Most homeowners in Lake County have no idea this is happening, and that’s a problem — because if it passes, it changes what can be built next door to you.
In February, Governor Pritzker introduced HB 5626, the centerpiece of his BUILD plan (Building Up Illinois Developments). The bill is currently moving through Senate hearings. If passed this session, it goes into effect January 1, 2027.
Here’s the part nobody’s talking about clearly:
HB 5626 is the largest preemption of local zoning authority Illinois has considered since home rule was established in the 1970 Constitution.
What the Bill Actually Does
In plain terms: local governments would lose almost all regulatory control over residential developments of eight units or fewer.
That means a developer could build a duplex, triplex, fourplex, or up to an eight-unit building on most residentially zoned lots — by right — regardless of what your village or township currently allows. Minimum parking requirements would be capped or eliminated. Bulk, height, and lot size requirements would be standardized statewide.
Cities and villages keep some authority over larger developments, but for the small and mid-density stuff that actually shapes how a neighborhood looks and feels, the state takes over.
The Fight Over It
The Illinois Municipal League, which represents 1,294 cities, villages, and towns, has formally opposed it. They’ve introduced a counter-proposal called the REAL Housing Act, which keeps zoning local and instead targets cost drivers like permit delays and impact fees.
Illinois Realtors has publicly opposed REAL and backs BUILD.
Pritzker’s office is firm: a coordinated, statewide approach is the only way to address the affordability crisis. Local control, they argue, is what got us here.
Both sides are partially right. Local zoning has restricted housing supply for decades. But statewide preemption is a significant tradeoff — and one most homeowners aren’t aware they’re being asked to make.
What It Means for You
If you own a home in Lake or McHenry County, here’s the honest read:
If HB 5626 passes as written, your neighbor’s single-family lot could become a fourplex without village approval. That cuts both ways. More density typically softens lot values for existing single-family homes in the short term, but it can also drive up underlying land values. In tight markets like Libertyville, Mundelein, Lake Forest, and Long Grove — places where land is the constraint — the math gets interesting.
If you’re considering selling in the next 18 months, this is a non-issue for you. The earliest effective date is January 2027, and the bill will almost certainly be amended before passage.
If you’re a long-term hold owner, this is worth tracking. Communities respond differently, and the value of your home is going to depend on what your specific village pushes back on, what gets carved out, and what gets through.
What to Watch
The Illinois spring legislative session is the window. If BUILD passes, it will likely be a compromised version — fewer preemptions, more local input, longer phase-in periods. If it fails this session, it’ll be back next year in some form. The pressure on housing supply isn’t going away.
I’ll keep tracking this. If you want my read on what it means specifically for your neighborhood or your investment property, reach out.
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