HB1874 amends the Illinois Property Tax Code to create a new property tax assessment reduction for property used exclusively as a community-integrated living arrangement (CILA). Beginning with taxable year 2026, eligible property would receive a reduction in equalized assessed value equal to $2,000 multiplied by the number of occupants who use the CILA as their primary residence, measured during the month with the highest occupancy in that tax year. The reduction cannot lower assessed value below zero.
The bill sets eligibility rules for both nonprofit and certain privately owned arrangements. If the CILA is not operated by a nonprofit, the property must be owned by a resident, a resident’s family member, or an LLC with a qualifying resident or family member as a member; the home must be the principal residence of at least one unrelated person; the facility must be licensed under the Community-Integrated Living Arrangements Licensure and Certification Act; and the owner may not own any other CILA. Applications would be filed during the normal county application period, and assessors could verify eligibility through application materials, inspection, questionnaires, or other reasonable methods. The bill takes effect immediately, though the tax benefit begins in 2026.
Impact
HB1874 would add a new Section 15-87 to the Property Tax Code and create a targeted property tax relief mechanism for qualifying community-integrated living arrangements. It would affect county assessors, chief county assessment officers, and owners/operators of CILAs by establishing a new assessed-value reduction tied to occupancy. The bill also incorporates the definition of CILA from the separate licensure and certification law and uses that framework to determine eligibility.
Sentiment
No committee transcript or recorded vote information was provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text, the measure appears to be a focused tax relief proposal for disability-related residential settings, suggesting a generally supportive policy rationale centered on affordability and support for community-based living arrangements.
Contention
The main potential points of contention are the scope and administration of the tax benefit. Questions could arise over whether the $2,000-per-occupant reduction is sufficient or too generous, how assessors will verify occupancy and eligibility, and whether the special rules for non-not-for-profit operators are appropriately narrow or overly restrictive. Another possible issue is the limitation that an owner may not own any other CILA, which could affect multi-site providers and create disputes over who qualifies.