The Naperville City Council is revisiting affordable housing strategies — including inclusionary zoning ordinances — as it continues to grapple with disparities in the city’s housing stock.
Affordable housing has been an ongoing issue in Naperville for years following the passage of the state’s Affordable Housing Planning and Appeal Act in 2003. Municipalities are required to evaluate their affordable housing stock and those with the most acute shortage — defined as 10% or less of affordable housing — be designated as “non-exempt local governments” that must come up with a plan to remedy the situation.
Naperville was in that category until January 2024, when it was determined that 10.3% of Naperville’s housing stock was considered affordable.
But council members agreed at their Tuesday night meeting that more must be done to ensure there’s sufficient housing available for a broad range of classes.
“We were striving to get to the 10% … then we met the goal,” Councilman Benny White said. “It’s not like we did anything different to meet the goal. We met the goal because the median income for Naperville changed. That’s why we met the goal, so I would say that the need is still there.”
At one point, the council did consider several options, including the creation of an inclusionary zoning ordinance, which would require companies building new residential developments include a minimum number of units affordable to people earning below the average median income for the area.
In 2019, the city worked with consultant SB Friedman to analyze Naperville’s housing market and needs. The firm’s report suggested a number of policy options, but many did not seem feasible for Naperville, according to Brian Palm, a former member of the Naperville Human Rights and Fair Housing Commission.
“When we were looking at inclusionary zonings, the majority of them and what was being proposed at that time said, ‘OK, if you’re building five units, one of them has to be affordable,'” Palm said. “To come into that, then we were starting to come into the have and have-nots. If you’re going to make one unit affordable, you will have to drive up the cost of the other four.”
The council considered an inclusionary zoning ordinance in 2021, but instead it opted for an incentives-based housing program. Three years later it was swapped out for an Affordable Housing Catalog, which showcases projects since 2019 that have “voluntarily contributed to attainable or affordable housing efforts” and provides an overview of each so other developers can do the same with their own projects, according to a city staff report.
Now, as the city reevaluates its efforts, an inclusionary zoning ordinance might return for consideration. Mayor Scott Wehrli suggested that the city staff look at how other Chicago suburbs have set up such ordinances.
“But if we consider (them), we should be evaluating what those communities have passed and what the successes or maybe the not-so-successful outcomes of those are, and also look at them from those who collected fee-in-lieu versus those that actually produce affordable outcomes,” said Wehrli, noting that they do not always end up producing more affordable housing.
Councilman Ian Holzhauer raised a similar point.
“One of my big concerns when I look at these types of ordinances around the country is in some communities, it’s just too cumbersome to comply with the ordinance or to build a house that meets the ordinance so people just pay a cash buyout,” Holzhauer said.
As a result, housing becomes more expensive because the buyout cost is passed along to the homebuyer, he said.
One potential direction is multigenerational housing, Holzhauer said.
“This could be homes that are designed with lock-off suites, flexible layouts, extra kitchens, space for aging parents, adult children, caregivers,” he said. “They naturally lower per-person housing costs and they’re especially helpful for people with limited mobility without having ongoing subsidy or responsibility of oversight of the city.”
White also expressed interest in exploring that option.
“We’ve got to be able to take a look at what do we see the future of our community looking like, what will be the needs?” he said. “We’re so multigenerational right now, especially with the influx of people coming over from Asia, where that’s a common thing. … How many homes have actually been modified where they are actually putting in a flat for mom or dad?”
Staffers will explore affordable housing initiatives in other communities and meet with council members individually to assess priorities before bringing suggestions back to a future council meeting.
cstein@chicagotribune.com
