Governor Pritzker Launches Statewide Effort to Promote Housing Development for Working Families

CHICAGO - Governor JB Pritzker today signed an executive order launching a statewide effort enlisting multiple state agencies to explore how Illinois can accelerate plans to expand the supply and access of housing for working families. Additionally, as part of an ongoing commitment to lower housing costs, Governor Pritzker announced the return of SmartBuy, a program providing direct monetary assistance to pay off student loan debt for those buying a home in Illinois. ​ Together, these actions seek to address the shortage of attainable homes for working families across the state, as well as overall housing shortages that affect renters and homebuyers alike.

"If we are going to build on this state's record of growth and prosperity, lower costs for Illinois' working families, and be a state that everyone can call home, we must build more housing in every Illinois community from Cairo to Chicago," said Governor Pritzker. "This announcement is just the beginning of some of the most important work we will do over the next few years-work that, if successful, can lower costs for thousands of families and lay the groundwork for decades of sustainable economic growth."

Governor Pritzker's Executive Order on Housing

The executive order creates an Illinois Director of Housing Solutions, who will add key capacity to the State and lead on the consideration of, strategic planning for, and implementation of innovative housing solutions to combat the housing crisis and increase the number of attainable, middle-class homes and rental options across the state for working Illinoisans and their families. The Director will work in close consultation with the Illinois Housing Development Authority (IHDA), the Illinois Department of Commerce and Economic Opportunity (DCEO), and other state agencies.

As Illinois has experienced unprecedented economic development under Governor Pritzker's administration, it's imperative the state address the lack of attainable housing to complement this growth in the workforce across different parts of the state. Nearly one-third of Illinois households spend more than 30% of their income on housing, the U.S. Department of Housing and Urban Development defined metric to determine whether housing is a cost burden.

Increased housing supply drives down prices, stimulates the construction industry, and expands opportunities for historically disadvantaged communities to build wealth through home ownership. This Executive Order advances the Pritzker Administration's priority that all Illinoisans should have access to attainable housing across all income levels and will build on the work of IHDA and the Illinois Office to Prevent and End Homelessness to expand State leadership in implementing solutions across the housing affordability continuum.

The directives in the executive order were informed by a report from the Governor's Ad-Hoc Missing Middle Housing Solutions Advisory Committee, a group comprised of leading housing developers, elected officials, economic development and nonprofit leaders, regional employers, and financing experts. That report - available here - focused on recommendations to increase housing supply for middle-income families, specifically targeting households in the 80-140% area median income range. The report includes innovative ideas to reduce unnecessary barriers to development, stimulate investment for housing production, and create new partnerships and technical assistance programs. The executive order is a first step in the State's ongoing efforts to expand affordable housing for middle class working families and can be viewed here.

"We're facing a housing crisis, in my district and across the state. More and more people can't afford to pay rising rents or keep up with mortgage and tax payments, and buying a first home feels out of reach for too many," said State Representative Will Guzzardi (D-Chicago). "Today's executive order is a vital step in understanding and addressing this problem. I look forward to continued partnership with the Governor's office and my colleagues in the legislature to advance holistic and transformational changes to make housing more abundant and more affordable for everyone in Illinois."

"As a non-profit Community Development Financial Institution that finances affordable housing, it was an honor to join conversations with diverse industry leaders on the Ad-Hoc Missing Middle Housing Solutions Advisory Committee," said Stacie Young, president and CEO of the Community Investment Corporation. "The group took a pragmatic approach to recommend strategies that will unlock capital and untapped resources for housing development across Illinois. I applaud Governor Pritzker for his leadership in driving concrete results."

"I was pleased to participate in the Ad Hoc Advisory Committee of diverse stakeholders that put forth recommendations for expanding middle-income housing. ​ More importantly, our work has resulted into swift action that will attract and retain talent, support local employers, and make our community stronger and more attractive to new and existing residents," said ​ Rita Ali, Mayor of Peoria.

"Illinois REALTORS® commends the Governor's commitment to housing and was proud to be a part of the Governor's Ad-Hoc Advisory Committee," said Jeff Baker, CEO of Illinois REALTORS®. "The Director of Housing Solutions and the bold ideas in the Committee's report are exactly what our state needs right now to bring housing stability to Illinois families and communities and to help more of our neighbors achieve the American Dream of homeownership."

SmartBuy Program

In line with this work, Governor Pritzker also relaunched the SmartBuy program to help bridge the financial gap that has historically prevented many young adults and families from becoming homeowners. SmartBuy offers an affordable 30-year fixed rate first mortgage with $5,000 in deferred down payment and/or closing cost assistance. In addition, the program provides up to $40,000 in student loan relief to borrowers buying a home in Illinois. Potential applicants must have at least $1,000 in student loan debt and must pay off their full remaining student loan debt balance, if more than $40,000, at closing. Partial student loan repayment is not available under SmartBuy. The program is available to both first-time and repeat homebuyers.

"Student loan debt is one of the single largest barriers delaying younger households from achieving their dream of homeownership," IHDA Executive Director Kristin Faust said. "With the average amount of student loan debt increasing every year, we know it is challenging for many to save to take their first steps towards owning their own home. Through SmartBuy, we have seen that this targeted relief can help new buyers overcome this financial burden and secure a home much earlier, allowing for a better opportunity to start building equity. We are excited to make this program available again for homebuyers as they continue to invest in their future in this great state."

This is a relaunch of the SmartBuy program following previous success. SmartBuy first launched in December 2020 and within six months, 631 individuals and families bought a new home in Illinois. IHDA was able to pay down nearly $17 million in student loan debt, equating to an average of approximately $27,000 in relief per mortgage. SmartBuy saw the average age of the homebuyer utilizing an IHDA mortgage product decrease by eight years, highlighting the impact of the program in assisting younger adults in securing their financial future. SmartBuy requirements, select network of lenders, and additional program information can be found online here. For those looking to buy a home who may not qualify for SmartBuy, IHDA also offers three separate programs offering $10,000 in down payment assistance. You can learn more about these programs at www.ihdamortgage.org.

"For a lot of people, the burden of student loan debt puts owning a home out of reach," said State Senator Mike Simmons (D-Chicago). "Buying a home preserves our communities and creates generational stability. As Senator of the 7th District, an area that faces rapid development, and thus gentrification and displacement, I am excited for the rollout of the Illinois SmartBuy program, which will provide student debt relief and down payment assistance for first-time homebuyers."

Governor Pritzker's Record to Lower Housing Costs

Governor Pritzker's administration has made increasing access to affordable housing a key focus over the last six years. Beginning in 2020, the Governor launched seven separate emergency housing programs, allocating more than $1.15 billion in rental assistance and $400 million in mortgage assistance in response to increased strain on renters and homeowners due to the COVID-19 pandemic.

The administration has also distributed hundreds of millions of dollars in state and federal housing grants, most recently announcing a $123 million award in April of 2024 to finance permanent supportive housing. Gov. Pritzker also created the Illinois Interagency Task Force on Homelessness and the "Home Illinois " plan, an interdepartmental effort to reduce Illinois homelessness to "functional zero." As part of this initiative, the Governor also hired the state's first ever Chief Homelessness Officer to lead the efforts to reduce homelessness in Illinois.

###

Public link

Please use the above public link if you want to share this noodl on another website.