Illinois Municipal League introduces alternative housing development plan, realtors strongly oppose

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SPRINGFIELD, Ill. (WAND) — Illinois mayors say they do not want state lawmakers to pass Gov. JB Pritzker’s massive housing plan because they believe it would require a one-size-fits-all approach to development. The Illinois Municipal League has introduced its own proposal that could increase housing supply and lower costs.

Municipal leaders believe lawmakers should preserve local authority to ensure housing growth aligns with infrastructure capacity, public safety and professional planning. They hope to see Illinois support middle housing projects through a new incentive fund for cities volunteering to create duplexes, triplexes, four flats and accessory dwelling units. 

The new plan also promotes adaptive reuse of existing structures and redevelopment of blighted areas.

"Allow us to make those decisions locally," said IML CEO Brad Cole. "Give us a little bit more authority to make those decisions locally, and then let’s be able to put out solutions that can actually address affordability."

This comes as Illinois has a shortage of 142,000 housing units, and experts believe the state needs to build over 225,000 units within five years to keep up with demand. The Pritzker administration said the status quo is not working.

"Today, permitting delays, inconsistent review processes and unclear or highly variable fees add cost and risk to housing development in Illinois," said Pritzker’s housing solutions director Olivia Ortega. "This ultimately shows up in higher rents and home prices."

Cole told WAND News the governor’s office is trying to block his organization from the negotiating table, but stressed lawmakers with local government experience support local control. He also said Illinois could increase funding for the local government distributive fund so municipalities can provide property tax relief.

"Get us back to full funding," Cole said. "Return us to 10% of the state income tax share and we’ll give 2% of that, the top 2% from 8% to 10%, we’ll return those dollar for dollar in property tax relief to the taxpayers."

The Illinois Realtors Association said this alternative bill raises legal questions, proposes outright price fixing and undermines the very goal of making housing more accessible. CEO Jeff Baker claimed the Municipal League is throwing a wrench into efforts that are actually moving Illinois forward.

Baker noted the IML bill could violate US antitrust laws with attempts to regulate real estate costs. Realtors also oppose provisions for rent control and changes to condo association agreements.

"With more than 80% of voters demanding action on housing costs, this proposal does the exact opposite," Baker said. "Illinois doesn’t need political distractions — We need solutions. This isn’t one of them." 

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May 4, 2026 at 07:07PM

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