PEORIA (25News Now) – As part of his affordability plan for Illinois, Gov. JB Pritzker is proposing a plan aimed at expanding affordable housing across the state by reducing building barriers, increasing supply and lowering construction costs.

According to the governor’s office, Illinois is short about 142,000 housing units and will need to build more than 225,000 units in the next five years to keep up with demand. The Building Up Illinois Developments (BUILD) proposal aims to accelerate home construction through legislative reform, targeted capital investments and new financial tools.

Developer demand to build is high, according to Pritzker, but obstacles such as local building restrictions can slow development.

The proposal includes $250 million in capital investment and grants to spur development, streamline permitting processes and legalize a wider range of family housing types.

Of that funding, $150 million would come through the Illinois Housing Development Authority. About $100 million would support middle housing construction, while the remaining funding would go toward down payment assistance for first-time homebuyers.

Joe Dulin, the director of community development for the City of Peoria, said the city welcomes additional attention to housing issues but believed some decisions should remain at the local level.

“It creates some things that we think are best in the hands of local control,” Dulin said. “At the local level we can ensure that we get community engagement and ensure that the neighborhood supports it.”

Another $100 million would be administered by the Illinois Department of Commerce and Economic Opportunity through grants to municipalities to help remove infrastructure barriers to housing development.

According to the governor’s office, those barriers can include stormwater improvements, sewer access and site development costs.

The proposal would also streamline housing permits by allowing developers to use qualified third parties to approve permits, standardizing permit fees and modernizing building codes.

“Purchasing a home is such a big investment for a lot of people,” Dulin said. “When they make that purchase, it’s not just ‘I’m going to choose where to live.’ They put a lot of thought into it based on the characteristics of the neighborhood.”

Peoria’s historic neighborhoods, Dulin said, are part of the city’s identity.

“That’s one of the luxuries that Peoria has,” he said. “In a lot of our older neighborhoods there is so much character, uniqueness and historical buildings, and we want to make sure nothing at the state level changes that or prevents us from maintaining that moving forward.”

State officials said housing supply has tightened in recent years. According to the governor’s office, home listings in Illinois have dropped 64% in the past five years, while new construction permits have fallen by 13%.

Dulin noted that housing challenges in the city differ from those in larger metropolitan areas in northern Illinois.

“We get a little apprehensive when you try to take away that kind of local control,” Dulin said. “Sometimes when you apply blanket regulations for the entire state, you’re not able to connect with engagement at the neighborhood level. Our neighborhoods bring valuable perspectives about what they want in their communities.”

Part of the proposal would legalize a broader range of housing types statewide, including duplexes, triplexes and four-flats.

Currently, the city of Peoria follows the 2018 International Building Code, Residential Code, Energy Conservation Code, Existing Building Code, Mechanical Code, Fuel Gas Code and Property Maintenance Code.

Dulin said 45 homes were built in Peoria through private developers in 2025, roughly in line with recent averages.

The governor’s proposal would also allow homeowners to add accessory dwelling units, such as backyard cottages, garage apartments or “granny flats,” to existing properties.

In addition, the proposal would allow developers to build housing with fewer parking space requirements. Current Peoria code requires a minimum of 1.5 parking spaces per unit for multifamily housing.

The Peoria Area Association of REALTORS expressed support for the proposal.

“The Peoria Area Association of REALTORS is excited and optimistic regarding Governor Pritzker embracing the challenges of homeownership and housing throughout the state of Illinois,” the organization said in a statement to 25News. “We are dedicated to working with local communities and government officials to strengthen housing opportunities in our region.”

The governor’s proposal still requires approval from the Illinois legislature.

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