Speaking Out: Do you really know what 'affordable housing' means?

Affordable Housing has been discussed and is being addressed in our communities, but do you really know what that term means?

There is often a misunderstanding of the term, so it might be beneficial to share some background. Updated Affordable Housing actions were recently approved in Northbrook and are imminent in Glenview.

First of all, it should be understood that the term does not mean low-income housing or subsidized housing, as some people may think. Rather, the term relates to housing that people can afford based on the portion of their income that would allow them to either pay their mortgage or rent and have a reasonable amount of their income available for their other living expenses.

In many communities, the cost of housing is beyond the reasonable reach of seniors on fixed incomes, young families just starting out, and people who may work in the community but have salaries that are not high enough for them to find housing in there.

People who are priced out may be kids who want to live close to their folks or who have lived in a community all their lives, but based on economic circumstances, can't afford to stay.

Still others might want to move into communities for good schools and safe neighborhoods, but can't find housing they can afford.

Likewise, meeting the housing needs of seniors who are widowed or who have property taxes they no longer can afford and people with disabilities is significantly tied to affordability of housing.

Affordability matters regardless of a person's age, ethnic background, economic status or physical or mental condition. It can create walls that impact different groups of people.

As someone recently stated at a workshop in Glenview, there should be no question as to if housing affordability needs to be addressed, but only how each community chooses to address the challenge. In 2004, the state passed the Affordable Housing Planning and Appeals Act, which required municipalities with less than 10% affordable housing to adopt a plan.

To determine affordability, the legislature came up with a standard for owner occupied units and rental units that is within the means of a household.

For owner occupied units, it was determined that the mortgage taxes, insurance and any association fees should be no more than 30% of the gross annual income of the household. For rental units, the rent and utilities should not consume more than 30% of the gross annual income of the household.

To measure and identify communities with the most acute shortages, they used a regional approach since that information is available through the Census.

For renters, they determined that affordability would be based on 60% of the regional median household income, and for homebuyers on 80% of the regional median income.

Using the 30% standard for affordability, and based on 2018 income figures, that meant affordable rents would not exceed $952 for a one bedroom and $1,320 a month for three-bedroom units, and affordable homes for one person would be $131,667 and for a family of four it would be $188,056.

These numbers will, of course, change when the new Census figures become available. Recent studies showed that a significant number of people have to pay out more than the 30% of their income for housing, leaving them inadequate income for their other needs.

There are no penalties for not complying with the Act, but it sets a benchmark that all communities should have across the state. The goal for 10% Affordable Housing especially falls short in many nearby North suburban communities. Based on some recent stats, the amount of affordable housing ranges from 2.5% in Glencoe and 2.7% in Winnetka to 9.3% in Highland Park, with the estimate being 7.3% in Glenview and 5.7% in Northbrook.

The 10% standard was not intended as an end all goal or ceiling on what each community should work toward, but rather as a measuring tool that communities could look at to see where they were in terms of affordability compared to their neighbors.

Northbrook recently had hearings and debates before approving an updated Affordable Housing Plan. Under the plan, new, larger developments of more than five lots are required to have 15% of their units meet affordable housing standards, and new multifamily developments are to have 15% of their units at affordable levels.

Developers under the new rules are given the option of paying $125,000 in lieu of the affordable units to go into a special trust fund to be used for housing initiatives. Northbrook should be applauded for taking these important steps to commit to more affordable housing, but continuing to do more is always a possibility and linked to your community input.

Glenview will likewise be updating its Affordable Housing Plan in the weeks ahead, and community members are urged to share their thoughts.

No matter what town you live in, there are numerous questions that need to be addressed in order to formulate a plan for increasing affordable housing. How should it be addressed with regard to existing homes and apartments? How should it be addressed for proposed new developments.? Should it be mandated or incentivized? Should developers be able to pay money into a fund to be used for affordable housing programs in lieu of providing affordable housing units?

If there was such a fund, how should it be used to contribute to affordable housing? Should the community take specific initiatives to create or bring affordable housing to a community, or should it merely have standards to react to proposed developments?

Should there be more flexibility to allow for changes to existing properties to facilitate affordable housing? Is the community merely looking to meet or reach the state affordable housing goal, or does the community wish to maximize affordable housing?

Are there particular groups that the community wishes to target, like seniors or people with disabilities, or essential workers, or young families? Does the community wish to go beyond affordable housing to promote subsidized housing programs to meet certain housing needs?

In evaluating its needs and goals, is the community looking at housing within its corporate borders, or at unincorporated adjacent areas or nearby areas that it has no jurisdiction over with regard to imposing policy? Does that matter to the community if it believes that the area's affordable housing needs are being met?

What impact will any proposed affordable housing have on other taxing districts that serve the community, like schools and parks? What type of cooperation with other taxing bodies can the community take to keep taxes under control? Are there actions or changes that the community can, or should, promote at the regional, state or national level to expand affordable housing?

As these questions are asked, I am sure they will lead to still more questions that may help formulate a positive affordable housing plan for all communities.

• Elliott Hartstein of Northbrook is an attorney and a former village president of Buffalo Grove.