As affordable housing availability in Highland Park takes a hit, city officials reaffirm commitment to addressing shortage

Highland Park’s City Council voted unanimously on Monday to renew its formal commitment to addressing a shortage of affordable housing units in the city. 

The vote, however, did not enact any policy changes to the “City of Highland Park Affordable Housing and Appeals Act Plan” that the council first adopted in 2005 and most recently updated in 2020. 

But state law required Highland Park to evaluate and reapprove its plan for supporting local affordable housing after the Illinois Housing Development Authority notified the city in 2023 that less than 10 percent of the city’s total housing stock qualifies as affordable by state standards.

Only 6.3 percent, or 766, of Highland Park’s 12,079 total housing units were deemed affordable by the state agency in 2023. That was a decrease of 290 affordable units from 2018.

Joel Fontane, Highland Park’s director of community development, said during the June 16 meeting that the city was within 80 units of hitting the state’s 10 percent benchmark in 2020, but he was “not surprised” the city lost a couple hundred affordable units since then due to changes in market rate affordability.

Highland Park’s 2025 plan outlines the city built its first affordable housing development, the Frank B. Peers Building, in 1978. The development is supported through a federal rental subsidy program that pays fair market rental costs above 30 percent of each household’s annual income. 

Other developments and measures — Highland Park’s Inclusionary Housing ordinance requires 15 percent of units in all new developments be permanently affordable — have increased the number of affordable units in Highland Park from the 213 total quantity the city had in 2005. 

But as Highland Park councilmember Anthony Blumberg indicated Monday, “robust development” of new market rate units in past years have impacted the current ratio of affordable units in the city. 

Fontane also acknowledged how changing economic conditions, mortgage rates and ongoing discussions with the state over how its housing agency determines housing units to be affordable are all factors contributing to the city’s fluctuating ratio of total affordable housing units. 

According to the city’s plan, rising house prices and rents, a recent slowdown of multifamily development construction, major terrain challenges limiting the amount of available buildable land all set the stage for a demand for affordable housing in Highland Park that exceeds its supply.

Only 20 affordable units across five developments were approved between 2019 and 2022, city data shows. Since 2023, only one new multi-family development containing one affordable unit has been approved.

However, three proposed developments are currently under consideration that, if approved by the city, will contain 43 affordable units. The city already offers incentives to developers, including the waiving of certain fees and costs attributable to affordable units. 

Though Highland Park is largely “built-out,” the city is also considering an application to rezone 28 acres of vacant industrial property adjacent to a residential district to allow for a 240-unit townhome development that would feature 37 affordable units. 

Amy Rosenfeld Kaufman, vice president of community relations for the Community Partners for Affordable Housing nonprofit, commended the city council on Monday for what she said was their commitment to affordable housing. 

“Your leadership is a model across the country,” Kaufman said. “People see this multi-tooled approach that Highland Park has taken including the inclusionary housing ordinance as very effective in creating affordable housing opportunities in communities like Highland Park.”