Evanston Council discusses property tax implications of affordable housing developments

During the recent Finance & Budget Committee meeting held on May 13, 2025, Evanston City Council members engaged in a critical discussion regarding property taxes and affordable housing developments, highlighting the complexities that affect local residents.

A key point of contention was the impact of the school district's tax levy increase on property taxes, rather than any changes made by the city itself. Council members clarified that while the city has not raised its tax levy, other taxing bodies, particularly the school district, are contributing to rising property taxes for homeowners. This situation has raised concerns among residents about the affordability of housing in the community.

The committee also discussed the implications of a recent approval for a 30-unit building that includes 20% affordable housing. Some council members expressed that if the affordable housing requirement had been set at 10%, the city could have benefited from a higher assessed value, leading to increased property tax revenue. This discussion underscored the tension between promoting affordable housing and ensuring adequate tax revenue for city services.

Council members acknowledged the limitations imposed by state regulations on development agreements, noting that while they can negotiate terms, they cannot unilaterally change the rules governing affordable housing percentages. This has led to calls for further examination of the city’s inclusionary housing policies, particularly in light of the recent developments that may not meet the community's needs for affordable options.

The meeting concluded with a proposal to form a committee that would include representatives from the school district to better address the intersection of housing policies and tax implications. This collaborative approach aims to ensure that future developments align with the community's goals for affordable housing while also considering the financial impacts on residents.

As Evanston navigates these challenges, the discussions from this meeting reflect a broader concern for balancing development, affordability, and fiscal responsibility, all of which are crucial for the well-being of the community.