Plan Commission

Meeting Agenda Plan Commission Meeting Thursday, March 2, 2023 at 7:30 P.M. Village of Skokie 5127 Oakton Street Skokie, IL 60077 I. Call to Order II. Roll Call III. Approval of Minutes IV. Public Hearings & New Business: Affordable Housing Policy Discussion regarding the formation of an affordable housing policy recommendation to the Board of Trustees. V. Old Business: VI. Public Comment (for non‐agenda items) VII. Adjourn 605958 – v2 – Plan Commission Meeting – March 2, 2023 Meeting Agenda Memorandum Community Development Department TO: Chair Paul Luke & Members of the Plan Commission FROM: \.^k^v^^ ) ^} ^t^ J^-ianna Nyden, AICP, DirActor of Community Development ^ -- -„- ^" DATE: - February 23, 2023 SUBJECT: Recommendation of Village ofSkokie Affordable Housing Policy Summary: The attached document provides an update to Skokie's commitment to affordable housing, a framework for establishing future goals and policies and recommendations to implement new affordable housing policies that build on the Village's existing work. This document is three-fold. It provides a summary ofSkokie's existing work and commitment to supporting affordable housing and work to build a diverse housing stock throughout the community. Second, it summarizes existing data that starts to illustrate the need for various types of affordable housing. Finally, it summarizes a series of goals and opportunities for Skokie to move forward in its next chapter of affordable housing work. 606096 The Village of Skokie’s Commitment to Affordable Housing The Village of Skokie, founded in 1888, has a history of supporting affordable and diverse housing options. Highlights of this work include:  The Village was one of the first communities in the region to adopt a fair housing ordinance in 1967.  The Village has maintained a self-imposed property tax freeze since 1990. Recognizing the relationship that property tax bills play for housing costs, this has kept the Village’s portion of the property tax as a percentage of the total tax bill low, which is currently around 6% of a typical property tax bill.  Since 1975, the Village has administered its Community Development Block Grant (CDBG) funds to support the rehabilitation of owner-occupied housing for income eligible individuals. The Village has funded a housing rehab program since 1983. In recent years, the Village’s Consolidated Plan has consistently targeted and allocated funding housing rehabilitation.  In addition to the Housing Chapter of the Adopted Comprehensive Plan (Housing portion approved by the Village Board in 2007), the Village adopts a five-year Consolidated Plan to guide its funding for annual allocations for its CDBG entitlement. During each new process for plan development, a Needs Assessment is conducted through which housing availability, characteristics, and affordability are reviewed and documented.  The Illinois Department of Housing Authority (IHDA) adopted the Affordable Housing Planning and Appeals Act (AHPAA) in 2003 to support the development and inclusion of moderately-priced housing in all communities across the State. Communities that maintain less than 10% of their housing as affordable by IHDA’s metrics must adopt and submit an Affordable Housing Plan to IHDA. Skokie has maintained compliance with this act since its adoption. At IHDA’s last measure, Skokie had 19.9% of its housing considered affordable.  The Village has long recognized the relationship between housing and transportation for households and has advocated for the investment in public transportation options. The opening of the Oakton Street Yellow Line Station in 2012 marked significant investment ($20 million from all funding partners) in both bringing workers by mass transit into Skokie’s downtown and providing area residents access to Chicago’s employment center. Further investment and partnership with Pace on its Pulse Line development connects Skokie residents and workers to eastern and western destinations via bus rapid transit options.  Congregate Living Facilities are permitted in any residential district and are a special use in other districts. This gives flexibility to this housing type. Skokie has forty facilities and is recognized as a leader in providing this housing. 606096 2   In 2014, the Village adopted the Residential Rental Unit Standards and Neighborhood Integrity Initiative which required the registration of rental units. The ordinance requires the inspection of every rental unit prior to being offered to rent and when properties are sold; landlords also are also required to complete a Village-offered landlord training program.  The Village’s Neighborhood Enhancement Program, started in 2019, was designed to increase investment in qualifying neighborhoods where the Village had made investment to public infrastructure such as road, sidewalk, or alley improvements.  Skokie’s 2020 Commitment to Affordable Housing highlighted several priorities for affordable housing that include supporting the Neighborhood Enhancement and Home Improvement Program; providing housing financial and emergency assistance to households during the initial phases of the COVID-19 pandemic; and the development and implementation of the Neighborhood Integrity Initiative, which requires inspection of units and training for landlords.  Since 2018 the Village has participated in a Regional Assessment of Fair housing, led by the Cook County Bureau of Economic Development. This collaboration among CDBG entitlement communities, public housing authorities, and not-for-profit organizations provides analysis and recommendations to further fair housing efforts in Cook County.  Impact Behavioral Health broke ground on a 16-unit apartment building in downtown Skokie. Funding for the $8 million structure was made possible from the Illinois Housing Development Authority (IHDA). The Village, Impact, and the state were able to jointly facilitate this project for Impact’s low-income program participants.  In 2020 and 2023, two new rental housing developments established Skokie as a desired location for new apartments (The Boulevard and Highpoint at 8000 North). In 2022, building on the success of recent residential development in Skokie, two projects under consideration opted to include 5% of units at levels affordable to 100% of Area Median Incomes (AMI). In total this was 15 more units of affordable housing for the Village in new developments. The Village Board in November 2022 directed the Plan Commission to engage in additional study and consideration of affordable housing policy recommendations. In January, February, and March 2023, the Plan Commission engaged in meetings to review strategies, hear from subject matter experts, and formulate recommendations for the Village Board.  The Village has a variety of housing options for residents holding vouchers from the Housing Authority of Cook County as well as other units with on-site affordable housing through partner organizations and Cook County. 606096 3 Skokie Demographic & Housing Background Skokie is an economically, racially, and ethnically diverse community. According to the 2020 Census, Skokie is slightly wealthier than the metropolitan region and Cook County. The chart below from DePaul University’s Institute for Housing highlights the breakdown of income levels for households. Racially and ethnically, Skokie’s population is slightly different than the region, with a significant portion of the population that identifies as Asian (27.4% of the population as compared to 7.2% and 7.3% of the County and region). 606096 4 Housing affordability is universally discussed in terms of different levels of income limits called “area median income”. Different levels differentiate different potential levels or access points to housing assistance programs. Planetizen has an article that provides additional information on AMI. The chart below breaks down income assumptions based on the incomes for the region that Skokie is located in. Low- and moderate income households are generally those that fall between 50%-80% of AMI; affordable workforce housing is generally considered those that fall between 80% and 120% of AMI. Deeper levels of affordability below 60% and 50% of AMI are often accompanied with supportive living environments with additional wraparound services for residents to support living arrangements. 606096 5 According to the Village’s adopted Consolidated Plan for Program Year 2020-2024 (PY20-24), the data analysis highlights the households most in need of support and the types of challenges found in housing units in Skokie (i.e. units were deficient in some manner). The data indicates that CDBG priorities should focus on households with older adults and younger children. According to the Department of Housing and Urban Development (HUD) Area Family Median Income (HAMFI), approximately 52% of Skokie’s households were low- /moderate-income. The greatest percentage of low-/moderate-income households is 59% for household with at least one person 75 years of age or older, followed by 57% of households with one or more children six years of age or younger and 39% of households with at least one person 62 to74 years of age. The breakdown of age, based on Census data, indicates that the share of the population under 18 years of age is similar to the Cook County and metropolitan region, but Skokie skews a bit older. Addressing housing challenges for the aging population will be an opportunity area for Skokie in the coming years and building strategies to support this work will be important. The Consolidated Plan further highlights challenges associated with housing in Skokie. These include:  Housing units lack complete kitchen/plumbing facilities. The estimated number of households lacking complete plumbing or kitchen facilities is 75 households, with 50 of these households in renter-occupied housing and 25 in owner-occupied housing. All households living in these conditions were low- and moderate-income households. 606096 6   Housing is overcrowded. According to the Consolidated Plan, those living in 550 households were residing in overcrowded housing units. Overcrowded was considered 1- 1.5 people per room.  Households are cost burdened. This was identified as the greatest problem; there are more than 3,200 renter/owner-occupied households with a housing burden greater than 30% of household income, and greater than 4,000 renter/owner-occupied households with a housing burden greater than 50% of household income. The previous chart is from DePaul University’s Institute for Housing Studies. It highlights the nature of the regional issues of households being cost-burdened with housing. Skokie’s share of all households that are cost-burdened (spending more than 30% of income on housing) is virtually the same as Cook County and the broader metropolitan region. The goals highlighted in the next section build on Skokie’s unique demographic profile and the state of housing in the community. The attention and support for older populations and their housing needs will need to be a top priority with both the existing older population and the aging Baby Boomers. A study by IHS, identified the range of housing needs for Cook County’s older Adults. The following chart highlights the net change in older adult rental household income in Chicago is likely comparable to broader Cook County and considering Skokie’s adjacency to Chicago is noteworthy. Significant growth in the 30 percent AMI and less income range was the most significant, but almost every other income range saw growth in a five-year span as well. 606096 7 Preventing deferred maintenance and making sure homes are accessibility will be a or the cornerstone of work in the Village’s housing rehabilitation programs; expansion to include renter-occupied housing will further diversify the Village’s ability to help residents. Increasing the number of affordable units through an inclusionary housing ordinance, providing gap financing for developers engaged in affordable housing projects, and supporting projects seeking low-income housing tax credits also will represent opportunities to increase the number of affordable units in Skokie and reduce the portion of households that are housing-cost burdened. 606096 8 Village of Skokie Housing Policy Goals - DRAFT The Village’s goals for affordable housing are well-documented in the Village’s Consolidated Plan (Program Year 2020-24) for Community Development Block Grant funding, “[E]nsure housing is affordable, accessible, and sustainable.” The following updated framework1 builds on the goal statement from the Village’s Consolidated Plan: Goal A: Preserve, protect, and improve Skokie’s existing affordable housing to be accessible and sustainable; Goal B: Reduce “jobs/housing mismatch” and ensure that housing is available to all of Skokie’s workers; Goal C: Create new opportunities to increase Skokie’s supply of affordable housing; Goal D: Support local and region-wide partner efforts to promote and expand fair housing efforts; and Goal E: Study and assess the ongoing supply and demand for inclusive affordable housing in Skokie. Opportunities and ideas to implement these goals are documented within each goal area. These have been previously discussed at the February 2, 2023 meeting. The staff memo from that meeting is attached to this memorandum. GOAL A: PRESERVE, PROTECT, AND IMPROVE SKOKIE’S EXISTING AFFORDABLE HOUSING This goal focuses on investment in existing units with attention to make sure units are safe, sustainable, and accessible. To implement this goal, the following options could be considered:  Bolster Existing Repair Programs. An emerging component of affordable housing policy is to support home repair programs that assist in keeping residents (particularly older populations) in their homes and reduce the high costs created from deferred maintenance. They also can help people “age in place” through making parts of their home safer and accessible for older adults or people with disabilities. Additionally, these maintenance and repair programs can focus on aspects of sustainability – helping weatherize homes and reduce energy costs, which often can significantly contribute to housing costs. A recent Chicago Tribune Op-Ed highlighted the need for housing repair/rehabilitation programs as an alternative to home ownership programs. These programs preserve the housing stock and ensure that existing housing is available for future generations. 1 Previous framework for affordable housing goals presented funding as a goal. This is now a potential opportunity area for implementing the goals. 606096 9  DePaul University’s Institute for Housing Studies has collected a wealth of information from the US Census and the Cook County Assessor’s office. Based on this snapshot, trends in housing type are visible. Skokie’s housing typology has a large portion of multi-family housing that are comprised of two- and four-unit structures. These represent a unique opportunity to improve smaller-scale housing that supports the neighborhood character of Skokie. Create a residential vacant home registry: Vacant homes are scattered throughout Skokie and have the potential to become problematic and a nuisance to the neighborhood. They generate complaints (e.g. overgrown vegetation, security issues, potential flooding, etc.). As the deferred maintenance on these homes escalates, major building components fail and homes are often prospective teardown or rendered cost prohibitive to re-occupy. The number of vacant housing units has grown slightly over the past 20 years. According to analysis by the Chicago Metropolitan Agency for Planning, the percentage of Skokie’s vacant housing units in 2000 was 2%; based on information from the 2020 Census, this has grown to 6.8%.2  Code Enforcement of Rental Units. While rental properties represent 27.6% of the total housing population, they are a key component of the Village’s housing landscape and are often concentrated in areas of the community. The Village has established additional monitors to support rental housing, but the Village could explore new avenues of working with rental property owners to improve the housing stock. GOAL B: REDUCE “JOBS/HOUSING MISMATCH” AND ENSURE THAT HOUSING IS AVAILABLE TO ALL OF SKOKIE’S WORKER The importance of making sure that good jobs are located near housing and housing is located near job centers has been an important cornerstone of workforce development and housing policy for decades. The spatial relationship to job seekers to where jobs are available is a 2 CMAP Community Data Snapshot for Skokie: https://www.cmap.illinois.gov/documents/10180/102881/Skokie.pdf 606096 10 function of both available job sites near residential areas, adding housing units near employment centers, and accessible transportation options. To implement this goal, the following could be considered:  Work with Major Employers to Understand Skokie’s Jobs/Housing Mismatch. Understanding where workers in Skokie live is an opportunity to examine how new housing might be made more attractive for workers (e.g. size of units, affordability levels, etc.). It also is an opportunity to work with employers to help them locate more workers locally in Skokie. GOAL C: CREATE NEW OPPORTUNITIES TO INCREASE SKOKIE’S AFFORDABLE HOUSING SUPPLY Building on the work existing supply of Skokie’s affordable housing, new opportunities to create new affordable housing represent an opportunity to create mixed income communities throughout Skokie’s neighborhoods. To implement this goal, the following options could be considered:  Establish an Inclusionary Housing Ordinance. An Inclusionary Housing Ordinance will require certain new developments to include affordable housing. Concepts range from requiring units within new developments to paying a fee in lieu of providing units at a development. An attachment includes a summary of inclusionary housing ordinances in neighboring and regional communities and concepts for Skokie’s potential ordinance. In summary, eight communities were identified that have inclusionary housing ordinances in place and were studied further to determine their impact and effectiveness. These communities include Arlington Heights, Deerfield, Evanston, Highland Park, Lake Forest, Northbrook, Oak Park and St. Charles.  Update Zoning Code to Allow Accessory Dwelling Units. Accessory dwelling units are “coach houses” or smaller apartments within an existing home or part of a detached structure. They can serve as housing for caregivers, extended family members, or be leased to help bring new income to properties to keep homes affordable for property owners. Approximately one-third of the land use in Skokie is devoted to single-family housing units3, the creation of new smaller housing units supports utilizing this land for new housing in a “landlocked” community.  Affordable Housing Demolition Fee. The demolition of homes or significant removal of housing results in fewer homes available to households considered low- to moderate- income or “workforce.” Homes that are demolished or significantly demolished and rehabilitated are sometimes two to three times more expensive than prior to renovation.  Underutilized Parcels. The Village of Skokie is an inner-ring suburban community and is mostly built out. As a result, the supply of “buildable land” for new housing is constrained. One way the Village can assist the private market is to analyze where 3 Chicago Metropolitan Agency For Planning’s Skokie Snapshot, July 2022 (https://www.cmap.illinois.gov/documents/10180/102881/Skokie.pdf) 606096 11  changes in land use makes sense to spur redevelopment. Underutilized lots, particularly parking lots, especially near employment centers, transit stations, or in the downtown Skokie are opportunities to open up new space to provide housing while eliminating less- desirable uses. The adopted Environment and Sustainability Plan, Land Use and Housing Section (LH1-2) states an action item of identifying underutilized paved areas and incentivizing conversion to sustainable green space or infill development. GOAL D: SUPPORT LOCAL AND REGION-WIDE PARTNER EFFORTS TO PROMOTE AND EXPAND FAIR HOUSING EFFORTS To implement this goal, the following could be considered:  Promote Cook County’s Residential Tenant-Landlord Ordinance (RTLO). Cook County adopted a RTLO that covers all property in suburban Cook County. As a result, Skokie is currently covered by this ordinance. The Cook County RTLO outlines the rights that both tenants and landlords have in a residential rental agreement. It creates a uniform leasing experience in most of Cook County (since the ordinance is similar to Chicago, it is nearly completely uniform). A few key highlights include: 1) Creates protections around the enforcement and activity around an eviction (i.e. no lockouts); 2) Establishes renter rights (i.e. essential services like water, gas, and electricity, compliance with local building codes, temperature settings, repair in timely manner, etc.); and 3) Identifies renter responsibilities (i.e. keep unit in safe working order, remove garbage, allow reasonable access to the unit, use dwelling unit as a dwelling unit, not abandon property, etc.). GOAL E: STUDY AND ASSESS THE ONGOING SUPPLY AND DEMAND FOR INCLUSIVE AFFORDABLE HOUSING IN SKOKIE To implement this goal, the following options could be considered:  Study how Skokie’s affordable housing changes over time. Understanding Skokie’s affordable housing needs, changing demographic profile, and available housing stock is an important component of affordable housing policy.  Update the Village’s Comprehensive Plan. The Village’s Comprehensive Plan is a key document that guides and informs the Village’s policies and work on numerous items associated with housing.  Monitor Best Practices and Work with Regional Housing Experts. There are many resources to support new ideas and innovative practices for supporting affordable housing. Based on Skokie’s demographic profile and housing stock, Regional Housing Solutions has identified a series of strategies and recommended opportunities for enhancing and increasing the availability of affordable housing in Skokie. Several of the strategies (like municipal rehabilitation programs) identified in this document are suggested through this tool. Attachments:  Chart with Inclusionary Housing Ordinances  Meeting materials from February 2, 2023 606096 12   Skokie’s Commitment to Affordable Housing 606096 13  Percentage of Percentage of Number of Affordable Reference Municipality Affordable Affordable Units AMI Required Other Conditions Compliance Procedures Fee-In-Lieu (Y/N) Alternatives to Providing Affordable Housing Incentives for Applicants Application Units Since Creation and Working with Developers Section of Housing (IHDA) Required Date Code Evanston 17.5% 10% (Private) 100% AMI (units for Submit an Inclusionary Housing Y - must keep at least 5% on site Expedited Application Process, Fee Includes condo 60 units built, 40 Developer takes more of a hit Chapter 7 20% (Public) sale) 60% Plan on or before time of and may pay fee in lieu of the Deferral, Fee Waiver, Bonuses deconversions approved or "promised" on affordable units in smaller AMI (units for rent) submission of building permit remaining 5% (density, height, FAR, parking), fee on since 2016. buildings than larger buildings. market rate units deferred for a Currently working on certain amount of time ordinances to address affordable units in smaller buildings. Most developers have been choosing the bonuses over the fee in-lieu Lake Forest 5.3% 15% 80% AMI (units for Applicant shall present an Y - deposited directly into an Other alternatives to fee-in-lieu is a dedication Waiver of applicable fees (application, Applies to residential 12 apartments and 2 Advice: Be upfront about the Chapter 158 (no less than 1) sale) 60% Inclusionary Housing Plan, outlining Affordable Housing Trust Fund of land for development of of affordable building, review, inspection, sewer developments with 5+ condos in new policies and expectations AMI (units for rent) specifics of the development's housing, or provision of another site, providing and water, demolition, impact, and dwelling units (excludes developments, 17 senior compliance with the affordable equivalent number of affordable units at other development fees) adjusted single-family detached cottages, and 10 housing guidelines, as well as a another site within the city proportionately to reflect the fees for dwellings) affordable homes in Land Marketing Plan of how they will the affordable housing units. Trust promote or sell the units Highland Park 9.3% 20% (units for *50% of affordable Application shall include an Y Other alternatives to fee-in-lieu is providing A waiver of all of the otherwise Applies to residential 100+ (since 2002) After working with the same Chapter 150, sale) units shall be at 65% Inclusionary Housing Plan affordable units at an off-site location or a applicable fees for the affordable developments with 5+ developers time and time again, Article XXI AMI, with the dedication of land for development land to the units. All applicable fees and costs dwelling units they know what is required and remaining affordable Highland Park Housing Commission shall apply to all market rate units. If are used to the policies units at 100% AMI there are Impact Fees associated with (units for sale). the affordable units, the funds shall *33% of affordable come from funds in the Affordable units shall be at 0-50% Housing Trust Fund. AMI, 33% units shall be at 51-80% AMI and no more than 33% of units shall be at 81- Deerfield 7.3% 10% (51+ units), *100% AMI for 0-50 Marketing plan required, and at N Upon written request by developer, the Village Additional building height, reduced off- Applies to developments Nothing new since Not really an issue for Article 2, Sec below 50 units is rental units. For 51+ developer's request, the Village or may waive all requirements upon a two-thirds street parking minimums, permit fee that result in the addition implementation in 2021, developers yet 14 tiered between 0 rental units, half at its designee shall assist the vote of the Corporate Authorities. waivers and site plan reductions of or contain 11 or more lots of projects on hold and 3 affordable 80% AMI and half at developer in marketing dwelling units in a multi- due to construction costs, units required (for 100% AMI. family, attached etc. AMI was recently both attached and *100% AMI (units for development or 30 or dropped from 120/100% detached projects) sale) more dwelling units in a to 100/80%. single-family, detached development Percentage of Percentage of Number of Affordable Reference Municipality Affordable Affordable Units AMI Required Other Conditions Compliance Procedures Fee-In-Lieu (Y/N) Alternatives to Providing Affordable Housing Incentives for Applicants Application Units Since Creation and Working with Developers Section of Housing (IHDA) Required Date Code Arlington Heights 19.1% 5% (private) 80% AMI (units for For downtown zoning Annual reporting required by For Downtown zoning district, up to Fee in lieu in amount of $25,000 per required Density bonuses, fee waivers Applies to all new single- Affordable Housing Trust Push back is a general response Chapter 7, 10% (public) sale) 60% district, 7.5% on-site developers describing the status of 2.5% of units can be met by affordable unit up to 2.5% of minimum. If (adjusted proportionally for the family (one and two family Fund since 2006 and that the project will be Article 17 AMI (units for rent) minimum affordability each affordable unit including payment of a fee-in-lieu. No fee-in- developer can provide information to show affordable units), no fee waivers on detached) dwelling units Inclusionary Housing financially infeasible with the requirement. tenancy, turnovers, and income lieu option for public developments that zero affordable units are feasible, the out of pocket fees or impact fees. and new multi-family Ordinance since August affordable units included due to certifications for all new tenants. Village may accept a fee of $75,000 per unit Parking regulations may be reduced or dwelling units 2020. Total Affordable the below market rents. for 10% of the total number of units. subject to availability, parking may be Units built as required by satisfied using Downtown parking the Village: 52. Total garages. Affordable Units overall: 138. St. Charles 17.1% 5% (for building 80% AMI (units for Developer may request City Council Y Fee in lieu determined by City Council, unless Density bonuses, development cost Applies to any residential 75 units created since Almost all developers prefer to Title 19 size 1-15 units), sale) 60% to approve an Alternative developer gets fee waived from City Council offsets (waiver of all building permit, development, with 2008 pay the fee-in-lieu and do so 10% (for buildings AMI (units for rent) Affordable Housing Plan which due to one of the following: a demonstrated demolition, and plan review fees, exceptions built prior to without much pushback 15+ units) demonstrates reasons why they are hardship, environmentally sensitive or natural sewer and water connection fees, only certain dates not able to comply with affordable areas, or limitations on development due to to those relative to the required housing criteria insufficient water or sewer utility capacities, constructed affordable units within unique parcel configurations or grades, can the development) provide offsite affordable units, or provides an alternative Affordable Housing Plan Northbrook 5.7% 15% 33% of units at 50% Developer must present an Y The Affordable Housing Trust Fund is funded Density bonus, design flexibility, Applies to residential Adopted in late 2020, no Advice: Bring difficult policy Chapter 19, AMI, 33% between 50- Affordable Housing Compliance from multiple sources: private cash donations, development of 6 or more new projects discussions up at the beginning Article 7 80% AMI, 33% Plan that outlines compliance payments in-lieu of providing affordable units implemented as of yet of the meeting with developers. between 80-100% AMI housing, demolition tax, etc (for rentals) Oak Park 22.6% 10% 120% AMI (units for Applicant must submit an Y Cash payment in-lieu of $100,000 per Density and height bonus, waiver of Applies to all new Adopted early 2019, not Most developers pay fee-in-lieu Chapter 12, sale) 60% Inclusionary Housing Plan that affordable unit deposited into the Village's building permit fees associated with residential development many new affordable into the Affordable Housing Article 5 AMI (units for rent) outlines and specifies compliance, Affordable Housing Fund. The payment in-lieu construction of the affordable units units built Trust with number of market rate units makes applicant ineligible for permit fee and affordable units, pricing reductions or to density or height bonuses. schedule, and description of marketing plan. WORKING DRAFT Memorandum Community Development Department TO: Chair Paul Luke & Members of the Plan Commission FROM: x-/^<^^^-^ yu^\ /ofianna Nyden, AICP,/]/irector of Community Development DATE: January 26, 2023 SUBJECT: Ongoing Affordable Housing Policy Development Summary: The Plan Commission convened a "Listen & Learn" session at its January 19, 2023 meeting, following a motion to direct the Plan Commission to provide the Board ofTmstees with recommendations on affordable housing policies for the Village. In acknowledgement of the complexity of the issue and the opportunity to learn more about what other communities and developers are doing in this discipline, the meeting attendees heard presentations from planning and affordable housing experts. These presentations can be viewed at www.skokie.org/housing. The speakers at the "Listen & Learn" session encouraged the Village to think holistically about goals for affordable housing and what "problem" the Village is seeking to resolve in establishing an affordable housing policy. Understanding if and what housing exists at different affordability levels in Skokie; understanding if there are specific housing options that might be attractive in Skokie (e.g. more age-restricted housing, supportive housing, housing for multi-generational households, etc.); and understanding the demand for rental housing or opportunities for home ownership are just a few of the areas that could be studied. Inclusion of further study of the Village of Skokie's affordable housing needs is in-step with the Village's Annual Action Plan for Community Development Block Grant that has a stated goal of, "Ensure housing is affordable, accessible, and sustainable." Staff supports a recommendation to further opportunities for affordable housing that are specific to Skokie's unique housing demand and needs and make housing more affordable, accessible, and sustainable. The following framework is used to organize discussion of policies: • Affordable Housing Goal Setting & Implementation. Identify supply and condition of existing housing that will inform in long-range study and planning activities to understand all perspectives of the affordable housing issues and needs for current and prospective Village residents; • Creation of New Housing. Consider potential zoning changes that will create more housing units in new development and expand opportunities to establish new housing units on existing and undemtilized parcels; • Investment in Existing Housing. Investigate partnerships with outside entities that can support Village goals for housing; and • Funding Affordable Housing. Study funding opportunities for affordable housing. Document Number: 605711 The attachment to this memorandum provides additional links and information on the aforementioned framework to provide examples of programs or applications of best practices for preservation of existing affordable housing and construction of new affordable housing. Many of these programs were cited as examples by the speakers from January 19, 2023 or are based on research by staff. Additionally, Homes for Changing Region has a toolkit that is useful and provides extensive examples of innovative ways communities can encourage affordable housing. Next Steps: Staff recommends that the Plan Commission provide feedback to the staff within the proposed framework at the February 2, 2023 meeting. Based on the discussion, public comments, and other direction, staff will prepare draft policy recommendations to the Board of Trustees for further discussion, refinement, and public review at the Plan Commission's March 2, 2023 meeting. Attachments: -Concepts for Plan Commission's Affordable Housing Policy Recommendation -CMPA Homes for a Changing Region Toolkit Document Number: 605711 PROGRAMS IN SUPPORT OF AFFORDABLE HOUSING Undertake housing needs studies, analysis, and reporting (Affordable Housins Goal Settins and Implementation) Background/Summary: The 2020 Census has provided a wealth of new data on the current state of housing, but broader opportunities exist to survey the community and understand the housing needs of Skokie residents, employees, and other stakeholders. Opportunity Area: Conducting a formal study with a structured survey that captures information on the characteristics of the community and their needs as well as targeted focus groups will be integral to understanding how to frame goals for Skokie's affordable housing work as well as the tools employed to reach the goals. It also will provide a better picture of targeted opportunities for housing m inter generational housing, aging populations, housing with specific services for residents, among many opportunities. Within this project, partnering with a university to maintain a partner with formal survey research experience will further ensure this work is of high quality. It also offers the opportunity to study progress over time in regards to goal implementation. Update Comprehensive Plan (Affordable Housins Goal Setting & Implementation) Background/Summary: The Comprehensive Plan is a document designed to guide Village leaders in making decisions about the future development of the community. The Village Board approved an update to the Comprehensive Plan in 2005. Chapter 6 of this plan considers Housing: "Housing is not just the concept of where people live- it has many implications. For the individual (or household) it is the single largest expense; for the Village it is the single largest land use and plays a role in both the look and feel of the public realm, as well as economic development (where employees live)." The Plan puts forth four housing policies to direct future development; Accessibility- enhancing the amount and variety of housing available to people of varying means; Choice- options in housing style and type to meet all needs; Location- site more housing near public amenities; and Change in Development Patterns- allow for mixes of uses and changes where appropriate. Opportunity Area: Staff can work to update the Village's Comprehensive Plan to reflect new housing goals, particularly as it relates to affordable housing and the results of this 2023 review and initiative. Village of Skokie Housing Rehabilitation Program (Investment in Existing Housins) Background/Summary: The Village's Home Improvement Program (HIP) provides financial assistance to eligible low" to-moderate- income homeowners for improvements. Through this program, homeowners can maintain and sustain the quality of their homes resulting in lower cost utility bills, increased property values, and the allowing residents to remain in their homes longer. If qualified, eligible households can receive up to $12,000 in funding for house improvements such as roofing, energy-efficient windows and doors, furnace and water heater replacement, electrical work, etc. Cosmetic upgrades such as painting and carpeting or projects outside of the home such as garages and fences are not eligible under the program. The Village generally receive approximately $80,000 per year in funding for this program and has helped an average of six homeowners per program year. Opportunity Area: Assess existing program and identify other funding opportunities to offer more money to broader range of owners (e.g. landlords that commit to maintaining housing Document Number: 605711 affordability for 20 years following improvements). Consider working with partner agency to increase volume of applicants. Neighborhood Enhancement Program (Investment in Existing Housins) Background/Summary: The Village's Neighborhood Enhancement Pilot Program aims to provide additional investment in neighborhoods one block at a time. Through this program, income-eligible blocks or clusters can enhance their neighborhoods to retain their long-standing investments within their community. This pilot program is similar to the Home Improvement Program, but with a neighborhood focus. If qualified, homeowners can receive financial assistance for home upgrades such as energy-efficient doors and windows, tuckpointing, roof replacement or repair, and front door enhancements such as awnings, lighting, and increased visibility. The Village will receive around $80,000 per year in funding for this program. Opportunity Area: Consider modifying the program to encourage owners of units in multi- family buildings to come together to apply for funding for projects that enhance exterior aspects ofmulti-family buildings that focus on energy efficiency and weatherization. In particular, the areas of the building that could benefit from this investment may be outside individual unit owner's responsibility and not always prioritized (e.g. permeable pavement for parking areas, roof replacement, windows in common areas, etc.) Homeownership Program (Investment in Existing Housins) Background/Summary: According to 2020 Census data, the Village ofSkokie had approximately 24,067 households with 72.4% of them being owner-occupied. The remaining 27.6% were non owner-occupied (or rental) households. Continuing to support pathways to homeownership and ensure that moderate-income households have access to homeownership opportunities is important. The market dynamic of increasing housing prices coupled with shifting economic conditions for obtaining loans make this a challenging opportunity for many. Creating community land trusts where the land and the housing structure are separated, and homebuyers are able to purchase and sell housing without the extra land value is a unique opportunity. Additionally, homebuyer classes and financial literacy counseling will also help families get on the path to homeownership. Opportunity Area: Investigate and study existing community land trust programs and applicability to Skokie. Also look to financial partners in the community and region that provide homebuyer counseling and financial literacy services. Support programs that help first-time homebuyers invest and build equity in Skokie. Additional investigation of an inter-disciplinary program such as Evanston's "House in Geometry" warrants further study. These homes are designed through a high school geometry/architecture course and then are constructed over the course of the school year on school property. The program offers an incubator to learn more about math, construction, and other relevant skills. The constructed homes are moved to a vacant lot provided by the City of Evanston. Accessory Dwelling Units(Creation of New Housmg) Background/Summary: Accessory dwelling units (ADUs) (or carriage/coach houses) are smaller independent housing units located on the same lot as an existing residential unit (often referred to as the primary residential unit). They can be attached or detached from the primary residential unit and include sleeping, kitchen, and bath areas; these units usually have a separate entrance from the primary residential unit. Document Number: 605711 Opportunity Area: Study feasibility to update the zoning code to allow this particular use in certain or all residential districts. These smaller housing units offer a smaller housing unit (and potentially more affordable) in neighborhoods that are more characteristically completely residential in nature. Inclusionary Housing Ordinance (Creation of New Housins) Background/Summary: Inclusionary housing ordinances are tools employed by communities to require either affordable housing on-site within certain new developments or a payment in lieu of providing units. Ordinances can determine what percentage of units must be on-site, the amount of fee associated with payment in lieu, and other conditions that dictate inclusionary housing. Opportunity Area: Study potential impact ofaninclusionary housing ordinance to require new residential development to include on-site units at prescribed affordability level or make a payment in-lieu of providing on-site units. Per unit fee could be subject to location (locations in the downtown, near transit or the expressway could seek a higher fee while those further distances would be a lower fee). Identify vacant underutilized parcels that would be suitable for housing ^Creation of New Hous_mg) Background/Summary: The Village of Skokie is an inner-ring suburban community and is mostly built out. As a result, the supply of"buildable land" for new housing is constrained. One way the Village can assist the private market is to assist in analyzing where changes in land use makes sense to spur redevelopment. Underutilized lots, particularly parking lots, especially near employment centers, transit stations, or in the Downtown are opportunities to open up new space to provide housing while eliminating less desirable uses. The adopted Environment and Sustainability Plan, Land Use and Housing Section (LH1-2) states an action item of identifying underutilized paved areas and incentivize conversion to sustainable green space or infill development. Conversion focus should take into consideration neighborhood's green space, heat island mitigation, affordable housing, and bike/walk mobility needs and prioritize site utilization based on addressing the greatest needs at each site as determined through appropriate engagement with the community, particularly people traditionally under represented. Opportunity Area: Consider affordable housing requirements for this work and require selected developers on VUlage-owned parcels to include affordable units and/or pursue developments as an affordable housing tax credit project. Timeframe for Implementation: Next 12 Months Payment in Lieu of Affordable Housing Units (Funding Affordable Housing) Opportunity Area: In lieu of providing on-site affordable units, developers of new housing in excess of a certain number of units would pay a determined fee per unit. Per unit fee could be subject to location (locations in the downtown, near transit or the expressway could seek a higher fee while those further distances would be a lower fee). Mat or Home Alteration Fee (Funding Affordable Honsins) Background/Summary: Homes that are substantially modified - either through complete or partial demolition, or the construction of a large addition increase the value of the property. Often these major rehabs occur on lots where a smaller home was in place and replaced with a Document Number: 605711 much larger home. While the benefit of the new value is captured through increased property taxes for all taxing bodies, that property's value has irrevocably been increased and will be affordable (if resold) to fewer households. Opportunity Area: In recognition of these large transformative projects, a fee could be due at permit issuance that could be placed to support affordable housing activities. Applicable projects subject to this fee could be homes adding more than 50% ofhabitable floor area to the residential property (exclusive of detached garages) or are demolishing 50% or more of the habitable residential property. Vacation Rental Fee (Funding: Affordable Housins) Background/Summary: The Village does not have a codified registration requirement for housing units that are converted to vacation rentals (AirBnB or VRBO). As travel patterns have changed and people seek more homelike accommodations for travel, staff has anecdotally observed more vacation rentals in the Village. Property Standards staff receive complaints about properties being converted into vacation rentals. The Village's only recourse currently is to require the owner to register the property as a rental. Instead of a vacation rental being utilized when the owner is traveling, short term, the owner can rent to multiple guests repeatedly similar to a hotel, thus changing the environment of the residential neighborhood. Opportunity Area: In addition to codifying requirements and conditions for converting homes to AirBnBs, the Village could require a one-time vacation home registration fee for the privilege of changing the use from a housing unit to a vacation home (potentially consider different conditions for types of vacation homes - some are units that are periodically vacation rentals and some are not). Code changes could also result in more specific requirements for inspection of interior spaces to ensure safety of units. Vacant Building Registry + Fee (Funding Affordable Housing) Backgroimd/Summary: Skokie currently only requires vacant commercial properties to be registered. (Registration involves an inspection by a property maintenance inspector and monitoring of space). Registries of vacant properties address crime and safety issues, ensures properties are maintained in a manner that reduces likelihood of future damage that could result in unit inhabitability (water damage, mold, other deterioration of major building components). Long term vacant residential units are also potential opportunities for the creation of new affordable housing units. Opportunity Area: Implement a fee for registration for any property that is not occupied or actively marketed (e.g. listed for sale/occupied). These funds would help the Village with expenses associated with monitoring these properties, but also discourage long vacancies which have the potential to diminish neighborhood character and keep residential units unavailable for occupancy. Document Number: 605711 Homes for a Changing Region Toolkit Recommendations Guide July 2015 Table of Contents Introduction ................................................................................................................................................ 2 What are some sustainable, cost-effective strategies for housing rehab? .............................................. 3 How do we ensure our rental stock is well-maintained and continues to be an asset in our community? .......................................................................................................................................... 4 How should we approach the development of our Downtown? What policies can help to facilitate a more compact, pedestrian-friendly, and livable Downtown? ............................................................... 4 How do we provide housing options for seniors and increase opportunities for multigenerational living? ................................................................................................................................................... 5 How do we encourage and facilitate development in our community? ................................................ 6 How can we encourage and/or increase energy efficiency projects in our community? ...................... 6 How can we encourage affordable housing development and/or preservation? ................................... 7 How can we spur market-rate housing development in our community? ........................................... 8 How can our community combat crime that occurs in residential areas? ............................................ 8 What are best practices to address the issue of foreclosure and vacant property in our community? . 9 How can our community maintain and improve the management of our condominium properties? . 9 What strategies can our community use to prepare for a growing population? ................................ 10 How can our community market itself as one that is inclusive and open to all populations? ........... 10 How do we engage local employers in providing workforce housing? ............................................... 11 How can our community leverage existing transportation assets to reduce the combined cost of transportation and housing? .............................................................................................................. 11 How can we work with our neighbors to address complex housing challenges? ................................ 12 The project partners wish to thank the Office of the Illinois Attorney General for supporting this project through a grant made possible by the National Foreclosure Settlement. Homes for a Changing Region Toolkit Page 1 of 12 Recommendations Guide Introduction Homes for a Changing Region enables municipal leaders to understand demand and supply dynamics for housing in their communities and develop long-term housing policy plans based on sound research and input from their residents. The municipal and subregional recommendations made in these plans aim to create a balanced mix of housing, serve current and future populations, and enhance livability. This recommendations guide allows any municipality to quickly and easily consult policy-driven strategies from past Homes plans in order to address some of their most pressing housing challenges. Keeping in mind that the metropolitan region is home to a diverse set of communities, the guide pulled municipal and subregional recommendations from all completed plans to create a quick reference guide for communities that are asking important housing questions like the ones found below. The guide also includes links to relevant case studies from Home Grown that more comprehensively explain the development and implementation of specific policy strategies to address a wide range of community housing issues. Homes for a Changing Region Toolkit Page 2 of 12 Recommendations Guide What are some sustainable, cost-effective strategies for housing rehab?  Create structure for large-scale rehab by establishing an entity that can play a manager role, share administration, and take advantage of experienced staff. o Municipal Recommendations  East Dundee  Park Forest  Bellwood o Subregional Recommendations  West Cook County Housing Collaborative  Carpentersville, East Dundee, Elgin, & West Dundee  Institute design standards or form-based code. o Municipal Recommendations  Batavia  Libertyville  Oak Park o Case Studies  Mundelein Downtown Design Guidelines  Glenview Downtown Development Code  Provide reconstruction subsidies or low-interest loans. o Municipal Recommendations  Oak Park  Gurnee o Case Studies  Evanston Multifamily Rehabilitation Loan Program  Oak Park Single-Family Rehabilitation Loan Program  Elgin Residential Rehabilitation Grants  Create neighborhood overlay rehab district to streamline permitting needed for rehab activities. o Municipal Recommendations  Berwyn Homes for a Changing Region Toolkit Page 3 of 12 Recommendations Guide How do we ensure our rental stock is well-maintained and continues to be an asset in our community?  Create or expand building code inspection, registration, and licensing programs. o Municipal Recommendations  Carpentersville  Batavia  Geneva o Subregional Recommendations  West Cook County Housing Collaborative o Case Studies  Mount Prospect Inspection Program  Hanover Park Rental Licensing Program  Addison Residential Rental License Program  Institute landlord education programs. o Municipal Recommendations  Berwyn  Maywood  Arlington Heights How should we approach the development of our Downtown? What policies can help to facilitate a more compact, pedestrian-friendly, and livable Downtown?  Promote transit-oriented development. o Municipal Recommendations  Elgin  West Dundee  Arlington Heights o Case Studies  Chicago Transit-Oriented Development Ordinance  Promote location efficient mortgages. o Municipal Recommendations  Aurora  Explore opportunities for higher density housing. o Municipal Recommendations  West Dundee  Elgin  Aurora Homes for a Changing Region Toolkit Page 4 of 12 Recommendations Guide  Create mixed-use development/revising zoning to allow for more mixed-use development. o Municipal Recommendations  Gurnee  St. Charles  Palatine  Reduce parking requirements. o Municipal Recommendations  St. Charles  West Dundee  Libertyville o Case Studies  Libertyville Payment in Lieu of Required Parking  Reduce minimum housing unit and lot size. o Municipal Recommendations  St. Charles  Libertyville  Lansing How do we provide housing options for seniors and increase opportunities for multigenerational living?  Develop accessory dwelling units (granny flats). o Municipal Recommendations  Elgin  Carpentersville o Subregional Recommendations  Northwest Suburban Housing Collaborative  Provide housing options for seniors to downsize into homes that require less upkeep and maintenance, including condos, townhomes, and apartments. o Municipal Recommendations  Carpentersville  Buffalo Grove  Olympia Fields o Subregional Recommendations  Northwest Suburban Housing Collaborative o Case Studies  Senior Handyman Program Homes for a Changing Region Toolkit Page 5 of 12 Recommendations Guide  Develop marketing plans to attract development specifically for seniors. o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  Think strategically about how seniors can best age in place, including locating development in close proximity to transit, medical facilities and shopping areas. o Municipal Recommendations  Mount Prospect  Elgin o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  Northwest Suburban Housing Collaborative How do we encourage and facilitate development in our community?  Expedite permitting. o Municipal Recommendations  Oak Forest o Case Studies  Elgin Expedited Permitting Process  Offer density bonuses. o Municipal Recommendations  Batavia o Case Studies  Plainfield Smaller Lots and Density Bonuses  Reduce parking requirements. o Municipal Recommendations  Batavia  Libertyville  Northlake o Case Studies  Libertyville Payment in Lieu of Required Parking How can we encourage and/or increase energy efficiency projects in our community?  Streamline permitting processes for green building/infrastructure. o Municipal Recommendations  Aurora Homes for a Changing Region Toolkit Page 6 of 12 Recommendations Guide  Allow some flexibility in building codes to accommodate new building technologies. o Municipal Recommendations  Aurora  Approve designs that maximize passive solar gain. o Municipal Recommendations  Montgomery  Promote energy efficiency retrofits. o Municipal Recommendations  Maywood  Hazel Crest o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  Northwest Suburban Housing Collaborative  Market programs and initiatives for retrofitting and green building to landlords and homeowners. o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles o Case Studies  Oak Park Energy Efficiency Programs How can we encourage affordable housing development and/or preservation?  Adjust zoning ordinances to allow for more compact development and higher density housing. o Municipal Recommendations  Geneva  Plainfield  Libertyville  Develop an inclusionary zoning ordinance. o Municipal Recommendations  Geneva  Libertyville  Oak Forest o Case Studies  Highland Park Inclusionary Zoning Ordinance  Lake Forest Inclusionary Housing Ordinance  St Charles Inclusionary Zoning Ordinance Homes for a Changing Region Toolkit Page 7 of 12 Recommendations Guide  Establish a community land trust. o Municipal Recommendations  Libertyville o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  Northwest Suburban Housing Collaborative o Case Studies  Community Partners for Affordable Housing  Establish an affordable housing trust fund. o Municipal Recommendations  Aurora  Arlington Heights o Case Studies  Highland Park Affordable Housing Trust Fund  Chicago Low-Income Housing Trust Fund  Comply with the Affordable Housing Planning and Appeal Act (AHPAA). o IHDA’s Affordable Housing Planning and Appeal Act (AHPAA)  Municipal Recommendations  Geneva How can we spur market-rate housing development in our community?  Create mixed-use zoning in appropriate single-use areas. o Municipal Recommendations  Libertyville  Think about context sensitive design as it relates to transportation improvements. o Municipal Recommendations  Northlake  Libertyville  Montgomery How can our community combat crime that occurs in residential areas?  Introduce the idea of crime prevention through environmental design (CPTED), which are design standards that emphasize transparency and “eyes on the streets.” o Municipal Recommendations  Oak Forest Homes for a Changing Region Toolkit Page 8 of 12 Recommendations Guide  Develop a crime free housing program. o Municipal Recommendations  Forest Park o Case Studies  Schaumburg Crime Free Multi-housing Program What are best practices to address the issue of foreclosure and vacant property in our community?  Monitor vacant land/buildings through vacant building ordinance and databases. o Municipal Recommendations  Oak Park o Case Studies  Park Forest Vacant Building Registration Ordinance  Mount Prospect Vacant Structure Registration Ordinance  South Chicago Heights Vacant Property Ordinance  Offer homeownership counseling and foreclosure prevention services. o Subregional Recommendations  Northwest Suburban Housing Collaborative  West Cook County Housing Collaborative  Partner with financial institutions to create opportunities for homebuyers. o Subregional Recommendations  West Cook County Housing Collaborative  Make TIF funding available for neighborhood improvement expenditures. o Municipal Recommendations  Maywood  Bellwood  Encourage the responsible rentals of single-family homes if there is a high vacancy rate. o Subregional Recommendations  West Cook County Housing Collaborative How can our community maintain and improve the management of our condominium properties?  Reach out to condo Association and offer education programs. o Municipal Recommendations  Oak Park Homes for a Changing Region Toolkit Page 9 of 12 Recommendations Guide   Mount Prospect o Subregional Recommendations  Northwest Suburban Housing Collaborative o Case Studies  Oak Park Condominium Registration and Education Programs What strategies can our community use to prepare for a growing population?  Targeted rehab/redevelopment of existing properties. o Municipal Recommendations  East Dundee  Allow for changes in zoning to accommodate increased density in housing stock. o Municipal Recommendations  Carpentersville How can our community market itself as one that is inclusive and open to all populations?  Design website and outreach materials that are friendly to immigrants, people with disabilities, seniors, and other minority populations. o Municipal Recommendations  Batavia  Geneva  West Dundee  Ensure that housing meets design standards of the Illinois Accessibility Code and the Fair Housing Act. o Municipal Recommendations  North Aurora  East Dundee  Adopt a visitability ordinance. o Municipal Recommendations  West Dundee  Elgin  East Dundee o Case Studies  Bolingbrook Accessibility/Visitability Requirements Homes for a Changing Region Toolkit Page 10 of 12 Recommendations Guide How do we engage local employers in providing workforce housing?  Encourage local businesses to take advantage of state incentives for employer-assisted housing programs. o Municipal Recommendations  St. Charles  Libertyville  Plainfield o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  West Cook County Housing Collaborative o Case Studies  Employer-Assisted Housing  Loyola University-Assisted Housing Program How can our community leverage existing transportation assets to reduce the combined cost of transportation and housing?  Create transit-oriented development. o Municipal Recommendations  St. Charles  Elgin  Olympia Fields o Subregional Recommendations  Northwest Suburban Housing Collaborative  West Cook County Housing Collaborative o Case Studies  Chicago Transit-Oriented Development Ordinance  Develop a transit-supportive overlay zone. o Municipal Recommendations  Batavia o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  Coordinate land use and new transportation initiatives. o Subregional Recommendations  Batavia, Geneva, North Aurora & St. Charles  West Cook County Housing Collaborative  Reducing parking requirements to encourage alternative modes of transportation. o Municipal Recommendations  Hazel Crest Homes for a Changing Region Toolkit Page 11 of 12 Recommendations Guide   Libertyville o Case Studies  Libertyville Payment in Lieu of Required Parking How can we work with our neighbors to address complex housing challenges?  Explore the benefits of the formal interjurisdictional collaboration. o Metropolitan Mayors Caucus Interjurisdictional Collaboration Homepage o Case Studies  Housing Collaboratives Homes for a Changing Region Toolkit Page 12 of 12 Recommendations Guide 233 South Wacker Drive, Suite 800 Chicago, IL 60606 312-454-0400 info@cmap.illinois.gov www.cmap.illinois.gov FY16-0004  Plan Commission Summary Meeting Minutes Date: January 19, 2023 A motion to approve the minutes of the Plan Commission meeting of December 1, 2022 (Case 2021-30P) was made by Commissioner Franklin and seconded by Commissioner Shah. Case Description: Discussion: Affordable Housing Listen and learn session featuring speakers who develop and work towards the preservation and creation of new affordable housing development. Discussion and Interested Parties At the December 20, 2022 Village Board meeting, the Trustees made a directive for the Plan Commission to develop affordable housing policy recommendations to the Board by the end of the 1st quarter of 2023. The process will begin with this listen and learn session to gather information and feedback from several experts in the field. The next meeting, on February 2, 2023, will refine the discussion among the Plan Commission and community members. The concluding meeting will take place on March 2, 2023 at which time recommendations will be finalized to present back to the Village Board. Jonathan Burch of Chicago Metropolitan Agency for Planning (CMAP), David Brint & Peter Levavi of Brinshore Development, Rich Monocchio from Housing Authority of Cook County, Rob Anthony of Community Partners for Affordable Housing, and Richard Koenig of Housing Opportunity Development Corporation each shared the work they are doing to support affordable housing in the area by means of short presentations and handouts. The Plan Commissioners asked questions regarding demographics, comparisons with our border communities, and clarification of strategy terms. Several audience members posed questions and comments regarding income levels, how condos can stay affordable, the effects of homelessness on students, impact on existing residential property values, and how intergenerational housing promoted by smaller non-profit organizations should be added to the mix. All commenters thanked the Village for addressing and undertaking this important topic. Recommendations and Voting No vote was taken. 605657 - Plan Commission meeting minutes – Jan. 19, 2023 – Affordable Housing  Draft Plan Commission Summary Meeting Minutes Date: February 2, 2023 A motion to approve the minutes of the Plan Commission meeting of January 19, 2023 was made by Commissioner Burman and seconded by all in unison. Case Description: Discussion: Affordable Housing Discussion regarding the formation of recommendations to the Village Board of Trustees on affordable housing policy. Discussion and Interested Parties Discussion took place among the Plan Commissioners and community members. Staff organized the discussion summarizing the needs and goals of an affordable housing policy by creating a framework of topics to continue, expand, further study, or initiate to preserve existing affordable housing as well as the construction of new affordable housing. Gail Schechter, 9033-B Keating Avenue, is involved with a residents’ group: Skokie Neighbors for Housing Justice. She submitted and recapped a presentation, “Skokie Housing Needs and Recommended Solutions” and introduced community group members, Charlie Saxe and Judy Mendel. They spoke about how diversity and mixed housing makes a community stronger by building commitment, the income/housing gap especially those earning less than $50,000; people that work in Skokie can’t live in Skokie, how the zoning & building codes suppress the remodeling process of the aging housing infrastructure, building a unified housing plan, and the creation of a Housing Commission. A commissioner wanted further information regarding the cumbersome process Mr. Saxe referred to. Mr. Saxe cited that his house was built in 1950 and needed a variance before he could submit plans to add on a 2nd story addition. The process was too confusing, expensive, time-consuming, and the uncertainty of not being granted the variance was frustrating. The commissioner also added that if major home alteration fees are being considered, then a differentiation should be put in place as well for the types of major home alterations. It is quite different when a home is modified to accommodate a senior or a person with a disability compared with adding a pool. A commissioner commented that without changing anything Skokie has met the state’s guidelines with almost 20% of housing stock considered affordable. 606086 - Plan Commission meeting minutes – Feb. 2, 2023 – Affordable Housing Other community members voiced the following concerns: - Skokie’s 19% affordability is an outdated figure from 2016. - Skokie should be economically diverse as well as demographically. Refugee families earning hourly wages of $15-$17 have a hard time paying rent. - Skokie’s affordable housing stock is old and not compatible for people with disabilities or the elderly; no wheelchair access or too narrow doorways. Newer developments are too expensive. - New immigrant families are priced out – they can’t get started in Skokie. - Units should be available in every new development. - Codes should be changed so that people can start, re-start, and remain in Skokie. - Housing is not the only expense; transportation needs should not be overlooked. - Fees in lieu of – make sure the fees are high enough so that developers are discouraged from using the program. - Make sure inclusionary plans follow state laws. - Affordability should be on par with state recommendations and remain at 10% - crime in Skokie is going up making the community unsafe. - Developers are not given any time restraints when presenting their plans, but residents are not given the same support by the Plan Commission when they speak of their concerns or comments. The concluding Plan Commission meeting on this topic will take place on March 2, 2023 at which time recommendations will be finalized to present back to the Village Board at their March 20, 2023 meeting. Recommendations and Voting No vote was taken. 606086 - Plan Commission meeting minutes – Feb. 2, 2023 – Affordable Housing VILLAGE OF SKOKIE Skokie's Commitment to Affordable Housing Community Development Department October 1, 2020 SKOKIE'S COEVIMITMENT TO AFFORDABLE HOUSING The Village of Skokie has a long tradition of inclusive housing poiicies that support affordabie housing and have driven the Village to achieve 19.9% affordable housing, which is one of the top rates in the North Shore area. To supplement this approach, the Village has also developed several programs that support low income renters and homeowners with a focus on investing En their homes and neighborhoods. Lastly, Village staff is participating in regional initiatives that support affordable housing. Housing is considered affordable when housing costs are no greater than 30% of household income/ particularly for low income households/ which is 80% of median household gross income. Affordable housing is out of reach m many parts of the Chicagoland area. For suburban growth areas, this is largely due to a lack of older housing stock and overall housing diversity/ favoring single family homes over multi-family developments. Inner ring suburbs like Skokie are wefi-positioned to provide affordable housing opportunities due to the age of our existing housing stock and supply of muiti-famiiy buildings. Provided the Village continues to support indusive land use policies and protect existing housing stock, the Village's higher percentage ofaffordabie housing should continue. This document is intended to provide an overview of Skokie's current affordable housing position and insights into policies that have enabled the Village to achieve and maintain one of the highest affordable housing rates in the North Shore area. Affordable Housing Profile According to data from the 2016 American Community Survey (ACS)/ 19.9% of the Village ofSkokie's housing stock is affordable in accordance with HUD's definition. With over 22,446 households in the village/ 4,467 units are affordable. As shown in Table 1, Skokie outpaces ail North Shore communities except NEIes, which registers over 30%. Evanston is closest/ just two percentage points below, whiie Morton Grove is over six points behind. The remaining cities are below 10% which is the threshold enacted by the iHEnois' Affordable Housing Planning and Appeals Act (AHPAA). Another data point to consider is the level of owner-occupied properties. A greater availability of rental units typically correlates with greater affordabiiity and ease of entry into the market. As per 2019 US Census estimates, shown in Table 1, just over 70% of homes in the Village are owner-occupied. In Evanston, 56.3% of homes are owner-occupied and has a high percentage of rental due to its university population. Morton Grove has the highest rate of owner-occupancy at 91.3%. The type of housing is also a key indicator that correlates with affordable housing. Places that have more multi-family housing typicaiiy have a higher percentage of affordable housing. Just under 60% of housing is within single family detached or attached structures. The remaining 40% are within muitf- family buildings with a shared entrance, and of that percentage/ 20% is within bdildings with 10 or more units. Niles is very similar to Skokie with 62% single family and 38% muiti-family. The difference is the Niles has more buildings with 10 or more units. Morton Grove has nearly 82% single famiiy and just 8% mutthfamity. Home to a major university/ Evanston has a much higher rate of muiti-family at 63% of which over 37% are within buildings with more than 10 units. Table 1: Percentage of Affordable Housing Units in Relation to Overall Housing Supply Municipality 2011 2016 Niles 20,2% 30.4% Skok'ie 14.7% 19.9% Evanston 15.4% 17,5% Morton Grove 7.9% 13.1% Gtenv'iew 7.4% 7.3% Uncolnwood 4.6% 5.5% Witmette 4.1% 4.5% Go/f 0,8% 2.8% Winnetka 2.5% 2.7% Glencoe 1.4% 2.5% KeniSworth 0.5% 2.2% Table 1 Source: American Community Survey 2011 and 2016. TaJb/e 2; Home Occupancy a Median Monthly Housing Costs MunicipaSity Owner Median Owner Renter Median Gross Occupied Mort. Costs Occupied Rent 2014- 2014-2018 2018 Nites 73.4% $1,819 227% $1,117 Skok'ie 70.5% $2,154 24.9% $1,226 Evanston 56.3% $2,470 40.7% $1,366 Morton Grove .91.3% $2,144 7.8% $1,817 Park Ridge 82.4% $2,763 16.4% $1,412 Glenview 82.8% $2,755 17.6% $1,761 Northbrook 85.8% $2,980 11.7% $2.046 Uncoinwood 84.8% $2,640 12.3% $1,868 Witinette 86.8% $3,724 13.9% $1,639 Northfield 89.6% $3,070 11% $1,585 Golf 94.7% $3,766 0.65% N/A Winnetka 89.0% $4,000+ 8.6% $1,810 Kenifworth 82,4% $4,00(H 8.2% $2,000+ Table 2 Sources: Census Quick Facts (census.gov/quickfacts} and American Community Survey 20'fO to 2014 According to "Regional Housing Soiutions" website, which categorizes affordabiiity within housing sub- markets/ Skokie's housing stock was primarily built in two eras - the years after World War II and in the 1960/s-70's - as shown in Table 3. This housing stock has remained intact with 84% considered between moderate to lower cost and remains affordabie. Only 6% of Skokie's stock is considered high cost/ tow density suburban which is out of reach for tow to moderate income families. Niies which has by far the most affordable housing has 94% in the lower cost range and 6% in the high cost range. Evanston aiso has littie mid-range diversity with 24% lower cost and 76% higher cost. Morton Grove is 71% lower cost/ 29% in the middle, and 1% high cost. The farther north, housing is less afford a bie. TaJb/e 3; Percentage of Housing by Submarket Ordered by Percentage of Affordable Housing Submarkets 1 2 3 4 5 6 7 8 Nihs 41 53 6 Skokie 68 16 6 Evanston 29 13 47 Morton Grove 64 7 29 Park Ridge 8 73 17 Gfenvjew 68 13 11 Northbrook 1 98 7 Uncotnwood 32 29 38 Wilmette 100 Norihftefd 100 Go!f 100 WJnnetka 100 Glencoe 100 Kenilworth 100 Submarket Characteristics Submarket 1; Higher density urban, high foreciosure and vacancy, low income. Submarket 2: Higher density urban and suburban, large households, high foreclosure/moderate vacancy, low/moderate income, Submarket 3: Higher density urban, high income, young, high home prices and rents. Submarket 4: Suburban post-war housing stock, moderate- and middle-income, lower cost stock, Submarket 5: Suburban 1960-79 housing stock, moderate but declining incomes, !ower cost stock, Submarket 6: High cost suburban housing stock, low density, high income, aging popuiatlon. Submarket 7: High popuiation growth, newest housing stock. SubmarketS: Suburban 1980-99 housing stock, high/mJddle income, suburban, aging population. TajMe 3 and Submarket Characteristics Source: regionalhousingsolutions.org. SkokEe's Affordable Housing Priorities The Village of Skokie's historic commitment to diversity is the main driver for its affordable housing success. This includes a diverse economy/ diverse housing types, and a diverse community. The commitment is primarily demonstrated by a long history of planning and zoning decisions that allowed higher density housing developments. Skokie is also committed to a high standard of living for affordable housing. The Village has developed the Neighborhood Enhancement and Home Improvement programs/ which are funded through CDBG, to help maintain structures occupied by low income residents. The Village is also providing direct rental assistance to fow income families through the Housing Financial Assistance and Emergency Financial Assistance programs, in addition/ the Neighborhood Integrity initiative/ which includes the Rental Registration and Landlord Training programs, requires landlords to conduct regular maintenance to their buildings and to ensure a safe and iivabie environment for their tenants. Village staff also participates in Chicago Regional Assessment of Fair Housing. This initiative is helping a partnership of Cook County municipafities coordinate affordable housing efforts through a regional approach instead of beyond their municipal boundaries. Housing Development Policies The starting point for the Village's housing affordabiiity involves housing development policies that were instituted during Skokie's post-WWI! growth period and have continued through today. During the postwar era through the 1970\ Village leaders elected to allow the construction of muiti-famiiy structures on smaller iots. As a result, 40% of households are within muiti-family buiidings, and 84% of our housing stock is within Submarket 4 and 5/ which are lower cost and serves diverse household incomes. If you fast forward 70 years/these buildings have become the cornerstone of affordable housing in the Village and created development patterns and a housing stock that sets Skokie aside as one of the most affordable communities in the North Shore. Neighborhood Enhancement & Home Improvement Programs in addition/ the Village has developed two direct investment programs to fund improvements to structures owned by low income residents and/or within iow income areas. The Neighborhood Enhancement program was added to the CDBG Annual Action Plan this year and is currently being roiied-out. The program provides funding for improvements to low income, multi-famiiy structures. The initial focus is on low income homeowners, but depending on the demand/ assistance may be provided to rental buiidings in low income areas. The list of qualified improvements includes exterior door and window replacement, accessibility improvements/ tuckpointing/ painting, roof replacement/ landscaping and hardscaping, lighting/ and safety improvement. The Neighborhood Enhancement Program is budgeted for a total of $180,976 this year. The Home Improvement Program is aiso funded through CDBG and has been a long-standing program with nearly 400 units improved. The program provides up to $12,000 to cover the cost of exterior improvements that are similar to the list of improvement for the Neighborhood Enhancement program. The difference between the two program is the Neighborhood Enhancement program has a focus on muiti-famiiy buildings while the Home Improvement Program assists low income homeowners of one and two-family homes. The Home Improvement Program is typically budgeted for $70,000 each year. Housing Financial Assistance & Emergency Assistance Programs The Village also provides direct assistance to low income homeownerand renters through two programs that have arisen from the COVSD-19 Pandemic. The Housing Financial Assistance program is funded through CDBG-CV suppiemental funding through the CARES Act. The Village is providing $200,000 to provide rent, mortgages, anct/or utility assistance to low to moderate income households. The Emergency Assistance Program, which is funded by donation from the Skokie Community Foundation, provides grants up to $500 for rent and utility assistance. According to reports from the Human Services Departments, through the end of July/ 84 households benefitted from the program during the pandemic. Neighborhood Integrity Initiative The primary component of the Neighborhood integrity Initiative, which was created in 2014, is the Rental Unit Registration ordinance/ Chapter 22 oftheViiiage's Code of Ordinances. The code requires the registration and inspection of every residential rental unit prior to being offered for rent or being sold. The purpose of the program is to ensure landlords are providing safe and livable environment for their tenants. While there is added cost to the property owner, this step ensures units are well" maintained, which Es a priority. SkokEe's approach to affordable housing not only provides opportunities to low income resident but also takes steps to ensure their homes are safe and livable. The Rental Unit Registration ordinance aiso requires the owner or operator of a rental unit to successfully complete the Viiiage's Landlord Seminar within three months from the date of registration. The seminars consist of 3 four-hour information/ training seminars, which are heid throughout the year. The seminars are held at the Skokie Police Department on weekdays/ evenings and Saturday mornings. Landlords are only required to attend one seminar; however/ if a property is found to have numerous nuisance compiaints or issues/ the landlord maybe required to attend an additional seminar. Overall/ the seminar informs iandiord about the Rental Unit Registration program/ buiiding and property maintenance codes/ tenant rights and responsibilities, and the duties of the Neighborhood Standards Police Officer. The crime free provisions are another important aspect of the ordinance. Owners are required to have tenants sign a crime free addendum as part of the lease. The addendum makes it a violation of the lease for any tenant or guest of the tenant to engage invioientordrug related crimes or to use the leased premises for such purposes. in conjunction with landlord training and the crime free elements of the code, the Village also provide Landlord Certification if the owner/operator agrees to a security inspection and a neighborhood social event offered by the Police Department. Regional Efforts The Village is also taking part in the Regional Assessment of Fair Housing, which is a regional effort to address fair housing issues. Although the assessment is focused on fair housing, affordabiiity is a primary component of the assessment. The Regional Assessment of Fair Housing is led by Cook County with technical assistance initially provided by the Chicago MetropoHtan Agency for Planning (CMAP) and Enterprise Community Partners as the lead consuitant. The assessment is a collaboration of over 17 iocai communities En Cook County/ which has been coined the Chicago Area Fair Housing Alliance. if not for this partnership, the Village would have had to undertake the assessment on its own to fulfiii CDBG requirements. The Village's participation in the assessment is $12,000, which is covered by CDBG funds. The assessment is an ongoing project. To date, broader regional objectives and best practices have emerged, and the group is currently working on iocai recommendations.