provides long-term stewardship sufficient to preserve affordability and resident stability over time.

(e) The Authority may adopt rules necessary to implement and administer this Section, including but not limited to application procedures, eligibility criteria, affordability requirements, income limits, underwriting standards, reporting requirements, stewardship standards, and compliance procedures.

(f) The Authority may collect fees and charges in connection with its administration of the Fund, including providing technical assistance in the development of permanently affordable housing, and charging and collecting reasonable fees and charges in connection with such assistance.

Section 30. The Electric Vehicle Charging Act is amended by changing Section 10 as follows:

(765 ILCS 1085/10)

Sec. 10. Applicability.

(a) For the purposes of Sections 20 and 25, this Act applies to newly constructed single-family homes and multifamily residential buildings, except middle housing developments, that have parking spaces and are constructed after the effective date of this Act. As used in this subsection, "middle housing" has the meaning given in Section 11-13.1-5 of the Illinois Municipal Code and the meaning given in Section 5-47005 of the Counties Code, as applicable.

(b) For the purposes of Sections 30 and 35, this Act applies to unit owners, tenants, landlords, and associations of both newly constructed and existing single-family homes and multifamily residential buildings that have parking spaces.

(c) The provisions of this Act do not apply to any tiny home constructed for veterans who are homeless or at risk of homelessness and in need of secure, long-term affordable housing, if that tiny home is constructed by a nonprofit organization described in Section 501(c)(3) or Section 501(c)(19) of the Internal Revenue Code of 1986 that exclusively funds and administers projects and services for veterans. Every county and municipality that has the power to issue building permits and otherwise control the construction of buildings shall require by ordinance that an applicant seeking a building permit to construct tiny homes for at-risk veterans must include with the permit application a completed and signed affidavit stating that all buildings constructed under the permit are designated for the exclusive use of qualifying veterans who are homeless or at risk of homelessness and in need of secure, long-term affordable housing. No county or municipality, including a home rule unit, shall adopt any building code or ordinance that requires EV-capable parking spaces for tiny homes constructed for the purpose of providing affordable housing for at-risk veterans as provided in this subsection. This subsection is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

As used in this subsection:

"Tiny home" means an individual, detached residential dwelling unit of no more than 800 square feet, occupying a lot either by itself or sharing a common lot with other tiny homes. "Tiny home" does not include a manufactured home as defined in the Mobile Home Landlord and Tenant Rights Act. "Tiny home" does not include a single unit in a small multifamily residence or a large multifamily residence.

"Veteran" means a person who served in and who has received an honorable or general discharge from, the United States Army, Navy, Air Force, Space Force, Marines, Coast Guard, or reserves thereof, or who served in the Army National Guard, Air National Guard, or Illinois National Guard.

(Source: P.A. 103-53, eff. 1-1-24; 103-572, eff. 1-1-24; 104-341, eff. 8-15-25.)".