O-21-38VILLAGE OF DEERFIELD
ORDINANCE NO. 2021- 0-21-38
AN ORDINANCE APPROVING AN AMENDMENT TO THE VILLAGE OF
DEERFIELD ZONING ORDINANCE
REGARDING AFFORDABLE HOUSING REQUIREMENTS
WHEREAS, the Village of Deerfield is a home rule municipal corporation in
accordance with Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970;
and
WHEREAS, the Village has the authority to adopt ordinances and to promulgate
rules and regulations that pertain to its government and affairs; and
WHEREAS, the Village recognizes the need to provide affordable housing to low -to -
middle income households in order to increase housing opportunities for a diverse
population and to provide housing for those who live or work in the Village; and
WHEREAS, without intervention, the trend toward increased housing prices will
result in an inadequate supply of affordable housing, which will have a negative impact
upon the ability of local employers within the Village to maintain an adequate local work
force and will otherwise be detrimental to the public health, safety, and welfare of the
Village and its residents; and
WHEREAS, since the remaining land appropriate for new residential development
within the Village is limited, it is essential that a reasonable proportion of such land be
developed into housing units affordable for low -to -middle income households and working
families; and
WHEREAS, the President and Village Board have determined that it is in the best
interest of the Village and its residents to adopt amendments to its Zoning Ordinance to
actively support the development and preservation of affordable housing in the Village
("Proposed Amendment'); and
WHEREAS, the Plan Commission held workshop meetings on September 10, 2020,
October 22, 2020, February 11, 2021, and March 11, 2021 to identify appropriate policies
and tools to promote an increase in the supply of affordable housing in the Village; and
WHEREAS, a public hearing of the Plan Commission of the Village of Deerfield to
consider the Proposed Amendment was duly advertised in the Deerfield Review on April 22,
2021 and held on May 13, 2021; and
WHEREAS, on May 13, 2021, the Plan Commission adopted Findings of Fact,
recommending that the Village Board approve the Proposed Amendment; and
WHEREAS, having considered the findings and recommendations of the Plan
Commission, the Village Board has found and determined that it will serve and be in the
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best interests of the Village and its residents to approve the Proposed Amendment to
actively support the development and preservation of affordable housing in the Village;
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE BOARD OF
DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, as follows:
SECTION ONE: RECITALS. The foregoing recitals are incorporated into, and
made a part of, this Ordinance as the findings of the Village Board.
SECTION TWO: AFFORDABLE HOUSING AMENDMENT TO THE
ZONING ORDINANCE. The Zoning Ordinance is hereby amended by adding a new
Section 2.14, entitled "Affordable Housing in New Developments," to Article II, entitled
"General Provisions," of the Zoning Ordinance, which Section 2.14 shall be as set forth in
Exhibit A, attached to and by this reference, made a part of this Ordinance.
SECTION THREE: EXEMPTION. Any property that sought and obtained a
special use permit for a planned residential development or planned unit development that
includes residential units prior to the passage of this Ordinance shall be exempt from the
amendments approved pursuant to Section 2 of this Ordinance so long as the property is
developed and used in accordance with the final development plan approved by the Village
Board for those properties and, if applicable, any minor changes and site work for such
property approved by the Village Principal Planner and the Village Director of Public
Works and Engineering (for matters within their respective permitting authorities).
SECTION FOUR: SEVERABILITY. If any provision of this Ordinance or part
thereof is held invalid by a court of competent jurisdiction, the remaining provisions of this
Ordinance are to remain in full force and effect, and are to be interpreted, applied, and
enforced so as to achieve, as near as may be, the purpose and intent of this Ordinance to the
greatest extent permitted by applicable law.
SECTION FIVE: EFFECTIVE DATE. This Ordinance shall be in full force and
effect from and after its passage, approval, and publication in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
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AYES: Benton, Jacoby, Jester, Metts-Childers, Oppenheim, Seiden
NAYS: None
ABSTAIN: None
ABSENT: None
PASSED: October 4, 2021
APPROVED: October 5, 2021
ORDINANCE NO. 0-21-38
Daniel C. Shapiro, Mayor
ATTEST:
Ke S. St et, Village RCIetrt
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EXHIBIT A
2.14 AFFORDABLE HOUSING IN GOVERNED DEVELOPMENTS
2.14-A PURPOSE AND INTENT
The Affordable Housing standards in Section 2.14 are established for the purposes of
implementing the goals, objectives and policies of the Deerfield Comprehensive Plan. These
standards are intended to promote the public health, safety, and welfare of the existing and
future residents of Deerfield by requiring certain residential developments or mixed -use
developments which contain a residential component to incorporate a specified percentage of
dwelling units to be priced affordably for households with incomes at or below 100 percent of
the Area Median Income (AMI).
The Village recognizes the need to provide affordable housing to low -to -middle income
households in order to increase housing opportunities for a diverse population and to provide
housing for those who live or work in the Village. Without intervention, the trend toward
increased housing prices will result in an inadequate supply of affordable housing, which will
have a negative impact upon the ability of employers within the Village to maintain an
adequate local work force and will otherwise be detrimental to the public health, safety, and
welfare of the Village and its residents. Since the remaining land appropriate for new
residential development within the Village is limited, it is essential that a reasonable
proportion of such land be developed into housing units affordable for low -to -middle income
households and working families.
2.14-B: DEFINITIONS
(1) The words and phrases used in Section 2.14 shall be interpreted to have the meanings
ascribed to them in this Section 2.14-B. To the extent that words or phrases used in
Section 2.14 are not defined in Section 2.14-B, but such words or phrases are defined
in the Zoning Ordinance, such words or phrases shall be deemed to have the meanings
set forth in the Zoning Ordinance.
(2) Definitions.
AFFORDABLE HOUSING. Any housing that qualifies as affordable for the targeted
households identified in Section 2.14. For the purpose of Section 2.14, "Affordable
Housing" is divided into tiers based on availability to households at distinct income
levels.
AFFORDABLE HOUSING COMPLIANCE PLAN: A plan submitted by a developer
or owner of a governed development describing how development will comply the
requirements of Section 2.14.
AFFORDABLE HOUSING UNIT. A dwelling unit that meets the criteria for
affordable housing.
AFFORDABLE OWNER -OCCUPIED UNITS. Affordable housing units marketed
and offered for sale to eligible households subject to an affordable unit covenant.
100121378.71 4
AFFORDABLE RENTAL UNITS. Affordable housing units marketed and offered for
rent to eligible households subject to standard lease terms.
AREA MEDIAN INCOME (AMI). The median income level for the Chicago -
Naperville -Elgin, IL -IN -WI Metropolitan Statistical Area, as established and defined
in the annual schedule published by the Secretary of Housing and Urban
Development, and adjusted for household size.
CERTIFICATE OF QUALIFICATION. A certificate establishing a qualified
household's eligibility to purchase or lease an affordable dwelling unit based on
income eligibility using income and asset limits, in accordance with the Village's
policies and procedures.
CONSUMER PRICE INDEX (CPI). Consumer price index for the Chicago -Naperville -
Elgin area as published annually by the U.S. Department of Labor, Bureau of Labor
Statistics.
CONVERSION. A change in a residential or mixed -use rental development to
individual -owner residential condominium units, or a change in individual -owner
residential condominium units to a residential or mixed -use rental development.
DEVELOPER. The party responsible for obtaining approvals from the Village,
including zoning, subdivision, and building permit approvals, for a governed
development.
ELIGIBLE HOUSEHOLD. For purposes of Section 2.14, a household with an annual
income at or below 100 percent of the Area Median Income.
GOVERNED DEVELOPMENT. Any residential or mixed -use development with a
residential component that is required to provide affordable housing units under
provisions of Section 2.14. Projects at one location undertaken in phases, stages or
otherwise developed in distinct parts shall be considered a single governed
development.
HOUSING EXPENSES.
(a) For affordable rental units - rent and utilities; and
(b) For affordable owner -occupied units - principal and interest of any mortgages
placed on the unit, property taxes, condominium or homeowner's association
fees, if applicable, and insurance.
MAXIMUM RESALE PRICE. The maximum price an owner -occupied affordable unit
may be sold to another eligible household at based on a valuation formula
incorporating appraisal data, a maximum appreciation factor, and allowances for
capital improvements, all as set forth in a schedule to be published by the Village on
an annual basis.
MARKET RATE HOUSING UNITS. All owner -occupied or rental dwelling units in a
governed development that are not classified as affordable housing units.
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2.14-C: ADMINISTRATION
(1) The provisions of Section 2.14 shall be administered by the Village Manager and the
Department of Community Development. The Board of Trustees may designate the
Plan Commission or another body to conduct reviews of affordable housing compliance
plans for governed developments and make recommendations regarding their
sufficiency to the Board of Trustees.
(2) The Board of Trustees shall have the right, but not the obligation, to adopt, and to
amend from time to time, administrative guidelines, procedures, and schedules to
assist in the effective implementation of Section 2.14; provided, however, that any
administrative guidelines, procedures, and schedules adopted or amended pursuant
to this Section 2.14-C shall not be inconsistent with Section 2.14, and that in the event
of a conflict between the administrative guidelines and Section 2.14, Section 2.14 shall
control. Pursuant to this authority, the Board of Trustees may adopt guidelines for:
a. Factoring in net worth and assets when determining qualification as an
eligible household;
b. Calculating maximum permitted household expenses;
C. Setting a maximum resale price for an owner -occupied affordable unit;
d. Establishing limitations on renting or subletting an affordable housing unit;
and
e. Other guidelines, procedures and schedules deemed necessary by the Board of
Trustees to assist in administering Section 2.14.
(3) The Village Manager may, with the authorization of the Board of Trustees, enter into
an agreement with a not -for -profit organization specializing in the management and
operation of affordable housing programs to assist in the administration of portions of
Section 2.14, including, without limitation, performing assessments of households'
certificate of qualification, managing waitlists for affordable housing units, marketing
affordable housing units, verifying governed developments' ongoing compliance with
the requirements of Section 2.14, and advising on the administrative guidelines,
procedures, and schedules authorized by this Section 2.14-C.
2.14-D: APPLICABILITY
(1) General. The provisions of Section 2.14 shall apply to all developments that result in
the addition of or contain 11 or more residential dwelling units in a multi -family,
attached development or 30 or more residential dwelling units in a single-family,
detached development. Developments subject to the provisions of Section 2.14 shall
be deemed governed developments and shall include, but are not limited to, the
following:
a. A development that is new residential construction or new mixed -use
construction with a residential component.
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b. A development that is the renovation or reconstruction of an existing multiple
family residential building that increases the number of residential dwelling
units from the number of dwelling units in the original structure.
C. A development that will change the use of an existing building from non-
residential to residential or that will change the class of residential use from
single family to multi -family.
d. A development that includes a conversion.
(2) Development on Multiple Parcels. For purposes of Section 2.14, a development that is
constructed across multiple adjacent parcels under common ownership shall be
considered a single development.
(3) Excluded Developments. The requirements of Section 2.14 do not apply to the
following housing types:
a. Any subdivision or development resulting in 10 or fewer residential units;
b. A non-residential development;
C. Assisted living facilities; or
d. Nursing facilities.
2.14-E: AFFORDABLE HOUSING REQUIREMENT FOR GOVERNED
DEVELOPMENTS
(1) Calculation of Required Affordable Units. The developer of a governed development
must satisfy the requirements of Section 2.14 by providing affordable housing units
within the physical envelope of the development, in the amounts to be calculated as
follows:
a. General Requirement. For projects with fewer than 51 units, the Affordable
Requirement will be as set forth in the table below. For projects with 51 units
or more, 10 percent of the total number of dwelling units in a governed
development shall be marketed, offered, and maintained as affordable housing
units.
Affordable Attached (i.e. multi -family)
Project
Total Number of Units
Affordable Units Required
11-30 Units
1 Affordable Unit
31-40 Units
2 Affordable Units
41-50 Units
3 Affordable Units
51 + Units
10% Affordable Units
Affordable Detached (i.e. single-
Affordable Units Required
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family) Project
Total Number of Units
0-30 Units
0 Affordable Units
31-40 Units
2 Affordable Units
41-50 Units
3 Affordable Units
51 + Units
10% Affordable Units
b. Fractional Units. When the application of the percentages specified above
results in a number of required affordable housing units that includes a
fraction, the fraction will be rounded up to the next whole number if the
fraction is equal to or greater than 0.5. If the result includes a fraction equal
to or less than 0.49, the required number of affordable housing units will be
rounded down to the next whole number.
(2) Eligible Income Tiers and Maximum Prices. Affordable units in governed
developments may only be offered to eligible households from the income tiers and at
the maximum price levels listed in the chart below.
Affordable Rental
Maximum Rent Prices
Units
0-50 Units
Attainable to household with income at or below 100%
AMI
51+ Units
1/2 required units attainable for households with income
at or below 80% AMI
1/2 required units attainable for households with income
at or below 100% AMI
Affordable Owner-
Maximum Purchase Price
Occupied Units
All Required Units
Attainable to household with income at or below 100%
AMI
Explanatory Notes:
a. Housing Expenses: For affordable rental units, "housing expenses" equals the
monthly sum of rent and utilities. For affordable owner -occupied units,
"housing expenses" equals the monthly sum of principal and interest of any
mortgages placed on the unit, property taxes, condominium or homeowner's
association fees, if applicable, and insurance.
b. Attainability of Housing Expenses: Maximum housing prices are based on
spending 30 percent of monthly household income on housing expenses.
Permitted housing expenses for rental and affordable owner -occupied units
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will be calculated based on the most current area median income levels
published by HUD.
C. Pricing Schedule. The Village Manager shall publish a Housing Expenses
Pricing Schedule of rental and sales prices for affordable housing units for each
income tier designated in Subsection 2.14-E, which pricing schedule will be
made publicly available and will be updated annually.
2.14-F: INCENTIVES FOR DEVELOPMENT OF AFFORDABLE HOUSING UNITS
Developers constructing governed developments incorporating the affordable housing units
required on -site will be allowed to take advantage of the following incentives and
development options. All incentives and options authorized by this Section 2.14-F shall be
proposed and memorialized in the affordable housing compliance plan for the governed
development.
(1) Additional Building Height. In order to accommodate affordable housing units within
a governed development, the Plan Commission may recommend, and the Board of
Trustees may approve, without the need of a variation, a height increase of up to one
story or 12 feet above the height limits in the applicable zoning district other than in
single family zoning districts.
(2) Reduced Off-street Parking Minimums. Any governed development providing the
minimum number of affordable housing units pursuant to Section 2.14 will be eligible
to obtain greater flexibility in development design through application of the following
options without need for special zoning relief, but only if such flexibility is necessary
to accommodate the required affordable units within the physical envelope of the
governed development:
In considering a proposed governed development with affordable housing units, the
Plan Commission may recommend and the Board of Trustees may approve a reduction
in the otherwise applicable off-street parking minimums for the affordable housing
units. In considering the merits of such a reduction, the Village shall consider the
availability of alternative means of transportation, including mass transit and bicycle
facilities in the vicinity of the governed development and any unique transportation
needs of the expected residents.
Notwithstanding the foregoing, the Village shall not be required to approve any
request for a waiver, reduction, or modification of any development standard if the
waiver, reduction, or modification would have an adverse impact upon health, safety,
or the physical environment for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
(3) Fee Waivers and Reductions. Any governed development providing the minimum
number of affordable housing units pursuant to Section 2.14 shall be eligible for a
partial waiver of all of the otherwise applicable application fees, building permit fees,
plan review fees, inspection fees, demolition permit fees, and such other development
fees and costs which may be imposed by the Village, applicable to the portion of the
governed development that will consist of affordable housing units, up to a maximum
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of 15 percent of all applicable fees. In no event shall the fee waiver be applied to any
impact fees or third -party legal, engineering, and other consulting or administrative
fees, costs, and expenses incurred or accrued by the Village in connection with the
review and processing of plans for the governed development. The waiver and discount
of fees and costs under this Section shall be calculated as the percentage of units
within the governed development that are affordable housing units. All applicable fees
and costs under this Code shall apply to all market rate units.
(4) Standards for Approving Incentives. The Village Board, in determining whether the
incentives set forth in this Section 2.14-F should be available for a governed
development, shall consider the following:
a. Whether the incentives will result in conditions detrimental to the public's
health, safety, or welfare; and,
b. Whether the granting of the incentives will be compatible with the intent and
purpose of this section and other applicable Village land planning documents.
(5) Any terms or conditions associated with the incentives shall be stipulated in the
affordable housing compliance plan and the affordable housing covenant for the
governed development.
2.14-G: LOCATION AND DESIGN ATTRIBUTES OF AFFORDABLE HOUSING
UNITS.
Affordable housing units in a governed development must comply with the following
standards, unless granted an exception by the Village Board as part of the affordable housing
compliance plan.
(1) Location of Affordable Housing Units. Affordable housing units must be dispersed
among the market rate housing units throughout the governed development and not
clustered together or segregated from market rate housing unless there is a
therapeutic or other justification particular to the populations to be served by the
affordable housing units.
(2) Size of Units. Affordable housing unit size must be generally representative of and
correspond to the size of the market -rate housing units within the governed
development.
(3) Phasing of Construction. In a governed development to be constructed in multiple
phases, each phase of the development must include a number of affordable housing
units proportional to the fraction that the phase consists of the entire governed
development. Construction of affordable housing units may not be delayed or grouped
into later phases of a governed development.
(4) Exterior Appearance. The exterior appearance of affordable housing units in any
governed development must be visually compatible with the market rate housing
units in the governed development. External building materials and finishes must be
substantially the same in type and quality for affordable housing units as for market
�00121378.71 10
rate housing units. Affordable housing units shall be indiscernible from market rate
housing units from when viewed from interior corridors and other common areas.
(5) Interior Appearance and Finishes. Affordable housing units may have different
interior appearances and finishes than market rate housing units, but all interior
finish materials used in affordable housing units must be Contractor Grade or higher.
(6) Mix of Bedroom Types of Affordable Housing Units. The bedroom mix of affordable
housing units must be in equal proportion to the bedroom mix of the market rate
housing units within the governed development.
(7) Amenities. Affordable housing units must have similar access to common areas,
facilities, and services as that enjoyed by comparable market rate housing units in a
governed development including but not limited to outdoor spaces, amenity spaces,
storage, parking, bicycle parking facilities, and resident services.
a. Parking Amenities. Regular access to at least one parking space per affordable
housing unit must be included with the occupancy of the unit without any
additional charge to the occupant above the maximum permitted housing
expenses for that unit. Additional parking spaces must be made available at
the same price and using the same method for allocation for market rate
housing units. Premium parking spaces, such as indoor parking, will not be
required to be allocated to the affordable housing units free of charge, provided
that required parking is provided elsewhere within the governed development.
b. Storage Amenities. To the extent that storage is allocated to all market rate
housing units within a governed development, similar storage space must be
allocated to all affordable housing units and included with the occupancy of the
unit without additional charge to the occupant above the maximum permitted
housing expenses for that unit. If storage space is not allocated to all units due
to insufficient ratio of storage space to residential units, then the affordable
housing units should have access to storage in the same manner and proportion
as do the market rate housing units, at a cost discounted by the ratio of the
affordable housing unit's housing expenses to the equivalent size unit's market
rent.
(8) Energy Efficiency. Standard improvements, fixtures, and components related to
energy efficiency, including, but not limited to, mechanical equipment and plumbing,
insulation, windows, and heating and cooling systems, must be the same in market
rate dwelling units and affordable housing units.
(9) Mixed Occupancy Developments. If a governed development includes both rental
housing units and owner -occupied housing units, the ratio of affordable rental to
affordable owner -occupied units marketed and offered must be equal to the ratio of
rental to owner -occupied market rate housing units marketed and offered in the
governed development.
2.14-H: PERIOD OF AFFORDABILITY.
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(1) Sale of Affordable Owner -Occupied Units. In governed developments include owner -
occupied housing units, affordable housing units may be offered and resold to only to
eligible households and in accordance with Section 2.14 at all times that the units are
used for residential purposes, in perpetuity or as long as permissible by law. The
developer or owner shall execute and record any agreements, covenants, or
instruments required by Section 2.14 to ensure compliance with this Section 2.14-H.
(2) Lease of Affordable Rental Units.
a. In developments that contain rental units, affordable housing units shall be
offered and leased only to eligible households and in accordance with Section
2.14 for so long as those units are used for residential purposes, in perpetuity,
as long as permissible by law, or as otherwise deemed appropriate by the
Village Board. The developer or owner shall execute and record any
agreements, covenants, or instruments required by Section 2.14 to ensure
compliance with this Section 2.14-H. In the event that the owner of a governed
development including affordable rental units sells the development, the new
owner will be required to continue to offer the affordable housing units, in
accordance with Section 2.14.
b. If the owner of a governed development consisting of rental housing units
converts the development to condominiums or other form of owner -occupied
housing units, the development shall be subject to the owner -occupied
development requirements set forth in this Section 2.14-I. The Village shall
have the option and right, but not the obligation, to purchase any converted
affordable owner -occupied units in the development pursuant to this Code in
accordance with the provisions of Subsection 2.14-J-4.
2.14-I: AFFORDABILITY CONTROLS FOR AFFORDABLE OWNER -OCCUPIED
UNITS.
(1) Initial Sale Prices for Affordable Owner -Occupied units. Permitted initial sales prices
for affordable owner -occupied units shall be set according to a schedule published by
the Village annually and calculated on the basis of:
a. Housing expenses at or below 30 percent of the designated eligible income tiers
set forth in Section 2.14-E, with a household size corresponding to the size of
the unit.
b. The following relationship between unit size and household size shall be used
to determine the appropriate income level at which affordable housing
expenses are calculated:
100121378.71 12
Unit Size
Income Level
for Household Size
Efficiency
1 Person
1 Bedroom
2 Persons
2 Bedrooms
3 Persons
3 Bedrooms
4 Persons
4 Bedrooms
5 Persons
C. An available fixed rate 30 year mortgage, consistent with the average rate
published from time to time by Freddie Mac;
d. A down payment of no more than five percent of the purchase price;
e. A calculation of property taxes;
A calculation of homeowner's insurance;
g. A calculation of condominium or homeowner association fees; and
h. A calculation of private mortgage insurance, if applicable.
(2) Procedure for Initial Sale of an Affordable Owner -Occupied Unit to an Eligible
Household.
a. 60 days prior to offering any owner -occupied affordable unit for sale to the
public, a developer must notify the Village in writing of such offering. The
notice shall set forth the number, size, price, and location of affordable housing
units to be offered, and must provide a description of each housing unit's
finishes and availability. The notice must also include a copy of the approved
affordable housing compliance plan for the development, and any such
additional information the Village Manager may reasonably require in order
to establish compliance with Section 2.14.
b. The prospective purchaser must make application for a "certificate of
qualification" on a form provided by the Village. If the Village or its designated
not -for -profit partner organization determines a purchaser is an eligible
household pursuant to the requirements of Section 2.14 to purchase an
affordable housing unit, it will issue a "certificate of qualification" to that
purchaser. A purchaser must provide documents to verify that their household
satisfies these requirements, including an affidavit that the affordable
housing unit will be their primary residence. Priority will be given to eligible
households in which the head of household, or spouse or domestic partner of
the head of household, currently reside within or work for a private or public
company located within the Village.
C. The developer may not sell or lease any affordable housing units without a
valid certificate of qualification from the Village for the prospective purchaser.
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(3) Maximum Resale Price and Maximum Appreciation.
a. The maximum resale price that an affordable owner -occupied unit may be sold
to an eligible household for shall be established in an affordable unit covenant
executed by the purchaser. This price will take into account the maximum
permitted appreciation allowed by this Subsection 2.14-I-3 as well as changes
in the area median income.
i. The maximum resale price is an upper limit, but should not be
construed as a guarantee that the unit will be resold at that price.
ii. Market conditions, and characteristics of the affordable housing unit,
may result in the sale of an owner -occupied housing unit at a price
lower than the maximum resale price.
The maximum permitted appreciation that may be claimed by the
owner of an affordable owner -occupied unit may not exceed 15 percent
of the increase in the unit's value, as determined by the difference
between fair market appraisal at the time of purchase of the unit by
the current owner and a fair market appraisal at the time of resale,
with such adjustments for improvements made by the current owner
and necessary costs of sale which will be accounted for in the price
schedule published by the Village.
(4) Village First Option to Purchase. The Village shall have the first option and right,
but not an obligation, to purchase any affordable owner -occupied unit prior to the
unit being marketed or offered to the public. If the Village exercises the option and
purchases the affordable owner -occupied unit, the Village will have the right to
subject the unit to such agreements, covenants, or instruments, to ensure the
continued affordability of the unit in accordance with Section 2.14. Such
documentation shall incorporate the provisions of Section 2.14 and shall provide, at
a minimum, each of the following:
a. The maximum resale price is an upper limit, but shall not be construed as a
guarantee that the unit will be resold at that price.
b. Market conditions, and characteristics of the affordable housing unit, may
result in the sale of an affordable housing unit at a price lower than the
calculated maximum resale price.
The Village shall also reserve the right to assign and transfer its interest in any
affordable owner -occupied units that it purchases pursuant to this Subsection to a
not -for -profit partner organization.
(5) Purchases by Eligible Households. In all other sales of affordable owner -occupied
units between private eligible households, the parties to the transaction will be
required to execute and record such documentation as required by Section 2.14-H of
this Code to ensure the provision and continuous maintenance of the affordable
{00121378.7} 14
housing units. Such documentation shall include the provisions of this Code and shall
provide, at a minimum, each of the following:
a. That the purchaser acknowledges the Village's first option to purchase the
owner -occupied unit set forth in Section 2.14-I-4 of this Code.
b. In the event that the Village does not exercise its first option to purchase, the
affordable housing unit many only be sold to and occupied by an eligible
household.
C. The affordable housing unit may only be conveyed subject to restrictions that
shall permanently maintain the affordability of such affordable housing units
for eligible households, including a prohibition on sales above the maximum
resale price.
2.14-J: AFFORDABILITY CONTROLS FOR AFFORDABLE RENTAL UNITS.
(1) Rental Rates for Affordable Rental Units. Permitted housing expenses affordable
rental units shall be set according to a schedule published by the Village annually
and calculated on the basis of:
a. Housing expenses at or below 30 percent of the designated eligible income
tiers set forth in Section 2.14-E-3, with a household size corresponding to the
size of the unit.
b. If the most recent edition of HUD's reporting indicates a lower area median
income than the previous edition, the maximum housing expenses shall be
adjusted accordingly.
C. The following relationship between unit size and household size shall be used
to determine the appropriate income level at which affordable housing
expenses are calculated:
Unit Size
Income Level
for Household Size
Efficiency
1 Person
1 Bedroom
2 Persons
2 Bedrooms
3 Persons
3 Bedrooms
4 Persons
4 Bedrooms
5 Persons
(2) Procedure for Initial Lease of an Affordable Rental Unit to an Eligible Household.
a. 60 days prior to offering any affordable housing unit for sale or rent, the
developer must notify the Village in writing of such offering. The notice must
set forth the number, size, price, and location of affordable housing units
offered, and provide a description of each dwelling unit's finishes and
{00121378.7} 15
availability. The notice must also include a copy of the affordable housing
compliance plan, and any such additional information the Village may
reasonably require in order to establish compliance with Section 2.14.
b. The prospective lessee must make application for a "certificate of
qualification" on a form provided by the Village. If the Village or its designated
not -for -profit partner organization determines a lessee is an eligible household
pursuant to the requirements of Section 2.14 to lease an affordable housing
unit, it will issue a "certificate of qualification" to that lessee. A lessee must
provide documents to verify that their household satisfies these requirements,
including an affidavit that the affordable housing unit will be his or her
primary residence. The Village will determine whether or not the prospective
lessee satisfies the requirements of Section 2.14 no later than 10 business days
after receiving the completed application. Priority will be given to eligible
households in which the head of household, or spouse or domestic partner of
the head of household, currently reside within or work for a private or public
company located within the Village.
The developer shall not lease any affordable rental units without a valid
certificate of qualification from the contracted agency for the prospective
lessee. Any lease for an affordable rental unit shall also contain a prohibition
on subleasing or allowing occupancy by a household without a valid certificate
of qualification.
(3) Lease Term. No affordable rental unit may be initially leased for a period of less than
12 months. All leases must be written and in a form approved by the Village. Renewal
leases may be less than 12 months based on mutual agreement between the developer
and tenant. Final lease agreements are the responsibility of the developer and the
prospective tenant. Tenants are responsible for application fees, security deposits and
the full amount of the rent as stated on the lease. All lease provisions shall comply
with applicable laws and regulations. The developer shall maintain copies of all
leases entered into with a certified household (including an income certification) and
distribute a copy to the Village or its designated not -for -profit partner organization.
(4) Rental Compliance. The developer, or its designee, shall submit an annual
compliance report describing each affordable unit in detail including but not limited
to changes in tenancy, turnovers, and income certifications for all new tenants upon
request of the Village Manager.
2.14-K: MARKETING OF AFFORDABLE HOUSING UNITS.
(1) Good Faith Marketing Required. All sellers and lessors of affordable housing units are
responsible for marketing the affordable housing units to members of the public who
are likely to be eligible households qualified to purchase or lease affordable housing
units. Prior to the initiation of public marketing efforts to sell or lease an affordable
housing unit, the seller or lessor thereof shall submit to the Village Manager a
description of the marketing plan that the developer proposes to implement for the
affordable housing units within the development to eligible households in the
appropriate income tiers.
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(2) Village Assistance with Marketing. At the developer's request, the Village or its
designee shall assist the developer in marketing the affordable housing units to
eligible households, for an additional charge to be determined by the Village.
(3) Every affordable owner -occupied housing unit required to be developed under Section
2.14 may only be offered for sale to a good -faith purchaser or lessee who is eligible to
use the unit as their own primary residence.
2.14-L: AFFORDABLE HOUSING COMPLIANCE PLANS - REVIEW AND
APPROVAL PROCESS.
(1) Application. For all governed development projects, the developer shall file an
application for approval of the project's plan to comply with Section 2.14 on a form
provided and required by the Village. The application will require, and the developer
must provide, a description of the governed development, including specifically how
and where affordable units will be incorporated into the development as well as such
other documents and information as the Village Manager may require. The Village
Manager will also have the authority to require, as part of the application submittal,
such additional information, documents, and plans as the Manager deems necessary
to evaluate the proposed governed development's compliance with Section 2.14.
(2) Affordable Housing Compliance Plan. As part of the approval of a governed
development project, the developer must present to the Plan Commission and the
Village Board an affordable housing compliance plan that outlines and specifies the
governed development's compliance with each of the applicable requirements of
Section 2.14, including the following:
a. Required Submittals for Affordable Housing Compliance Plan. The plan must
include, at a minimum, the following information regarding the governed
development project;
i. Preliminary Plan.
(a) A general description of the development, including whether the
development will contain rental units or owner -occupied units,
or both;
(b) The total number of market rate units and affordable housing
units in the development;
(c) The total number of attached and detached residential units;
(d) The number of bedrooms in each market rate unit and each
affordable housing unit;
(e) The floor area of each market rate unit and each affordable
housing unit;
(f) The location within any multiple -family residential structure
and any single-family residential development of each market-
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rate unit and each affordable housing units.
(g) Floor plans for each affordable housing unit;
(h) The amenities that will be provided to and within each market
rate unit and affordable housing unit; and
(i) The pricing for each market rate unit and each affordable
housing unit.
ii. Final Plan.
(a) All of the information required for the preliminary affordable
housing compliance plan pursuant to paragraph (2)(a)(i), of this
Section 2.14-L;
(b) A phasing and construction schedule for each market rate unit
and each affordable unit;
(c) Documentation and plans regarding exterior and interior
appearances, materials, and finishes of the development and
each of its individual units;
(d) A description of the development marketing plan to promote the
sale or rental of the Affordable Housing Units within the
development; and
(e) A description of the efforts that the developer will undertake to
provide affordable housing units to eligible households pursuant
to the priorities set forth in Section 2.14.
(3) Review Procedure.
a. Preliminary Plan.
i. Plan Commission Review. Within 60 days after the filing of a complete
preliminary Affordable Housing Plan, the Plan Commission shall
review the affordable housing compliance plan, and shall recommend
either the approval (with or without modifications) or the rejection of
the affordable housing compliance plan. The Plan Commission shall
transmit its findings of fact and recommendation to the Village Board.
The failure of the Plan Commission to provide a recommendation within
such 60-day period, or such further time to which the developer may, in
writing, agree, shall be deemed a recommendation against the approval
of the affordable housing compliance plan.
ii. Village Board Consideration.
(a) Upon receipt of the Plan Commission recommendation pursuant
to Section 2.14-L.a.i of this Code, the Village Board may, by
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resolution duly adopted, approve or reject the preliminary
affordable housing compliance plan.
(b) Approval of the preliminary affordable housing compliance plan
by the Village Board shall neither: (1) be deemed or interpreted
as obligating the Village Board to approve a final affordable
housing compliance plan; nor (2) vest any right to the developer
other than the right to submit a final affordable housing
compliance plan for the proposed governed development project.
b. Final Plan.
Plan Commission Review. Within 60 days after the filing of a complete
final affordable housing compliance plan, the Plan Commission shall
review the affordable housing compliance plan, and shall recommend
either the approval (with or without modifications) or the rejection of
the affordable housing compliance plan. The Plan Commission shall
transmit its findings of fact and recommendation to the Village Board.
The failure of the Plan Commission to provide a recommendation within
such 60-day period, or such further time to which the developer may, in
writing, agree, shall be deemed a recommendation against the approval
of the affordable housing compliance plan.
ii. Village Board Consideration. Upon receipt of the Plan Commission
recommendation, the Village Board may, by ordinance duly adopted,
approve or reject the affordable housing compliance plan. Any
ordinance approving a final affordable housing compliance plan shall
include, without limitation, the following:
(a) All standards, conditions, or restrictions deemed necessary or
applicable by the Village Board to effectuate the proposed
development and protect the public interest, health, safety and
welfare; and
(b) All provisions requiring the execution and recordation by the
developer of a housing development agreement, as required
pursuant to Section 2.14.
C. Concurrent Review of Preliminary and Final Plans. Notwithstanding any
provision of this Code to the contrary, for all governed developments that are
not planned developments, and for all planned developments for which a
concurrent review procedure has been approved pursuant to this Section, the
Plan Commission and Village Board shall review the preliminary and final
affordable housing compliance plans concurrently, pursuant to the final
affordable housing compliance plan review procedure set forth in this Code.
(4) Standards of Review. The Plan Commission may not recommend the approval of a
preliminary or final Affordable Housing Plan, and the Village Board may not approve
a preliminary or final affordable housing compliance plan, except upon making the
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following findings:
a. That the developer has demonstrated that the proposed affordable housing
units are designed to accommodate the needs of the target households;
b. That the location, floor plan, fixtures and finishes, and amenities of each
proposed affordable housing unit satisfy the applicable provisions of Section
2.14 and are suitable for the needs of the target households;
C. That each affordable housing unit is designed to accommodate family living
needs for common space and dining areas;
d. That the proposed affordable housing units, and the development as a whole,
conform to the applicable standards and requirements of Section 2.14;
e. That the application of any development incentives satisfy the standards set
forth in Section 2.14-F of this Code.
2.14-M: HOUSING DEVELOPMENT AGREEMENT AND COVENANTS.
Prior to issuance of a building permit for any governed development, a developer must enter
into a housing development agreement with the Village establishing requirements and
restrictions for the inclusion of affordable housing units in the governed development. The
developer shall execute any and all documents deemed necessary by the Village, including,
without limitation, restrictive covenants and other related instruments, to ensure the
continued affordability of the affordable housing units within the development in accordance
with Section 2.14. The housing development agreement shall set forth the commitments and
obligations of the developer and the Village and shall incorporate, among other things, the
affordable housing compliance plan for the covered development. The housing development
agreement shall also memorialize any alternatives and incentives that have been approved
as part of the affordable housing compliance plan for the development.
2.14-N: WAIVER OF AFFORDABLE HOUSING REGULATIONS.
Upon a written request by developer of a governed development, the Village may waive any
requirement of Chapter 2.14 upon a two-thirds vote of the Corporate Authorities. In
considering whether to grant a waiver, the Village Board shall consider the economic
viability of the proposed project and whether the granting of the waiver will advance the
Village's planning objectives and the general welfare of Village and its residents and
businesses.
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