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Concur with the Housing Programs Advisory Committee's Recommendations and Adopt a Resolution Authorizing the Provision of Conditional Commitment Letters.
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Introduction
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The Housing Programs Advisory Committee has reviewed two applications for the Housing Trust Fund and is recommending their funding by the Village Board.
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Recommended Action
Staff recommend that the Board concur with the recommendations of the Housing Programs Advisory Committee and provide conditional commitment letters for each of the applications.
Prior Board Action
• RES 24-285 A Resolution Approving the Village of Oak Park's Housing Trust Fund Program Guidelines
• ORD 24-142 Concur with the Plan Commission and Adopt an Ordinance Granting a Special Use Permit for a Major Planned Development Containing a Five-Story Residential Building Consisting of 36 Dwelling Units at the Property Located at 1106 Madison Street
• RES 24-225 A Resolution Approving an Amendment to the Oak Park Residence Corporation Funding Grant Agreement
• RES 24-219 Resolutions Approving Amendments to Housing Forward's Funding Grant Agreements for Affordable Housing Projects
• ORD 24-108 An Ordinance Amending Chapter 12 ("Housing"), Article 7 ("Housing Trust Fund"), Section 12-7-8 ("Source of Funds") and Chapter 23A ("Taxes"), Article 4 ("Hotel/Motel and Transient Occupancy Rental Unit Tax") of the Oak Park Village Code to Adopt a Transient Occupancy Rental Unit Tax Surcharge
• ORD 23-102 Second Reading and Adoption of an Ordinance Establishing the Annual Building and Construction Permit Fees and the Zoning Application Fees of the Village of Oak Park
• ID 23-453 Housing Trust Fund Revenue Source Presentation, as initially reviewed by the Village Board at its February 13, 2023 Study Session
• RES 23-114 Resolutions Awarding Funding Grant Agreements for Affordable Housing Projects Totaling $1,484,000 from the Housing Trust Fund and Authorizing Execution of the Agreements
• 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 August 2024, staff opened the Housing Trust Fund for applications. Since that time, the Village has received two complete applications.
Interfaith Housing Development Corporation submitted a request for $1,260,527 in grant funds from the Housing Trust Fund to support the development of the Keystone Apartments at 1106 Madison St. The Board approved the Special Use Permit for this 36-unit affordable housing development at a meeting in July 2024. All units will be affordable for 50 years to households with incomes lower than 60% of the area median income (AMI). The funding sought from the Housing Trust Fund is one of six funding sources sought for the project, of which three are already committed. The largest funding source would be from the Illinois Housing Development Authority's funding for permanent supportive housing.
The Community Builders submitted a request for $700,000 for a mixed-use affordable housing project at 6104 Roosevelt Road. This project has not yet sought land use approvals from the Village. It would provide 26 affordable apartments and 2 artist live/work units, similar to the 801 S. Oak Park Ave. project. Twenty-two of the 26 units would be affordable to households earning less than 60% of AMI and all units would be affordable to households earning less than 80% of AMI. All units will be affordable for 40 years. The funding sought from the Housing Trust Fund is one of six funding sources sought for the project, none of which is already committed. The largest funding source would be from the Illinois Housing Development Authority's Low-Income Housing Tax Credit allocation.
Timing Considerations
Both Interfaith Housing and The Community Builders are seeking funding from IHDA in winter/spring 2025. The provision of conditional commitment letters to the developers prior to the IHDA submission deadlines is critical to the applicant's submitting competitive applications. Interfaith will be applying for the IHDA PSH round. Applications are due on February 13, 2025, with anticipated awards at IHDA's May 16, 2025 Board meeting. The Community Builders will seek LIHTC's from IHDA. Applications are due on March 6, 2025, with anticipated awards at IHDA's June 20, 2025 Board meeting.
Budget Impact
The Housing Trust Fund ended 2024 with a balance of approximately $3,321,543. Beyond that amount, the Village has encumbered funds for the following projects.
|
Program |
Amount left |
Contract term |
|
Crisis Housing Rental Support |
$451,221 |
March 31, 2026 |
|
Flexible Rental Assistance Program |
$148,139 |
March 31, 2025 |
|
OPRC Condo Deconversion Program |
$450,000 |
March 31, 2025 |
|
Icon Capital Group, Inc. (Elevator for 855 Lake Street) |
$260,000 |
NA. Due upon CO. |
|
Total |
$1,309,360 |
|
Removing these encumbrances, the unencumbered balance available through the Housing Trust Fund is currently $2,009,605. The total amount requested from the Housing Trust Fund by the two applications is $1,960,527.
The Development Services Department estimates the following in building fee costs for each of the projects.
• Interfaith Housing: $116,300
• The Community Builders: $68,700
Each of the applicants has indicated that they would reduce their request from the Housing Trust Fund in an amount equal to any building fee waiver granted by the Village. If the Village provided both applicants with fee waivers, it would reduce the total amount requested from the Housing Trust Fund by the two applications to $1,775,527.
Staffing Impact
Neither the provision of the conditional commitment letters nor the subsequent funding of these applications are anticipated to impact staffing.
DEI Impact
Both applications propose to increase the supply of rental housing affordable to households earning below 60% of AMI thereby supporting economic inclusion.
Community Input
Consistent with the processes outlined in the Housing Trust Fund Program Guidelines, once staff confirmed that each application was complete, the Housing Programs Advisory Committee (HPAC) reviewed the applications. HPAC heard presentations and asked questions on each application at its November 13, 2024 meeting. In late November and early December, HPAC members scored the applications and convened on December 18, 2025, to review the scores and discuss the applications. Both applications received a score above 80 points, the minimum needed for HPAC to recommend funding.
At its December 18, 2024 meeting, HPAC voted to recommend that the Board fund both applications as follows.
• Interfaith Housing for up to $1,260,527 from the Housing Trust Fund for the 1106 Madison St. project, conditioned on receiving their IHDA PSH award, with an expiration of September 30, 2025.
• The Community Builders for up to $700,000 from the Housing Trust Fund for the 6104 Roosevelt Road project, conditioned on receiving their IHDA LIHTC award, with an expiration of September 30, 2025.
HPAC emphasized the following points in doing so.
• As outlined in the Strategic Vision for Housing, the Village needs more affordable rental housing.
• IHDA funding is uncertain. Supporting both projects with funding increases the chances that at least one local project will be funded by IHDA.
• IHDA is currently very limited in the amount of “soft” funding that it can provide. The Village’s funds are critical “soft” funds in this environment.
• The provision of local funds for either project is a strong demonstration of the local support for the applications and increases the chances that they will be supported by IHDA.
• The Housing Trust Fund has the available balance to support both projects.
• The conditional nature of the awards provides the Village the opportunity to reconsider the funding later in 2025 if IHDA chooses not to fund either application.
The Interfaith project was part of a public hearing process with the Plan Commission and the Board approved the Special Use Permit at a meeting in July 2024.
The Village received five letters of support from residents for The Community Builders project along Roosevelt Road.
Staff Recommendation
Staff recommend that the Board concur with the recommendation of HPAC and authorize the provision of conditional commitment letters for both the Interfaith and The Community Builders projects with the following terms.
• Interfaith Housing for up to $1,260,527 from the Village, to be a combined amount from the Housing Trust Fund and permit fee waivers, for the 1106 Madison St. project, conditioned on receiving their IHDA PSH award, with an expiration of September 30, 2025.
• The Community Builders for up to $700,000 from the Village, to be a combined amount from the Housing Trust Fund and permit fee waivers, for the 6104 Roosevelt Road project, conditioned on receiving their IHDA LIHTC award, with an expiration of September 30, 2025.
Advantages:
• As outlined in the Strategic Vision for Housing, the Village needs more affordable rental housing.
• IHDA funding is uncertain. Supporting both projects with funding increases the chances that at least one local project will be funded by IHDA.
• The provision of local funds for either project is a strong demonstration of the local support for the applications and increases the chances that they will be supported by IHDA.
• The Housing Trust Fund has the available balance to support both projects.
• By conditioning the awards on the receipt of IHDA funding, the Village can reconsider funding later in 2025 if IHDA chooses not to fund either application.
• By providing funding from both the Housing Trust Fund and waiving fees, the Village can preserve funding available in the Housing Trust Fund.
Disadvantages:
• If both projects are funded by IHDA, the Village would be using most of its remaining Housing Trust Fund balance. The ability to fund future projects would depend heavily on money generated by the Inclusionary Housing Ordinance, demolition fees, and the short-term rental surcharge.
Alternatives
Alternative 1:
Fund only the Interfaith project
Advantages:
• This project has already secured land use approvals and has conditional commitments from three other funders. This option would choose to fund the readiest of the two projects.
• Preserves more of the current Housing Trust Fund for other future project opportunities.
Disadvantages:
• Reduces the chances that the Village will receive funding for at least one project, and perhaps both.
• This could ultimately reduce the amount of new affordable rental housing built locally.
Alternative 2:
Modify the specific staff and HPAC recommended conditions
Advantages:
• Allows for the Board to adjust the conditions based on specific concerns and goals.
Disadvantages:
• Disadvantages dependent on the modifications made.
Anticipated Future Actions
If either project does not receive funding from IHDA, per the conditional commitment through September 30, 2025, unfunded applicants would need to submit a proposal to the Village on how they anticipate moving forward, for consideration by HPAC and the Board.
If either project does receive funding from IHDA, staff will return to the Board seeking approval for a funding agreement.
Prepared By: Jonathan Burch, Assistant Village Manager/ Neighborhood Services Director
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Housing Trust Fund application ppt
2. Resolution approving the issuance of a conditional commitment letter with Interfaith Housing
3. Resolution approving the issuance of a conditional commitment letter with The Community Builders
4. Draft conditional commitment letter for Interfaith Housing
5. Draft conditional commitment letter for The Community Builders
6. Interfaith Housing application with supporting documents
7. The Community Builders application with supporting documents
8. The Community Builders letters of support
9. Summary of HPAC scores