# Illinois HB4389: STARTER HOME INCENTIVE ACT

Illinois HB4389, STARTER HOME INCENTIVE ACT, is a 104th General Assembly (2025–2026) House bill sponsored by Jed Davis (Republican); status in committee, last action 2026-01-14 (Referred to Rules Committee) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB4389-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB4389
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: STARTER HOME INCENTIVE ACT
- Status: in committee
- Chamber: House
- Introduced: 2026-01-12
- Last action: 2026-01-14, Referred to Rules Committee
- Sponsor: Jed Davis (Republican)
- Cosponsors: 0
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Creates the Starter Home Incentive Zone Act. Provides that a municipality may establish a Starter Home Incentive Zone within a designated area if the municipality adopts any 3 of the following reforms within a designated zone: (1) reduced minimum lot sizes applicable to detached single-family homes; (2) reduced minimum dwelling size requirements permitting homes of 1,600 square feet or less; (3) fast-track permitting with a decision issued within 10 to 20 business days; (4) reduction, waiver, or cap of impact fees for detached single-family homes; or (5) reduced setback requirements. Provides that municipalities containing a Starter Home Incentive Zone shall receive specified benefits from the Department of Commerce and Economic Opportunity. Provides that municipalities containing a Starter Home Incentive Zone may receive specified benefits from the Department of Transportation. Provides that, on or before January 31 of each year, a SHIZ-certified municipality shall submit a report, not to exceed 2 pages, containing specified information for each Starter Home Incentive Zone within the municipality. Requires the Department to adopt rules necessary to implement the Act in accordance with the Illinois Administrative Procedure Act. Provides that the Department may not require any municipality to submit reports, data, analyses, or documentation beyond the annual compliance report, unless expressly authorized by the Act. Limits home rule powers. Effective immediately.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Jed Davis (Republican), House

## Actions (3)

- 2026-01-14: Referred to Rules Committee (House)
- 2026-01-14: First Reading (House)
- 2026-01-12: Filed with the Clerk by Rep. Jed Davis (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB4389.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB4389.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB4389-2025-2026 (as of 2026-11-01).