As part of a broad approach to generating affordable housing within the city of Evanston [Cook County], city staff recently put forth a number of worthy concepts including first-time homebuyer programs, allowing the construction of smaller homes on smaller lots and providing rent subsidies to those in need. However, one proposed strategy – allowing greater use of accessory dwelling units (ADUs), like coach houses, but with the caveat that ADU rent prices are restricted – caused alarm among the North Shore-Barrington Association of REALTORS® (NSBAR).
NSBAR provided testimony that property owners who live in primary dwellings often rely on the market rent of ADUs to not only offset their housing costs, but also to secure financing. That restricting rental income for this narrow subset of property owners would have the perverse effect of increasing housing costs and pricing some homeowners out of Evanston.
The Evanston city council, in rejecting the proposal, agreed with NSBAR’s sentiments, and also cited the administrative costs and burdens such a program would require. The council voiced support for liberalizing the construction and use of coach houses, but without restrictions on rent or income.
“We certainly would have explored the legality of restricting ADU rents had we not prevailed on the merits, or lack thereof, as it seemed to border on rent control,” said Howard Handler, local government affairs director for Illinois REALTORS® (and representative for NSBAR). “But thankfully the city council simply recognized it for what it is . . . bad policy.”
The Illinois Rent Control Preemption Act of 1997 prohibits Illinois municipalities from enacting rent control, but there has been a renewed push by some legislators and gubernatorial candidates to allow home rule municipalities to adopt rent control. As the current legislative sessions starts to heat up, efforts to overturn the statewide ban on rent control will be among the Illinois REALTORS® top concerns. To learn more, watch this “Chicago Tonight” interview featuring Brian Bernardoni, local government affairs director for Illinois REALTORS® (and the Chicago Association of REALTORS®).
