The Normal Town Council on Monday heard a proposal for new rules to relax housing construction rules amid the ongoing housing shortage.
The discussion occurred during a special meeting held before the council's regular session.
Proposed amendments to non-conforming residential housing and accessory dwelling units [ADUs] were discussed. Both amendments are meant to reduce regulations on these dwellings amid a tight housing market.
Non-conforming housing is any dwelling that was built in line with previous zoning rules but no longer fits current rules, and would have to be built differently if they were constructed today. Under current rules, non-conforming housing cannot be rebuilt if it sustains major damage, cannot be enlarged and cannot undergo repairs that exceed half of the fair cash market value.
Under potential new regulations, the 50% of fair market cash value threshold would be dropped if the property maintained the same footprint, unit count and height.
“Right now, our non-conforming residential standards are very restrictive,” said associate planner Tessa Ferraro. “And that's because the goal of non-conformities has historically been to get rid of them and replace them with a permitted use in that zoning district.”
As Ferraro explained, housing has become more expensive and not enough types of housing are constructed to meet different income levels or household sizes. In Normal, housing construction has been generally limited to low-density, single-family dwellings or high-density, student-oriented development.
Just over three-fourths of residential zoning in Normal is for single family, R1 zoning. R2 zoning, with some duplexes and small PUDs [planned development units], make up 7% and R3 zoning, mostly for students, takes up 16%.
“Considering the fact that household sizes are declining, particularly for renters, it suggests that there's a bit of a mismatch between the larger single-family homes and what the market might also need,” said Mercy Davison, director of planning and zoning.
ADUs are smaller, secondary units functioning independently from a principal unit. They can be attached or detached from the larger unit.
“They're smaller than the primary residence, but they have everything you need to live there. They have bathroom facilities, somewhere to sleep, kitchen facilities, and an access point,” said Davison.
ADUs have become seen as a viable option to increase housing density without significantly impacting the form or the character of residential neighborhoods. A bill allowing these ADUs, also known as granny flats, statewide has not passed the state legislature.
“If there are too many restrictions, the evidence shows they really just don't get built,” said Davison.
The proposal would allow ADUs on any R1, R2 or R3 land, except for multifamily structures. An owner-occupancy requirement also is in the proposal. Sizes would be limited to less than 800 square feet, or less than half the size of the primary residence, whichever is smaller.
Davison said she does not expect it to significantly change the look of many neighborhoods in Normal, adding a similar ADU ordinance for the City of Bloomington is in place, but there has since only been one ADU built in the city.
Tax levy
Also Monday, the council authorized town staff to prepare the 2026 property tax ordinance.
Based on projected increases in equalized assessed valuation [EAV], the average owner of a $280,000 home would see an increase of $54 in their property tax bill, despite a decrease in the tax rate, due to higher assessed values.
The town’s recommended levy of $15.8 million, combined with a $1.7 billion estimated EAV, means the estimated tax rate equals 0.9312 per $100 of assessed value.
The town tax rate, should the estimates hold, would drop from what was $1.0461 per $100 EAV in the actual 2025 levy.
The council unanimously approved the measure.
Code changes
The council also approved an ordinance amending code that town staff said will make the business licensing process easier by removing outdated or repetitive requirements and allow more businesses to operate under a standard license.
“It's duplicative language that we're getting rid of, a little bit of reorganization for user friendliness, and then making some changes so that when [town clerk Angie Huonker is] accepting licenses, that our code requirements match what she needs in her office,” said corporation counsel Jason Querciagrossa.
This includes references to various businesses that no longer operate, or regulations the state now handles instead of at a more local level. Changes are not related to home-based businesses restrictions that had a vote postponed in August.
The council also approved a refresh of the town liquor code, including to allow cash bars at catered events and to remove provisions allowing licensees to host private employee parties after hours.
Other action
- The council re-approved the final plat for the Infiniti Pointe subdivision. In June, the town approved the plat that would add a 60-unit multifamily development at the corner of Parkside Road and Hovey Avenue. Due to issues with the annexation agreement, that action expired before it could be recorded with McLean County within the 90-day window after the approval — resulting in a need for re-approval.
- Authorized an agreement at up to $863,729 for P.J. Hoerr to act as construction manager to enclose space beneath the balcony of the Children’s Discovery Museum. The work is part of a project to add a new water table exhibit that was approved in September. Demolition of existing concrete and building improvements is expected to begin immediately, with exterior and interior building work completed in 2027.
- Held a public hearing pertaining to the tax increment financing [TIF] district being considered for a struggling portion of Raab Road. No one spoke during the brief hearing.
