Title
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A Resolution Approving the Revised Village of Oak Park’s Housing Trust Fund Program Guidelines
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Introduction
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This item is requesting changes to the Housing Trust Fund Program Guidelines.
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Recommended Action
Staff recommends that the Village Board adopt the revised Housing Trust Fund Program Guidelines, as reviewed and recommended by the Housing Programs Advisory Committee (HPAC).
Prior Board Action
The Board has taken the following prior action(s):
• RES 24-385: A Resolution Approving the Village of Oak Park’s Housing Trust Fund Program Guidelines
• ID 23-453: Housing Trust Fund Revenue Source Presentation, as initially reviewed by the Village Board February 13, 2023, Study Session
• ID 23-72: Presentation of Housing Programs Advisory Committee (HPAC) Housing Trust Fund Funding Recommendations, Including Anticipated Future Developer Contributions and Review of Additional Potential Funding Streams
• ID 22-99: Affordable Housing Overview
• ORD 22-23: An Ordinance Amending Chapter 12 ("Housing") of the Oak Park Village Code by Adding a New Article 7 ("Housing Trust Fund")
Background
In spring 2022, the Village Board created the Housing Trust Fund to support the equitable distribution of funds for affordable housing projects and programs. The Housing Trust Fund Ordinance establishes the Fund’s overall policy framework, including affordability requirements, eligible uses, and general criteria for evaluating funding proposals. Because the ordinance does not address all the operational details necessary for day-to-day administration, the Village subsequently developed Housing Trust Fund Program Guidelines to provide additional direction for staff, applicants, and HPAC.
The Village Board most recently adopted the Housing Trust Fund Program Guidelines on September 16, 2024. Since that time, staff and HPAC have used the guidelines in the review and evaluation of Housing Trust Fund applications and identified opportunities to further clarify and strengthen the application review process. The proposed revisions maintain the existing structure of the guidelines, which address the following areas:
• Policy Foundation
• Application Process
• Criteria for Application Review
• Monitoring
• Evaluation
The primary revisions focus on the Criteria for Application Review. Through its review and discussion of the existing evaluation framework, HPAC recommended revisions intended to provide greater clarity and consistency in how applications are evaluated. The revised criteria more clearly distinguish project feasibility and readiness, applicant and development team capacity, the breadth and depth of proposed community benefits, and measurable outcomes. The revisions also clarify the review of project budgets and timelines and strengthen the overall scoring framework used to compare funding requests.
The application review criteria continue to incorporate the requirements established in the Housing Trust Fund Ordinance while also supporting implementation of the Strategic Vision for Housing and applicable Village Board Goals. The revised framework is intended to provide applicants with a clearer understanding of Village priorities and provide HPAC and the Village Board with a more consistent and transparent basis for reviewing Housing Trust Fund proposals.
The HPAC reviewed the proposed revisions and recommends the adoption of the revised Housing Trust Fund Program Guidelines by the Village Board. Staff concur with this recommendation.
Timing Considerations
Additional funding applications continue to come to HPAC for review and potential recommendation to the Board. The sooner the revised guidelines are in place, the sooner that they can be used to review those applications.
Financial Impact
Adoption of the revised program guidelines has no direct budgetary impact. Fiscal impacts will occur as the Village considers applications to the Housing Trust Fund.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
The purpose of the Housing Trust Fund is to provide sustainable financial resources to address the affordable housing needs of eligible households in Oak Park. Eligible households are owners making less than 80% of the area’s median income or renters making less than 60%. The guidelines are consistent with the purpose and requirements of the Housing Trust Fund, while also prioritizing applications that address multiple goals under the Strategic Vision for Housing and those that offer deeper impact.
Community Input
HPAC reviewed iterations of the program guidelines during its June, July, August, and October meetings. The attached version reflects HPAC’s recommendation to the Board.
Staff Recommendation
Adopt the resolution.
Advantages:
• The clarifications and scoring revisions recommended by HPAC improve the consistency, transparency, and evaluation of project feasibility, readiness, applicant capacity, community benefit, and measurable outcomes.
• Applications pending review by HPAC would be reviewed using the new criteria.
• Further guideline changes can be made if recommended as a result of the Ad Hoc Housing Taskforce process.
Disadvantages:
• There are no disadvantages to the recommendation.
Alternatives
Alternative 1:
The Board can choose not to adopt the revised program guidelines.
Advantages:
• Housing Trust Fund applications could continue to be reviewed using the currently adopted program guidelines and evaluation criteria.
Disadvantages:
• The existing application review criteria would remain in place and may disproportionately advantage larger or more complex development proposals over smaller projects or programs that may otherwise advance Housing Trust Fund priorities.
• The clarifications and scoring revisions recommended by HPAC to improve consistency, transparency, and evaluation of project feasibility, readiness, applicant capacity, community benefit, and measurable outcomes would not be implemented.
Anticipated Future Actions
Staff anticipates returning to the Board with the results of HPAC’s review of any applications submitted to the Housing Trust Fund using these program guidelines. Staff will also return with any guideline changes if recommended by the Ad Hoc Housing Taskforce.
Prepared By: Nisha St. Louis, Neighborhood Programs Manager
Reviewed By: Jonathan Burch, Assistant Village Manager/ Neighborhood Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Redline Guidelines
3. Final Guidelines