SPRINGFIELD – Illinois State Treasurer Michael Frerichs on Tuesday applauded a new law that will allow him to make investments to build more affordable housing.
Gov. JB Pritzker signed into law Senate Bill 3086, which passed with bipartisan support in late May. The bill allows Treasurer Frerichs to invest in the AFL-CIO Housing Investment Trust, which focuses on building and preserving affordable and workforce housing, creating union construction jobs, and generating returns for investors while fostering community development.
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“This new investment tool will help build homes, create good-paying jobs for Illinois workers, and earn a solid rate of return for Illinois taxpayers,” Illinois Treasurer Michael Frerichs said. “The HIT Fund is another example of how our investments can help move our state forward.”
The bill aligns with Governor Pritzker’s goals under the ambitious Building Up Illinois Developments (BUILD) plan.
“Illinois is putting its money to work in a responsible and beneficial way,” said Governor JB Pritzker. “This effort expands investment opportunities that are good for Illinois’ taxpayers while also promoting new development. It also creates good-paying, union construction jobs, employing highly skilled trades workers across the state.”
The bill was sponsored by Illinois State Sen. Ram Villivalam and Illinois State Rep. Kevin Olickal.
“This legislation is about making sure Illinois can invest responsibly while also prioritizing projects built or rehabilitated by union labor,” said Sen. Villivalam, D-Chicago. “By expanding access to investment trusts connected to the labor movement, we can help support projects that create union jobs while maintaining strong safeguards for the state’s investments.”
“I’m proud to have sponsored SB 3086 and grateful to see it signed into law. Illinois should always make sure every taxpayer dollar works as hard as possible, and this common-sense measure gives the state more flexibility to make sound, responsible investments,” said Rep. Olickal, D-Skokie. “That includes opportunities like the AFL-CIO Housing Investment Trust, which seeks to deliver a fair and secure return while supporting projects built by union labor."
Illinois labor leaders applauded the new law.
“Illinois taxpayers deserve competitive returns, and Illinois workers deserve a state that invests in them. This law delivers both,” said Illinois AFL-CIO President Tim Drea. “By opening the state investment portfolio to private placement fixed income securities, Illinois can invest in proven vehicles like the AFL-CIO Housing Investment Trust, which has completed 125 projects and generated $8.4 billion in economic activity. The law is good for our taxpayers and good for our economy. Thank you to Gov. Pritzker, Treasurer Frerichs, Sen. Villivalam, Rep. Olickal and everyone who helped make this a reality.”
AFL-CIO HIT has nine projects under construction in Illinois that will add 1,466 housing units, nearly two-thirds of which will be affordable housing, with an investment of almost $150 million. Among the construction projects: Grace Manor, 400 Lake Shore, 6900 South Crandon, Imani Village Senior Residences, and Willa Rawls Manor in Chicago; Fox Shore in Aurora; The Villager & Briarwood West in Crystal Lake; Southern Hills/Orlando in Decatur; and Two Towers in East Moline.
“Investing in housing production and good jobs is an investment in the future of the State of Illinois. The AFL-CIO Housing Investment Trust has a long and proven history of financing housing development responsibly and helping communities create opportunities for residents,” said Chang Suh, Chief Executive Officer and Chief Investment Officer at AFL-CIO HIT. “Illinois Treasurer Funds investing with HIT through SB 3086 will strengthen that work, allowing us to continue advancing our mission of creating more housing, supporting good jobs, and delivering meaningful benefits to communities. We are grateful to everyone who contributed their time, expertise, and efforts to help bring us to this point.”
