H O U S I N G P O LI CY AN D GOVE R NAN C E
Inclusionary Zoning
Highland Park Inclusionary Zoning Ordinance Lake County
The Highland Park Inclusionary Zoning ordinance has allowed Highland Park to pursue affordable housing development that would have otherwise been extremely difficult to create. As of the summer of 2005, there were three such developments in the pipeline. When complete, these developments will generate 11 new affordable homes. Policy Background
Financing The ordinance provides for fee waivers and a density bonus to offset the cost of compliance with the ordinance. There is no direct funding attached to the policy.
Success The creation of 11 affordable units within the city in three separate developments over the first two years.
Lessons Learned While an inclusionary housing policy does provide predictability for the city and development community, there is an initial adjustment period during which developers and city staff are learning together how to make the program work.
developer compliance with the ordinance. The fees that are waived are applicable only to M E G RO O the affordable homes and include fees for applications, building permits, plan reviews, inspections, sewer and water
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LO C A L H O
The inclusionary zoning ordinance provides for fee waivers and a density bonus to offset the cost of
Homeowners earning at or below 120 percent of area median income (AMI), with a focus on families earning below 80 percent AMI; renters earning at or below 120 percent of AMI, with a focus on households earning both 80 percent and 50 percent of AMI.
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The developer may make a cash payment in-lieu of constructing some or all of the affordable homes only if the covered development is a single-family, detached development that has no more than 19 units. The per-unit in-lieu fee amount is determined by the City Council, set forth in the city’s annual fee resolution, and assessed only once to the developer. All revenue from the in-lieu fee is transferred to the city’s Affordable Housing Trust Fund.
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The policy requires that developers of buildings with five residential units or more provide 20 percent of the total units for sale or rent at affordable rates to income-qualified households. Examples of buildings covered by the ordinance include: • New construction. • Renovation or reconstruction of existing multifamily housing that increases the number of residential units in the building. • A change in the use of an existing building from non-residential to residential. • Conversion of a rental property to a condominium.
To address affordable housing needs in Highland Park.
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How It Works
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The first of its kind in the Chicago region, the Highland Park Inclusionary Zoning ordinance requires developments of over five units to include affordably priced homes. Stemming from the city’s Master Plan process and a key component of its Affordable Housing Plan, the Inclusionary Housing Ordinance was approved by the City Council in August 2003.
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