New bill could help Illinois’ housing gap with granny flats statewide
A measure in Springfield would expand permission to build accessory dwelling units to every municipality in the state.
A new bill could help reduce Illinois’ housing shortage by guaranteeing property owners in every municipality the right to build accessory dwelling units.
Senate Bill 3726, introduced by state Sen. Steve Stadelman, would amend Illinois law to block municipalities from prohibiting the building or use of the units.
These are granny flats, coach houses and basement units. They’re built on the same parcel as a single-family home or a multi-family building.
While municipalities could regulate the size and location of such units, their availability would increase density and housing options without radically changing a neighborhood’s character.
Chicago could still regulate the size of accessory dwelling units but could no longer limit them to the five small pilot areas where they’re now allowed.
Illinois faces a housing crisis. Some researchers estimate a statewide shortage of 142,000 units. They also forecast that Illinois will need to double its production rate during the next five years to meet demand.
The housing shortage drives up prices and makes it hard for families to find a place to call home. A recent report by the Illinois Policy Institute showed accessory dwelling units serve as an affordable housing option when restrictions are loosened. They’re especially suited to Chicago’s low-income families.
Many Illinois cities, including Chicago, ban or heavily regulate these units.
Chicago received 1,031 applications to build accessory dwelling units from December 2020, when the data first became available, to February 2026.
Of those, 809 were pre-approved, meaning they met all surface-level requirements and could submit a building permit application. While data is not available on how many of the 809 pre-approved applications applied for a permit, only 398 have been granted to date.
Red tape, like the longer than average processing times for ADU permits in Chicago and burdensome construction requirements, as well as the costs associated with it, have helped stall hundreds of otherwise eligible ADU projects.
Building these units would allow property owners to boost the value of their main home and potentially earn rental income. Families would gain the flexibility to accommodate aging parents, adult children or extended family members.
The measure also would promote efficient use of residential lots and give everyday people the opportunity to help provide the housing Illinois needs.
Passing SB3726 can help alleviate Illinois’ housing affordability problem. Enabling the construction of accessory dwelling units would create more housing options, support families and promote sustainable community development.
The bill awaits a hearing and a vote in the Senate executive committee.