Title
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Concur with the Housing Programs Advisory Committee and Approve the Resolution Authorizing Housing Loan Forgiveness
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Introduction
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This item requests Village Board approval and authorization to forgive the outstanding balance, in the amount of $7,545.00, on a loan issued in 1994 through the former First Time Homebuyers Assistance Program.
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Recommended Action
Approve the resolution.
Prior Board Action
The Board has taken the following prior action(s):
• RES 24-298: A Resolution to Approve a Community Development and Housing Loan Forgiveness Policy
Background
Historically, requests to forgive, defer, or modify Village loans were considered on an individual basis without a formal application process or consistent evaluation standards. To create a clearer and more equitable process, staff developed the Community Development and Housing Loan Forgiveness Policy. The Village Board considered and adopted the policy on October 8, 2024, through Resolution 24-298. The policy establishes eligibility requirements, application procedures, evaluation criteria, advisory committee review, and a formal recommendation process while maintaining the Village Board’s final decision-making authority.
In 1994, the applicant received a $7,545 loan through the First Time Homebuyers Assistance Program. The program provided down payment and closing cost assistance to income-eligible households through no-interest, deferred-payment loans with 30-year terms. The full $7,545 balance remains outstanding. The First Time Homebuyers Assistance Program operated from 1992 through 1995 and used Community Development Block Grant funds to provide down payment and closing cost assistance to income-eligible households. Assistance was structured as no-interest, deferred-payment loans with 30-year terms secured by a Trust Deed. The loan came due in August 2024. The loan remains outstanding and unpaid.
In the loan forgiveness application, the applicant reported that repayment of the outstanding balance would create a significant financial hardship due to medical expenses, ongoing housing costs, and necessary home maintenance. The applicant is a senior, long-term Oak Park homeowner seeking forgiveness of the remaining balance to support continued housing stability.
Timing Considerations
The loan remains outstanding and potentially subject to action by the Village to seek repayment.
Financial Impact
Loan payoffs for this program go into the Revolving Loan Fund (Fund 2020). The current balance of this fund is more than $290,000 to support additional rehabilitation loans.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
The housing and community development loan forgiveness policy was designated to benefit households, indirectly and directly, with low and moderate incomes.
Community Input
On June, 17 2026, the Housing Programs Advisory Committee voted to recommend that the Village Board approve and authorize forgiveness of the First Time Homebuyers Assistance Loan.
Staff Recommendation
Approve the resolution.
Advantages:
• The outstanding loan is addressed, clarifying the financial situation for the owner.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
Alternative 1:
The Board can reject the resolution.
Advantages:
• There are no advantages to not approving the resolution.
Disadvantages:
• The loan remains outstanding to the Village, as the borrower is unable to settle it.
• The loan remains unpaid to the Village, and the balance due will increase per the clause noted in the original mortgage.
• The borrower may face additional economic barriers impacted by loan payment.
Anticipated Future Actions
If approved, staff will proceed with recording the loan release.
Prepared By: Nisha St. Louis, Neighborhood Services Programs Manager
Reviewed By: Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Loan Forgiveness Application