PRIVATE SECTOR IMPEDIMENTS
Impediment 14.
The cost of both purchasing and renting housing in the County
is relatively unaffordable for racial and ethnic minorities.
The cost of housing in Lake County is generally unaffordable for certain racial and
ethnic groups, based upon the median income of these households. While the cost of
housing in the private market is determined by many forces, most of which are out of
the County’s purview, it is important that the County recognize that the lack of affordable
housing is an impediment. It is important to note that “affordable housing” in this context
is not limited to housing for lower- and moderate-income households. Affordable
housing simply means housing where most households in the area apply no more than
30 percent of their income towards the cost of housing.
A market study released by the National Center for Smart Growth, with funding from the
National Association of Home Builders, stated:
As concerns about affordable housing have grown across the country,
local governments have adopted a variety of affordable housing
programs in response. An approach that an increasing number of local
governments are considering is inclusionary zoning, which requires
developers to sell a certain percentage of newly developed housing
units at below market rates to lower income households. Although
specific details of these programs vary widely, they are politically
attractive because they are viewed as a way to promote housing
affordability without raising taxes or using public funds.43
Recommended Actions for Impediment 14
Develop and expand relationships with the private sector to increase the
supply of housing that is affordable. The County should develop partnerships
with the private sector to expand the supply of affordable housing. Potential
options that the County can explore include:
o Reaching out to local major employers to develop forgivable grants for
purchasing a home or constructing new rental housing.
o Conducting forums with private developers to identify the barriers to creating
lower-cost for-sale and rental housing.
o Consider establishing programs in which developers can acquire land at
below-market prices to reduce the cost of developing affordable housing. The
Community Development Commission could recommend, for example, that
affordable housing development opportunities could be pursued through the
43
“Housing Market Impacts of Inclusionary Zoning,” National Center for Smart Growth Research and
Education, February 2008.
APPLIED REAL ESTATE ANALYSIS, INC.
139
LAKE COUNTY, ILLINOIS