Affordable Houses Plans

Affordable Housing Planning and Appeals Act (P.A. 093-0595)
 Public Act 093-0595 found that: there exists a shortage of affordable, accessible, safe, and sanitary housing in the State; it is imperative that action be taken to assure the availability of workforce and retirement housing; and local governments in the State that do not have sufficient affordable housing must be encouraged to assist in providing affordable housing opportunities to assure the health, safety, and welfare of all citizens of the State. Affordable Houses plans Toward that end, the State has required that all municipalities that do not have at least ten percent (10%) of their housing stock designated as affordable draft an affordable housing plan. To do so, a municipality must:

  1. Declare the total number of units necessary to reach 10% of all units as affordable by assessing the number of units needed to meet this threshold ; 
  2.  Establish a goal of either (1) a minimum of 15% of all new development or redevelopment to be affordable, (2) a minimum of 10% of affordable housing units within the jurisdiction, or (3) a minimum of a 3 percentage point increase in the overall percentage of affordable housing within its jurisdiction.
  3. Identify land that would be appropriate for construc tion of affordable housing and existing structures most appropriate for conversion, rehabilitation or to be publiclyowned; and 4. Delineate potential incentives it may provide for the purpose of attracting affordable housing.

Model Affordable Housing Plan Guidelines

1. 10% Test

affordable house floor plan

1. Assessing Units Needed to Reach Ten Percent (10%) 

Threshold The list of exempt and non-exempt communities will be distributed by the Illinois Housing Development Authority (IHDA). IHDA is expected to distribute this list in late spring/early summer 2004. While we do not know the exact methodology that will be used to produce this list, we can provide information on some of the steps involved. If a community wishes to determine on its own what percent of its housing is considered affordable, the local government must:

  1. Total the number of for-sale housing units in each local government that are affordable to households with a gross household income that is less than 80% of the median household income1 within the county or primary metropolitan statistical area.2 80% of $51,680 is $41,344, so owner-occupied units would have to be affordable to a household earning $41,344 per year and spending no more than 30% of its income on housing expenses (including mortgage, taxes, etc.)
  2. Total the number of rental units in each local government that are affordable to households with a gross household income that is less than 60% of the median household income within the county or primary metropolitan statistical area. 60% of $51,680 is $31,008, so rental units must be affordable to a household earning $31,008 per year and spending no more than 30% of its income on housing expenses (rent, utilities). a. For example: a household earns $2,584 per month with an annual income of $31,008. 30% of $2,584 is $775.20. Therefore, rental units must rent for $775.20 or less per month to be considered affordable.
  3. Add the number of for-sale and rental units for each local government from items (1) and (2).
  4. Divide the sum of (3) above by the total number of year-round housing units in the local government as contained in the latest decennial census and multiply the result by 100 to determine the percentage of affordable housing units within the jurisdiction of the local government. If this number is less than ten percent (10%), the municipality should:  
  • 1. Calculate the total number of year-round housing units in the community, based on the decennial census, and multiply that number by ten percent (10%); 
  •  2. Take the results of item (1) and subtract the sum of the total number of for-sale and rental units that meet the affordability criteria (item 3 above) to determine the total number of affordable housing units that are necessary to achieve a minimum of ten percent (10%) affordability.   

2. Goal-Setting

2. Goal-Setting: Establishing Goal of Affordability
A community must assess its ability to attain one of the goals set forth in the legislation. Areas with extremely low levels of affordable housing will have different goals than a community just shy of the ten percent (10%) thresho ld. In high growth areas, working toward achieving a minimum of 10% affordable units within a set timeframe may be possible. However, for other communities, establishing a goal of increasing the overall percentage in affordable units may be a more realistic way to reach the desired level of affordability. One possible way to determine a community’s goal: To determine which goal best suits a community, it may be helpful to figure out what the numerical impact of these goals are on an annual basis. To do this, first calculate the total number of new units within the community that were constructed or substantially rehabilitated within the past five years, then divide by five to obtain an average number of new units per year. This will provide a basis by which the goals of 10% affordability, 15% of new construction and redevelopment, or a 3 percentage point increase in affordable units can be met:
 a. 10%: Once it is determined how many units are produced on average each year, communities must determine how many of these should be affordable (outpacing “nonaffordable” production) in order to reach the total number needed to achieve 10% affordability in the community’s housing stock. A community will have to consider whether it will reach the goal through either voluntary or mandatory measures. Devise a strategy to implement measures to meet this required increase in total housing units.
b. 15%: Alternatively, a community could examine the 15% option. If a community does not believe that it has the resources through either voluntary or mandatory measures to reach 10% affordability or to achieve a three percentage point increase in the percentage of its housing stock that is affordable, the community should consider requiring 15% of all new and redeveloped housing to be affordable based on the definitions of the Act. Models for "inclusionary" or "set-aside" ordinances exist around the country (See Section 3B for further discussion of inclusionary zoning ).
c. 3%: Another option is to assess the three percentage (3%) point increase in a community’s level of affordable housing. Take the total number of housing units in the community. Multiply that number by three percent (3%). This is the number of affordable units the community must create to meet the 3% goal. 3 A community will have to consider whether it will reach the goal through voluntary or mandatory measures. The community must devise a strategy to phase in the appropriate number, or percentage, of total units to be constructed or rehabilitated to meet the 3% goal.

3. Planning for Affordable Housing 

 In order to plan for affordable housing, mayors and municipal staff members must assess the community’s current and future demand for all types of housing. What will be built in the coming years? Is there enough development occurring that the community will be able to build enough affordable units to meet the 10% total or 3% increase goals? If not, the town most likely will choose the 15% goal. This section of the Model Guidelines attempts to help communities think through this process. For communities following the 10% or 3% options, they will have to identify appropriate land and buildings in the town, as discussed in Section 3A below. Towns choosing the 15% option will have to institute an inclusionary zoning policy, as discussed in Section 3B below.

A. Identification of Land for Affordable Housing

In order for a municipality to identify land suitable for the development and/or redevelopment of affordable housing, the municipality should assess the type of housing currently available in the community and the users of this housing. A community should:

  1.  Calculate the total number of single- family detached and single- family attached (townhouses and duplexes) buildings, condominiums and apartments in the town. 
  2.  Identify the land uses (commercial, residential, vacant, etc.) currently within the community. 
  3.  Assess the ages and income levels of residents in the community. 
  4.  Assess the ages and income levels of people who work in the community 
This should lead to an analysis that determines whether the types of housing present in the community serve the senior and workforce populations that are identified in the state law. Once a community identifies the types of housing that is lacking and the populations (by age and income) that are underserved by the housing market, an assessment of appropriate land available within the community and its extraterritorial jur isdiction should be completed. To do this a community should:

  1. Assess areas within the community where targeted populations and/or housing exists; 
  2. Assess areas within the community where targeted populations and/or housing does not exist; 
  3. Assess available land uses not designated for commercial and/or industrial development on the community’s adopted Comprehensive Plan; 
  4. Reassess available land use designated for commercial and/or industrial development on the community’s adopted Comprehensive Plan; 
  5. Identify and assess any publicly-owned parcels or privately-owned parcels that are good possibilities for public acquisition. 
  6. Identify and assess any parcels that are likely to undergo redevelopment (where affordable housing could be mixed with new market-rate development). 
  7. Identify and assess areas that will experience new development (where affordable housing could be mixed with new market-rate development). 
  8. Site areas for possible affordable housing with the following factors in mind:  a. Potential sites should not exacerbate areas of concentrated poverty or low-income housing (areas within a community in excess of 10% low-income households based on decennial census data). b. Potential sites should have adequate infrastructure to support housing development or can be provided as part of any development c. Potential sites should have proximity or access to public transportation and/or job centers. d. Potential sites should have proximity (if necessary) to schools, supportive services, and/or other community assets (e.g. day care).4 e. Potential sites should provide compatibility with established land patterns and surrounding land uses. It should be noted that, if a community adopts an approach that includes "inclusionary zoning," it will be identifying all areas in the community that allow for development over a certain size as good sites for some affordable housing. 
Adopting an inclusionary housing ordinance simplifies the process of specifying particular parcels and allows a community to identify general areas where developments will be covered by the inclusionary housing program. 3B. Inclusionary Zoning This policy may be used especially in communities which choose to follow the goal that 15% of development and redevelopment will be affordable. See Attachment 1 for a Model Inclusionary Zoning Ordinance. Inclusionary zoning requires that all new developments of a certain size include a percentage of housing affordable to low- and moderate-income households. Most programs are applied citywide and contain some basic components such as a threshold level of coverage (e.g. all developments of 10 or more units); a percentage of units that will be priced as affordable (e.g. 15% of the development); income targets for the populations to be served (e.g. at or below 80% of Area Median Income); and cost offsets that help a developer to pay for the cost of producing affordable units (e.g. density bonuses, expedited permitting, flexible zoning, or reduced parking requirements). The affordable units are indistinguishable on the exterior from the market-rate units and most often are adjacent to, or “mixed- in” with, the market-rate housing. In some instances, in lieu of building the affordable units on site, the developer can choose to build or rehabilitate and preserve affordable housing elsewhere, or to pay a fee to the municipality so that others can build affordable housing. When to use Inclusionary Zoning Inclusionary zoning is a very flexible tool that can be used in both growing communities and “built-out” communities. An inclusionary zoning program ensures that the market engine that drives private residential development will also create integrated affordable units without utilizing local tax dollars. Communities experiencing a development boom can harness the power of the market to create a significant number of affordable units as the community continues to grow. Built-out communities can use an inclusionary zoning program to ensure that any future private residential development (from tear-downs of multi- family structures, redevelopment, or conversions) will create some housing affordable to low- and/or moderateincome households.

Frequently Asked Questions 

Why Inclusionary Zoning? 

Inclusionary zoning is a market-based tool that does not, by and large, require the use of federal, state or local tax dollars to create affordable housing. Inclusionary zoning uses “cost offsets” (density bonuses, flexible zoning, reduced parking requirements, expedited permitting, etc.) and harnesses the power of the marketplace to produce affordable homes and apartments. In the process, inclusionary zoning generates affordable homes in a mixed- income fashion, producing houses and apartments that are externally indistinguishable from market-rate housing. By creating affordable homes for seniors, entry- level workers, public emp loyees, young professionals and families, an inclusionary zoning program can improve the quality of life for local residents, enhance local economic development efforts, reduce traffic congestion, and inhibit sprawl and disinvestment from existing neighborhoods. 

Will Inclusionary Zoning Slow Development or Harm the Tax Base? 

Based on documented experiences from the over 200 communities across the country with some form of inclusionary zoning, neither built-out communities nor communities with significant development potential need worry about a “chilling” effect on development or a reduction in the local property tax base. Economic analyses, national case studies, analytical reports, feasibility studies, and developer and community reaction across the county all indicate that inclusionary zoning does not stifle development, drive down property values, or hurt local tax revenues. In some communities, the presence of cost offsets, hot local housing markets, and possible moderations in rising land prices over time (a moderation in rising land prices can occur as a result of an inclusionary program) can all help pay for the cost of producing affordable homes and apartments. 
In many communities, developers gain the benefits of increased predictability and certainty in the development process and, quite often, a new capacity to build for a broader segment of the housing market that is eager to purchase or rent affordable units. These benefits, coupled with the desirability of the local housing market, ensure that developers will continue to produce housing under an inclusionary zoning program. 

 Is Inclusionary Zoning Legal? 

 Despite the presence of over 200 programs nationwide, only four legal challenges to inclusionary zoning programs exist. These four cases indicate that inclusionary zoning is a legitimate use of the local zoning power. In the design of any inclusionary zoning programs, communities should: 
  1.  justify the need for affordable housing in the community, 
  2. indicate how the inclusionary zoning program will address that need, 
  3. provide some level of cost-offsets to developers required to build affordable housing under the program, and 
  4. apply the program as broadly and evenly as possible. 

 How does a Local Government Keep Units Affordable Over Time? 

 The units must remain affordable for a specified amount of time through the use of deed restrictions, covenants, contractual agreements, or land trust arrangements. In addition, some programs allow the local government or designated non-profit organizations to purchase affordable units and ensure their affordability forever. What Kind of Affordable Housing Would an Inclusionary Zoning Program Create? In most cases, the units will be affordable to households earning at or below a certain percentage of the Area Median Income (meaning that such households will not spend more than one-third of their income on housing). For example, owner-occupied units might be affordable to households earning at or below 80% of the AMI, and rental units at 50% AMI. Thus, a family of four earning less than $57,500 in the Chicago region would qualify for an affordable owner-occupied unit priced around $143,000. A family of four in the Chicago region earning $37,700 would qualify for an affordable rental unit at approximately $943 per month, including utilities. These standards are available from HUD as well as from Business and Professional People for the Public Interest.

4. Affordable Housing Policies and Incentives

Each municipality should look at general policy areas that need to be addressed to increase the supply of affordable hous ing. Goals should be developed that address the governmental, not-for profit, and private sector’s roles in the affordable housing issue. Each community should review how key factors influence the availability of affordable housing and establish goals based on this assessment. affordable housing plans


The Metropolitan Mayors Caucus’ Housing Endorsement Criteria and Housing Action Agenda ·
The Local Tools Workbook (helps to implement smart/sustainable growth, works with the Housing Endorsement Criteria) ·
Housing Illinois Materials (TV and radio spots, newspaper ads and brochures) ·
Housing Video produced by Metropolitan Planning Council and Metropolitan Mayors Caucus ·
Publications and web resources created by Business and Professional People for the Public Interest (available online at
Opening the Door to Inclusionary Housing workbook, Condensed Version of Opening the Door to Inclusionary Housing, and the Affordable Housing Toolkit for the Chicago Region. ·
Staff/organizational support from local agencies (helping to provide information/data, message- framing, etc.) From Business and Professional People for the Public Interest, Housing Illinois, Metropolitan Planning Council, Metropolitan Mayors Caucus, local Councils of Government, the Campaign for Sensible Growth, and Interfaith Open Communities. For more resource, go to cityoflakeforestcom/pdf/cg/affhsg_2.pdf Keywords: houses plans, affordable, affordable house, housing plans, housing planning,

No comments:

Post a Comment

search house designs and articles :