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IL HB5457

IL HB5457
HOME COST REDUCTION ACT


summary

Introduced
02/06/2026
In Committee
02/13/2026
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Creates the Home Construction Cost Reduction Act. Provides that the Act shall only apply to single-family homes. Provides that municipalities may not prohibit factory-built, single-family homes that comply with (1) a national building safety code; (2) rules adopted by State agencies that satisfy the requirements of the Act; and (3) all local architectural, aesthetic, and design standards applicable to site-built homes in the same district. Provides that a State agency may not impose requirements on home construction that are inconsistent with any national building safety code unless the State agency provides (i) a housing cost impact statement; (ii) a compelling public safety concern that would be addressed by the additional requirements; and (iii) notice to the General Assembly in the manner specified in the Act. Provides that each housing cost impact statement shall include (1) an estimate, in dollars, of how the proposed rule would increase the cost to construct a single-family home or factory-built home; (2) an estimate of how the proposed rule would increase the time required to construct a single-family home or factory-built home; (3) a description of how the proposed rule deviates from national building safety codes; (4) whether a lower-cost compliance alternative to the proposed rule exists; and (5) whether the requirements of the proposed rule would disproportionately affect rural or low-income homebuyers. Provides that a rule adopted after the effective date of the Act without a housing cost impact statement is void. Provides that, if a State agency fails to approve or deny a construction-related permit within 45 days, then the permit is deemed approved. Provides that the State shall waive all State-level permitting, inspection, and plan review fees for the construction of starter homes. Provides that a State agency may not increase any permitting, inspection, or plan review fee applicable to the construction of single-family homes for 5 years following the effective date of the Act. Provides that, on or before January 31 of each year, the Department of Commerce and Economic Opportunity shall submit a written report containing specified information to the General Assembly. Provides that the Act is repealed 5 years after the effective date of the Act. Effective immediately.

AI Summary

This bill, the Home Construction Cost Reduction Act, aims to lower the cost of building single-family homes by streamlining regulations and providing financial incentives. It prohibits municipalities from blocking factory-built homes, which are defined as modular, manufactured, or panelized homes that meet national safety standards, as long as they also comply with local architectural and design rules. State agencies are restricted from imposing construction requirements that go beyond established national building safety codes, such as the International Residential Code, unless they first provide a "housing cost impact statement" detailing the estimated increase in construction costs and time, any deviations from national codes, available lower-cost alternatives, and potential disproportionate effects on rural or low-income buyers, and demonstrate a compelling public safety concern. Furthermore, permits must be approved or denied within 45 days, or they are automatically considered approved, and all state-level permitting, inspection, and plan review fees for "starter homes" (single-family homes up to 1,600 square feet) will be waived, with no increases to other single-family home construction fees for five years. The Act also requires an annual report to the General Assembly on its impact and will be repealed five years after its effective date.

Sponsors (1)

Last Action

Referred to Rules Committee (on 02/13/2026)

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