* 2/18/26 - Pritzker to propose statewide zoning laws to spur homebuilding, limit local control + 2/19/26 - Cap Fax - Groups begin debating Pritzker housing proposal (Updated x2)
Buzz Sawyer
Pritzker to propose statewide zoning laws to spur homebuilding, limit local control
‘BUILD’ plan would allow more multi-unit housing, legalize granny flats
Article Summary
- JB Pritzker will propose a plan during his State of the State address to drastically limit local governments’ authority to restrict the types of structures that can be built on property zoned residential.
- Accessory dwelling units — attached or detached secondary residences such as granny flats, backyard cottages and above-garage apartments — would be legalized on all properties zoned for residential use.
- It would establish statewide timelines for inspections and reviews and allow third-party inspectors if municipalities miss deadlines.
- It includes $250 million combined for site preparation grants, middle housing development, and first-time homebuyer assistance.
This summary was written by the reporters and editors who worked on this story.
SPRINGFIELD — Gov. JB Pritzker will propose a statewide zoning law in his State of the State address on Wednesday, drastically limiting the authority local governments have to control what types of housing structures can be built on land that’s zoned residential.
Pritzker’s office says the measure will call for relaxed restrictions on the development of multi-unit housing, allowing homeowners to build “granny flats” and cutting other forms of red tape that have slowed homebuilding in recent years.
He’s also asking lawmakers to approve $250 million in capital funding for infrastructure grants aimed at knocking out “below ground costs” at sites eyed for residential development, programs to build out “middle” housing and down payment assistance for first-time homebuyers.
Middle housing describes multi-unit buildings that fall between single-family homes and larger apartment complexes. They take various forms, such as two-flats, townhomes, fourplexes and courtyard buildings.
A study published last year by the University of Illinois found that the state is about 142,000 units of housing short and would need to build 227,000 over the next five years to keep up with demand. That equals about 45,000 new homes a year — nearly double the five-year average of about 19,000 built annually between 2019 and 2024.
As a result, home prices have spiked 37% over five years while active home listings decreased 64%. At the same time, new construction permits are down 13%.
Pritzker’s plan, dubbed Building Up Illinois Developments, or BUILD, comes as Democrats in Springfield turn their focus this election year to affordability.
But unlike the last time Pritzker was on the ballot in 2022, when lawmakers approved a series of one-time tax relief measures amid sky-high inflation and surging state revenues, this proposal seeks to tackle systemic issues driving increases in the largest cost most state residents face: housing.
“All these things work together in a way that is designed to shift the narrative around whether or not Illinois is a good place to build housing,” a senior Pritzker administration official told Capitol News Illinois of the plan. “And the answer right now is ‘no,’ and we would like the answer to be ‘yes,’ and that is what we’re doing here.”
More middle housing
Pritzker’s office says the plan includes a tiered framework to permit multi-unit housing by right in all but the smallest lots zoned for residential use. Local zoning boards would no longer be allowed to prohibit property owners from building multi-unit housing on residential lots exceeding 2,500 square feet.
It would be on a sliding scale, with lots smaller than 2,500 square feet limited by right to single-unit housing. Lots between 2,500 and 5,000 square feet could hold up to four units; those between 5,000 and 7,500 square feet up to six units; and lots larger than 7,500 square feet up to eight units. The plan would also bar municipalities from requiring minimum lot sizes greater than 2,500 square feet for detached single-family homes.
However, Pritzker will need approval from the General Assembly. And the governor’s office said specific lot-size thresholds and units allowed within them will ultimately be subject to negotiations with the state legislature.
More straightforward, accessory dwelling units — attached or detached secondary residences such as granny flats, backyard cottages and above-garage apartments — would be legalized on all properties zoned for residential use. The city of Chicago moved last year to relax its 60-year ban on granny flats. And legislation was filed in Springfield last year to ban local governments from prohibiting the units. But it has not moved.
Property owners would still have to meet permitting and building inspection requirements. And local governing bodies would retain control of overall zoning classifications.
Still, the effort is likely to be met with stiff pushback from municipalities, townships and counties over its preemption of more exclusionary residential zoning requirements.
Cutting red tape
Pritzker’s office says the plan will also include yet-to-be-specified statewide timelines for housing permit reviews and inspections.
If local governments do not complete an inspection or review within a certain number of days, the applicant would be able to use a qualified third-party firm to do it. All state and local requirements would still apply.
Impact fee practices would be standardized and building codes “modernized” under the plan. And it would prohibit minimum parking requirements on middle housing and exempt affordable developments from municipal parking requirements.
Pritzker administration officials say this “patchwork of local barriers” impedes the development of housing and has driven up costs statewide, and a statewide solution is needed to spur development.
“We have municipalities that are going above and beyond now, but if it’s one out of hundreds, it’s not attracting the capital, and they’re unable to get housing built there because it’s such a piecemeal approach,” the Pritzker administration official said. “So that’s really the point of the statewide approach here.”
$250 million in funding
Pritzker is also proposing putting state money toward the effort — pulling from infrastructure-related revenue sources rather than the cash-strapped General Revenue Fund.
On the capital side, $100 million would be set aside through an Illinois Department of Commerce and Economic Development grant program for sewer, stormwater, utility and other site prep work. Pritzker officials said this infrastructure work is often difficult for developers to finance and often sinks projects before they even launch. It is modeled after a DCEO site readiness program for land eyed for industrial development.
Another $100 million through the Illinois Housing Development Authority is earmarked for middle housing development. The funds will be made available to private and nonprofit affordable housing developers.
And $50 million would be split between the existing Opening Doors program, which provides $6,000 loans for down payment and closing cost assistance to those who have historically faced institutional barriers to home ownership; and the SmartBuy program, which helps people overcome student loan debt barriers to home ownership. The programs have served 12,000 and 1,100 homebuyers, respectively, since 2020.
Housing long an issue
In 2024, an ad-hoc committee convened by Pritzker concluded in a report that the state needed to take a coordinated, multi-pronged approach to address the shortage of housing for middle-income households. Many of the proposed solutions are part of the package.
Later that year, Pritzker signed an executive order directing state agencies to explore ways Illinois could accelerate plans to expand supply and access to housing.
The proposal, both statutory changes and capital spending, will require legislative approval.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Thursday, Feb 19, 2026 - Posted by Rich Miller
Unlock existing housing potential in communities across Illinois:
• Legalize a wider range of family friendly housing types (duplexes, triplexes, four-flats, etc.) statewide, expanding access to homes families can afford.
• Allow homeowners to boost their income and increase housing supply by allowing them to add Accessory Dwelling Units (ADUs, like granny flats, backyard cottages, or above-garage apartments) to existing property.
• Let developers build more housing with fewer and more sensible parking space requirements.Cut red tape to build housing faster and more economical:
• Streamline the permitting process to give developers clear, predictable timelines for housing permit reviews and inspections
• Allow developers to use a qualified third-party who follows all applicable local and state standards to sign off on permits when local delays occur – relieving pressure for local governments.
• Standardize impact fee practices, which increase predictability for developers while preserving local decision-making.
• Modernize outdated building codes to maintain resident safety, free up space for more housing, and drive down costs$250 Million in capital investment and grants to spur development and support homeownership:
• $150 million administered by the Illinois Housing Development Authority (IHDA):
o $100 million: Capital funding to support middle housing construction.
o $50 million: Down payment assistance for first-time homebuyers.• $100 million administered by the Illinois Department of Commerce and Economic Opportunity (DCEO): Capital grant funding for municipalities to remove upfront infrastructure barriers that hinder viable housing projects, for example, funding for stormwater improvements, sewer, and site access improvements.
On to yesterday’s react from major organizations.
* Abundant Housing Illinois…
Today, Governor JB Pritzker proposed new state housing legislation in his State of the State address, promising to lift outdated zoning rules that limit affordable home options. The proposed legislation would create clear and consistent statewide standards for building the homes needed to address Illinois’ current housing shortage and affordability crisis.
“Families across Illinois are struggling to find homes they can afford, and this statewide crisis demands a statewide solution,” said Ben Wolfenstein, Director of State Policy for YIMBY Illinois, a statewide organization advocating for more affordable and abundant homes. “For too long, municipalities have exploited byzantine zoning regulations to exclude all but the wealthiest homeowners. This new legislation will level the playing field and ensure that families and workers can find more affordable options, like modest townhomes or coach houses, in the communities of their choosing.”
In his speech, Governor Pritzker said, “The problem is clear, rent is too high, and homeownership is too far out of reach. The cause is clear, too: we are not building enough homes fast enough.” YIMBY Illinois agrees. The Governor’s proposal will cut red tape and encourage construction of more homes for working families with measures that:
• Prohibit local governments from banning modest home types. Currently, many neighborhoods ban smaller homes that are inherently more affordable, like coach houses (also known as “accessory dwelling units”), two-flats or three-flats, and instead only allow massive “McMansions” that regular working people can’t afford.
• Cut red tape and reduce convoluted approval processes that slow home building and raise the cost of housing. Currently, unnecessary bureaucracy and discretionary approvals force local home builders to jump through hoops and pay fees that delay or drive up the costs for new homes, even preventing homes from being built at all.“Some cities are fighting these changes, but we can’t let a vocal minority pull up the ladder behind them and deny our communities the housing we urgently need,” Wolfenstein added. “Many of the municipalities criticizing this legislation already refuse to comply with the state’s Affordable Housing Planning and Appeals Act and continue to oppose any policy that could open their wealthy, exclusive communities to more neighbors. We can’t afford to let a broken status quo dictate our state’s future—it’s time for bold action to address the housing shortage.”
* Illinois Municipal League…
Governor JB Pritzker’s proposal in today’s State of the State Address includes provisions establishing statewide zoning standards, including minimum lot sizes, increased residential density allowances, legalization of accessory dwelling units, limitations on parking requirements and changes affecting local development review and inspection processes. These proposals also reference the creation of a statewide formula related to impact fees.
IML recognizes that housing costs and supply challenges are impacting communities and municipal leaders share the goal of expanding housing opportunities for all. While the proposed capital investment in housing and municipal infrastructure are both necessary and appreciated, the regulatory infringements represent a significant shift in longstanding local zoning and land use authority based on the unique needs, capacity and priorities of individual communities.
“This is a broad preemption of authority on an issue that is entirely local,” said IML Chief Executive Officer Brad Cole. “Promoting positive local development builds good communities. Zoning and land use decisions are best made locally by the leaders elected in those communities. To the extent there are concerns, rightfully, is an issue with the cost or availability of housing in Illinois, the issue is not caused by comprehensive planning and local zoning. This is another example of where one-size-fits-all statewide mandates are unworkable and will damage communities.”
Illinois communities vary widely in geography, population density, infrastructure capacity and housing demand. Uniform statewide standards cannot adequately reflect those differences or the planning efforts underway or completed in many municipalities.
Local officials look forward to reviewing the full legislative language of any proposals and engaging with the Governor’s Office and members of the General Assembly to ensure that reforms balance statewide policy goals with the preservation of local authority for land use and zoning.
* Illinois Realtors…
“For the past six years, our members have been the leading voice at the Capitol and in local city and village halls advocating for common-sense solutions to our state’s housing crisis,” said Illinois REALTORS CEO Jeff Baker. “We are pleased to see the Governor embrace the roadmap we have proposed—specifically the expansion of ADUs and zoning flexibility for ‘missing middle’ housing.”
The measures highlighted in today’s state budget address mirror the core pillars of Illinois REALTORS’ legislative platform since 2020. Since then, Illinois REALTORS has met with hundreds of local and state officials to discuss these initiatives. In 2024, Baker served on the Governor’s Ad-Hoc Missing Middle Housing Solutions Advisory Committee.
In December 2024, Baker spoke at the Governor’s announcement of the housing solutions reporter and reminded everyone that this is about strengthening Illinois’ housing economy for all Illinois families. “Our state’s housing shortage destabilizes families and communities. It doesn’t just prevent us from realizing the American Dream of homeownership, it drives some of out the housing market all together.”
Jeff Kolbus, Illinois REALTORS Board President added: “While we have been proposing these measures for years, having the Governor’s support is a significant turning point. We look forward to working alongside the administration and the legislature to ensure these association-backed priorities become law.
Illinois REALTORS is a voluntary trade association whose over 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
(W)e cannot build our way out of the housing affordability crisis. Even the governor made a distinction in his proposal to reduce barriers to development that it was separate from addressing affordable housing, and rightly so. Just building supply is not enough. A third of all Illinoisans and half of all Chicagoans are rent-burdened, paying more than 30% of their income in rent. We must do all we can to make at least half of all housing created be affordable if we’re to catch up. Just building more luxury housing isn’t a solution.
* Chicagoland Apartment Association…
At a time when affordability is a top priority, the Chicagoland Apartment Association strongly supports efforts that address the root causes of Illinois’ housing affordability challenges. Governor Pritzker’s Building Up Illinois Developments (BUILD Illinois) proposal represents a meaningful step toward modernizing our state’s housing policy framework. By streamlining zoning restrictions, allowing for greater development, reducing barriers such as lengthy permitting timelines, and investing in infrastructure, BUILD Illinois moves the conversation toward practical, long-term solutions that expand housing supply. Encouraging the development of accessory dwelling units (ADUs), multifamily and other middle housing options will help meet demand across a range of income levels while strengthening neighborhoods and supporting economic growth. Strategic capital investments through infrastructure grants and housing development programs will further reduce financial barriers that often prevent projects from moving forward.
Republican gubernatorial candidate Ted Dabrowski answered a question about the proposal yesterday. I wanted to use it, but the BlueRoomStream video has since been deleted.
Anyway, discuss.
…Adding… I was able to obtain video of Dabrowski’s presser. His response…
I’d be very, very cautious about that bill and absolutely oppose it. What we don’t need is more centralization. I don’t like how much power Springfield has in Illinois. They have way too much power. We’re seeing this the same kind of problem with the solar panels being built on farms and counties not having any any voice. We cannot give Springfield even more power to put all kinds of housing wherever. So I would strongly oppose that. We’ve got a mess. We’ve spent already tons of money on affordable housing, all kinds of subsidies, all kinds of efforts to do that. And I think all it could do is if we give more power to the state and strip the power from local authorities, that would be bad deal.
…Adding… Darren Bailey was asked yesterday about the proposal…
Well, I think it sounds great, but it’s a little too late. We continue with the same rhetoric year in and year out, why hasn’t something been done before today?
17 Comments »
|