CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the report and provide direction regarding Affordable Housing next steps
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Allison Laff, AICP, Deputy Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Under New Business at the January 20, 2026 meeting, the City Council directed staff to prepare a report summarizing the most recent affordable housing discussions, including the Affordable Housing Incentive Program (AHIP) and Inclusionary Zoning Ordinance (IZO). Upon receipt of this report, the City Council may provide direction to staff as to how to proceed.
DISCUSSION:
Below is an overview of the City's affordable housing efforts, in chronological order, since 2019.
Addressing Unmet Housing Needs
Consultant SB Friedman was engaged by the City in fall 2019 to analyze the City's housing market and project short- and long-term housing needs. The final plan entitled "Addressing Unmet Housing Needs" was approved by the City Council in 2020.
The findings included in the plan were used as the basis for developing a menu of policy options to address identified housing challenges and capitalize on opportunities to create diverse housing options at various price points. One of the key recommendations included in the plan was the development of an Inclusionary Zoning Ordinance (IZO) that would link the creation of affordable housing units to market-rate residential development.
Inclusionary Zoning Ordinance (IZO)
In January 2021, the City Council directed staff to begin work on an IZO. On February 16, 2021, the City Council awarded Procurement 21-054, Inclusionary Zoning Ordinance Advisory Services, to SB Friedman.
On June 21, 2021, the City Council held a workshop (led by SB Friedman) to discuss a potential Inclusionary Zoning Ordinance (IZO) for Naperville. At the conclusion of the workshop, City Council consensus was to focus affordable housing efforts on voluntary measure...
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