Peoria presents 2025 housing assessment under SB 1162, flags widespread cost burden
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Summary
City staff presented the 2025 housing needs assessment required by SB 1162, reporting about 40% of households earn at or below 80% of area median income and that nearly half of renters are cost-burdened; staff outlined policy options including a local housing trust fund and promised a fuller policy package in spring 2026.
Chris Hawkes, the city planning/neighborhood staff presenter in the record, presented Peoria’s 2025 housing needs assessment — the update the city must file under state law. He said the purpose of the assessment was both to satisfy legislative reporting and to inform policy work the council will consider in spring 2026.
The presentation restated the HUD standard for affordability: "Affordable housing is when you spend 30% or less of your gross income for your housing needs," and then placed Peoria’s local numbers in that context. Staff reported that roughly 40% of Peoria households earn at or below 80% of area median income (AMI), which the presentation said is just under $75,000 for the city. The assessment found nearly 50% of renters are cost-burdened and about 20% of homeowners are cost-burdened; blended across tenure, staff reported about 39% of all households are cost-burdened.
Staff told the council that shortages exist across income strata and that a mismatch between household size and the housing stock contributes to overcrowding in older housing. The presentation identified potential policy responses — from preservation strategies to incentives for building a broader mix of housing types — and flagged options city staff will return with at a future study session. One concrete idea discussed was establishing a local housing trust fund, a dedicated set-aside for affordable-housing development.
The presenter also explained the city’s compliance timeline under state legislation (referenced in the record as SB 1162): an initial upload occurred before 01/01/2025, an annual reporting requirement will continue, and staff will compile a five-year update to inform the 2030 assessment. Staff said they will post required 2026 data before the end of the month and return with policy recommendations in late winter or spring 2026.
Next steps: staff will finalize and publish the 2026 data mandated by SB 1162 and will bring policy recommendations and a proposed implementation framework to a future study session for council consideration.