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HomePA_104-0370

IHDA – Community Land Trust Home Ownership Act (Public Act 104-0370) – What It Does and Who It Impacts

IRPOA is the leading authority for Illinois rental property owners on legislation, compliance, and practical impact. This page explains Public Act 104-0370, also known as the Community Land Trust Home Ownership Act, which expands access to Illinois Housing Development Authority (IHDA) homeownership assistance for eligible buyers and owners in community land trusts and certain leasehold ownership structures.

At a glance

  • Law: Public Act 104-0370 (SB1261)
  • Short name: Community Land Trust Home Ownership Act
  • Agency: Illinois Housing Development Authority (IHDA)
  • Main effect: IHDA homeownership programs must be available to eligible buyers/owners using a community land trust or qualifying leasehold structure
  • Rulemaking timeline: IHDA must propose new or amended rules within 90 days of the effective date
  • Task Force: Creates the Community Land Trust Task Force to explore findings of the 2024 Community Land Trust Report and produce a report to the Governor and General Assembly

What does Public Act 104-0370 do?

Public Act 104-0370 is designed to ensure access to affordable housing loan products, grants, and other assistance for buyers and owners of housing located in a community land trust or other leasehold ownership structure that involves a ground lease between the buyer/owner and a 501(c)(3) organization. The law also directs IHDA to update rules and creates a Task Force to explore the findings of the 2024 Community Land Trust Report.

Key takeaway: This Act expands eligibility for IHDA homeownership assistance for community land trust and qualifying leasehold homeownership structures, and creates a statewide Task Force focused on long-term affordability tools.

Who is eligible for IHDA homeownership assistance under this Act?

IHDA homeownership programs (loan products, grants, and other assistance) must be made available to home buyers and owners seeking to purchase or maintain housing where:

  • A leasehold interest in real property is held by a community land trust or other 501(c)(3) organization
  • The structure is used to promote long-term affordability, preservation of affordable housing, or community revitalization efforts

Not eligible: The Act states that other sellers (including for-profit or private sellers) using leasehold agreements such as installment contracts, contracts for deed, or similar structures are not eligible under the Act’s eligibility section.

Meaning: The law is targeted specifically to community land trust / qualifying nonprofit leasehold affordability models.

Key definitions used in the Act

  • 501(c)(3) organization: A nonprofit organization exempt (or qualified for exemption) under Section 501(c)(3) of the Internal Revenue Code.
  • Community land trust: A 501(c)(3) organization governed by a board including residents and public representatives that provides permanent or long-term affordability and shared equity homeownership opportunities.

What is the Community Land Trust Task Force?

The Act creates the Community Land Trust Task Force within IHDA to explore the findings of the 2024 Community Land Trust Report. The Task Force includes representatives from State leadership, legislative appointees, community land trusts, and other appointed experts. Members serve without compensation.

Task Force duties (high-level)

  • Explore funding mechanisms and potential new revenue streams for community land trusts
  • Study community land trusts as a tool for permanently affordable housing, including alternatives connected to property tax sales
  • Evaluate technical assistance support and approaches to statewide coordination
  • Encourage partnerships (including with land banks) and promote sustainable affordability strategies
  • Submit a report to the Governor and General Assembly; the report must be made publicly available on IHDA’s website

Key timelines in Public Act 104-0370

  • Rulemaking: IHDA must propose new or amended administrative rules within 90 days after the effective date.
  • Appointments: Task Force members must be appointed within 30 days after the effective date.
  • Initial meeting: The Task Force must hold its initial meeting within 60 days after the effective date.
  • Sunset: The Task Force is dissolved and related sections are repealed 14 months after the date the Task Force holds its first meeting.

Why this law matters to IRPOA members

While this Act is focused on affordable homeownership and IHDA program access (not landlord-tenant compliance), it can still influence the broader housing market and policy environment. IRPOA tracks these developments so rental property owners understand: how affordability initiatives evolve, where State resources are directed, and how long-term affordability structures may be integrated into housing and community strategies across Illinois.

In plain English

Illinois created a law to make sure IHDA homeownership assistance can be used for certain nonprofit community land trust / leasehold ownership models, and it set up a Task Force to study and recommend ways to strengthen and expand these long-term affordability tools.

IRPOA legislative insight

IRPOA positioning: IRPOA supports clear, transparent housing policy implementation. When new programs and task forces are created, the practical details come through rulemaking and published guidance. IRPOA monitors changes so housing stakeholders understand what is changing, who is eligible, and how administration evolves over time.

How to use this page (step-by-step)

  1. Identify the program type.
    Confirm the law relates to IHDA homeownership assistance (loan products, grants, and other support).
  2. Confirm the ownership structure.
    Eligibility centers on community land trusts and qualifying nonprofit leasehold structures with a ground lease.
  3. Note exclusions.
    For-profit/private leasehold arrangements like contracts for deed are not eligible under the Act’s eligibility section.
  4. Track timelines.
    Rulemaking (90 days), appointments (30 days), first meeting (60 days), and sunset (14 months after first meeting).

Frequently asked questions

What is the purpose of the Community Land Trust Home Ownership Act?

The purpose is to ensure access to IHDA homeownership loan products, grants, and other assistance for buyers and owners in community land trusts and certain nonprofit leasehold ownership structures that promote long-term affordability.

Are contracts for deed or installment contracts eligible under this Act?

No. The eligibility section specifies that other sellers and private/for-profit leasehold agreements such as installment contracts and contracts for deed are not eligible under the Act’s IHDA availability requirement.

What does the Community Land Trust Task Force do?

It explores findings of the 2024 Community Land Trust Report, studies long-term affordability tools, and produces a report to State leadership with recommendations and findings.

How long does the Task Force exist?

The Task Force is dissolved 14 months after the date it holds its first meeting.