St. Charles — Title 19 Inclusionary Housing [legal-review: § 19.02.110 rent-amount text] § 19.02.110
Maximum price of affordable units
Operative Text
A. Affordability controls; waivers. All affordable units developed in accordance with this chapter shall be subject to restrictions as provided in this section. B. For-sale affordable units. Affordable units shall be offered for sale in conformance with the following principles: 1. The sale of affordable units to the first purchaser shall be governed by the following: a. Affordable units shall be offered for sale at no more than the maximum price that is affordable to an eligible household based on household size in accordance with paragraph D of this section, using the limits established annually by the Illinois Housing Development Authority (IHDA). b. The property shall be subject to a deed restriction or other suitable instrument limiting the maximum sale price of the property for a period of fifteen (15) years, and specifying the conditions under which title to the property may be transferred to an entity other than an eligible household, including but not limited to transfer of title to heirs. c. The purchaser shall execute a promissory note in favor of the City in an amount equal to the difference between the purchase price for the affordable unit and its fair market value as determined by a licensed appraiser. Said promissory note shall be non-interest bearing and shall be secured by a mortgage on the property. The City shall subordinate the mortgage to that of the primary lender. (Said promissory note shall be due upon sale of the affordable unit after the initial 15-year period if the property is sold at market value in accordance with Section 19.02.110.B.3.b.) 2. Subsequent sales of affordable units during the first fifteen (15) years following the initial sale shall be governed by following, unless the property owner is granted a waiver by the City Council based upon supporting market-related evidence of undue hardship on the owner of the affordable unit: a. The maximum sale price shall be the initial sale price plus 1) appreciation in the property's value, but not to exceed any increases in the IHDA affordability limit since the last sale of the property; 2) an allowance for the cost of repair and/or replacement of heating, electrical, plumbing, roofs, and structural elements necessary to address safety of the occupants or integrity of the structure. b. The seller shall receive any of the affordable unit's appreciation in value based on the sale price as determined in Section 19.02.110.B.2.a. c. The purchaser shall execute a promissory note in favor of the City in an amount equal to the difference between the purchase price for the affordable unit and its fair market value as determined by a licensed appraiser. Said promissory note shall be non-interest bearing and shall be secured by a mortgage on the property. The City shall subordinate the mortgage to that of the primary lender. (Said promissory note shall be due upon sale of the affordable unit after the initial 15-year period if the property is sold at market value in accordance with Section 19.02.110.B.3.b.) 3. Subsequent sales of affordable units after the initial 15-year period shall be governed by either subsection (a) or (b) as follows: a. Resale as an affordable unit. If the sale price does not exceed the initial sale price plus 1) appreciation in the property's value, but not to exceed any increase in the IHDA affordability limit since the last sale of the property; and 2) an allowance for the cost of repair and/or replacement of heating, electrical, plumbing, roofs, and structural elements necessary to address safety of the occupants or integrity of the structure, then the property shall be sold as an affordable unit in accordance with Section 19.02.110.B.2. b. Resale at market value. The full amount of the promissory note shall be payable to the City and shall be deposited into the Housing Trust Fund or other fund devoted to providing affordable housing. In the event the amount of the promissory note is in excess of the difference between market value and the purchase price paid by the seller, with allowances granted to the seller for any increase in the IHDA affordability limit since the last sale of the property and for the cost of repair and/or replacement of heating, electrical, plumbing, roofs and structural elements necessary to address safety of the occupants or integrity of the structure, then the excess amount shall be forgiven by the City. Once the promissory note is paid and/or forgiven in accordance with this section, all restrictions of this chapter applicable to the affordable unit, including its designation as such, shall cease. C. For-rent affordable units. The maximum gross rent (including a utility allowance for utilities not provided with the rent) for affordable units offered for rent shall be calculated using the gross rent limits established annually by the Illinois Housing Development Authority on the basis of thirty percent (30%) of gross monthly income at fifty percent (50%) to sixty percent (60%) of AMI, based on household size in accordance with paragraph D of this section. The net rent charged by the owner shall not exceed the maximum gross rent minus a utility allowance for any utilities to be paid separately by the tenant. All affordable units shall be offered at not more than the maximum rent calculated in accordance with this paragraph in perpetuity or as long as permissible by law. D. Household size. In calculating the maximum sale and rental prices of affordable units, the following relationship between the number of bedrooms per unit and household size shall apply: Size of units: | Affordable for: Efficiency units: | 1-person household One-bedroom units: | 2-person household Two-bedroom units: | 3-person household Three-bedroom units: | 4-person household Four-bedroom and larger units: | 5-person households and larger E. Sale or rental to housing providers. Every affordable unit required by this chapter shall be offered for sale or rental to an eligible household as a primary resident, except for units purchased by housing providers. Housing providers designated by the City of St. Charles shall have the right, but not the obligation, to purchase any for-sale affordable units, but only for the purpose of reselling to an eligible household.
Section 19.02.110 of St. Charles Title 19 establishes price controls on affordable housing units created under the city's inclusionary housing program. For units sold, the initial and subsequent sale prices are capped using affordability limits set annually by the Illinois Housing Development Authority (IHDA), and a deed restriction locks in those controls for fifteen years; buyers also execute a promissory note to the City covering the gap between the purchase price and fair market value. For rental units, maximum gross rents are calculated at 30% of gross monthly income at 50%–60% of Area Median Income (AMI), based on household size, and those rent limits apply in perpetuity or as long as law permits.
Plain English — not legal advice.
Operators and developers subject to § 19.02.110 generally ensure that for-sale affordable units are listed at or below the IHDA-derived maximum price for the applicable household size, and that deed restrictions and promissory notes in favor of the City are executed at closing. During the first fifteen years, any resale price must stay within the formula set by § 19.02.110.B.2, which ties appreciation to IHDA limit increases and allowable repair costs; a City Council waiver based on documented hardship is available if strict compliance would impose undue burden. For rental units, compliant operators calculate maximum gross rents using current IHDA gross rent limits and subtract the appropriate utility allowance before setting the net rent charged to tenants, and they apply those limits on an ongoing basis.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 19.02.110, tenants living in for-rent affordable units have a right to pay no more than the maximum gross rent derived from IHDA limits—30% of gross monthly income at 50%–60% of AMI for the applicable household size—minus a utility allowance for separately paid utilities, and this protection applies in perpetuity. If a landlord charges rent above that calculated ceiling, tenants may have grounds to raise that violation with the City of St. Charles or relevant local housing authorities. Tenant-rights organizations familiar with Illinois inclusionary housing programs can help explain how the IHDA limits are calculated and what options may be available when a rent charge appears to exceed the § 19.02.110.C maximum.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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