Chicago suburb’s plan inspires Goodman at mayors’ meeting in D.C.

Suzanne Struglinski

Friday, Jan. 23, 2004 | 9:46 a.m.

WASHINGTON -- Rules for affordable housing in a town roughly one-fifth the size of Las Vegas inspired Mayor Oscar Goodman at a the U.S. Conference of Mayors in Washington, D.C.

At a conference workshop Thursday, Goodman and other mayors talked about problems associated with rising housing costs as new communities develop and older neighborhoods change. They all expressed concerns that middle class residents, such as teachers, police officers, nurses and public employees, cannot afford decent housing while senior citizens are being forced out of homes by rising property taxes.

"If they can't live with us, what kind of community are we forging?" Goodman said.

Goodman talked about the idea of "inclusionary zoning," where some houses in new developments are set below market price and sold to buyers who meet certain criteria. Goodman had not even heard of the practice until a few months ago, but now is looking into ways to bring it to Las Vegas.

"I don't want to see elitist communities being developed just because people don't have the (means) to have a home," Goodman said. He described where he grew up in Philadelphia as having neighbors of all types. He does not want to see a "sterile thought process" by serving only areas where homes cost $1 million.

James Kirsch, a city council member in Highland Park, Ill., a northern Chicago suburb, explained a recent ordinance passed by the city that is now seeing results.

Because Highland Park has older homes that are being torn down to build newer, costlier ones, the city decided to charge a $10,000 demolition tax. The money is put into a Community Land Trust Account, which can accrue about $500,000 a year.

As developers build five or more new townhomes, condos or other property, for every unit over five they must build one unit of affordable housing. The city uses money from the trust fund to buy the land, then qualified buyers can purchase it. If they want to sell the property later on, then can sell it to another qualified buyer. Buyers can be people who work in the community but can't afford to live there, public sector employees and private citizens who work in the community.

"We have million-dollar homes next to $150,000 units and everyone is as happy as can be," Kirsch said.

So far a 43-unit condo project for senior citizens has been built and there is a waiting list for the slots, he said.

Goodman thought this was a great idea and "a guide for me to take to the next level."

"Developers like to make money but that doesn't mean they can't make affordable housing," Goodman said. "The two can coexist."

Fremont, Calif., also recently passed a city law earlier that mandates 15 percent of new homes be built as affordable housing.

"Developers are going to say you are going to drive them broke, but you're not," Fremont Mayor Gus Morrison said.

Henderson Mayor Jim Gibson, who was also at the meeting Thursday, said the city is "trying to address it but have not found a solution."

He said even with a program in place, the high cost of land, including parcels from Bureau of Land Management auctions, and the high cost of development would still make it difficult for some people to afford housing.

"It's more than just passing a law," Gibson said.