City of Naperville - File #: 19-310

• File #: 19-310
• Version: 1
• Type: Report
• Status: Agenda Ready
• File created: 3/22/2019
• In control: City Council
• On agenda: 4/3/2019
• Final action: 4/3/2019
• Title: Consider the recommendation of the Housing Advisory Commission regarding the inclusion of affordable housing within the 5th Avenue Development project

Date	Ver.	Action By	Action	Result
4/3/2019	1	City Council	considered	Pass

CITY COUNCIL AGENDA ITEM

ACTION REQUESTED:
title

Consider the recommendation of the Housing Advisory Commission regarding the inclusion of affordable housing within the 5^th Avenue Development project

body

DEPARTMENT:                     Transportation, Engineering and Development

SUBMITTED BY:                     Allison Laff, AICP, Deputy Director

BOARD/COMMISSION REVIEW:
The Housing Advisory Commission (HAC) voted (6-0) at its February 4, 2019 meeting and formally adopted a position paper (vote 8-0) at the March 4, 2019 meeting. The HAC is recommending the City Council direct the developer to include a minimum of 20% affordable housing, as defined by the Illinois Housing Development Authority (IHDA), in the proposed 5^th Avenue Development project.

BACKGROUND:

At the December 4, 2018 meeting, the City Council requested that the HAC provide input regarding the housing component of the 5^th Avenue Development project, including answers to the following questions:

•                     Defining Terms: What is “attainable housing?” What is “affordable housing?”

•                     Should attainable or affordable housing be a required component of the 5^th Avenue Development?

•                     What level or percentage of attainable/affordable housing should be required?

•                     Who is the target market for housing in this development?

DISCUSSION:

The HAC convened on February 4, 2019 to discuss the 5^th Avenue Development project, as directed by City Council.  Following a presentation by City staff and the DuPage Homeless Alliance, the HAC voted (6-0) to recommend that the City Council direct the developer to include a minimum of 20% affordable housing, as defined by the Illinois Housing Development Authority (IHDA)*, into the proposed 5^th Avenue Development project.  The Commission cited the following reasons as to why this site is ideal for inclusion of affordable housing: 1) the properties are owned by the City; 2) the properties are adjacent to/have access to the train station; 3) housing at this location can address the housing needs of seniors, veterans, young professionals/workforce, and persons with disabilities; and 4) the 20% minimum affordable units can potentially qualify the developer for federal incentive programs.

At the recommendation of the DuPage Homeless Alliance, the HAC further developed the above recommendation into a more complete position paper. The HAC adopted the paper at the March 4, 2019 meeting (vote 8-0).

The position paper, with respect to affordable housing within the 5^th Avenue Development project, as well as the minutes from the February 4, 2019 and March 4, 2019 (draft) HAC meetings, are attached for review and reference.

*Per IHDA, affordability is calculated as housing costs (mortgage/taxes or rent/utilities) constituting no greater than 30% of monthly income (80% of the Chicago MSA Average Median Income for owner-occupied units; 60% of Chicago MSA Average Median Income for rental units).  For Naperville, an affordable owner-occupied unit can be no greater than $133,083; an affordable rental unit can be no greater than $950/month.

FISCAL IMPACT:

To be determined.