The House Counties and Townships Committee recently advanced legislation aimed at expanding housing opportunities by encouraging the conversion of underutilized commercial properties into residential units. House Bill 4835 (Representative Delgado, D-Chicago), which remains a work in progress, reflects growing interest among policymakers in addressing housing affordability challenges across Illinois.
During committee testimony, the bill’s sponsor emphasized how post-pandemic shifts in work and commerce have left many commercial buildings partially vacant, creating potential opportunities for redevelopment. The legislation seeks to build on that trend by requiring counties, municipalities, and townships to adopt ordinances that allow for adaptive reuse—converting existing commercial structures into housing—while maintaining local control over permitting and safety standards. The concept draws from national model legislation and has been implemented in states such as Hawaii.
Committee members expressed general support for exploring creative housing solutions but raised several concerns about how the proposal would function across Illinois’ diverse communities. Lawmakers highlighted that while adaptive reuse may be more viable in urban areas with access to transit and amenities—such as ongoing redevelopment discussions in downtown Chicago—it may be less suitable in rural or suburban areas where commercial zones are not designed for residential living.
A central point of discussion was the bill’s current requirement that all municipalities, counties, and certain townships adopt ordinances to facilitate adaptive reuse. Several members voiced concerns about preserving local control, particularly given the varying needs and zoning authorities across jurisdictions. Others suggested narrowing the mandate to apply only to local governments with zoning authority and allowing greater flexibility for local decision-making.
Additional considerations included the potential impact of new residential development on local taxing bodies, such as schools, parks, and libraries, as well as the importance of coordinating with regional planning organizations. Lawmakers also discussed the broader concept of “middle housing,” which aims to fill the gap between rental housing and traditional single-family homeownership.
Despite these concerns, the committee ultimately voted to advance the bill to the House floor, with the sponsor committing to continue working with stakeholders to refine the proposal. The legislation passed on a 7-4 vote and is expected to remain under active discussion as negotiations continue.
ISACo filed a witness slip in opposition to the legislation.