CHICAGO - Today, Governor JB Pritzker signed SB 3086, which enables the Illinois State Treasurer to invest in pooled investment trusts that meet certain requirements. ? Specifically, this will enable investment in funds such as the AFL-CIO Housing Investment Trust (HIT) Fund – which provides capital to developers, aligning 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.”
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A pooled investment trust combines capital from multiple investors into a single, professionally managed portfolio. This type of investment is attractive for investors, including the Illinois Treasurer’s Office, as it offers low-cost diversification, high liquidity, and low risk.
“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,” said Illinois Treasurer Michael Frerichs. “The HIT Fund is another example of how our investments can help move our state forward. Thank you to Governor Pritzker for signing this into law.”
SB 3086 focuses on pooled investment trusts with voting trustees that are officers or employees of a national labor federation or any member union. The stated goal of this fund is to earn a fair and secure rate of return for participants in the pool while prioritizing projects built or rehabilitated by union labor. ?
Pooled investments trusts must meet the following requirements to be eligible under SB 3086:
- The voting trustees are officers or employees of a national federation or a member union
- The issuer has assets exceeding $1 billion; and
- State investments cannot exceed 5% of the issuer’s total assets
Access to these investments would be limited in the same manner as with other securities, restricting purchases to fixed income securities offered by high-quality issuers. The Illinois Treasurer’s Office evaluates each issuer for safety, creditworthiness, and duration restrictions for these types of securities.
“This legislation is about making sure Illinois can invest responsibly while also prioritizing projects built or rehabilitated by union labor,” said State Senator Ram 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,” said Rep. Kevin Olickal (D-Chicago). “Illinois should always make sure every taxpayer dollar works as hard as possible, and this commonsense measure gives the State more flexibility to make sound, responsible investments. 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.”
Last spring, Governor Pritzker unveiled his BUILD plan and delivered $250 million to support development and homeownership. The BUILD plan tackles the housing shortage by cutting through red tape, making it easier for developers to build middle housing, creating a new down payment assistant program for first-time homebuyers and expanding existing programs, investing capital funding to build housing, and more. ?
