SB3931 104TH GENERAL ASSEMBLY

LRB104 20741 HLH 34244 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3931

Introduced 2/6/2026, by Sen. Paul Faraci

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
20 ILCS 1305/1-105 new
35 ILCS 200/31-10
35 ILCS 200/31-15
35 ILCS 200/31-35

Amends the State Finance Act. Creates the Community Housing Reintegration Fund. Provides that moneys in the Fund may be used to provide housing-related costs for eligible persons who are either (i) transitioning out of congregate long-term care settings into less restrictive independent and community-based housing or (ii) facing impending placement in a congregate long-term care facility due to lack of affordable accessible housing. Amends the Property Tax Code. Increases the real estate transfer tax from $0.50 per $500 of valuation to $0.75 per $500 in valuation. Provides that a portion of the proceeds from the real estate transfer tax shall be deposited into the Community Housing Reintegration Fund. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Community Reintegration Housing Fund.

Section 10. The Department of Human Services Act is amended by adding Section 1-105 as follows:

(20 ILCS 1305/1-105 new)

Sec. 1-105. The Community Reintegration Housing Fund.

(a) There is hereby created the Community Housing Reintegration Fund as a special fund in the State treasury. The Fund shall be administered by the Department of Human Services or other entity designated by the Governor. The purpose of the Fund is to better implement the United States Supreme Court decision in Olmstead v. L. C., 527 U.S. 581 (1999), reduce institutionalization of persons needing long-term care, and rebalance the long-term care system toward home-based and community-based services by providing ongoing housing assistance to eligible persons who are either (i) transitioning out of congregate long-term care settings into less restrictive independent and community-based housing or (ii) facing impending placement in a congregate long-term care facility due to lack of affordable accessible housing. Moneys in the Fund may be used only for housing-related costs.

(b) There shall be deposited into the Fund such amounts as may become available under this Act, including, but not limited to:

(1) amounts as provided in Section 31-35 of the Real Estate Transfer Tax Law;

(2) any appropriations, grants, gifts, or other aid from any federal or State body, local government, or any other public organization or private individual made to the Fund; or

(3) other funds as appropriated by the General Assembly.

(c) Persons eligible for housing assistance benefits from the Community Reintegration Housing Fund include:

(1) persons in a long-term care facility for whom lack of appropriate affordable housing is a primary barrier to transitioning into a less restrictive community environment; or

(2) persons who are facing impending placement in a long-term care facility and who are at or below 80% of the median area income and are (i) disabled, blind, or over age 65 or (ii) otherwise eligible for benefits under the Title XVI of the Social Security Act, 42 U.S.C. 1381 et seq., or Title XIX 42 U.S.C. 1396 et seq.

(d) Within 6 months after the effective date of this amendatory Act of the 104th General Assembly, in consultation with the Illinois Long Term Care Ombudsman, the designated State Protection and Advocacy agency, and the Department of Healthcare and Family Services, the Department of Human Services shall adopt rules and procedures for the administration of the Fund. The Fund's housing assistance shall be similar to the federal Section 8 Housing Choice Voucher program in that assistance payments shall be structured to ensure that beneficiaries pay no more than 30% of their income as housing costs and that beneficiaries may relocate to a different residence that meets program rules without losing housing benefits.

(d) As used in this Section:

"Facility" means a nursing home, state operated developmental center, group home, or supportive living facility.

Section 15. The Property Tax Code is amended by changing Sections 31-10, 31-15, and 31-35 as follows:

(35 ILCS 200/31-10)

Sec. 31-10. Imposition of tax. A tax is imposed on the privilege of transferring title to real estate located in Illinois, on the privilege of transferring a beneficial interest in real property located in Illinois, and on the privilege of transferring a controlling interest in a real estate entity owning property located in Illinois. Before July 1, 2026, the tax shall be imposed , at the rate of 50¢ for each $500 of value or fraction of $500 stated in the declaration required by Section 31-25. On and after July 1, 2026, the tax shall be imposed at the rate of $0.75 for each $500 of value or fraction of $500 stated in the declaration required by Section 31-25. If, however, the transferring document states that the real estate, beneficial interest, or controlling interest is transferred subject to a mortgage, the amount of the mortgage remaining outstanding at the time of transfer shall not be included in the basis of computing the tax. The tax is due if the transfer is made by one or more related transactions or involves one or more persons or entities and whether or not a document is recorded.

(Source: P.A. 93-657, eff. 6-1-04; 93-1099, eff. 6-1-05.)

(35 ILCS 200/31-15)

Sec. 31-15. Collection of tax.

(a) Paper revenue stamps. The tax shall be collected by the recorder or registrar of titles of the county in which the property is situated through the sale of revenue stamps, the design, denominations and form of which shall be prescribed by the Department. The revenue stamps shall be sold by the Department to the recorder or registrar of titles who shall cause them to be sold for the purposes prescribed. Before July 1, 2026, the The Department shall charge at a rate of 50¢ per $500 of value in units of not less than $500. On and after July 1, 2026, the Department shall charge at a rate of 50¢ per $500 of value in units of not less than $500. The recorder or registrar of titles of the several counties shall sell the revenue stamps at a rate of 50¢ per $500 of value or fraction of $500. The recorder or registrar of titles may use the proceeds for the purchase of revenue stamps from the Department. The Department must establish a system to allow the recorder or registrar of titles to purchase the revenue stamps electronically and must deliver the electronically purchased stamps to the recorder or registrar of titles. Paper revenue stamps shall be phased out by December 31, 2025. Thereafter, all counties shall issue electronic revenue stamps or alternative indicia.

(b) Electronic revenue stamp or alternative indicia. If the recorder or registrar of titles uses an electronic revenue stamp or alternative indicia, the recorder or registrar of titles shall electronically file a return using an electronic system required by the Department and electronically remit the tax to the Department via a debit payment or ACH credit on or before the 10th day of the month following the month in which the tax was required to be collected. The return shall disclose the tax collected and other information that the Department may reasonably require. The return shall be filed using an electronic format prescribed by the Department through the MyDec system or another electronic system used by the Department.

(c) The recordation of all transactions involving the sale of property shall require the activity to be transmitted to the Department through the use of the Department's electronic system, whether paper revenue stamps, electronic revenue stamps, or alternative indicia is employed.

If a return is not filed or the tax is not fully paid as required under this Section within 15 days of the required time period, the Department may eliminate the recorder or registrar of titles' ability to electronically file its returns and electronically remit the tax until such time as the recorder or registrar of titles fully remits the return and tax amount due.

(Source: P.A. 103-963, eff. 8-9-24.)

(35 ILCS 200/31-35)

Sec. 31-35. Deposit of tax revenue.

(a) Beginning on June 6, 2002 (the effective date of Public Act 92-536) and through June 30, 2003, of the moneys collected under Section 31-15, 50% shall be deposited into the Illinois Affordable Housing Trust Fund, 20% into the Open Space Lands Acquisition and Development Fund, 5% into the Natural Areas Acquisition Fund, and 25% into the General Revenue Fund.

(b) Beginning July 1, 2003, and through June 30, 2025, of the moneys collected under Section 31-15, 50% shall be deposited into the Illinois Affordable Housing Trust Fund, 35% into the Open Space Lands Acquisition and Development Fund, and 15% into the Natural Areas Acquisition Fund.

(c) Beginning July 1, 2025 and through June 30, 2026, of the moneys collected under Section 31-15, the first $300,000 shall be deposited into the Governor's Administrative Fund each fiscal year. After all required deposits into the Governor's Administrative Fund have been made, the remainder shall be deposited as follows:

(1) 50% into the Illinois Affordable Housing Trust Fund;

(2) 35% into the Open Space Lands Acquisition and Development Fund; and

(3) 15% into the Natural Areas Acquisition Fund.

(d) Beginning July 1, 2026, of the moneys collected under Section 31-15, the first $300,000 shall be deposited into the Governor's Administrative Fund each fiscal year. After all required deposits into the Governor's Administrative Fund have been made, the remainder shall be deposited as follows:

(1) 34% into the Illinois Affordable Housing Trust Fund;

(2) 24% into the Open Space Lands Acquisition and Development Fund;

(3) 10% into the Natural Areas Acquisition Fund; and

(4) 32% into the Community Reintegration Housing Fund.

(Source: P.A. 104-2, eff. 6-16-25.)

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