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Council adopts developer fee ordinance on first reading to fund homeowner repair grants
Summary
Council approved on first reading an ordinance establishing developer fees (1.5% residential, 2.5% commercial) to fund a grant program providing $10,000–$20,000 repair grants for existing homeowners; 100%-affordable projects would be exempt. Staff will prepare program guidelines and eligibility rules.
At the July 6 meeting Plainfield City Council adopted on first reading an ordinance (MC2025-27) that would impose a development fee on new construction—1.5% of construction costs for residential projects and 2.5% for commercial projects—to create a trust for homeowner repair grants. The ordinance was advanced on first reading unanimously.
City staff described the program as a spectrum grant program intended to keep people in their homes by funding safety- and habitability-related repairs (not cosmetic work). Grants would range from $10,000 to $20,000 per household and would be administered under guidelines the city must prepare; staff said the ordinance allows the city to set income thresholds and other eligibility requirements in the program guidelines.
The administration said the approach also incentivizes developers to build 100% affordable projects (those would be exempt), and that the developer-fee trust would be distinct from negotiated community-benefit commitments in individual redevelopment agreements. Council members praised the proposal and asked staff to consider household income ceilings and to create an advisory or review panel that includes residents to help administer the program; staff agreed the guidelines would address those issues and return to council with recommended administrative rules.
The ordinance passed first reading with unanimous council support and will return for a second reading/public hearing and final adoption once staff finalizes program rules and eligibility details.
