Bill Text: IL HB4283 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Housing Development Act. Requires the Illinois Housing Development Authority (Authority) to establish and administer a First-Generation Homebuyer Down Payment Assistance Program to provide targeted assistance to eligible first-generation homebuyers throughout the State for the purchase of a single-family or non-commercial multi-family residence. Sets forth eligibility requirements. Permits the Authority to prioritize assistance to applicants purchasing homes in designated community priority areas, applicants with household income below 80%, and applicants purchasing homes in areas with low homeownership rates, high housing costs burdens, or limited access to affordable mortgage credit. Provides that assistance under the program shall be provided as a forgivable loan to be forgiven pro rata on a monthly basis over a 5-year period of continuous owner-occupancy. Sets forth the available loan amounts and provides that assistance funds may be used for down payments, closing costs, mortgage insurance, interest rate buydowns, or principal reduction. Permits the Authority to waive repayment in cases of documented financial hardship that is beyond the control of the homebuyer. Permits the Authority to adopt rules to implement and administer the program. Effective July 1, 2026.

Sponsorship: Partisan Bill (Democrat 11)

Status: (Introduced - Dead) 2026-05-31 - Added Co-Sponsor Rep. Lawrence "Larry" Walsh, Jr. [HB4283 Detail]

Download: Illinois-2025-HB4283-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4283 Introduced , by Rep. Michael Crawford SYNOPSIS AS INTRODUCED:
20 ILCS 3805/7.34 new
30 ILCS 105/5.1038 new
Amends the Illinois Housing Development Act. Requires the Illinois Housing Development Authority (Authority) to establish and administer a First-Generation Homebuyer Down Payment Assistance Program to provide targeted assistance to eligible first-generation homebuyers throughout the State for the purchase of a single-family or non-commercial multi-family residence. Sets forth eligibility requirements. Permits the Authority to prioritize assistance to applicants purchasing homes in designated community priority areas, applicants with household income below 80%, and applicants purchasing homes in areas with low homeownership rates, high housing costs burdens, or limited access to affordable mortgage credit. Provides that assistance under the program shall be provided as a forgivable loan to be forgiven pro rata on a monthly basis over a 5-year period of continuous owner-occupancy. Sets forth the available loan amounts and provides that assistance funds may be used for down payments, closing costs, mortgage insurance, interest rate buydowns, or principal reduction. Permits the Authority to waive repayment in cases of documented financial hardship that is beyond the control of the homebuyer. Permits the Authority to adopt rules to implement and administer the program. Effective July 1, 2026.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Housing Development Act is amended
by adding Section 7.34 as follows:
(20 ILCS 3805/7.34 new)
Sec. 7.34. First-Generation Homebuyer Down Payment
Assistance Program.
(a) The General Assembly finds that:
(1) Homeownership remains one of the strongest
pathways to long-term financial stability.
(2) First-generation buyers face additional barriers
including lack of family homeownership history, limited
intergenerational financial support, and higher upfront
cost burdens.
(3) Illinois currently offers down payment assistance
but does not have a program specifically tailored to
first-generation homebuyers.
(b) The Authority shall establish and administer a
First-Generation Homebuyer Down Payment Assistance Program.
The Authority shall use moneys in the First-Generation
Homebuyer Down Payment Assistance Fund, a special fund created
in the State treasury, and any other funds appropriated for

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this purpose, to provide targeted assistance to eligible
first-generation homebuyers throughout the State.
(c) For purposes of this Section, "eligible
first-generation homebuyer" means an individual:
(1) who has resided in Illinois for at least one year
immediately preceding his or her application for
assistance;
(2) whose household income is at or below 120% of the
area median income at the time of purchase;
(3) who meets the following criteria:
(A) has never owned a home or has not owned a home
in the last 3 years;
(B)(i) has parents or prior legal guardians who
have never owned a home, or (ii) was previously placed
in foster care, kinship care, or institutional care
prior to attaining the age of 18;
(4) if applicable, has a spouse or partner who also
meets the requirements under paragraph (3);
(5) who completes a homebuyer education course
approved by the U.S. Department of Housing and Urban
Development or the Authority; and
(6) who plans on occupying the home as a primary
residence. For purposes of this paragraph, "home" includes
any non-commercial multi-family residence.
(d) The Authority may prioritize assistance applications
from:

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(1) applicants purchasing homes in designated
community priority areas, as defined by the Authority;
(2) applicants with household income below 80% of the
area median income;
(3) applicants purchasing homes in areas with low
homeownership rates; and
(4) applicants purchasing homes in areas with high
housing costs burdens or limited access to affordable
mortgage credit.
(e) Assistance under this Section shall be provided as a
forgivable loan. Eligible first-generation homebuyers may use
assistance funds to purchase a single-family or non-commercial
multi-family residence. The Authority may provide: (i)
standard assistance that is the greater of 10% of the purchase
price of a home or $20,000 per eligible first-generation
homebuyer household; or (ii) community priority area
assistance that is the greater of 15% of the purchase price of
the home or $30,000 per eligible first-generation homebuyer
household. The amount of assistance may be adjusted for market
conditions over time at the discretion of the Authority. The
assistance may be used for down payments, closing costs,
mortgage insurance, interest-rate buydowns, or principal
reduction.
(f) A forgivable loan provided under the Section shall be
forgiven pro rata on a monthly basis over a 5-year period of
continuous owner-occupancy. The Authority, in its discretion,

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may waive repayment in cases of documented financial hardship
due to loss of income, disability, natural disaster, or some
other circumstance beyond the control of the eligible
first-generation homebuyer.
(g) The Authority shall do the following in furtherance of
its administration of the program:
(1) Establish documentation and verification processes
(including self-attestation under penalty of perjury for
parental homeownership history) and fraud prevention
measures.
(2) Conduct outreach to prospective buyers statewide.
(3) Provide multilingual information and homebuyer
workshops.
(4) Issue an annual public report, to be posted on its
official website, that provides data and information on
assistance applicants, outcomes, assistance amounts, and
home retention rates.
(h) The Authority may adopt any rules necessary to
implement and administer the program.
Section 10. The State Finance Act is amended by adding
Section 5.1038 as follows:
(30 ILCS 105/5.1038 new)
Sec. 5.1038. The First-Generation Homebuyers Down Payment
Assistance Fund.

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Section 99. Effective date. This Act takes effect July 1,
2026.