State flags North Shore towns for shortage of affordable housing

Jan. 03--Multiple towns along the North Shore are among 46 Illinois communities that have been informed they must submit affordable housing plans to the state by mid 2020 because less than 10 percent of their housing stock is considered affordable.

The Illinois Housing Development Authority Dec. 28 released the 2018 list of municipalities required to submit plans for addressing the shortage of affordable housing within their borders. The state's Affordable Housing Planning and Appeal Act of 2003 requires IHDA to identify communities with little housing affordable to homebuyers with incomes at 80 percent of the area's median household income and renters with incomes at 60 percent.

The Chicago-area median income used for the 2018 list was $63,327, up from $61,045 when the state created the last list five years ago.

Less than 5 percent of the housing stock was considered affordable in some towns along the North Shore, including Kenilworth, Glencoe, Winnetka, Northfield and Lake Bluff. The village of Northbrook registered at 5.7 percent and the village of Glenview at 7.3 percent.

The city of Highland Park nearly dropped off the 2018 list of towns required to submit plans. The state analysis found 9.3 percent of owned and rented housing units in Highland Park were affordable, up from 6.7 percent in 2013. The lakefront suburb landed in 46th place, or last among the 46 towns flagged for an acute shortage of affordable housing.

Highland Park requires an affordable housing component for all new residential developments of five or more units under its Inclusionary Zoning Ordinance of 2003 and maintains a housing trust fund to support the creation of permanent affordable housing at scattered sites in the community.

Hartshorne Plunkard Architecture

The Albion at Highland Park, a 171-unit apartment building, is poised to become the first Highland Park development to fulfill its affordable housing requirement through on-site units and cash payments.

The Albion at Highland Park, a 171-unit apartment building, is poised to become the first Highland Park development to fulfill its affordable housing requirement through on-site units and cash payments. (Hartshorne Plunkard Architecture)

"The city is encouraged to hear that IHDA reports positive gains in affordability for Highland Park," said City Manager Ghida Neukirch. "Highland Park has long recognized the importance of affordable workforce housing and continues to be a leader in the state through its nationally award-winning program to accomplish this important community goal."

In neighboring Deerfield, the state estimated that 7.3 percent of owned and rented housing units are affordable, up from 4 percent five years ago.

Five-year estimates from the 2016 American Community Survey were used to determine the percentage of affordable housing units in each community. A home or condominium was "affordable" if a buyer earning 80 percent of the area median income could make monthly payments on a 30-year, fixed rate mortgage without spending more than 30 percent of income on housing.

Local property taxes were factored into the estimated payments, but homeowner insurance and homeowner association fees were excluded.

In the case of rental housing, a unit was considered affordable if rent and utility payments required no more than 30 percent of the income of a household at 60 percent of the area's median, or about $38,000.

The 46 municipalities were notified Dec. 28 of the need to adopt and submit an affordable housing plan by June 28, 2020. By law, the plan should identify properties most appropriate for creating affordable housing through new construction or rehabilitation. The plan also should identify incentives the municipality plans to use to attract affordable housing; the number of affordable units needed to reach the 10 percent target and how the town will reach 10 percent.

Lynne Stiefel, communications manager for the village of Glenview, said that in keeping with the Affordable Housing Plan filed in 2015, staff regularly meets with prospective developers to discuss opportunities for providing affordable housing within proposed multi-family residential developments.

IHDA acknowledges the law may have minimal impact in practice on built-out communities, but is intended to encourage communities as they grow and redevelop to include moderately-priced housing for people who work in, and serve the community.

The agency suggested that built-out communities could require that 15 percent of all new development and redevelopment be set aside for affordable housing.

Though the village of Deerfield does not require affordable units in its zoning ordinance, village officials recently asked REVA Development Partners to incorporate apartments affordable to the local workforce in a development of 186 apartments and 60 townhouses planned for property behind the Deerbrook Shopping Mall. The firm's preliminary plans were approved by the village board Dec. 17.

Village Manager Kent Street said Deerfield's comprehensive plan calls for the village to consider adding affordable housing as appropriate land use proposals are presented.

"The REVA project is one where the board felt it was appropriate, and the developers have agreed to provide 18 affordable units in the apartment building," Street said.

In recent months, Deerfield officials have discussed formalizing the village's approach to affordable housing.

Suburban officials have found plenty to dislike about the affordable housing law and widely contend that it doesn't apply to home rule municipalities because lawmakers did not include specific language preempting home rule powers within the statute. A majority of the 68 municipalities that were to submit affordable housing plans in 2015 did not do so, with many pointing to their home rule standing.

Still, the law seems to have had an impact on local land use deliberations.

Tom Poupard, director of development and planning services for the village of Northbrook, said that after submitting an affordable housing plan in 2005, the village revised its zoning code to allow density bonuses for developers who elect to include affordable housing in certain zoning districts.

"We have chosen the carrot, rather than the stick approach on the affordable housing front," Poupard said.

So far, one developer of a senior housing project approved in 2011 has taken advantage of the incentive. Ten percent of the units are priced to be affordable for seniors earning the median income of seniors within a three-mile radius.

"We went through a bunch of different options," Poupard said. "At the end of the day, the board said, If we are trying to make this affordable for seniors, let's use senior income figures."

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