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HomeMy WebLinkAbout3. Homes COW Packet 01/22/2013Village of Mount Prospect Community Development Department MEMORANDUM &I TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: JANUARY 14, 2013 SUBJECT: HOMES FOR A CHANGING REGION f-TITI 4 0i11MED 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 leaders 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 The Homes report is divided into three Sections. The first Section is a Sub - regional housing analysis developed to identify current conditions, project future housing demands, review recent policy remedies, and recommend general strategies to improve sub - regional housing conditions. This Section entitled Homes for a Changing Region: Northwest Suburban Housing Collaborative, Sub - Regional Report and Recommendations was included in the Draft discussed at the October 91h Committee of the Whole meeting and is attached for your reference. These sub - regional facts and general strategies will help to achieve a consensus for the direction of the Collaborative work as a whole. Section two entitled Housing Policy Plan: Mount Prospect is specific to the Village of Mount Prospect. Existing conditions have been analyzed, our strengths and challenges identified and projected housing needs have been developed along with recommended strategies to address those needs. At this time, the project team is asking for your final review and comments on this Section two of the report, which is specific to our community. Each of the five Collaborative communities will have their own Section in the final report. An Appendix is also attached and labeled as Section Three. NEXT STEPS At this time, the project team is asking for your final comments on Section two of this Draft. After this final review, the complete Homes for a Changing Region report will go to print and be made available to the public. CONCLUSION Please forward this memorandum and attachments to the Village Board for their review and consideration at the January 22 Committee of the Whole meeting. A representative of CMAP will give a brief presentation regarding the Homes project at the January 22 meeting. Staff will also be present at the meeting to answer any questions regarding this matter. William J. Cooney, Jr., AICP Director of Community Development H:\ PLAN\Noffliivest Honsmg Cbllaboratice HomesforgChvi_guigRegioii Homes report to 012213 COVAHomes Mono 011113.docx ■■ Metropolitan EE ,C,N,. Ma a p s - 14 Chicago Metropolitan Metropolitan Planning CoundI Agency for Planning Homes for a Changing Region January 2013 Draft Section 1: Sub - Regional Report and Recommendations Homes for a Changing Region Northwest Suburban Housing Collaborative Sub - regional Report and Recommendations 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 Tollway 1 -90) and the Tri -State Tollway (1 -294). Table 1: Median Household Income $100,000 $90,000 $80,000 $70,000 $60,000 $ 50,000 $40,000 $30,000 $20,000 $10,000 $0 Source: 2008 -2010 American Community Survey Arlington Heights Buffalo Grove Mount Prospect Palatine Rolling Meadows Sub - regional Report and Recommendations Table 2: Tenure Status 90% 80% 70% NO c 60% 0 x 50% w Q u 40% U O 0 30% 41 c 20% w a 10% 0% Source: 2006 -2010 American Community Survey ■ % Rent ■ % Own 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. Arlington Buffalo Grove Mount Prospect Palatine Rolling Heights Meadows Sub - regional Report and Recommendations Inset: WHAT IS "AFFORDABLE HOUSING "? • While varying from household to household, "affordable housing" is housing that costs no more than 30% of household income (including utilities, insurance, and taxes). If family transportation costs are included (housing costs plus transportation costs), then "affordability" jumps to 45% of household income. This report will cite figures from the Center for Neighborhood Technology on the number of households that pay more than 45% of their household income on housing and transportation costs combined. 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 communities from 2009 through 2011: Table 3: Northwest Suburban Housing Collaborative Foreclosures 2500 c 2000 +1 U 7 a o 1500 V1 NO c LL 0 1000 N E z 500 0 filings aucth 2009 Source: Woodstock Institute, http: / /www.woodstockinst.org Sub - regional Report and Recommendations Condominium foreclosures have been especially noteworthy: 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Table 4: Condos as a Share of Foreclosure Aucttions vs. Owner - Occupied Units Ir' Owner - occupied multifamily units as a percentage of all owner - occupied units (2008 -2010 ACS) Condos as a percentage of all foreclosure auctions (2011 Woodstock) 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 - 50.00% - 40.00% - 30.00% - 20.00% - 10.00% 0.00% all Source: Trulio, www.trulia.com, pulled 712512012 Cook County Lake County Arlington Buffalo Grove Mount Palatine Rolling Heights Prospect Meadows Sub - regional Report and Recommendations Table 6: Percent of Owner Occupied Housholds Paying More than 30% of Income on Monthly Owner Costs 45% c 40% s w 35% 0 x w 30% Q u 25% U 20% N C 15% w 10% c w U 5% w a 0% 2006 -2010 50 %+ (severely unaffordable) 2006 -2010 30 -49% (unaffordable) ■ 2000 50 %+ (severely unaffordable) ■ 2000 30 -49% (unaffordable) Source, 2000 Census and 2006 -2010 ACS 6 1 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. Arlington Buffalo Mount Rolling Heights Grove Prospect Palatine Meadows Sub - regional Report and Recommendations 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 60% 0 s 50% w 0 x 40% Q U U O 30% v 41 w 20% w 0 c 10% w U N O 0% Source, 2000 Census and 2006 -2010 ACS 2006 -2010 50 %+ (severely unaffordable) 2006 -2010 30 -49% (unaffordable) 2000 50 %+ (severely unaffordable) 01 2000 30 -49% (unaffordable) 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 L 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 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 7 <15k <35k <50k <75k <100k <150k 150k+ 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. Table 9: NWSHC Projected 2040 Owner Demand by Age of Householder 25,000 20,000 c 15,000 s w 10,000 5,000 0 <15k <35k <50k 0 <25 ■ 25 -44 Source: CMAP analysis of Fregonese ETBH model using 2006 -2010 ACS and GO TO 2040 household growth projections as inputs. <75k <100k <150k 150k+ 45 -64 65+ 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+ 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. 12,000 10,000 8,000 0 w 6,000 0 = 4,000 2,000 0 Table 11: Projected 2040 Renter Demand by Age of Householder <15k <35k <50k <75k ■ <25 25 -44 45 -64 <100k <150k 150k+ 65+ 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. Inset: A land trust is a non - profit organization that acquires properties through market purchase and land donations. The land trust retains the title to the land while selling homes on it at below - market value. The land is leased at a nominal cost to income - qualified buyers. Future affordability is maintained through a ground lease, which requires homes on the land to be either sold back to the land trust or to another income - qualified buyer. The resale amount is determined by a formula that provides a fair return on investment to the seller, but also ensures the property remains affordable to future purchasers. Homeowners are responsible for paying property taxes, which are based on the formula value of the home. This results in significant cost savings to homeowners. Section 2: Housing Policy Plan (Mount Prospect Only) Housing Policy Plan: Mount Prospect PROJECT SUMMARY Mount Prospect is a prosperous suburban community with a diverse range of housing types, strong residential neighborhoods, and excellent schools. Benefiting from its prime location in the metropolitan area's job -rich Northwest Corridor, the Village has a broad range of employers and a solid tax base to fund municipal services. Because of its prime location, Mount Prospect residents and businesses access a number of key regional transportation assets, including commuter rail, highways and bus service. While essentially built out, the Village continues to take advantage of new opportunities for growth and redevelopment, most notably in its downtown area which features shops, restaurants and residences near its Metra station. A recent Regional Transportation Authority (RTA) grant is funding an implementation plan to detennine future land use and development in downtown. Even with these assets, Mount Prospect faces challenges as it plans for the future. A summary of these challenges include: • Numerous multi - family housing complexes built between 1960 and 1980 are aging and in need of ongoing rehabilitation and upgrading. • An aging population raises questions about the best ways to accommodate potential future growth. • The Village must weigh the pros and cons of annexing unincorporated land on its southern border. • The nation's foreclosure crisis continues to impact parts of the Village. This report analyzes Mount Prospect's existing housing conditions and makes projections about its future housing needs, concluding with a series of recommendations focused on: • Addressing ongoing housing rehabilitation needs; • Dealing with foreclosures and their aftermath; • Creating opportunities for new senior housing; • Exploring development and redevelopment opportunities in southern Mount Prospect, including unincorporated areas; and • Creating initiatives to increase the energy efficiency of new and existing housing. EXISTING CONDITIONS Demographic and Economic Trends Located in northwestern Cook County, the Village of Mount Prospect is bordered by Prospect Heights to the north, Des Plaines to the east, Elk Grove Village to the south and Arlington Heights to the west. Mount Prospect's population essentially leveled off during the first decade of the 21st century, at around 55,000 residents. The Chicago Metropolitan Agency for Planning (CMAP) produced population and household projections as part of its GO TO 2040 plan, the seven county region's comprehensive plan for DRAFT Mount Prospect Housing Policy Plan January 7, 2013 sustainable prosperity for the next 30 years.' These figures indicate that if GO TO 2040 is implemented and if the Village takes advantage of its numerous assets, its population could rise to 63,354 by 2040, an increase of approximately 9,100 residents . As this report points out later, however, the Village currently lacks the capacity to add this many residents without additional land area or changes to its zoning code. Decisions in this regard, of course, would have to be carefully considered by the Village Board. It is quite possible that housing demand may exceed supply well into the future, a fact that could put upward pressure on housing prices. Population and Change in Population, 2000 and 2010 Community Population, 2000 (Census) 56,264 Population, 2010 (Census) 54,167 Change, 2000 -10 -2,097 Change as %, 2000 -10 3.7% GO TO 2040 Projection, 2040 63,354 The Village's employment base is diverse and includes ohs in a wide variety of sectors including administration, wholesale trade, manufacturing and education. Retail jobs comprised almost 20% of local employment in 2010. Buffeted by the recession, overall employment in the Village decreased somewhat between 2006 and 2010. The Village's leading employers include Caremark, Cummins- Allison and Bosch Tool Corporation. Mount Prospect jobs, 2005 -10 02005 62010 'RETAIL TRADE I I I I U1 ➢MIN ISTRATI.N & 1UP1.R1I, WAST€ MGM.., . �L!E!R�VIC E MANUFACTURING PROFESS SCIENTIFIC, AN DECHNICAL.SERVICES AND F04 SERVICES ANAGEMEN I NI OFCOMPA 5AND'ENTERP.ISES � FINANCE AND INSURANCE Im INFORMATION 0% 595 1095 T5% 20°10 SQUFU U S. Census 8WQaU. LEV pate, OWth@ -RUP ' http: / /www.emap.illinois.gov /2040 See the Appendix for more information about these projections. 2 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 Where Do Mount Prospect's Workers Live? While many employees commute to Mount Prospect from surrounding communities, the Village's highway and transit access allows 13% percent of workers to come from Chicago. That Chicago is the largest source of workers is common to many communities in the region, as both highway and rail systems are designed, in part, to move people to and from the region's largest city. Benefiting from the local job base, 9% of people working in Mount Prospect also live in Mount Prospect, a figure on par with other Collaborative communities. Whom 4D Kamt PErn3{nwr#xarkm hmk ZM? 9% MOUNT RAOSPECT fi% A RONGT•DN HEIGHTS 3-4 PALATINE lair SCH 2e±t- � FtEA1AIr�l]FAdf Where do /Mount Prospect'sworkers live? Job counts by distance/direction in 1 all workers aW Jd E> Source US Census Eweau, LEE) Data, Qn-tr a -Map Where Do Mount Prospect's Residents Work? Chicago is the region's largest employment hub and for many communities, including Mount Prospect, the most common destination for commuting residents. Seventeen percent of residents work in Chicago, the highest percentage among the Collaborative. Such concentration lends credence to the Village's focus on reviving downtown with transit oriented development. Citizens also commute to jobs in northwestern Cook County, including Mount Prospect, Arlington Heights, Des Plaines, Elk Grove Village and Schaumburg. That 7% of all employed Mount Prospect residents work in the community is typical of most Collaborative communities. Percentages for four of the five towns range between 6 percent and 9 percent (Buffalo Grove, Mount Prospect, Palatine and Rolling Meadows), with Arlington Heights' 14 percent as the only outlier. S — , a 0 - saA. -.. I.EDV*I- - -A 'r `NW N E7 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 Where do Mount Prospect's residents work? Job counts by distance /direction in 2010, all workers 13% 17% C HKAGQ 7% ARLINGTON HfICHT5 740 � MGIwT pic[95Pd1`t 4% US PLAINES a0x r.+, r�rranu:�vircarr NO 'N W ,'w SnUKO U S. CenSUS 9ureau. LEO Data On-the-WP. Inset: WHAT IS "AFFORDABLE HOUSING "? Wliat constitutes affordable housing varies household to household, as the measure is relative. For this report, ive use the following US Census guidelines: • "Affordable housing" is housing that costs no more than 30% of household income (including utilities, insurance, and taxes) • "Unaffordable housing" is housing that costs behwen 30% and 50% of household income • "Severely unaffordable housing" is housing that costs more than 50% of household income 'N CURRENT HOUSING ANALYSIS While Mount Prospect contains a mix of single and multi - family housing, single - family detached housing is the predominant housing type. About 57% of local units are single - family while 37% are multi - family. According to American Community Survey (ACS) data from 2006 -2010, the majority of single family homes within Mount Prospect are owner- occupied (96 %) while multi - family dwellings tend to be renter occupied (65 %). Multi - family units are generally concentrated in the southern portion of the Village within close proximity to the I -90 corridor. A significant amount of this housing was developed in unincorporated Cook County and subsequently annexed into the Village during the 1960s and 1970s. The portion of households spending more than 30% of their income on housing costs increased between 2000 and 2010. For renters, the proportion increased from 30% to about 40 %. This ten percentage point increase is consistent with the change seen among the other four towns over the past decade. For owners, the number of households paying more than 30% of their income on housing costs increased from about 22% to 35 %. Similar to other Collaborative members, this change was driven by an almost doubling of the number of homeowners paying more than 50% of their incomes on housing costs. The increasing number of cost - burdened owners and renters in Mount Prospect over the last decade is consistent with DRAFT Mount Prospect Housing Policy Plan January 7, 2013 national trends. "The recession ... did little to reduce housing outlays for many Americans," due in part to declining incomes, slow employment growth and more stringent credit requirements. 3 Mount Prospect housing type by tenure Mount Prospecttenure by unitsin structure OWNER - OCCUPIED `RENTER- OCCUPIED * OWNER- OCCUPIED RENTER - OCCUPIED 12,000 G7 11 (DETACHED) 10,ODU 8,000 �,aoa 4,000 2,000 Source. Amer iron Communny Survey 2006 -10 0 2,000 4,0 00 6,000 8p00 10,000 12,000 Source. American Canmunity Survey 2006 -2010. Mount Prospecttenure by household income, in number of occupied units 0 OWNER- OCCUPIED RENTER - OCCUPIED Mount Prospect rental and owner housing affordability OWNER HOUSING RENTAL HOUSING +AFFORDABLE OUNAFFORDABLE # SEVERELY UNAFFORDABLE $wren Amenean C.n „u....tysurvnyr7006.1a 3,500 3,DDD 3,500 2,00 1,500 1,000 Soo Source Am K ■n C.- S­” Current Ownership Housing The market for owner housing in Mount Prospect reflects two distinct types of households: those who own the home with a mortgage and those who own a home without a mortgage. Whether an owner carries a mortgage significantly impacts which income groups can afford the unit. Owner units for households earning less than $35,000 are only affordable to this income group if the owner does not carry a mortgage s Joint Center for Housing Studies. (June, 2012). State of the Nation's Housing 2012. Harvard University 5 U SINGLE FAMILY TOWNHOME MULTIFAMILY OTHER 0 [15k t35k <50k e75k <100k <150k 150k+ ;1(A ACHED) LNI i 5 NITS 11 0 TO 19 UYIITS 9 UNIT S E I REUNITS MOBILE HO ME 90A T, R7 N, ETC. 0 2,000 4,0 00 6,000 8p00 10,000 12,000 Source. American Canmunity Survey 2006 -2010. Mount Prospecttenure by household income, in number of occupied units 0 OWNER- OCCUPIED RENTER - OCCUPIED Mount Prospect rental and owner housing affordability OWNER HOUSING RENTAL HOUSING +AFFORDABLE OUNAFFORDABLE # SEVERELY UNAFFORDABLE $wren Amenean C.n „u....tysurvnyr7006.1a 3,500 3,DDD 3,500 2,00 1,500 1,000 Soo Source Am K ■n C.- S­” Current Ownership Housing The market for owner housing in Mount Prospect reflects two distinct types of households: those who own the home with a mortgage and those who own a home without a mortgage. Whether an owner carries a mortgage significantly impacts which income groups can afford the unit. Owner units for households earning less than $35,000 are only affordable to this income group if the owner does not carry a mortgage s Joint Center for Housing Studies. (June, 2012). State of the Nation's Housing 2012. Harvard University 5 U SINGLE FAMILY TOWNHOME MULTIFAMILY OTHER 0 [15k t35k <50k e75k <100k <150k 150k+ DRAFT Mount Prospect Housing Policy Plan January 7, 2013 while units affordable to households earning more than $50,000 typically require the owner to carry a mortgage. Intuitively this difference makes sense, as owners who do not carry a mortgage typically pay less in total housing costs, allowing the owner to use the unspent money for other household expenses. In Mount Prospect, the likelihood of owning a home with or without a mortgage depends in part on age. Almost two - thirds of owners without mortgages are over the age of 65, while over two- thirds of owners with mortgages are younger than 55. Therefore, the bulk of Mount Prospect's supply of owner units affordable to households earning less than $50,000 per year are occupied by seniors while the working age population occupies most of the units affordable to households earning more than $50,000 per year. Shortages exist in the owner housing supply for income groups earning less than $15,000 and more than $100,000 annually. These shortages force households to purchase homes outside of their income levels. Upper income families purchase units which may be more affordable to lower income households, thereby diminishing the ability of these middle income groups to find housing affordable to them. Conversely, households making less than $15,000 that purchase homes often spend large proportions of their income on housing costs. Mount Prospect comparison of owner household incomes with occupied units affordable at each income level 2010 • ACTUAL HOUSEHOLDS AT INCOME LEVEL 2010 ESTIMATED OCCUPIED HOUSING UNITSAFFORDABLE AT INCOME LEVEL (WITHOUT MORTGAGE) 2010 ESTIMATED OCCUPIED HOUSING UNITSAFFORDABLEAT INCOME LEVEL (WITH MORTGAGE) 2010 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 <$15 <$35 <$50 <$75 <$100 <$150 $150+ Source: CMAP analysis of Fregonese Envision Tomorrow Balanced Housing Model using ACS 2006 -10 inputs. Current Rental Housing Renters earning between $15,000 and $50,000 are well served by Mount Prospect's existing rental housing. Supply /demand gaps, however, exist at the bottom and top ends of the Village's rental market. Shortages for households earning more than $50,000 annually result in renters at these income levels occupying rental units affordable to $15,000450,000 households. Renters earning less than $15,000 must live in units which cost more than 30% of their income. According to 2006 -2010 ACS data, 9% of the Village's renters are older than 65 and 9% of the Village's cost burdened renters are older than 65. The DRAFT Mount Prospect Housing Policy Plan January 7, 2013 similarity in percentages indicates that senior renters are not disproportionately likely to be paying more than 30% of their income on housing. Mount Prospect comparison of rental household incomes with occupied units affordable at each income level 2010 ' ACTUAL I IOUSEI IOLDSAT INCOME LEVEL 2010 ESTIMATED OCCUPIED HOUSING UNITSA ORDABLE AT INCOME LEVEL 2010 2590 or , 2,000 1 0 WO i,so0 1,000 Sao <$I$ <S35 <SSa <S75 <S100 <SISC S1SG+ Sawm.CMAP anb"tvf rvftjonex Envision Tomorrow 0W xed Houwny Model wing ACS 10 input& Today's Market Segments and Market Preferences This analysis used tools developed by a leading, well -known market research firm, Environmental Systems Research Institute (ESRI), to enrich our understanding of the housing types preferred by families that live in Mount Prospect. The basic unit of the ESRI Community Tapestry system is the neighborhood (based on US Census block groups). ESRI has classified every neighborhood in the country as one of 65 market segments. These segments are then combined into one of 12 LifeMode groups. Segments and groups are assigned to neighborhoods by sorting more than 60 attributes including income, employment, home value, housing type, education, household composition, age and other key determinants of consumer behavior. Neighborhoods with the most similar characteristics are combined while neighborhoods showing divergent characteristics are separated. Ninety eight percent of Mount Prospect's households fall into five of the LifeMode groups: Upscale Avenues, High Society, Senior Styles, Global Roots and Solo Acts. LifeMode Groups Income Family Type Average Age % of Total Housing Types Tenure Upscale Avenues Middle -upper Mixed 43 J4.2% Single family, townhome, Own multi-famil High Society Upper Married couples 39 27.7% Single family Own Senior Styles Middle Married no -kids 47 16.4% Multi -unit and single Own /rent fainil F Global Roots Modest Family mixed 31 10.4% Multi -unit and single Rent/own DRAFT Mount Prospect Housing Policy Plan January 7, 2013 family Solo Acts Middle -upper Singles- shared 34 931% Multi -unit, townhome and Rent /own single family The largest group are "Upscale Avenues," affluent households who prefer a variety of housing types and are more likely to invest in their housing through remodeling or landscaping. The next largest group, "High Society," is made up of affluent professional headed households that prefer single - family homes. "Senior Styles" residents have housing preferences as diverse as their circumstances, residing in single - family homes, retirement homes, or high- rises. About 10% of households are classified as "Global Roots," representing the Village's growing Asian population. Such households tend to have children and rent in multi -unit buildings. Finally, "Solo Acts" are generally young single or roommate households who prefer a mobile, urban lifestyle and denser housing options. What does this mean for Mount Prospect's future housing needs? First, it means that the majority of current residents have at least a moderate propensity to live in a compact neighborhood (e.g. containing a range of housing types that encourage walking to retail stores, neighborhood amenities, other homes and transit lines). Secondly, the groups help confirm and deepen infonnation gleaned from US Census data. The segments for Upscale Avenues and High Society make up over 60% of Mount Prospect households, corresponding to ACS data which points to middle and upper income owner households in single - family homes as the most common current household type in the Village. Finally, while not an exact guide to the future, understanding the types of housing desired by the most common LifeMode groups in Mount Prospect can assist in planning for future housing needs. PROJECTING FUTURE HOUSING NEEDS Housing planning needs to take into account those who might live in the community in the future. After developing an understanding of the current housing market in Mount Prospect, the following sections look at possible future housing demand in the Village. Blending together Census data, CMAP's local population and household projections for the year 2040 and the ESRI Tapestry market segment data, we can make some realistic estimates of who will want to live in Mount Prospect over the next 30 years. Further, we can determine the types of housing necessary to meet the needs of both current and future residents. Future Ownership Needs We project that over the next 30 years the number of homeowners in Mount Prospect will increase at all seven income levels. Based on these projections, the Village's current supply of units for households in the $15,000435,000 and $75,000 - $100,000 range would be sufficient to meet projected growth. Shortages, however, would exist for all other income groups. While the projected shortfall of units for upper income households ($100,000 +) indicates a potential market for upscale homes and condominiums, many affluent households spend less than 30% of their income on housing costs. This propensity will both temper the projected demand for upper income units and reduce the number of units for middle and lower income households as upper income families occupy units which would otherwise be affordable to less affluent income groups. If the number of households earning less than $15,000 grows, we project that 65% of homeowners in this income group could be spending more than 30% of their income on housing in 2040. Keep in mind, DRAFT Mount Prospect Housing Policy Plan January 7, 2013 however, that low income households may, in some cases, have assets which allow them to meet ongoing housing expenses. This caveat is particularly important given the number of households in this income group projected to be led by senior citizens in 2040. Moreover, the financial realities of property acquisition, construction costs and financing make the development of owner housing at this income level very difficult. Given the projected ages and incomes of future owners, the High Society and Upscale Avenues groups will likely continue to drive the market in the Village's affluent single - family neighborhoods. As Mount Prospect ages across all income groups, particularly below $75,000, meeting the needs of senior residents (e.g. Senior Styles) will become particularly important. Members of this segment both own and rent in everything from single - family homes to multi -unit buildings, setting the stage for the Village to accommodate this group through new senior housing developments, including assisted living facilities, or efforts which allow seniors to age in place. The presence of Solo Acts and Upscale Avenues in Mount Prospect offer the prospect for market driven townhomes and multi - family developments. While tear - downs may continue to occur, this activity typically does not add to the overall number of units in the Village and does not represent a way to consistently add upscale housing units. JAaunt Paacpmcil:201106ouwholds and hnusing stackcramparad with 2W 4wneFdliriwind Mount Prospect projected owner demand hy age of household DCLU PIE DHQISira05 OCKAff00A0"AT30%OFiNC.0W(2=) , *BE MAN D ALT INCDMEt1Va (21!) a PROA-ETED DEk1AN0 AT INCOME LEM 02040) •1i "a f i 1- r_1 i � 1�!sl:ti� 1,�1SO 's+ rfi~ Tnrrlunwiu0 .1cn1roaxryMu7rd'uinj1kCY k0115n !0 aw C~4717 E'K) jG4$htMaelEhtl�uq rip0al Future Rental Needs 0 <25 0 25 -44 0 45 -64 0654 4,OO4.i 3,500 3,000 2,500 2.000 1,500 1,000) 500 Souee. [MAA analyse o f Fragarese Fmisian Tomorrow Ba9enced lieLSmg Model using A[5 200B•2010 wd CAAAP GO TO 2040 homQho0d forecast nputs Assuming population growth of 17% over the next 30 years, we estimate that the future need for rental housing will surpass the current affordable stock for all income groups, except for households earning between $35,000 and $50,000. This shortage creates opportunities for both lower and upper income rental housing. Unlike with owners, future housing for renters, particularly low and moderate income renters, will not be driven by seniors. Instead, if the Village chooses to expand its rental housing stock, it will be important to develop housing which meets the needs of people aged 25 -44. This age -group may give the Village an <15k <35k <50k <75k <100k <150k 150k+ DRAFT Mount Prospect Housing Policy Plan January 7, 2013 opportunity to both further its downtown redevelopment and work with local employers to meet labor force needs. The Global Roots and Solo Acts market segments correspond most closely to the projected future ages and incomes of Mount Prospect renters. Rental housing options for families making less than $50,000 would be important for the Global Roots group while continuing development efforts in downtown Mount Prospect would be attractive to some Solo Acts. Mount PFasP■Ct7018 hwr+rhvldsand h lasing �#w?actccarnp4tF with 2040 Fill doom nd OCCUPIED MOUSING STUCK'ATTQRDARLE Al 30%OF INCOME (2010) DEMAND AT INCOM,{ LEVEL L2010� PROJECTED b'CMAND AT INCOME I EYE L 42040) J ;o-r" Mkr FF4a rk Flls lnnm E -a , WV � ..cc.r.- r T17l;vrPrx s b- 11p , n• 1,1,1 A a- Housing Demand by Type of Unit Mount Prospect projected renter demand by age of household X25 025-44 0 45 -64 0 65+ 2,500 2,000 1,500 1,000 500 <15k 43 <50k <75k 100k <150k 150k+ Source' CMAP enalysisof FrWnesa Envision Tonwrow Balanced I lousing Modal o ng ACS 2096 %fJlOand CMAPGQ TO 2040 household lerecast inputs When we combine our population and household projections for new owners and renters, we get one possible picture of Mount Prospect's demand for additional housing units in 2040. What emerges is a "balanced housing" profile with demand for about 1,405 additional single family, 360 townhome and 1,838 multifamily homes between now and 2040. The demand for additional denser unit types, such as small single family homes (lots of less than 8,000 s.f.), townhomes and multi - family units would be driven by the increasing number of low and middle income seniors along with the working age rental population. As noted previously, these figures are based on projections; real growth may be more or less than estimated. The ultimate decision regarding if and how Mount Prospect may grow is a local one. 10 DRAFT Mount Prospect Housing Policy Plan Mount P rospect f uture balance housing profile INCREMENTAL UNITS (INCLUDES NEW UNITS. REHAB It FATED VACANT UNITS AND VACANCPE5, 2010 -2040) .00CUPIED HOUSING SUPPLY MOUNT PROSPECT, 2010 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 LARGELOTSF SMALLLOTSF TOWNHOME MLILTIFAMILY Sovice CMAP arolys�s of Fregon9sa Lnuiwn 7o narow Bels+ced Fbusnp Madelutlrg RCS 2GG&2010 and CMAP GO 10 2040 11 dwld Iowan mA& CAPACITY FOR GROWTH January 7, 2013 Estimated future population and household growth is only one -half of the equation in considering future housing needs. As a community with numerous assets, it is understandable why many people want to live in Mount Prospect now and in the future. But to plan for future households and housing, it is also important to look at capacity, particularly for a community that is substantially built -out. To understand the Village's ability to accommodate projected growth, we reviewed two key sources of capacity: development/redevelopment and vacancy . 4 Development /Redevelopment Analysis We analyzed the extent to which Mount Prospect could grow based on current land use regulations. Reviewing Cook County Assessor data, we worked with Village staff to identify vacant and redevelopable parcels (where the land value is greater than the improvement value). We then applied the community's current zoning and development standards to figure out how many units could be built in Mount Prospect. Based on that analysis, we estimate Mount Prospect has the capacity for about 514 new dwelling units. Sixty percent of new units could be multi - family while 40% could be single - family homes. This capacity would allow the Village to accommodate about 14% of the projected population growth, or 1,300 new residents. 4 See the Appendix for more information about the methodology. 11 Vacancy Analysis Source: CHAP analysis ofMount Prospect zoning ordinance, Cook County assessor data Maximum Capacity b Unit Type Type Units Large Lot SF ( >8,000 s.f.) 182 Small Lot SF ( <8,000 s.£) 25 Multifamily 307 Townhome - Mobile Home /Other - TOTAL 514 Because of the current housing market, many homes now vacant may not be so in the future, allowing people to move in without building new units. According to 2006 -2010 ACS estimates, Mount Prospect has approximately 1,307 vacant units, or about 6% of all homes in the Village. Normal long -term vacancy rates for a strong community are 7.4% among rental units and 1.5% among owner - occupied units.' Given the number of local owner and rental units and a healthy housing market, the Village should only have approximately 631 vacant units or a 3% vacancy rate. Therefore, 676 currently vacant units could be occupied in the future as Mount Prospect grows and the market stabilizes. This capacity would allow the Village to accommodate about 19% of the projected growth, or about 1,800 new residents. Breakdown of Current Vacant Units 1 1200 Iwo 290 - Current Vacant Umhs ■ Vacant Units In l lealtiiy fdarket ■ Current Vacant Units to be 4ecupeed Source: CMAP analysis ofACS 2006 -2010 FUTURE HOUSING CONCLUSION Taking into account capacity available under development/redevelopment and vacancy, Mount Prospect can accommodate 33% of the projected housing units that could likely be desired by future residents based on the 2040 projections, or about 3,100 additional residents. The remaining approximately 6,000 future residents represent unmet demand, people who want to live in Mount Prospect but cannot due to a ' http: / /www.jchs.harvard.edu/ sites /jchs.harvard.edu /files /w07 -7.pdf �r �rri.r rs aww.■..,ac rt ft"M"W0" DRAFT Mount Prospect Housing Policy Plan January 7, 2013 lack of available units. Many of these people would be looking for small lot single family homes, townhome and multi - family units. The Village's current codes likely would not be able to accommodate this future demand for these two housing types. Conversely, existing codes would accommodate future demand for large lot single - family units. Based on these figures, the choice of if and how to grow is a critical one. If the Village chooses to maintain its current population level, the demand to live in Mount Prospect over the next 30 years could increase housing costs for both renters and owners. Such rising costs can increase the number of households paying more than 30% of their income for housing (as occurred over the past decade) and make it difficult to maintain a diverse housing stock affordable to a wide range of incomes. In addition, maintenance of the Village's current housing stock, particularly its multi - family housing, will become paramount. If the Village chooses to grow, it must determine the best locations for growth given the projected types of housing future residents may demand: small lot single family homes, townhomes and multi - family units. As a substantially built -out community, finding locations to build any of those unit types can be difficult. Changing regulations to accommodate such growth must be considered carefully. Regardless of which route the Village chooses, we encourage policy makers to use these statistics as a guide, focusing on the relative number of single family, multi - family and townhome units which together reflect a balanced housing market. Mount Prospect demand vs. vacancy and capacity by housing type, units 2010 -00 0 DEVELOPMENT CAPACITY (2010) VACANT UNITS (2010) FSTIMA U D I NC RI AS I I N' DI MAN D F OR U NI tS (2040) 1,80o 1,600 1,400 1,200 1,000 800 600 400 200 Snurtt CAtiRPandyvsaf Fregonese FhY15 nnFomonow llalenced Housing Mmlel, CookCn property Assn ,date and U.S. Cm .Bureau inputs 13 LARGE LOTSF SMALL LOTSF TOWNHOME MULTIFAMILY DRAFT Mount Prospect Housing Policy Plan SUSTAINABILITY January 7, 2013 In 2007, the Center for Neighborhood Technology (CNT) produced an energy and emissions profile for Mount Prospect as part of the Municipal Energy Profile Project. Based on the report, the Village emitted an estimated 13.58 metric tons (MT) of carbon dioxide (CO2e) per capita, approximately 8% less than County emissions per capita (14.86 MT CO2e). With 90% of local emissions coming from electricity and natural gas usage along with transportation, any forward thinking housing plan should analyze these areas. The table below highlights residential natural gas and energy usage in the Village and Cook County in 2007. At that time, the average Mount Prospect household spent less on energy costs than the average Cook County household due to lower natural gas usage. One key part of local energy usage is the home heating source. Based on data from the 2006 -2010 ACS, natural gas is the dominant local home heating source, used by 81 % of households. Electricity provides heat for a larger percentage of renters than owners (34% vs. 8 %). Residential Energy Use by Municipality Compared to Cook County (2007) Cook County Mount Prospect Average Electricity Use per Household 7,692 kWh 8,691 kWh Average Annual $ for Electricity per Household* $828 $935 Average Natural Gas Use per Household 1,130 Therms 810 Therms Average Annual $ for Natural Gas per Household* $1,274 $719 Average Annual Energy Costs $2,102 $1,654 Source: CNT Energy Community Profile *Calculated using average residential sales per kWh (ICC Utility Sales Statistics 2007) As it relates to transportation, Mount Prospect households drive more miles (vehicle miles traveled or VMT) than the Cook County average (16,674 versus 14,742 respectively), according to 2007 CNT data. Because of the additional mileage, residents pay approximately $89 more per month in transportation costs than the average county resident based on the current IRS mileage reimbursement rate. Research by Reid Ewing and others in the Journal of Urban Planning and Development has shown that the biggest factor in reducing vehicle miles traveled is "by putting offices, shops, restaurants, residences, and other codependent activities in close proximity to each other. ,6 Inset: Housing and Transportation In recent years, the CNT developed an alternative way to define "affordable housing" as housing which costs no more than 45% of both housing and transportation costs. According to figures from CNT, 76% of typical regional households (a 2.73 person household earning $60,289) would pay more than 45% of household income on housing and transportation costs combined when living in Mount Prospect. This alternate measure finds less affordable housing in Mount Prospect than the traditional US Census method. 6 ASCE. Traffic Generated by Mixed -Use Developments - Six - Region Study Using Consistent Built Environmental Measures. Journal of Urban Planning, October 2010. 14 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 As discussed previously, the gap between projected housing demand and current capacity could put upward pressure on housing prices for owners and renters over the next 30 years. That said, energy efficiency and sustainability efforts can help mitigate rising housing costs. The Village's municipal aggregation program, which may offer residents lower electricity rates, could help cost burdened renters and owners. So too can a commitment to implementing energy efficient designs as part of rehabilitation and new construction. A focus on compact neighborhoods, including transit oriented development around the Mount Prospect Metra station, offers residents ways to reduce transportation costs. Village support for employer assisted housing can also help reduce transportation costs by encouraging residents to work in Mount Prospect. URBAN DESIGN FOCUS AREA Design Workshop In June 2012, the Homes for a Changing Region team conducted a community workshop in Mount Prospect. Residents, community leaders, Village officials and others presented their views on housing in the Village in general as well as a focus area: Euclid Avenue between River Road and Burning Bush Lane. The focus area was chosen as several of the lots in this area were identified in the capacity analysis as underutilized and potential redevelopment opportunities. The area currently consists of large lot single - family homes which front Euclid Avenue and some aging neighborhood commercial properties near the intersection of Euclid Avenue and River Road. This intersection also provides a gateway into the string of Cook County Forest Preserves and trails which nun along the Des Plaines River. Attendees recommended providing recreation activities along Euclid Avenue that would connect with the parks along with mixed -use development on the northwest and southwest corners of the River Road and Euclid Avenue intersection. If the single - family parcels redevelop in the future, stakeholders suggested replacement with a combination of housing types, including apartments and cottage housing. These ideas were translated into the following images, showing how the area would be transformed with infrastructure improvements and mixed use buildings. The pictures reflect not only the community feedback from the meeting but also some of the concepts of this report, including the benefits of compact neighborhoods. Community feedback at the meeting also identified southern Mount Prospect as an area of opportunity and emphasized the importance of rehabilitating existing multi - developments and pursuing senior housing. Euclid Avenue looking west of River Road today 15 DRAFT Mount Prospect Housing Policy Plan Euclid Avenue looking west of River Road with streetscaping Euclid Avenue looking west of River Road with private investment RECOMMENDED STRATEGIES January 7, 2013 Having carefully analyzed Mount Prospect's current and projected housing needs, a number of practical and achievable housing strategies will allow the Village to build upon its considerable assets while also addressing its future challenges. • Maintaining Housing Supply: Given the projected gap between the Village's capacity to grow and the number of households who may want to move to Mount Prospect in the future, maintenance of the local housing stock will be paramount. Of particular concern are the number of aging multi - family properties which help provide 90% of the local rental stock. Continued careful monitoring and maintenance of these facilities can ensure that affordable rental housing options remain available for residents of all income levels even as demand rises. Implementing recommendations in this report focused on foreclosure tracking, rental licensing and rehabilitation will also help ensure the quality and viability of the current multi - family stock. • Consider if and how to grow: This report projects future housing needs across the income spectrum. The choice of if and how the Village grows over the next 30 years will impact housing 16 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 prices for both owners and renters. Therefore, Mount Prospect should consider whether and how to accommodate projected future growth. We project demand for everything from single - family homes to apartments. In particular, Mount Prospect should support the creation of both owner and renter occupied housing, particularly senior housing, for households earning less than $75,000. • Implement changes in south Mount Prospect: 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. Such efforts could offer growth opportunities for a substantially developed community. While pursuing this strategy, Mount Prospect should also work with Arlington Heights and Rolling Meadows on coordinated strategies for the I -90 corridor. Such efforts should include: • Support for transportation improvements on the I -90 corridor which provide greater regional access; • Consideration of renovation /redevelopment opportunities which build off of these transportation improvements and emphasize pedestrian and bicycle connections; and • Exploration of opportunities for shared social services which meet the needs of residents in all three communities, building off the success of the CCC. • Rehabilitation: As a CDBG entitlement community, Mount Prospect has long operated an owner- occupied single - family rehabilitation program. Future rehabilitation efforts should continue to include owner- occupied senior housing to further aging in place. Foreclosures: In the short-term, one of the Village's most pressing housing issues is the impact of foreclosures. We recommend that Mount Prospect explore two local avenues to address foreclosures, designed to fit within the regional efforts touched on previously in this report. o Build relationships to reduce the impact of foreclosures by: ■ Using the foreclosure data provided through Public Act 96 -0856 and Record Information Services to map and monitor the location and change of foreclosures within the Village. Such data can be particularly useful for the Village as in targeting foreclosure prevention services and heightened code enforcement services, including rental monitoring. • Utilize foreclosure tracking to develop targeted foreclosure prevention and disposition services through the Collaborative. • Creating a registration program for condominium and townhouse associations which collects contact information for the board and the number of rental units. • Combining the information from both of these efforts to: • Monitor the number of foreclosures within individual buildings; • Use annual registration requirements to discuss data trends with associations and hear concerns and issues; 17 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 • Develop benchmarks identifying when a property is considered "troubled" (number /percentage of foreclosures, number /percentage of rentals, number of different rental owners, utility shutoffs); and • Work with the Collaborative to develop intervention strategies for particularly "troubled" properties. o Rental Licensing • 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 maj ority rental. Based on 2011 data from the Woodstock Institute, 39% of local foreclosure auctions were condominiums even though condominiums only make up 16% of the housing stock. Due to the number of foreclosures in condominium buildings, the Village should continue to monitor these foreclosures and their impacts on the condominium units. The Village should explore options to expand its rental licensing and inspection program to these units if property maintenance problems become more prevalent. • 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. The Village's current rental license program requires that all licensees attend the Crime Free housing course offered by the community. As other communities, currently or in the future, adopt similar programs, the Village should partner with Collaborative members on local programing. Such a program could become more attractive to landlords if tied to incentives for participation. 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. By collecting the same information in the same format, Mount Prospect can work with its partners on common rental housing issues, including addressing problem landlords across a number of communities. Senior Housing: 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 community continues to try and increase local senior housing options, including assisted living facilities. Given the projected increases in the local senior population over the next 30 years, the Village should continue its commitment to providing a mix of senior housing options through the following efforts: o 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 fund this project to understand the long -term financial health of Horizon and use that information 18 DRAFT Mount Prospect Housing Policy Plan January 7, 2013 as a market check on the demand for future affordable senior projects in the region. Based on the outcome of this relationship building, the Village should identify opportunities for senior housing, including assisted living facilities, in locations suitable for redevelopment. • As a matter of policy, senior developments should include infrastructure improvements that increase walkability to services and retail. In the short term, Mount Prospect should explore such infrastructure improvements around existing senior developments. • While new housing options are important, many seniors will want to stay in their current home. Therefore, the Village should work with the Collaborative to develop "aging in place" information for residents which would identify important modifications needed to improve accessibility, eliminate barriers and create safer spaces. • Because of local desire for an assisted living facility, the Village should identify factors which prevent its development and develop a strategy to overcome these obstacles. • Sustainability and Affordability: Utility and maintenance costs are key components of any household's ability to afford a unit. With the number of people desiring to live in Mount Prospect projected to grow in the future, energy efficiency offers a way for the Village to help offset some housing cost increases. Therefore, working with the Collaborative, the Village should 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. In a similar vein, local taxes also impact housing affordability. Therefore, the Village should continue working with local taxing bodies to help keep taxes lower. Explore new funding sources: As noted previously, CDBG funding helps pay for many of the Village's current housing efforts, such as the rehabilitation program. Additional funding sources would help speed implementation of this report. Therefore, the Village should explore new funding sources for local housing activities. One such option may be joining the Cook County HOME Consortium, allowing the Village access to federal funds for rehabilitation, new construction and housing services for low and moderate income households. CONCLUSION As a built out community, Mount Prospect faces the challenge of continuing to provide a diversity of housing options in the face of limited capacity for growth. Projected future demand across all income levels and in a number of key demographics (seniors and young working -age households in particular) offers the chance to further the Village's redevelopment efforts in downtown and southern Mount Prospect. Embracing a mix of recommendations designed to help mitigate foreclosures and maintain the current housing stock while furthering redevelopment in key locations will allow the community to make the most of these prospects. 19 Section 3: Appendix Appendix APPROACH AND METHODOLOGY This technical memorandum provides an overview of three key analytical tools used for the Phase II, Year 6 Homes for a Changing Region report: a housing needs analysis, a capacity analysis, and the ESRI Tapestry market segmentation system. HOUSING ANALYSIS The housing needs analysis was conducted using a model to determine housing needs for each of five communities and the aggregate of all five combined. The model's results are driven by current and projected demographics and regional tenure choices. The model's outputs include needed housing units by tenure (ownership versus rental) by income range. We use the model to find gaps that may represent current unmet needs and future housing needs. In this project, the model has been used to identify local and subregional housing needs and market opportunities. How Does the Model Work? The housing needs for the region are driven by the current housing choices in the region and the projected future demographic trends. In many areas around the country, the standard practice for estimating future housing need has been to use the past to extrapolate future housing requirements. While this market or demand driven approach was commonly used to define the housing "needs" for an area, the true housing "needs" of that area's population may not have been addressed. Using Fregonese Associates' Balanced Housing Model, tenure choices and incomes determine housing "need." In this model, "affordable" is not referring to low- income housing, but rather to the relationship between incomes and housing costs. The "30% rule" assumes that housing is only affordable for a household if it spends less than 30% of its gross income on housing expenses. The model's approach was designed based on research showing that two variables - age of head of household (Age =A) and household income (Income =l) - demonstrated significantly stronger correlation with housing tenure than other variables, including household size. Fregonese Associates selected these two variables as the primary demographic variables for the model. In addition, household income is another key variable used to help determine the affordability component of housing needs. As expected, data gathered during research on model development showed that different Age /Income (AI) cohorts make significantly different housing tenure choices. For example, a household headed by a 53 year -old and earning $126,000 is likely to make a different housing choice than one headed by a 29 year -old and earning $43,000. The model is first used to calculate the total number of housing units needed for the planning period based on: • CMAP GO TO 2040 population and household projections. • Number of people in group quarters. • Number of occupied housing units (number of households). • Average household size. • Assumed vacancy rate for the study area in a healthy housing market. The data sources for the population estimates, people in group quarters, and occupied housing units were taken from the U.S. Census Bureau's 2006 -2010 American Community Survey (ACS) data. The number of households in each Al cohort was calculated by utilizing ACS data to determine the percentages of households that are in the 28 Al cohorts (4 age cohorts and 7 income cohorts). Figure 1: Age Ranges and Income Ranges for Homes Analysis Age Range: <25 25 -44 45 -64 65+ Income Ranges <15k 15k <35k 35k <50k 50k <75k 75k <100k 100k <150k 150k+ The ACS - generated tenure parameters used in the model represent the probabilities of being a renter or homeowner for each of the 28 Al cohorts. Based on these tenure parameters, the model allocates those households in each Al cohort to an indicated number of rental and ownership units that is affordable for the income range for that cohort. The model then aggregates the units demanded within each income range to show the total units that could be afforded at each income range by tenure. To estimate the future Al cohorts, the current Al percentages were adjusted to reflect demographic forecasts for the nation by the US Census Bureau. CMAP GO TO 2040 Population and Household Projections The Chicago Metropolitan Agency for Planning 2040 Forecast of Population, Households and Employment was developed in support of the GO TO 2040 comprehensive regional plan adopted on October 13, 2010. This forecast was developed through the creation of a "reference scenario" based on current population and land use trends. Mathematical modeling techniques were then employed to evaluate how the distribution of population and employment would change in response to different planning strategies which might increase or dampen the amount of socioeconomic activity within a given area. The data in this forecast reflect the CMAP Preferred Regional Scenario, which was developed in part through a series of Invent the Future workshops held throughout the region between May and September 2009. Because of the connection between the projections and the Preferred Regional Scenario, the projections reflect a region where the GO TO 2040 Plan has been successfully implemented. CAPACITY ANALYSIS As part of our more detailed housing analysis, a capacity analysis was conducted for Arlington Heights, Buffalo Grove, Mount Prospect, Palatine and Rolling Meadows. The capacity analysis contained two major components. • An estimate of the amount of development potential remaining under the existing zoning based on developable and /or redevelopable land or long -term planning. This approach uses Geographic Information Systems (GIS) and the calculated development capacity of land is based on standardized buildable land assumptions. • The number of currently vacant housing units that may be occupied by future households as the local housing markets stabilize. This approach is based on both nationwide research on the vacancy rates typically associated with rental and owner housing along with ACS data on the current local vacancy rate. When these sources of capacity are combined, they illustrate each community's ability to accommodate projected future growth without adjustments to local zoning ordinances. Geographic Information Systems GIS was used to calculate vacant and redevelopable land, after environmentally constrained lands were removed. The basic GIS process involved several steps: • Lake County and Cook County Assessor parcel data (2009) was used to summarize vacant acres of land by zone (this includes removal of environmentally constrained land, e.g. wetlands, flood plains, and steep slopes). • Lake County and Cook County Assessor 2009 parcel data was used to summarize redevelopable acres of land by zone, based on the ratio of land value to improvement value. • The maximum density allowed in the zoning code for each zone was calculated using municipal zoning codes as a guide. • The development potential of vacant land by zone was calculated by multiplying maximum density by vacant acres. • The development potential of redevelopable land by zone was calculated by multiplying maximum density by non - vacant acres and by a redevelopment percentage. • The initial capacity estimates were reviewed with villages for review and refinement. • Based on municipal input, necessary adjustments were made. FUTURE HOUSING DEMAND BY TYPE: ESRI TAPESTRY DATA AND NATIONAL RESIDENTIAL PREFERENCE SURVEYS Each community's future housing demand by type was estimated based on: • Local existing housing stock. • Local existing ESRI Tapestry LifeMode segment groups. • National future housing preference surveys. ESRI Tapestry market research data was used to identify groups of market segments comprising the largest percentages of each community's population today. The largest LifeMode groups were summarized in each community's report. The ESRI data is useful in helping the municipalities understand and take advantage of the types of housing and neighborhoods preferred by these groups. We also used the LifeMode characteristics to approximate each LifeMode group's current housing type preference, and their propensity for living in a compact or non - traditional neighborhood in the future. The average ages provided in each community report represent the weighted average of median ages for that particular community's market segment mix. LifeMode Groups Median Ages Income Family Type Preference for Compact neighborhoods L1 High Society 34 -47 Upper Married Couples Low L2 Upscale Avenues 32 -43 Middle -Upper Mixed Medium L3 Metropolis 29 -39 Middle Mixed Medium L4 Solo Acts 29 -39 Middle -Upper Singles- shared High L5 Senior Styles 42 -73 Middle Married no -kids Medium L6 Scholars and Patriots 22 -43 Modest Married With Kids, singles High L7 High Hopes 30 -33 Middle Family Mixed Medium L3 Global Roots 26 -37 Modest Family Mixed High L9 Family Portrait 29 -55 Varies Married w/ Kids Low L10 Traditional Living 32 -39 Modest Mixed Medium L11 Factories and Farms 35 -49 Modest Married Couple Families Low L12 American Quilt 32 -43 Middle Married Couple Families Low 66 Unclassified Unknown Then, several recent national surveys on residential preference were analyzed and incorporated into each community's projections. These surveys were compiled by the University of Utah's Dr. Arthur C. Nelson in The New California Dream: How Demographic and Economic Trends May Shape the Housing Market. The summary of the nation's estimated future demand is shown below. Figure 1: Comparative Demand by Housing Unit Type from National Surveys (Compiled by Dr. Arthur C. Nelson) Nelson Total RCLCO Myers and Gearin AHS Demand Owner Demand Townhouse Supply AHS Supply' Housing type 20061%1 20081%1 Demand 2001 I %1 2 , 009(%) 20091%1 Multifamily 23 24 — 23 23 Townhouse 15 10 17 5 5 Smalt Lot 37 35 — 15 25 Conventional Lot 25 31 — 57 47 Sources: Myers and Gearin 120011, Nelson 120061, RCLCO 120081, U.S. Census Bureau 120101. Date. — not available. a. 'Small tot = one -sixth acre b. Small lot = one- quarter acre Source. The New California Dream: How Demographic and Economic Trends May Shape the Housing Market. Dr. Arthur C- Nelson, Urban Land Institute, December 2011 hat p:lAwww_ uli_ orgfResearchAndPublicationsf-- /media /Res earcl ;A nd Publi cations/ Report /UL I%20V+oices %20Nelson%20 T he9624Newl.*2OCalifomio %2CDream.oshx ADVISORY GROUP: CMAP HOUSING COMMITTEE Nora Boyer, Village of Arlington Heights Rob Breymaier, Oak Park Regional Housing Center Elizabeth Caton, Northwest Side Housing Center Sarah Ciampi, Lake County Community Development Division Paul Colgan, Colgan Public Affairs Spencer Cowan, Woodstock Institute Adam Dontz, Lake Star Advisors Nancy Firfer, Metropolitan Planning Council (MPC) Andy Geer, Enterprise Community Partners Sharon Gorrell, Illinois Association of Realtors Adam Gross, Business and Professional People for the Public Interest (BPI) Tammie Grossman, Village of Oak Park Calvin Holmes, Chicago Community Loan Fund Jane Hornstein, Cook County Bureau of Economic Development Kevin Jackson, Chicago Rehab Network Christine Kolb, Urban Land Institute (ULI) Paul Leder, Manhard Consulting, Ltd. Anthony Manno, Regional Transportation Authority (RTA) Taylor McKinney, Center for Neighborhood Technology Allison Milld Clements, Metropolitan Mayors Caucus Janice Morrissy, South Suburban Housing Collaborative Carrol Roark, DuPage County Geoff Smith, DePaul University Andrea Traudt, Illinois Housing Council Joanna Trotter, Metropolitan Planning Council (MPC) Kim Ulbrich, McHenry County Department of Planning and Development Milo Vodopic, MacArthur Foundation Stacie Young, The Preservation Compact COMBINED NORTHWEST SUBURBAN HOUSING COLLABORATIVE Population and Household Forecast 2006/2010 -2040 The data for 2006 -2010 average comes directly from the U.S. Census Bureau's American Community Survey. The projections for 2040 reflect a forecast of each community's potential population and household growth if the CMAP's GO TO 2040 plan is implemented. Estimated 2040 Housing Demand by Income The tables in this section compare the number of dwelling units in 2010 (ACS data) that were "affordable" to households within an income category to the projected demand for such units in 2040. A unit is defined as "affordable" if a household can live in it by allocating no more than 30% of its income for housing - related costs (rent, mortgage payments, utilities, etc.). If the 2010 housing stock for an income category exceeds the 2040 demand projections, it means that a municipality may already have units beyond its forecasted need. If, however, 2040 demand is higher than the 2010 housing stock, additional units will be needed to meet projected demand. Rental Housing - Combined Northwest Suburban Housing Collaborative 2006 -2010 ACS 2040 CMAP % Change Households 101,973 116,654 14.4% Population 261,679 305,444 16.7% The data for 2006 -2010 average comes directly from the U.S. Census Bureau's American Community Survey. The projections for 2040 reflect a forecast of each community's potential population and household growth if the CMAP's GO TO 2040 plan is implemented. Estimated 2040 Housing Demand by Income The tables in this section compare the number of dwelling units in 2010 (ACS data) that were "affordable" to households within an income category to the projected demand for such units in 2040. A unit is defined as "affordable" if a household can live in it by allocating no more than 30% of its income for housing - related costs (rent, mortgage payments, utilities, etc.). If the 2010 housing stock for an income category exceeds the 2040 demand projections, it means that a municipality may already have units beyond its forecasted need. If, however, 2040 demand is higher than the 2010 housing stock, additional units will be needed to meet projected demand. Rental Housing - Combined Northwest Suburban Housing Collaborative Please note that housing units may notadd up exactly to 100% duc to founding, Owner Housing - Combined Northwest Suburban Housing Collaborative <15k <35k <50k <75k <100k <150k 150k+ Total Occupied Housing Stock Affordable at 30% of Income (2010) 1,761 5,596 11,108 4,427 1,163 267 160 24,402 Demand at Income Level (2010) 4,277 9,661 5,35£3 2,692 1,411 312 272 24,432 Projected Demand at Income Level (2040) 4,645 10,691 6,047 3,065 1,593 342 247 27,135 Tar et Units Needed to Meet Projected Demand by Income 1 2 1 5 n/a I n/a 1 435 1 5751 87 2 653 Additional Units Bey ond Forecasted Need Within this Income Rare I n/o I n/a I 5,061 1 1,362 1 n/o I n/a I n/a n/a Please note that housing units may notadd up exactly to 100% duc to founding, Owner Housing - Combined Northwest Suburban Housing Collaborative Pluasc note. *hat hrmsing <<nrts may nrit�add uG� exactly to /00 due to rounding. <15k <35k <50k <75k <100k <150k 150k+ Total Occupied Housing Stock Affordable at 30% of Income (2010) 1,540 16,606 9,35£3 16,053 24,769 6,109 3,055 77,496 Demand at Income Level (2010) 3,733 10,711 9,536 16,316 12,336 12,762 12,002 77,496 Projected Demand at Income Level (2040) 5,400 14,817 12,339 19,865 14,426 13,669 12,216 92,732 Target Units Needed to Meet Projected Demand by Income 3,860 n/a 2,981 3,807 n/a 7,560 9,161 15,236 Additional Units Bey ond Forecasted Need Within this Income Range n/a 1,789 n/a n/a 10,343 n/a n/a n/a Pluasc note. *hat hrmsing <<nrts may nrit�add uG� exactly to /00 due to rounding. Estimated 2040 Affordable Housing Demand Compared to 2006 -2040 Housing Stock This section contains the charts which illustrate the data from the tables above. NWSHC 2010 households and housing stack compare -d with 2040 renter darnand 12,= IgL1I1 �19G1' aim D -715 i30% 1119[ 15M. NW5IfC7DIO households and housing stock comparedwlth 2M owrw demand n d I 74ADD SRIiF CIY iiSk c'd' sF9k clgk t75� I.'l>e. a¢{ {b[:TI MyJ3Ll@1.W. 7r }9Y.gL N.pgnklN'J01 eLk+n++0 L'{GXrrt LCML 17R1QI ■ir{*{r�t LknlM 11 '>•f[+YI Ii+RI {� MOUNT PROSPECT Population and Household Forecast 2006/2010 -2040 Estimated 2040 Housing Demand by Income Rental Housing - Combined Northwest Suburban Housing Collaborative Mount Prospect 2006 -2010 ACS 2040 CMAP % Change Households 20,447 23,378 14.3% Population 53,838 63,354 17.6% Estimated 2040 Housing Demand by Income Rental Housing - Combined Northwest Suburban Housing Collaborative Mount Prospect <15k <35k <50k <75k <100k <150k 150k+ Total Occupied Housing Stock Affordable at 30% of Income (2010) 263 2,135 2,540 416 104 19 11 5,492 Demand at Income Level (2010) 727 2,376 1,324 637 269 144 15 5,492 Projected Demand at Income Level (2040) 737 2,652 1,600 753 360 135 15 6,352 Target Units Needed to Meet Projected Demand by Income 520 517 n/a 337 256 166 4 860 Additional Units Bey ond Forecasted Need Within this Income Range 1 n/a I n/a 1 940 1 n/a n/a I n/a I n/a n/a Picase �ot�.thathousinguutsma �otadd uPcxactlyto 100 %dui.torounding, Owner Housing - Combined Northwest Suburban Housing Collaborative Mount Prosp <15k <35k <50k <75k <100k <150k 150k+ Total Occupied Housing Stock Affordable at 30% of Income (2010) 362 4,237 1,639 2,746 4,319 1,06£3 534 14,955 Demand at Income Level (2010) 793 2,191 1,766 3,429 2,462 2,530 1,7£33 14,955 Projected Demand at Income Level (2040) 1,054 1 2,974 1 2,201 1 4,125 1 2,764 1 2,711 1 1,369 1 17,693 Target Units Needed to Meet Projected Demand by Income 692 n/a 512 1,379 n/a 1,643 1,335 2,743 Additional Units Bey ond Forecasted Need Within this Income Range n/a 1263 n/a n/a 1555 n/a n/a n/a Plcasc note that honsing un is I aynotndd no exactly to 100: oI c to rounding. Estimated 2040 Affordable Housing Demand Compared to 2006 -2010 Housing Stock Mount Prospect 2010 households acrd housing stock compared with 2040 owner demand SAM ISM - 1,500! iAm -- 5oD 6 _ ci5k c35k 66k a acruard Iiw*g slnrkAffwda6fe at m of hrnmrdminl -'25k •Demand ul Wn rLeM WWI siWk K MAX Mk * ■ Pmkr *d Demand 31 . hrnmr Lear) LZM Mount Prospect 2010 hov"hol& and housing stock compared with 2040 renter demand J,LUj — i.DDO kt k Kewk <iok 45k k i5ft+ aCXTWOrd HM-IF ilxk Adf- r*br4q 9% of {1ulo D- 1PI -.+mr Lewl 1AII1.4 ■Frnor.t*l Lin nd M. rrMM Lr+rl l llMj Mount Prospect 2010 households acrd housing stock compared with 2040 owner demand SAM ISM - 1,500! iAm -- 5oD 6 _ ci5k c35k 66k a acruard Iiw*g slnrkAffwda6fe at m of hrnmrdminl -'25k •Demand ul Wn rLeM WWI siWk K MAX Mk * ■ Pmkr *d Demand 31 . hrnmr Lear) LZM