Arlington Heights, a suburb 24 miles northwest of Chicago, is fast becoming an innovative local leader in the development of affordable housing. With a population of 76,000, Arlington Heights is one of the largest suburbs in the region, and its affordable housing needs are growing.
In 2005, BPI worked with Village staff to secure an affordable housing set-aside in a market rate condominium development. The 108 unit development, called Timber Court, will include 21 units affordable to households at or below 80% of the area median income. The market rate units will be priced at more than $300,000. The Village provided zoning variations and a density bonus in exchange for the 20% affordable set aside.
BPI also worked closely with Village staff to develop a resale restriction policy to ensure that the affordable units in the Timber Court development remain affordable in perpetuity.
Timber Court demonstrates that through sound planning, flexibility, and creativity, it is possible for affluent communities in the Chicago area to create attractive, moderately priced housing—without the use of public tax dollars.
Downers Grove is an affluent suburb 23 miles west of Chicago, in DuPage County. Its population is approximately 49,000. Working with DuPage United, BPI has presented to community groups and to the Downers Grove City Council regarding the need for affordable housing.
- Median household incomes grew 9% between 2000 and 2005 while median home values grew 68% in Downers Grove from 2000 – 2005.
- 48.4% of Downers Grove households earning under $50,000 pay more than 30% on housing costs.
- About 58.7% of Downers Grove renters earning under $50,000 pay too much for rent.
Click here to view a presentation on the need for affordable housing in Downers Grove.
Since 2002, BPI has been deeply involved in Evanston, a suburb of 75,000 immediately north of Chicago. BPI has worked successfully with the city’s Housing Commission, the City Council, its Planning and Development Committee, the City Manager and local residents to explore, draft, pass and implement several affordable housing programs.
In 2003, BPI provided staff support for a task force charged with studying ways to address affordable housing issues in Evanston. BPI conducted a housing needs assessment and prepared a variety of materials laying out policy options. We met extensively with a broad array of stakeholders to fully explore all of the policy options and began to develop more fully the policy alternatives that had the greatest local support – an inclusionary housing program and a housing demolition tax. We worked closely with local officials and city staff to refine the policy proposals and develop supporting materials, including drafting legislation and dozens of legal memos and fact sheets.
Ultimately, both the inclusionary housing ordinance and the demolition tax were enacted. The demolition tax, passed in early 2006, requires the payment of $10,000 for the demolition of any single family residential structure, and $3,000 per unit or $10,000 (whichever is greater) for the demolition of any multi-family, single-family attached, or two-family residential structure. This tax will generate revenue to expand access to housing for low- and moderate-income families.
The inclusionary housing ordinance passed first in November 2006 and was revised and amended in March 2007. In its current form it requires developers of developments over 25 units to establish 10% of their units as affordable or pay a fee in lieu to the city. This ordinance has the capacity to produce both affordable homes and additional income for the city which will also be dedicated to producing and expanding access to affordable housing.
Now, the city is working to create an Affordable Housing Trust Fund which would collect money generated by the demolition tax, inclusionary housing program, and the Mayor’s Special Housing Fund. This consolidation would help the City to be more proactive in planning and providing for its affordable housing needs.
BPI worked for two years with Highland Park’s Housing and Plan Commissions to design and draft the city’s inclusionary zoning ordinance. Enacted into law in August 2003, it was the first inclusionary housing program in the Midwest. It has served as a valuable model for other communities throughout the region.
Highland Park is an affluent suburb 26 miles north of Chicago, with a population of 31,000. The community experienced a rapid decline in its affordable housing stock, as rental properties were either converted to condominiums or demolished. Newly constructed single-family homes regularly sell for $1 million or more, and the median sales price for existing homes is more than $600,000. A diminishing supply of housing in the community is affordable to the locally employed workforce, 80 percent of whom works in the retail and service sectors with an average annual salary of less than $35,000.
The inclusionary housing ordinance requires that developments of five or more units set aside 20 percent of the units as affordable units for low- and moderate-income households. The ordinance applies to all residential developments, including new construction and condominium conversion. Developers of smaller single-family projects may opt out by making a cash payment of $100,000 per affordable unit to a housing trust fund. For-sale units produced under the program must remain affordable in perpetuity. Rental units are required to remain affordable for 25 years.
With some BPI assistance, Highland Park also established several other key affordable housing programs that work in tandem with the inclusionary housing program. A housing trust fund, established in 2002, helps to generate money for affordable housing programs. A demolition tax– $10,000 for every home that is torn down and replaced by housing that isn’t affordable – also produces a dedicated revenue stream for the trust fund. A community land trust is one mechanism to ensure that the affordable housing produced in Highland Park remains affordable over the long term.
In Lake County, an affluent, job-rich county north of Chicago, BPI helped Lake County United, a coalition of faith-based organizations, to secure a 67% increase in the county budget for affordable housing.
Libertyville is a relatively affluent suburb 38 miles north of Chicago, in Lake County. It has a population of approximately 21,000.
With BPI support, Lake County United successfully advocated to establish the first affordable housing set-aside in Libertyville’s history. As a result of LCU’s advocacy, Libertyville required that two private developments on land purchased from the Village include an affordable housing component. One development will have more than 25% affordable housing – 31 market-rate units and 11 affordable units. The market-rate units will be priced at $750,000.
In addition, the Village proposed a “comprehensive plan,” one goal of which is to ensure that at least 15% of all new development in the community is affordable.
Naperville is a thriving suburb 31 miles west of Chicago. Roughly two-thirds of Naperville is in DuPage County and the rest is in Will County. With a population of 140,000, it is the fourth largest city in Illinois.
DuPage United is actively organizing in Naperville. Working with DuPage Untied, BPI has presented to citizen groups and to the City Council in Naperville.
- Median household incomes grew 5.1% between 2000 and 2005 while median home values grew 42% in Naperville from 2000 – 2005.
- The median value for new construction grew 91% between 2000-2005.
- 68% of Naperville homeowners earning under $50,000 pay more than 30% of their income on housing costs (2000)
- About 61% of Naperville renters earning under $50,000 pay too much for rent (2000).
Wheaton is an affluent suburb located 25 miles west of Chicago in DuPage County.
BPI has worked closely with both DuPage United and the Wheaton League of Women Voters to educate elected officials and the community in Wheaton.
- The number of teardowns in Wheaton increased 192% between 2002 and 2006.
- In 2006, 26 new homes were constructed at an average price of $811,949
- Almost 53% of homeowner households earning less than $50,000 pay more than 30% on housing costs
Click here to see a presentation on the affordable housing shortage in Wheaton.
Wilmette is an affluent suburb,18 miles north of Chicago. BPI is currently working with the Wilmette Village Board of Trustees to develop an affordable housing trust fund and a community land trust.
BPI has also provided more limited research and technical assistance – often affordable housing needs assessments – to the following suburbs: Glencoe, Glen Ellyn, Glenview, Lake Forest, Lake Zurich, Morton Grove, Northbrook, Oak Park, Schaumburg, St. Charles, Sugar Grove, and Winnetka.
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