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A Resolution Approving an Intergovernmental Agreement with Oak Park Township to Administer the Flexible Rental Assistance Program and Authorizing its Execution
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Introduction
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Staff seeks authorization to enter into an intergovernmental agreement with Oak Park Township to administer the Flexible Rental Assistance Program.
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Recommended Action
Adopt the resolution.
Prior Board Action
The Board has taken the following prior action(s):
• On September 16, 2025 (ID 25-539), the Board received a Presentation and Discussion on the Unhoused Taskforce Recommendations
• On March 18, 2025 (RES 25-183), the Board approved a Resolution to Amend the Housing Forward Funding Grant Agreement for the Flexible Rental Assistance Program to Extend the Term of the Agreement from March 20, 2025, to December 31, 2025, and Authorize its Execution
• On June 4, 2024 (RES 24-219) the Board approved Resolutions Approving Amendments to Housing Forward’s Funding Grant Agreements for Affordable Housing Projects Funded by the Housing Trust Fund and Authorizing Execution of the Amendments: 1. A Resolution Approving an Amendment to the Funding Grant with Housing Forward for Its Flexible Rental Assistance Program to Increase the Not-to-Exceed Amount from $251,341 to $340,913 2. A Resolution Approving an Amendment to the Funding Grant Agreement with Housing Forward for Its Crisis Housing and Rental Support Program to Decrease the Not-to-Exceed Amount from $658,082 to $568,510
• On March 20, 2023 (RES 23-114) the Village Board approved Resolutions Awarding Funding Grant Agreements for Affordable Housing Projects Totaling $1,484,000 from the Housing Trust Fund and Authorizing Execution of the Agreements 1. Housing Forward - $658,082 2. Housing Forward - $251,341 3. Oak Park Residence Corporation - $450,000 4. West Cook YMCA - $125,000
Background
The Oak Park Homelessness Coalition, with operational support from Housing Forward, has operated the Flexible Rental Assistance Program since 2018. That program provides funding to prevent homelessness for local households by providing the following.
- Rental/Mortgage Assistance - Up to 3 months arrears or 6 months total
- Security Deposit/ Move-in fee - Up to $2,500 per household.
- Utility Assistance - Up to $1,000 per household.
- Short-Term Emergency Needs - Up to $300 per household.
- Emergency hotel stays - Up to 7 days
To access FRAP support, a household must:
- Reside or have formerly resided (due to homelessness) in the Village of Oak Park.
- Have an income between 30%-50% of the Area Median Income OR be a qualifying McKinney-Vento family identified by District 97 or District 200.
The Village has twice funded the FRAP program, in 2018 for $230,000 and in 2023 for $340,913. Over those two contracts, 275 months of rental assistance have been provided, plus additional support costs for households in need. The agreement with Housing Forward for the last round of FRAP ended on December 31, 2026.
During conversations in summer 2025, the Unhoused Taskforce identified that it can be challenging for local households to find such emergency assistance since they are directed to multiple providers depending on need and availability. It identified the benefits of consolidating the administration of emergency rental assistance in Oak Park.
To that end, Village and Township staff have collaborated on a proposal to have Oak Park Township operate the FRAP program in 2026. This shift would position the Township as the go-to entity in Oak Park for emergency rental assistance, leveraging its expertise in administering both the Township’s Emergency Assistance and General Assistance programs.
The Township would maintain the types of assistance and program eligibility. The Village would provide $80,000 in money from the Housing Trust Fund to operate in 2026. Together, the Township and Village would evaluate in fall 2026 whether the change has been successful.
Timing Considerations
The previous agreement with Housing Forward for the Flexible Rental Assistance Program ended December 31, 2025. Moving forward with the proposed IGA will allow the Village to restart the program, minimizing the time without it.
Budget Impact
The adopted 2026 budget included $1,010,000 in anticipated spending in 2026 from the Housing Trust Fund (2077.46260.101.583670.0000). All this funding is for existing agreements and commitments by the Village, including 855 Lake Street, the CHRS Program, and the Roosevelt Road project for The Community Builders.
The agreement would require increasing spending in 2077.46260.101.583670.0000 by $80,000 since it was not included in the 2026 budget. This fund has $756,788 in unencumbered funds that could be used to support this work. This includes approximately $200,000 in new revenue from the short-term rental surcharge.
Operating Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery. Staff administered the previous contract with Housing Forward and would do so with the new agreement. No new burden is created for staff through the agreement.
DEI Impact
This program serves households at or below 50% of the area median income, providing them with temporary rental support to prevent households from becoming homeless. It is the last line of prevention for households experiencing housing crises and who have exhausted other potential resources and do not qualify for traditional homelessness prevention assistance.
Community Input
Since this agreement involves the use of the Housing Trust Fund, the agreement was presented by staff to the Housing Programs Advisory Committee at its January 14, 2026 meeting. HPAC is recommending that the Board approve the resolution so that the Village may enter into the agreement.
The recommendation itself comes from the Unhoused Taskforce. It identified the benefits in consolidating the administration of emergency rental assistance in Oak Park since residents and partners currently direct households in need to multiple places for such assistance.
Staff Recommendation
Staff recommends that the Board concur with the recommendation of HPAC and pass the resolution, authorizing staff to enter into the agreement.
Advantages:
• Maintains access to a critical resource for rental households in distress.
• Improves access to emergency rental assistance by unifying where households go to seek such resources.
• Implements a recommendation of the Unhoused Taskforce.
Disadvantages:
• There are no disadvantages to this alternative.
Alternatives
Alternative 1:
The Board could ask staff to make refinements based on Board feedback.
Advantages:
• This action allows for the adjustment of the proposal based on Board feedback.
Disadvantages:
• This action delays restart of the program.
Anticipated Future Actions
Staff is also concurrently seeking approval of the agreement by the Oak Park Township Board. One approved by both parties and the agreement signed, staff will begin working on implementing the program with the Township. Staff anticipate bringing back a discussion of a potential 2027 contract to HPAC and the Board in fall 2026 with reflections on how the first 6 to 9 months of operations went.
Prepared By: Jonathan Burch, Assistant Village Manager, Neighborhood Services Director
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Draft agreement
3. Presentation