MUNI CD-IMPACT MITIGATION FEES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4062

Introduced 2/19/2026, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:

65 ILCS 5/Art. 11 Div. 12.2 heading new
65 ILCS 5/11-12.2-1 new
65 ILCS 5/11-12.2-5 new
65 ILCS 5/11-12.2-10 new
65 ILCS 5/11-12.2-15 new
65 ILCS 5/11-12.2-20 new
65 ILCS 5/11-12.2-30 new
65 ILCS 5/11-12.2-40 new
65 ILCS 5/11-12.2-45 new
65 ILCS 5/11-12.2-50 new
65 ILCS 5/11-12.2-55 new
65 ILCS 5/11-12.2-60 new
65 ILCS 5/11-12.2-65 new

Amends the Illinois Municipal Code. Provides that municipalities
authorized to levy impact fees must calculate fees using the statewide
formula structure issued by the Department of Commerce and Economic
Opportunity. Provides that municipalities may adopt fees lower than the
formula-derived levels. Provides that the Department shall issue, update
annually, and make publicly available specified mandatory information to
be used in the calculation of standardized impact mitigation fees.
Provides that the Department shall issue a model impact fee ordinance that
municipalities authorized to levy impact fees must adopt verbatim or with
only technical deviations. Provides that each municipality authorized to
levy impact fees must, before imposing any fee, publish a schedule
identifying: (1) the formula-generated maximum fee per unit type; (2) the
State-issued multipliers and assumptions used; (3) any allowable municipal
adjustment factors applied; and (4) any municipal reductions adopted.
Provides that municipalities authorized to levy impact fees must annually
report to the Department, including: (1) fees collected; (2) fund
expenditures; (3) fund balances; (4) number and type of housing units
approved; and (5) any use of adjustment factors. Requires the Department
to adopt rules to implement the provisions. Provides that, beginning 30
months after the effective date of the amendatory Act, any impact fee
imposed on residential development must be calculated in accordance with
the provisions. Limits home rule powers. Effective immediately.
LRB104 20892 RTM 34566 b

A BILL FOR

SB4062
LRB104 20892 RTM 34566 b
1

AN ACT concerning local government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Municipal Code is amended by
5
adding Article Division 12.2 as follows:

6

(65 ILCS 5/Art. 11 Div. 12.2 heading new)
7
DIVISION 12.2.

IMPACT MITIGATION FEES

8

(65 ILCS 5/11-12.2-1 new)
9

Sec. 11-12.2-1.
Legislative findings and purpose.
10

(a) The General Assembly finds that:
11

(1) Illinois communities require predictable,
12

evidence-based standards to ensure that new development
13

contributes fairly to public services, infrastructure,
14

schools, parks, and other essential facilities.
15

(2) Existing State laws authorize land dedication or
16

fees instead of land dedication but lack uniform,
17

transparent formulas that reflect the true impacts of
18

residential development.
19

(3) The absence of standardized methodologies results
20

in inconsistent practices, prolonged negotiations, and
21

uncertainty for developers and units of local governments.
22

(4) Establishing statewide formulas for calculating

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LRB104 20892 RTM 34566 b
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impact mitigation fees will create fairness, increase
2

certainty, and streamline housing production statewide.
3

(b) The purpose of this Division is to ensure that impact
4
fees imposed by municipalities in this State are predictable,
5
proportionate, transparent, and supportive of housing
6
production, including missing middle housing. This Act
7
establishes statewide model impact-fee formulas and
8
demographic multipliers and requires municipal use of these
9
formulas when imposing impact fees on residential development.

10

(65 ILCS 5/11-12.2-5 new)
11

Sec. 11-12.2-5.
Definitions.
As used in this Division:
12

"Residential development" means construction, conversion,
13
or placement of new housing units, including single-family
14
homes, multifamily dwellings, and middle housing.
15

"Standardized impact mitigation fee" means a fee
16
calculated using the formulas established under this Division
17
to mitigate the measurable impacts of residential development.

18

(65 ILCS 5/11-12.2-10 new)
19

Sec. 11-12.2-10.
Applicability.
20

(a) The formulas established in this Division apply only
21
to municipalities authorized to levy impact fees.
22

(b) Municipalities may not impose impact fees based on any
23
methodology other than the formulas in this Division, unless
24
expressly allowed in Section 11-12.2-40.

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LRB104 20892 RTM 34566 b
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(c) Municipalities may adopt fees lower than the
2
formula-derived levels but may not exceed formula-based
3
maximums.
4

(d) Nothing in this Division confers new authority upon
5
non-home rule municipalities.

6

(65 ILCS 5/11-12.2-15 new)
7

Sec. 11-12.2-15.
Mandatory statewide formulas.
8

(a) Municipalities authorized to levy impact fees must
9
calculate fees using the statewide formula structure issued by
10
the Department of Commerce and Economic Opportunity, which
11
shall cover:
12

(1) school impact mitigation;
13

(2) parks and open space;
14

(3) transportation;
15

(4) public safety; and
16

(5) stormwater and other public facilities.
17

(b) The formulas shall incorporate the State-issued
18
components under Section 11-12.2-20, including:
19

(1) standardized demand multipliers;
20

(2) baseline capital cost tables;
21

(3) model worksheets and formula templates;
22

(4) allowable adjustment factors; and
23

(5) model ordinance requirements.
24

(c) Municipalities must use the State-issued model
25
worksheet or digital calculator to generate their fee

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schedules. No alternative calculation method may be used.
2

(d) Middle housing must receive fee adjustments based on
3
State-established multipliers that reflect lower average
4
household size and lower per-unit service demand.

5

(65 ILCS 5/11-12.2-20 new)
6

Sec. 11-12.2-20.
State-issued formula components.
The
7
Department of Commerce and Economic Opportunity shall issue,
8
update annually, and make publicly available the following
9
mandatory information to be used in the calculation of
10
standardized impact mitigation fees:
11

(1) Multipliers estimating service demand by housing
12

type, including, but not limited to:
13

(A) student-generation rates;
14

(B) household population multipliers;
15

(C) peak-hour trip generation;
16

(D) public safety service load factors; and
17

(E) stormwater or utility demand coefficients.
18

The multipliers under this paragraph replace all
19

municipal multipliers unless the Department of Commerce
20

and Economic Opportunity authorizes a documented
21

variation.
22

(2) Statewide per-capita or per-unit capital cost
23

estimates for schools, parks, transportation, public
24

safety, and stormwater facilities. The Department of
25

Commerce and Economic Opportunity shall define permissible

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LRB104 20892 RTM 34566 b
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deviations, including allowable ranges for:
2

(A) land acquisition costs;
3

(B) construction and capital costs; and
4

(C) capacity expansion costs.
5

(3) The Department of Commerce and Economic
6

Opportunity must provide downloadable spreadsheets or
7

web-based calculators embedding all formulas, multipliers,
8

and cost tables. Municipalities authorized to levy impact
9

fees must use these worksheets to produce their fee
10

schedules. Worksheets must automatically generate a
11

public-facing fee schedule for municipal adoption.
12

(4) The Department of Commerce and Economic
13

Opportunity shall issue statewide adjustment factors
14

permitting controlled variation, including:
15

(A) land-value cost adjustments within
16

State-defined bands;
17

(B) infill or redevelopment discount factors;
18

(C) documented higher-cost construction market
19

adjustments; and
20

(D) middle-housing elasticity adjustments.
21

Adjustment factors under this paragraph may not exceed
22

State-defined maximums or minimums.
23

(5) The Department of Commerce and Economic
24

Opportunity shall issue a model impact fee ordinance that
25

municipalities authorized to levy impact fees must adopt
26

verbatim or with only technical deviations. The model

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LRB104 20892 RTM 34566 b
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ordinance must include:
2

(A) definitions;
3

(B) applicability;
4

(C) formula structure;
5

(D) exemptions;
6

(E) reporting;
7

(F) annual fee recalibration process; and
8

(G) appeal procedures conforming to constitutional
9

nexus standards.

10

(65 ILCS 5/11-12.2-30 new)
11

Sec. 11-12.2-30.
Public fee schedule.

12

(a) Each municipality authorized to levy impact fees must,
13
before imposing any fee, publish a schedule identifying:
14

(1) the formula-generated maximum fee per unit type;
15

(2) the State-issued multipliers and assumptions used;
16

(3) any allowable municipal adjustment factors
17

applied; and
18

(4) any municipal reductions adopted.
19

(b) Only fees produced through the State worksheet may be
20
imposed.

21

(65 ILCS 5/11-12.2-40 new)
22

Sec. 11-12.2-40.
Interaction with land dedication
23
requirements.
24

(a) If the laws of this State authorize land dedication or

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LRB104 20892 RTM 34566 b
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fees instead of land dedication, then a standardized impact
2
mitigation fee is a fee instead of land dedication unless a
3
municipal ordinance expressly requires both a fee and land
4
dedication.
5

(b) A pre-existing land dedication requirement may
6
continue only if:
7

(1) it existed prior to the effective date of this
8

amendatory Act of the 104th General Assembly; and
9

(2) a formula-based cash alternative using the State
10

worksheets is available.
11

(c) Any land dedication requirement without a cash
12
alternative is superseded.

13

(65 ILCS 5/11-12.2-45 new)
14

Sec. 11-12.2-45.
Exemptions and reductions.
15

(a) Mandatory exemptions shall include:
16

(1) units affordable to households equals 60% AMI;
17

(2) permanent supportive housing;
18

(3) transitional housing; and
19

(4) accessory dwelling units.
20

(b) Municipalities may grant additional reductions for:
21

(1) middle housing;
22

(2) transit-oriented development;
23

(3) redevelopment of vacant, underutilized, or
24

brownfield parcels; and
25

(4) a building undergoing a change of use from a

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LRB104 20892 RTM 34566 b
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nonresidential to a residential use.

2

(65 ILCS 5/11-12.2-50 new)
3

Sec. 11-12.2-50.
Report requirements.
4

(a) Municipalities authorized to levy impact fees must
5
annually report to the Department of Commerce and Economic
6
Opportunity:
7

(1) fees collected;
8

(2) fund expenditures;
9

(3) fund balances;
10

(4) number and type of housing units approved; and
11

(5) any use of adjustment factors.
12

(b) The Department of Commerce and Economic Opportunity
13
shall publish online the reports that municipalities submit
14
under subsection (a).

15

(65 ILCS 5/11-12.2-55 new)
16

Sec. 11-12.2-55.
Rulemaking.
17

(a) The Department of Commerce and Economic Opportunity
18
shall adopt rules necessary to implement this Division,
19
including:
20

(1) formula methodologies;
21

(2) multipliers;
22

(3) capital cost tables;
23

(4) allowable adjustment ranges;
24

(5) worksheets and calculators; and

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LRB104 20892 RTM 34566 b
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(6) model ordinances.
2

(b) The Department of Commerce and Economic Opportunity
3
shall update multipliers, capital cost tables, and worksheets
4
no less frequently than once every 12 months.

5

(65 ILCS 5/11-12.2-60 new)
6

Sec. 11-12.2-60.
Implementation and transition.
7

(a) The Department of Commerce and Economic Opportunity
8
shall adopt initial formulas, multipliers, worksheets, and the
9
model ordinance required under this Division no later than 18
10
months after the effective date of this amendatory Act of the
11
104th General Assembly.
12

(b) A municipality authorized to levy impact fees shall
13
adopt the model ordinance and fee schedule consistent with
14
this Division no later than 12 months after the Department of
15
Commerce and Economic Opportunity adopts the initial formulas
16
and model ordinance.
17

(c) Until a municipality adopts the model ordinance
18
required under this Division, it may continue to impose impact
19
fees under its existing ordinances.
20

(d) Beginning 30 months after the effective date of this
21
amendatory Act of the 104th General Assembly, any impact fee
22
imposed on residential development must be calculated in
23
accordance with this Division and rules adopted under this
24
Division.
25

(e) An application for residential development that is

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LRB104 20892 RTM 34566 b
1
complete under the laws of the municipality before the
2
municipality adopts the model ordinance shall be subject to
3
the impact fee requirements in effect at the time the
4
application was deemed complete.
5

(f) Nothing in this Division shall be construed to
6
authorize municipality to levy impact fees if it lacked the
7
authority to prior to levy impact fees the effective date of
8
this amendatory Act of the 104th General Assembly.

9

(65 ILCS 5/11-12.2-65 new)
10

Sec. 11-12.2-65.
Home rule preemption.
A home rule unit
11
may not regulate plan reviews or building inspections in a
12
manner inconsistent with this Division. This Division is a
13
limitation under subsection (i) of Section 6 of Article VII of
14
the Illinois Constitution on the concurrent exercise by home
15
rule units of powers and functions exercised by the State.

16

Section 99.
Effective date.
This Act takes effect upon
17
becoming law.

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