Naperville considers affordable housing incentive program

Naperville City Council members Tuesday will get a first look at an ordinance to establish a program to encourage builders to include affordable housing in new developments.

The affordable housing incentive program ordinance would offer developers a menu of incentives based on the amount of affordable housing included in their plans. Incentives options include increased density, decreases in parking or setback requirements, a waiver of the city’s brick requirements or park impact fees and increases in lot coverage or building heights, according to city documents.

The proposed ordinance will be up for a first reading Tuesday. The earliest city council members could vote on the proposed program would be Nov. 19, a city official said.

City council members have long discussed ways to address affordable housing. In 2019, the city hired a consultant to study Naperville’s long- and short-term housing needs.

City council members opted for a voluntary program and incentives to help encourage affordable housing over an “inclusionary zoning ordinance” that would lay out guidelines for incorporating affordable housing into future developments. When first discussed in 2021, city council members expressed concern that an inclusionary zoning ordinance could have unintended consequences, including keeping developers away.

After years of discussions, council members in January 2023 gave staff direction to draft an affordable housing incentive program ordinance. At the time, some council members described the move as “historic” for Naperville.

City officials noted other projects took priority, causing a delay in getting the ordinance to council members for review.

The proposed program would not include property already zoned for single-family homes. Only projects with five or more new residential units will be considered for the program, according to city documents.