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Staff outlines moratorium options, data on multifamily supply and fiscal impacts

O'Fallon City Council · January 22, 2026
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Summary

City planning staff reviewed a draft one‑year moratorium on multifamily development, presenting data on parcels that can be developed without rezoning (staff cited about 159 acres), past moratoria, occupancy rates and a fiscal‑impact tool that showed some multifamily scenarios generate net positive city revenue.

City planning staff presented an overview of a draft one‑year moratorium on multifamily development at the Jan. 22 workshop and answered council questions about data, definitions and process. Planner David said the comprehensive plan is a "long range guide" the city uses in land‑use conversations but is not law, and he identified roughly 159 acres the city currently shows as zoned to allow multifamily development without rezoning.

David walked through the city's history of moratoria — noting actions considered in 2003, 2004, 2005 and 2018 — and reviewed development and permit totals for multi‑family and single‑family housing across selected five‑year windows. He also presented internal fiscal‑impact estimates comparing multifamily to single‑family buildouts on comparable acreages; for one example, staff estimated that a 5.5‑acre multifamily project produced a positive ratio (staff cited approximate numbers such as "$3.55" on one slide) while a comparable single‑family layout showed net maintenance costs for the city.

Staff flagged several areas needing clearer language in the draft moratorium, including statutory public‑hearing steps, the definition of "3 or more units" in city code, the meaning of the phrase "materially alter," and whether senior housing would be unintentionally covered. David cautioned that the ordinance's current phrasing might include senior housing and that final approval language needed clarification.

Public commenters at the regular meeting raised opposing concerns: Habitat for Humanity of Saint Charles County's executive director, Michelle Woods, urged caution about limiting multifamily construction and said multifamily is an important source of more affordable housing options in the region. She said many households and workers rely on more affordable multifamily units and asked the council to weigh unintended consequences before imposing a moratorium.

No moratorium ordinance was adopted at the meeting. Council members discussed options for referring language to Planning & Zoning for more precise drafting, for withdrawing and redrafting the ordinance, or for holding additional workshops to refine definitions before any first reading.

Provenance: presentation began in the workshop at SEG 282 and staff Q&A continued through roughly SEG 813.