Naperville moving toward new affordable housing policy

Naperville is taking steps toward creating a policy that would incorporate affordable housing requirements into plans for new residential development.

Directing staff members to begin work on an inclusionary zoning ordinance was built into an "Affordable Housing Work Plan" unanimously approved by the council this week based on a set of recommendations from the housing advisory commission.

After years of discussing how to increase Naperville's affordable housing stock, Councilman Patrick Kelly said he hopes the city will start seeing tangible success by getting an ordinance on the books. But he says it'll take a lot of research, deliberation and stakeholder input to get it right.

"I think we've got to put in the hard work to try to find the right balance, where we still encourage development and encourage affordable housing as part of that development," said Kelly, liaison to the housing advisory commission.

His sentiment was reassuring to Mayor Steve Chirico and council members, who have expressed concerns that such a measure would lead to unintended consequences. In some cases, they said, similar regulations enacted in other communities have been too burdensome, stymying development altogether.

"That's the last thing I want to see happening," Kelly said. "I have no interest in passing an ordinance, just for the sake of saying that we did, if the result is that we don't have any actual success. That would be pointless."

The first step in what is expected to be at least a six-month process will be to hire a consultant, for which the council allocated $25,000 in the 2021 budget, said Allison Laff, deputy director of the city's transportation, engineering and development department.

Council members will then be asked to weigh in on several options, such as whether to require a fee in lieu of the development of affordable units, or if density bonuses should be granted for units constructed on site, documents show. Officials also will be able to determine how the city's ordinance will define "affordable housing," Laff said.

After receiving feedback from interested parties, such as the Chamber of Commerce and housing advocates, staff members would seek formal direction from the council to proceed with the public review process.

Elected officials on Tuesday suggested researching inclusionary zoning ordinances nationwide for examples of regulations that have been successful and those that have failed. Though wary of the troubles some towns have encountered, Chirico said, "that doesn't mean Naperville can't get it right."

Work plan action items also include preserving naturally occurring affordable housing and establishing a rehabilitation loan fund for low-income seniors. Staff members believe three others will be achieved through the inclusionary zoning ordinance process: establishing a housing trust fund; creating housing-specific city staff positions; and establishing resources to assist populations with special housing needs.