After being slapped on the wrist for the inadequacy of its affordable housing plan by the Illinois Housing Development Authority, the Village Board came up with a plan to site affordable housing across Route 47 where there is no development but a golf course and a long-delayed a gas station/convenance store.
That would be where Woodstock School District 200 would be educating any children.
Here’s the deficiencies noted:
After the Village of Lakewood adopted its updated Affordable Housing Plan on June 10, 2025, the Village was notified by the Illinois Housing Development Authority that its Plan was deficient in the following respects:
3). Incentives that local governments may provide for the purpose of attracting affordable housing to their jurisdiction.
7). Proposed timelines to commence, within the first 24 months after the date upon which the affordable housing plan was adopted, for actions to implement the components of the affordable housing plan.
8). Local governments that have previously been determined as a non-exempt municipality and that have submitted an affordable housing plan shall also include a summary of progress made toward achieving the goals of the plan.
The new information follows:
3). Incentives that local governments may provide for the purpose of attracting affordable housing to their jurisdiction.
The Village is aware of the toolbox of economic incentives that it has available to attract affordable housing developments. The Village also has the following options available to encourage and facilitate affordable housing development. These include:
- Zoning Code Amendments. In conjunction with any potential amendments to its
Comprehensive Plan, the Village may consider amendments to its zoning code that require
residential developers to incorporate certain percentages of affordable housing in certain zoning
districts, either already existing, or districts added in the future. The Village may also consider
zoning bonuses that provide developers with density bonuses for incorporating affordable housing. - Expedited Permitting and Fee Waivers. A major impediment to developing affordable
housing is land carrying costs while a project is going through the review and approval process. In
the case of an affordable housing project, the Village may institute an expedited permitting process
to minimize these costs. To complement an expedited permitting process for affordable housing,
the Village may reduce or fully waive associated development and utility tap-on fees. - McHenry County HOME Program. McHenry County is a grantee county under the federal
Community Block Grant Program (“CD2?G”‘) and uses CDBG funds to provide resources for the
Countywide Housing Investment Partnership (“HOME”). HOME funds can be used by
municipalities in M^cHemy County to facilitate affordable housing development benefiting low- to
moderate-income households.
7). Proposed timelines to commence, within the first 24 months after the date upon which the affordable housing plan was adopted, for actions to implement the components of the affordable housing plan.
Within 12 months, the Village will begin the first phase of extending its water supply lines to reach potential new areas for development. The project is in its final planning to stages and this is one step closer to opening opportunities for new affordable housing developments in an area of vacant land adjacent to the Village which is ready for development.
Within 6 months and in all likelihood sooner, the Village will hold a “Developer Day” to introduce the Village of Lakewood to potential residential and commercial developers. As part of the education component, the Village will advise developers that the Village is interested in developing new affordable housing, especially along the Route 47/Route 1 76 corridor. The Village will be inviting developers and property owners to promote available land and services in the Village and will emphasize the benefits of bringing development projects to the Village. The “Developer Day” event may become a regular occurrence for the Village.
Within 18 months, the Village Board will request that Village staff and consultants compile information and prepare a report regarding federal and state financial programs, including grants and other sources of funding, available to assist the Village and affordable housing developers in developing affordable housing in the Village.
Within 24 months, the Village Board will solicit presentations from non-profit affordable housing agencies and groups to discuss issues relating to affordable housing, including potential incentives, if any, that the Village may offer.
8). Local governments that have previously been determined as a non-exempt municipality and that have submitted an affordable housing plan shall also include a summary of progress made toward achieving the goals of the plan.
The Village has increased its percentage of affordable housing units since the last plan was adopted. Moreover, of the new housing units constructed since the last plan was adopted, 13.3% of the additional 166 units are classified as affordable.
Additionally, the Village has continued planning for the development of the Route 47/Route 176 corridor.
This has been a substantial undertaking with one mixed use retail component having been approved by the Village. Due to the delays by the Illinois Department of Transportation in beginning construction on this approximately $50 Million road improvement project, none of the anticipated residential development in the area has begun. However, with the project now underway, the Village is pursuing new development opportunities for this area.
The Village continued to encourage developers with affordable housing projects to consider the Village as a site for future development.
