Submitted By
Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Agenda Item Title
Title
A Presentation and Discussion on Changes to the Inclusionary Housing Ordinance
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Overview
Overview
This presentation will provide the Village Board options for potential modification of the Inclusionary Housing Ordinance (IHO) based on public input and the recently adopted Strategic Vision for Housing.
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Anticipated Actions/Commitments
Recommendation
The Village Board should discuss the options and direct staff to return with a draft ordinance reflecting the preferred option of the Board.
Report
The Village Board adopted the Village's first IHO in 2019. The IHO establishes requirements for affordable housing development associated with larger market-rate housing developments containing 25 units. The IHO is geographically specific and applies only to rental units and townhomes. The current requirement is that 10% of the total number of dwelling units in a development are affordable. Should it be preferred, a developer can provide a fee-in-lieu at $100,000 per required affordable dwelling unit. Since March 2019, all applicable developers have selected the fee-in-lieu option.
The Strategic Vision for Housing (adopted by the Board on April 11, 2024) outlines three core changes in an updated IHO:
? Expanded geographical area
? Updated "fee-in-lieu" amount
? Encouraging affordability through a tiered approach
These recommendations align with the Village Board Goals for Vibrant, Diverse, and Connected Neighborhoods, goal D.
? Review the Inclusionary Zoning Ordinance and recommend options for revisions:
Analyze the possibility of adjusting the Village ordinance to require the inclusion of affordable units instead of developers providing financial contributions "in lieu of" units.
Consider increasing the Village's current $100,000 per space "in lieu of" contribution, as established in 2019, or indexing the ...
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