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HomeMy WebLinkAbout3. Homes for a Changing Region 10/09/2012Village of Mount Prospect Community Development Department WOW. iW. :71.111"01 TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: SEPTEMBER 24, 2012 SUBJECT: HOMES FOR A CHANGING REGION BACKGROUND The Northwest Suburban Housing Collaborative (the "Collaborative ") was formed via an intergovernmental agreement in 2011 to develop sub - regional solutions that address the short and long -term housing needs of the participating communities. The participating communities include Arlington Heights, Buffalo Grove, Mount Prospect, Palatine and Rolling Meadows, Homes for a Changing Region (Homes) is a project provided to each of the Collaborative communities free -of- charge by the Metropolitan Mayors Caucus and CMAP's LTA program with staff support from the Metropolitan Planning Council. Homes provides technical assistance for municipal Ieaders to chart future demand and supply trends for housing in their communities, and to develop long -term housing policies. Homes plans are not land use plans and will not focus on specific parcels. PROGRESS TO DATE A Sub - regional housing analysis was developed to identify current conditions, project future housing demands, review recent policy remedies, and recommend general strategies to improve sub - regional housing conditions. This sub - regional draft was presented and discussed on August 24, 2012 with staff, mayors and/or mayoral representatives of the Collaborative. A copy of this information is attached for your reference and is entitled Homes for a Changing Region: Northwest Suburban Housing Collaborative, Sub- Regional Report and Recommendations. These sub - regional facts and general strategies will help to achieve a consensus for the direction of the Collaborative work as a whole. NEXT STEPS The next step in this Homes project is to determine the existing conditions which characterize the Village of Mount Prospect, identify our specific strengths and challenges, project our future housing needs and develop recommended strategies to address those needs. By November, the Village will receive a full draft plan that includes both the analysis and recommendations specific to our community, ensuring staff and elected officials will have the opportunity to suggest revisions before the final draft is completed. At this time, the project team is asking for feedback on the Homes outline and draft recommendations dated September 21, 2012. You are encouraged to focus on the "recommended strategies" section of the outline. CONCLUSION Please forward this memorandum and attachments to the Village Board for their review and consideration at the October 9 Committee of the Whole meeting. The Project team is especially interested in feedback and suggestions relating to the "Recommended Strategies" for the Village of Mount Prospect. A representative of CMAP will give a brief presentation regarding the Homes project at the October 9"' meeting. Staff will also be present at the meeting to answer any questions regarding this matter. William J. Cooney, Ar., AICP Director of Community Development CADommants and S ttinp,A cmporary Internet FHi 5`,Cuneenf M{ Ziu 0924 ;2_duc% Homes for a Changing Region Background This year's Homes for a Changing Region (Homes) report comes at the request of the five neighboring municipalities that make up the Northwest Suburban Housing Collaborative (Collaborative) — Arlington Heights, Buffalo Grove, Mount Prospect, Palatine and Rolling Meadows. Compared to the 279 other municipalities in the Chicago region, these five are middle income, predominantly owner - occupied communities and have access to high quality public schools. The sub - region is largely auto oriented in terms of development but has relatively good access to commuter rail. Several municipalities recently developed more transit - oriented downtown areas. The Collaborative communities are located directly north of the dense O'Hare and Northwest Suburban transportation job centers via Route 53, Northwest Source: 2008 -2010 American Community Survey Tollway 1 -90) and the Tri -State Tollway (1 -294). Sub - regional Report and Recommendations Source: 2006 -2010 American Community Survey N The Collaborative formed via an intergovernmental agreement (IGA) in 2011 to develop sub - regional solutions that address the short and long -term housing needs of the participating communities. The IGA created a Steering Committee made up of municipal staff members and elected officials who meet regularly to set working priorities. The communities came together to address the common challenges of rising foreclosures, growing income diversity, aging multi - family housing and the loss of affordable units. Funding from The Chicago Community Trust allowed the Collaborative to hire a shared Housing Coordinator to address these challenges. The Collaborative has also received grant resources from the BMO Harris Bank Foundation and Village Bank and Trust, a Wintrust affiliate. Early on, the Collaborative Steering Committee identified several strategies to pursue, including rental housing preservation, condo foreclosure and stabilization strategies. What follows is a sub - regional analysis of current conditions, a review of recent policy remedies, a look forward in regards to the housing market and recommendations for future sub - regional action. Once sub - regional issues are discussed, reports on each of the five Collaborative communities will be presented. Sub - regional strategies help elected officials achieve a consensus around a direction for the work of the Collaborative as a whole. The Collaborative should consider this a set of broad policy recommendations that can be used to inform implementation priorities and a work plan for the next several years. Sub - regional Report and Recommendations I nset: ii' "'H�,, V1 PI; '11� ".1FMRD�,1� ".1B" .E HC11 i 1 11�� iihile t houseo�k,i to houseo�ki, ���� .��.;��:m���i�����i��'��'���,., housing'" is housing t °osts no more ttm.309V:I of ho use oh��I int..on�ie J utifitie�s insu t�mgI tx��� .,il(es ^ kll ( housing ' . i. t . ., .� � ,� p ��. u' i . .» l „., �����: qtr �:ew � ^.,i�.,i��,,,�,�"i�� ����I�, „�� � ���.. ������������” to �u����,,,,�,, ^'�fll �� ",.� „ �N��Vi .�Ih��������i��Cl"�Vi��a���u��� ����.: "��.Ih����I�,'��I���� ���N��������i� ��I�CI"N��.I�� �d����A�A �' �.. ���I���':" i ��������I� „...��. �.i� �I�...W „.�I� „..for �'' ���w , P:w r „� the , '...w ���,.,�5���,.m����,.m�,.m�i���� ��� ,.,��..������.�m���,�m�i�'��' „� �,.m� ����������m.. r of houseoh�,fs tt,�mii��q' more ttm 111.�1159,i�:� of t houseo�t int�oni o n h tmt° tr(is t:`osts t:`o °i incd Current Conditions 3 The severe recession, which has impacted the entire country, is now in its fifth year. Unemployment remains high, and the foreclosure crisis continues to impact a broad range of communities. As Table 3 below shows, there have been 5,695 foreclosure filings (about 5.2% of total housing units based on 2010 census data) and 1,931 foreclosure auctions (about 1.8% of total housing units) in the five Collaborative Source: Woodstock Institute, http: /Zeman w. woodstockinst.orgZ communities from 2009 through 2011: Sub - regional Report and Recommendations Condominium foreclosures have been especially noteworthy: Source: 2008 -2010 ACS, Woodstock Institute Home prices dropped significantly and homeownership rates declined because of stagnant incomes, high unemployment and increased credit restrictions. An increased number of owner families are now paying more than 50% of their income for housing and housing related expenses. Table 5: Average Home Price Depreciation in the Past 5 Years IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIA IIIIII������������ �����������,� ������ ������ ������ ������� ������� ���������������� IIIIIIIIII " ���� IIIIIIIIIIIIII" �� ���� � ��� �������� ������ � ������ III ��� ���� ... ��� u muoi ii�ii a "oi ii u�u i i� °iu ii uow Vml ullll6 IIIIIIIIIII ! l l 11 - 50.00% - 40.00% - 30.00% - 20.00% - 10.00% 0.00% all Source: Trulia, wrwrwr.trulia.corn, pulled 712512012 Sub - regional Report and Recommendations 5 Source, 2000 Census and 2006 -2010 ACS Many other families are "underwater," meaning the face value of their mortgages exceeds the value of their home. The rental housing market in Collaborative communities, limited even before the current housing crisis, is more strained than ever with a growing number of renting families paying more than 30% or even 50% of their income for rent. Table 6: Percent of Owner Occupied Housholds Paying More than 30% of Income on Monthly Owner Costs Arlington Buffalo Mount Rolling Heights Grove Prospect Palatine Meadows 45% a c 40% t 111111111111 2006-2010 50 %+ (severely 3 35% unaffordable) 0 o z o U)12006 -2010 30 -49% (unaffordable) w CL = U 25% 1 11111111111 2000 50 %+ (severely unaffordable) 20% w c � 15% 111111111111 2000 30 -49% (unaffordable) w 100/ c w 5% .. a 0% Source, 2000 Census and 2006 -2010 ACS Many other families are "underwater," meaning the face value of their mortgages exceeds the value of their home. The rental housing market in Collaborative communities, limited even before the current housing crisis, is more strained than ever with a growing number of renting families paying more than 30% or even 50% of their income for rent. Sub - regional Report and Recommendations 6 Source, 2000 Census and 2006 -2010 ACS While rental costs are rising, supply has not kept pace with demand over the past five years. While the American Community Survey figures do not reflect this as of yet, some rental registration figures and anecdotal evidence suggest that a growing number of single - family homes are being rented, a situation which presents new challenges to municipal leadership. FUTURE PROJECTIONS As part of the Homes process, CMAP has developed projections to help the Collaborative and its member municipalities anticipate changes in demand by tenure (rent vs. own) and price point through the year 2040. Aggregate projected demand for the five - community market area indicates that demand by low -to- moderate income families for owner - occupied housing could exceed supply. At the same time, there could be unmet demand for housing serving the needs of upper income families, families whose incomes exceed $100,000. Many of these upper income families, however, may choose to live in more affordable homes and spend their income elsewhere. Table 7: Percent of Renter Occupied Housholds Paying More than 30% of Income on Gross Rent Arlington Buffalo Mount Rolling Heights Grove Prospect Palatine Meadows (A 0 60/ ° 111111111111 2006-2010 50 %+ (severely 3 500/ unaffordable) 0 z o 400/ �e12006 -2010 30 -49% (unaffordable) Q O 30% 1111111111112000 50 %+ (severely unaffordable) i 41 y 20�/ IIIIIIIIIII 2000 30 -49% (unaffordable) w 0 a 10% w U i 41 a 0% Source, 2000 Census and 2006 -2010 ACS While rental costs are rising, supply has not kept pace with demand over the past five years. While the American Community Survey figures do not reflect this as of yet, some rental registration figures and anecdotal evidence suggest that a growing number of single - family homes are being rented, a situation which presents new challenges to municipal leadership. FUTURE PROJECTIONS As part of the Homes process, CMAP has developed projections to help the Collaborative and its member municipalities anticipate changes in demand by tenure (rent vs. own) and price point through the year 2040. Aggregate projected demand for the five - community market area indicates that demand by low -to- moderate income families for owner - occupied housing could exceed supply. At the same time, there could be unmet demand for housing serving the needs of upper income families, families whose incomes exceed $100,000. Many of these upper income families, however, may choose to live in more affordable homes and spend their income elsewhere. Sub - regional Report and Recommendations 7 Table 8: NWSHC 2010 households and housing stock compared with 2040 owner demand 30,000 25,000 o 20,000 v 0 15,000 10,000 D 5,000 0 <15k <35k <50k <75k <100k <150k 150k+ 111111 Occupied Housing Stock Affordable at 30% of Income (2010) Demand at Income Level (2010) Projected Demand at Income Level (2040) Source: CMAP analysis of Fregonese ETBH model using 2006 -2010 ACS and GO TO 2040 household growth projections as inputs. Source: CMAP analysis of Fregonese ETBH model using 2006 -2010 ACS and GO TO 2040 household growth projections as inputs. Sub - regional Report and Recommendations Rental market projections suggest that the greatest unmet demand across the Collaborative market area will be among households earning less than $35,000 per year. These households would be looking to rent for less than $900 per month. Seniors and adults, 25 -44 years old, could be the two age cohorts with the greatest share of that demand. Table 10: NWSHC 2010 households and housing stock compared with 2040 renter demand 12,000 10,000 0 8,000 o 6,000 4,000 c = 2,000 0 <15k <35k <50k <75k <100k <150k 150k+ 111111 Occupied Housing Stock Affordable at 30% of Income (2010) Demand at Income Level (2010) Projected Demand at Income Level (2040) Source: CMAP analysis of Fregonese ETBH model using 2006 -2010 ACS and GO TO 2040 household growth projections as inputs. E? Source: CMAP analysis of Fregonese ETBH model using 2006 -2010 ACS and GO TO 2040 household growth projections as inputs. Sub - regional Report and Recommendations Regional and National Policy Trends Despite slowing foreclosure filings, the number of homes in the foreclosure process remains high both nationally and regionally. As such, federal, state and local policy makers have been busy over the last year looking for ways to help struggling homeowners and prevent the negative community impacts associated with vacancy. The National Mortgage Servicing Settlement is probably the most interesting development of 2012. Thanks to a massive state and federal civil law enforcement investigation, the settlement brought the nation's five largest mortgage servicers into a $25 billion agreement. The agreement includes a minimum of $17 billion in direct aid to struggling homeowners, $3 billion for an underwater mortgage refinancing program and $5 billion to state and federal efforts. New servicing and foreclosure standards and an independent monitor will ensure servicer compliance with the settlement. With funds from the settlement, Illinois has already issued a $3 million worth of Request For Proposals to create foreclosure mediation programs in counties where they do not already exist. In 2011 Illinois launched the federally funded Illinois Hardest Hit program, offering up to $25,000 in temporary assistance for homeowners facing foreclosure due to job loss or pay cuts. The state also launched the Welcome Home Heroes program, providing veterans and their families secure fixed -rate loans and up to $10,000 in down payment assistance. In early 2012, three state departments collaborated to create the Illinois Foreclosure Prevention Network (IFPN), which provides struggling homeowners with access to a variety of services through counselors at one - stop -shops around the state. Finally, Cook County is moving forward with efforts to create a countywide land bank to address the abundant supply of vacant, abandoned, tax - delinquent and foreclosed properties within the County. An Advisory Committee is being established to explore different options for forming a non - profit redevelopment authority for the county. Land banks are used to take possession of distressed properties through direct purchases or non -cash transfers. Properties are held tax -free in a trust until they can become repurposed in a manner that is consistent with the communities' values and needs. The Northwest Suburban Housing Collaborative should closely track the recommendations that come out of the Land Bank Advisory Committee to determine how a countywide land bank could be utilized as a tool for the Northwest suburban sub - region. Recommendations for Future Sub - Regional Action The five Collaborative communities are in an excellent position to move forward if they carefully plan their future housing development. They remain, relative to many other Chicago area communities, economically strong and well governed. Their single family housing stock is in good shape. With the exception of Buffalo Grove's Lake County sections, they are relatively built out in terms of development. Growth pressures are not likely to impact community resources, particularly public schools. Based on these points, the project team recommends the following strategies to improve housing conditions in Collaborative communities. Sub - regional Report and Recommendations 10 • Mitigate the impact of foreclosure: As we have pointed out earlier, all Collaborative communities have been impacted by foreclosures, especially condominium foreclosures. The collaborative should evaluate the effectiveness of serving as a point of referral to connect struggling homeowners with counseling and other programs created to reduce the likelihood of mortgage default ending in foreclosure. Regional organizations continue to work proactively to build relationships with the national banks that hold the majority of mortgages in default, however the Collaborative may be able to influence community banks more effectively. The collaborative should determine the willingness of local community banks to work collaboratively on sub - regional strategies with the same objective. Expanded efforts to track foreclosures and speed their conversion into owner - occupied or rental properties are needed to combat the current foreclosure problem. This could include reviewing local regulations to increase the attractiveness of Collaborative communities for investors that purchase foreclosed properties at auction and manage them as income earning rental properties. It might also include expanding efforts to work with banks and realtors to increase local sales. Special focus should be given to monitoring and controlling the rental of condominiums and single - family homes. While most collaborative communities utilize rental licensing and landlord education programs, these should be evaluated to determine if best practices are being followed. Creating a joint training program among the Collaborative communities could help gain efficiencies by cutting costs and saving staff time. Thought should be given to working with and advising condominium associations which become economically challenged by high rates of foreclosure. • Encourage building new housing which fits the needs of additional residents: While largely built out, new housing development opportunities exist in all five communities. In planning for additional growth, the communities should create a true mix of housing, including rental, small - lot single family homes, town homes, and attached homes as well as large -lot single family homes. It is important that new developments respond to projected population increases incrementally as the economy slowly climbs out of the current recession. o Take advantage of public transit: Four of the five Collaborative municipalities have Metra train stations within their limits. The largest share of residents in all five towns commute southeast to Chicago or neighboring communities, many along the Union Pacific Northwest or North Central Service Metra lines. Several Collaborative communities have been active in redeveloping the areas surrounding those stations with mixed use, compact development. Transit - oriented development provides residents with opportunities to decrease congestion, energy consumption and greenhouse gas emissions. New development in these areas should provide a mix of housing opportunities for families of various incomes based on projected demand. o Include and encourage a balanced housing supply with municipal plans and ordinances: Moving forward, Collaborative communities should consider using the demand projections supplied by CMAP as a basis for comprehensive plan recommendations for housing policies and allowable residential development. This would likely mean including all types of housing in comprehensive plans, adopting Sub - regional Report and Recommendations 11 building standards for affordable housing development, using density bonuses and allowing the development of accessory dwelling units. Often called "granny flats," accessory dwellings are smaller housing units are located on the same parcel as a single - family home. They can accommodate multigenerational families, allowing seniors to age in place or young residents to remain at home as they seek employment. • Preserve and increase senior housing: As CMAP projections indicate, the senior population in the collaborative could significantly grow over the next 20 to 30 years. Many area seniors will want to remain living in their communities, as well as in their current homes. Additional multifamily and single family complexes designed to allow seniors to age in place, both rental and condominium, will be needed. Locating them near transit and shopping areas should be a priority. The Collaborative should continue to stay on top of public and private sector funding opportunities for retrofitting existing homes and new age restricted developments with design elements and fixtures that facilitate aging in place. It should also monitor current senior demand preferences for various housing options. New development and significant rehabilitation should be guided by the latest research on design for accessibility and aging in place. The Collaborative should evaluate the possibility of compiling or distributing educational materials to educate aging homeowners on the costs, best practices and funding available for retrofitting. • Address aging multi - family properties: All five communities have multi - family housing complexes that are aging and need constant monitoring to make sure they remain code compliant. Some of these complexes were built on unincorporated Cook County land which was later annexed. Subsequent infrastructure upgrades were made combined with ongoing efforts to improve the living units. We encourage all the Collaborative communities to continue focusing on these complexes, regardless of their location. Rehabilitation and stabilization of these buildings can have positive impacts on surrounding single family neighborhoods. The Collaborative could advocate for state and federal grant, loan or tax credit programs designed to encourage owners to upgrade energy efficiency, safety, lighting and fire safety features on multi - family properties. Consideration could also be given to complete redevelopment where warranted. • Retrofit existing dwelling units and encourage energy efficient housing development: A study completed in 2011 by the National Association of Home Builders stated that the home of the future will be smaller and more energy efficient than its counterpart developed over the last decade. Over the past several years, several public subsidies have been created to encourage such development. CMAP has created an online marketplace that enables single- and multifamily building owners to determine which subsidies they can access to retrofit their homes to increase energy efficiency. Communities should also consider reviewing their regulations to streamline the permitting process for new developments certified as energy efficient under any of the leading certification organizations (LEED, Energy Star, etc.). • Consider Live Where You Work programs: The state of Illinois provides a 50 cent tax credit on state income tax liability for every $1 invested in programs that help employees live near their place of employment. The Collaborative should consider engaging large employers and local banks in an effort to take advantage of that incentive. Sub - regional Report and Recommendations 12 • Annex unincorporated land: Parcels of unincorporated land exist in or adjacent to all five collaborative communities. Cook County has recently announced that it wants to eliminate all unincorporated land in the County in the next ten years. Even if annexation does not proceed, the Collaborative should work with County officials to ensure better code enforcement in unincorporated areas. Strategies will be needed to annex this land without placing a burden on city and village taxpayers. • Evaluate the costs and benefits of joining the Cook County HOME consortium: While the collaborative communities are unable to form their own consortium to access federal housing development funds under the HOME program, they can join the Cook County HOME Consortium. This would add funding to the pool from which all Cook County municipalities can draw to develop or preserve housing affordable to low income residents. The Collaborative should consider doing this as a way to leverage funding for specific projects in the future. • Evaluate the costs and benefits of joining or creating a land trust: CMAP analysis has shown that there are underutilized or vacant parcels zoned for residential development scattered across most of the Collaborative communities. These do not provide significant opportunities for land assembly at this time; however, in the long term the Collaborative should consider joining or creating a land trust as a means to stabilize property values and redevelop or preserve affordable units. Alternatively, the Collaborative could explore the possibility of creating or joining a land bank as a strategy for maintaining and taking these properties off the market, until an appropriate opportunity arises. I nset: fit tl,.��rgi1��W�d �i,�,,!�t�WI tik�:Y�� '�:" t VIII': III'���� !�"� "i:P��'� properties rt �W� �.�"iu�.m is �W d�,.Y� �"tl,,,� I �I' �"' es t" n:VIuIIC °'I'. 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"� I �' "Ih �..w ' I m �..w m V � �.,,w, � � "lin � ��.� Y;:w Y;:w m ., �.,� m k;;p, �.,� ��.�I� i ��.�I� �.,� k;lu� � .I,. ��.�I �, ., �'���L "' �.:,, . m: ������..���',W..�mW „..�m��� �� ��:.,:,,. �����:.. ��:.... �mm� „�..�m�����... ����.��s� m�:,,mm.,t' �.����.����:....��� Vuh� * ��. �':�m ��. m” �':�m ����,I� ��. I,� r���ll� �:�m . . �'W�"tl „. „ II�W.mW „.� tl,,,�, �. II " "" d tl,,,�,�",�,�,�,�W �oI�,� ��� „. tl,,,� „ �. �,.Y��tl „. ��s resu i siI' i„ i "h"'t;mt `t"'os" stnoll'jdll's to homeo "liners TO: VILLAGE OF MOUNT PROSPECT FROM: HOMES PROJECT TEAM SUBJECT: HOMES OUTLINE AND DRAFT RECOMMENDATIONS DATE: SEPTEMBER 21, 2012 What is Homes? The Northwest Suburban Housing Collaborative (the "Collaborative "), consisting of Arlington Heights, Buffalo Grove, Mount Prospect, Palatine and Rolling Meadows, formed via an intergovernmental agreement (IGA) in 2011 to develop sub - regional solutions that address the short and long -term housing needs of participating communities. Homes for a Changing Region is a project provided to each of the Collaborative communities free -of- charge by the Metropolitan Mayors Caucus (MMC) and CMAP's LTA program with staff support from the Metropolitan Planning Council (MPC). Homes provides technical assistance for municipal leaders to chart future demand and supply trends for housing in their communities, and develop long -term housing policy plans. Homes plans are not land use plans and will not focus on specific parcels. Summary of Progress to Date Since initially meeting with both elected officials and Village staff, the project team has undertaken the following: • Presented a preliminary analysis of the existing and projected housing data to the Village Board on Tuesday, May 8 th ; • Designed, planned and facilitated one public workshop for the Village on Tuesday, June 12 where residents provided feedback on preferred types and locations for housing both throughout the Village and in a focus area (Euclid Road between Burning Bush Lane and River Road); • Conducted a sub - regional housing analysis that identifies opportunities and gaps in the housing profile for the Collaborative, focusing on opportunities for collaboration to address these issues; and • Presented and discussed the sub - regional draft on August 24 with staff, mayors and /or mayoral representatives of the Collaborative. Next Steps: Feedback on Draft Plan Outline and Policy Recommendations By November, senior staff at the Village of Mount Prospect will receive a full draft plan that includes both analysis and recommendations, ensuring staff and elected officials have the opportunity to suggest revisions before design and layout take place. At this time, the project team is asking for feedback on the plan outline at the end of this memo. Most of the specific data points are omitted because they have been presented in the past. Staff and elected officials are encouraged to focus comments on the "recommended strategies" section of the outline. The following questions especially interest the project team. • What revisions, if any, would you suggest for these recommendations? • Are there any recommendations that you feel are missing from this outline? • Do you anticipate that any of these recommendations would not meet with the Board's approval? HOMES OUTLINE AND DRAFT RECOMMENDATIONS Draft Plan Outline Project Summary I. Strengths of Mount Prospect a. Overall PAGE 2 i. Strong residential neighborhoods ii. Strong employment base iii. Strong schools that make it attractive to families iv. Location in the region b. Governmental i. Focused on downtown planning efforts, including the ongoing Downtown Implementation Plan ii. Moved quickly to redevelop Randhurst iii. CDBG entitlement community c. Built i. Transportation assets 1. One Metra station within (Mount Prospect) and one just outside (Prospect Heights) providing access to two different lines (UPNW and NCS) 2. 1 -90 and 1 -294 3. State Road Connections (Northwest Highway /Rand Road, Golf Road, Route 83, Algonquin Road, Busse Road) 4. Pace Service ii. Strong downtown iii. Strong employment base i. Community Connections Center (CCC) /Human Services Department II. Challenges a. Condominium foreclosures b. Identifying the best locations for development /redevelopment within a largely built -out community c. Maintaining wide range of housing options d. Maintaining a range of housing to meet all income needs Existing Conditions I. Location — bordering towns II. Population a. 2010: 54,167 b. Change since 2000:-3.7% c. CMAP GO TO 2040 projections: 63,354 III. Employment base a. Top employers b. Incentive districts i. Downtown TI District c. Commuting patterns i. Where do residents work? (Chicago and Mount Prospect) ii. Where do workers live? (Mount Prospect and Chicago) Current Housing Analysis I. Housing units by number of units in structure by tenure II. Affordability by tenure 1 The Village is currently appealing this figure. HOMES OUTLINE AND DRAFT RECOMMENDATIONS PAGE 3 III. Tenure by household income IV. Housing+ transportation affordability V. Current rental analysis V1. Current owner analysis VII. Market segmentation analysis Projecting Future Housing Needs I. Future ownership needs II. Future rental needs III. Combined housing needs Housing Capacity I. Total capacity for development by zone (in units) II. Capacity by land status: vacant and redevelopable III. Geographic targeting of redevelopment based on the above Sustainability I. Energy use by sector II. Household energy use compared to Cook County a. Average natural gas use in therms b. Average annual cost of natural gas c. Average electricity use in KWh d. Average annual cost of electricity e. Average annual energy costs III. VMT per household compared to Cook County Urban Design Focus Areas I. Euclid Road between Burning Bush Lane and River Road a. Concept map outline b. Visualizations Recommended Strategies I. Implement changes in south Mount Prospect a. An unincorporated area in south Mount Prospect includes an apartment complex, the United Airlines Training Center and a series of smaller commercial /industrial properties along Algonquin Road and Busse Road. The Village should explore annexing some or all of this land with the long term intention of using the existing business base and density of multi - family properties to create a mixed -use node of workforce housing, jobs, retail and community services in the area around Algonquin Road. a. As part of this plan Mount Prospect should work with Arlington Heights and Rolling Meadows on coordinated strategies for the Algonquin Road corridor. Such efforts should include: i. Support for transportation improvements on the 1 -90 corridor which provide greater regional access; ii. Consideration of renovation /redevelopment opportunities which build off of these transportation improvements and emphasize pedestrian and bicycle connections; and iii. Exploration of opportunities for shared social services which meet the needs of residents in all three communities, building off the success of the CCC. II. Rehabilitation a. As a CDBG entitlement community, Mount Prospect has long operated an owner - occupied single - family rehabilitation program. Future rehabilitation should continue to include owner - occupied senior housing to further aging in place. HOMES OUTLINE AND DRAFT RECOMMENDATIONS PAGE 4 III. Build relationships to reduce the impact of condominium foreclosures by: a. Using the foreclosure data provided through Public Act 96 -0856 to map and monitor the location and change of foreclosures within the Village; b. Creating a registration program for condominium and townhouse associations which collects information on who manages the association, who should be contacted and the number of rental units; and Combining the information from both of these efforts to: i. Monitor the number of foreclosures within individual buildings; ii. Use annual registration requirements to discuss data trends with associations and hear concerns and issues; iii. Develop benchmarks identifying when a property is considered "troubled" (number /percentage of foreclosures, number /percentage of rentals, number of different rental owners, utility shutdowns); and iv. Work with the NWSHC to develop intervention strategies for particularly "troubled" properties. Rental Licensing i. The Village's current rental licensing program requires the inspection of all "multi- family rental structures," defined as a building containing three or more units of which 50% are rental units. All other rental units are inspected in response to complaints. Given the definition, many rented condominium units may not fall under the inspection requirement until a building becomes majority rental. Due to the number of foreclosures in condominium buildings, this rental requirement should be strengthened to require the inspection of all rental units, including condominiums and rented single - family homes. ii. Given the Village's historic emphasis on identifying units for inspection through resident complaints, Mount Prospect should continue to provide and expand an online mechanism for residents to file complaints or identify unlicensed rental units, acting as a code staff force multiplier. iii. The Village's current rental license program requires that all licensees attend the Crime Free Multi- housing course offered by the community. As other communities, currently or in the future, adopt Crime Free Multi- housing or landlord education requirements, the Village should partner with Collaborative members on local programing. iv. The Village should consider gathering the same information (ownership, management, unit type, etc.) as the other Collaborative communities so that data can be combined and analyzed on a regional basis. IV. Opportunities for new housing a. Mount Prospect should explore the creation of both owner and renter occupied housing, particularly senior housing, for households earning less than $50,000. Targeted areas for development or redevelopment can be identified from the Homes capacity data. b. The Village should continue to provide a mix of housing options in response to projected population increases and identified housing needs. V. Senior Housing a. Mount Prospect already understands the need to provide opportunities for senior housing. The Village contains the Centennial Apartments (97 units) and Huntington Apartments (214 units) for low income seniors. The proposed 92 unit Horizon Senior Living facility would boost the supply of affordable senior rental options. Because this development would occur in Mount Prospect, the Village should build a monitoring relationship with any organizations that help fund this project, if the project is funded, to understand the long -term financial health of Horizon and use that information as a market check on the demand for future affordable senior projects in the region. HOMES OUTLINE AND DRAFT RECOMMENDATIONS PAGE 5 b. Based on the outcome of this relationship building, the Village should identify opportunities for senior housing, in locations suitable for redevelopment. c. Increase walkability by focusing infrastructure improvements and redevelopment around current and future senior projects. VI. Maintaining Housing Supply a. Recognizing that many local units affordable to households earning less than $50,000 could be lost, the community should locally identify the most threatened units and work with the NWSHC to maintain a source of supply, including exploring funding opportunities to preserve affordable housing. VII. Sustainability and Affordability a. Working with the NWSHC, identify funding sources for energy efficiency projects for both single - family and multi - family structures. Once funding is identified, Mount Prospect should develop programs which focus on rental structures, or design a means of making property owners aware of these opportunities. VIII. Explore new funding sources to further local housing activities a. Explore membership in the Cook County HOME Consortium and other grant opportunities.