IVCA Provides Updates for State Legislative Issues 06/10/2026 - IVCA FACES HEADWINDS IN 2026 SESSION
IVCA FACES HEADWINDS IN 2026 SESSION
Illinois lawmakers in the Spring 2026 Session approved in part or in whole several legislative measures to restrict, control, or otherwise manage private equity investments in the state. This is part of a national trend which IVCA members must be increasingly aware of going forward. In this edition of the newsletter, we’re providing links and quotes to press releases and news articles which will give you some context of how Private Equity is increasingly under pressure from policy makers. As always, if you would like further information or want to discuss any of these issues in greater detail, please contact IVCA Executive Director Christie Pruyn and we will respond immediately.
RESTOCK THE BLOCK ACT HB 2783 passed the Senate and is now pending further action in the House to accept the changes to the bill which were made in the Senate.
State Senator Rachel Ventura’s measure to curb the growing influence of private equity and large institutional investors in Illinois’ housing market passed the Senate Monday. “As working families struggle to find affordable homes and rising demand continues to drive up prices, we have a responsibility to preserve our existing housing supply for people, not large corporate investors,” said Ventura (D-Joliet). “Unchecked investor activity is pricing Illinoisans out of their own neighborhoods, and we need clear guardrails to restore balance.” House Bill 2783 would establish a graduated annual fee on institutional investors that acquire more than 10 residential properties, beginning at 10% of a property’s value and increasing for every additional 10 properties owned. The fee would be capped at 50% and be directed into the Illinois Affordable Housing Trust Fund to support public housing development, rental assistance, and pathways to homeownership. The legislation also would require residential properties be listed on the open market for at least 90 days before institutional investors can make a purchase. Violations of the waiting period could result in fines of up to $250,000.
Interesting to note this issue has also been addressed at the federal level from the White House Executive Order on PE in Housing and in legislation introduced in Congress
HB 5000 passed both chambers and now goes to the governor for consideration. This bill was an initiative of the Illinois Attorney General.
Chicago has faced the growing trend of health deserts because of private equity’s involvement in health care. According to the Private Equity Stakeholder Project, closures of West Suburban Medical Center, Weiss Memorial Hospital and Westlake Hospital were all attributable to ownership by private equity company Pipeline Health. Pipeline employed strategies to boost profit by monetizing hospital assets that led to a weakening of the hospitals. This follows a broader national trend of private equity’s involvement in hospital ownership. According to the Private Equity Hospital Tracker, 488 hospitals in the US are currently owned by private equity firms. This represents almost 23% of all for-profit hospitals. Firms that are engaged in this practice include equity giants such as Apollo Global Management, Bain Capital, and Equity Group Investment–which is based in Chicago–among others. The results have been disastrous for underserved communities with safety net hospitals being stripped for profit.
Two pieces of legislation aimed to provide additional oversight to private equity involvement in healthcare have made it to Gov. JB Pritzker’s desk. The new acts include HB5000, which strengthens oversight and transparency requirements around healthcare transactions and ownership changes, and HB 4728 legislation establishing new guardrails around private equity ownership of intellectual and developmental disability service providers, according to the Private Equity Stakeholder Project. The legislation comes in the wake of West Suburban Medical Center’s closure in March, with the Oak Park safety-net hospital previously brought to the brink bankruptcy by former owner Pipeline Health, a private equity-backed operator.
HB 957 passed the Senate and is now pending further action in the House to accept the changes made in the Senate.
To help communities preserve naturally occurring affordable, accessible housing and protect residents from displacement, State Senator Mike Simmons passed HB 957 which will provide tenants with the right-of-first refusal to purchase a residential building for themselves should the owner put the building up for sale or try to initiate a sale. Specifically, a 90-day notice would be required to tenants from the property owner before accepting or listing a building sale. “With rising costs of living and the influence of private equity, residents across Illinois are feeling the strain, and this measure gives them tools to keep their homes,” said Simmons (D-Chicago). “This legislation balances the need to expand and preserve housing with strong protections for property owners through the right of first refusal, fair valuation requirements, and a transparent acquisition process.”
HB 5487 is an initiative of the Illinois Trial Lawyers Association. The bill passed both chambers and now goes to the governor for consideration.
State Senator Michael E. Hastings passed legislation that would safeguard the professional independence of attorneys and protect clients from undue influence by private equity investors, hedge funds and investor‑backed management services organizations. “Private equity companies are starting to get creative with how they influence law firms,” said Hastings (D-Frankfort). “It is time for Illinois to act decisively and shut down this loophole that is being abused.”