St. Charles moves toward more affordable housing

St. Charles took an additional step toward making it easier for lower income families to purchase homes in the city on Monday.

Members of the planning and development committee approved a proposal to add an "Inclusionary Housing" chapter to the city's zoning ordinance.

Leaders are hopeful that it will eventually make it possible for people who have been unable to afford a home in St. Charles, to be able to purchase one.

"I personally feel the ordinance is in keeping with the resolution we passed in 2003," said Alderman Betsy Penny. "It encourages housing ensuring a balanced community."

Inclusionary housing will require future developers to include various percentages of affordable units in their projects or pay fees to a city trust fund for affordable housing programs.

Money from fees would go into a city fund for homeowner grants, rental assistance and other programs.

In addition, the city will attempt to keep homes classified as affordable in new developments affordable by applying a deed restriction for the first seven years after construction.

A deed restriction would prevent the owner of the property from selling it at more than a 3 percent increase in price.

After seven years, shared equity would be implemented, which would allow the property owner to sell the home at market rate, and be required to pay the one third the amount of the selling price, since the home would likely be taken out of its affordable housing stock.

Committee members added an exemption for owners of current homes that are above the median price for affordable homes so that they are not required to pay a fee if they decide to renovate their home, or tear it down and rebuild a more expensive home in its place.

"My concern is the one guy who buys a house and tears it down or refurbishes it," said Alderman Cliff Carrignan. "Do we want to make the person pay that fee?"

The median cost of a home in St. Charles is currently $304,750, with the average household income at $79,807.

Development Director Bob Hupp stated that the current ordinance does not address the issue of existing housing stock, and there is more work yet to be done to make living in St. Charles more affordable.

"This is an important step, but only one step in the whole strategy," he said.