Title
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A Resolution Approving and Adopting the Village of Oak Park Climate Ready Energy Loan Program Guidelines
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Introduction
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Approve a Resolution to approve and adopt the Climate Ready Energy Loan program guidelines.
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Recommended Action
Staff recommend that the Village Trustees approve the Resolution.
Prior Board Action
The Board has taken the following prior action(s):
• On January 27, 2026, the Village Board provided input to staff on the Loan guidelines.
• The Village Board approved $750,000 in the 2026 Fiscal Year Budget for the Energy Grants.
• The Village Board approved the 2025 Energy Grant Guidelines at the January 14, 2025 Board Meeting.
Background
The Climate Ready Oak Park Plan commits the Village to reducing Greenhouse Gas emissions by 60% by 2030. Residential properties represent 38.8% of total community-wide emissions in 2022. The Village’s Climate Ready Energy Grants have been providing residents with monetary assistance to make energy efficiency upgrades.
This resolution aligns with CROP actions EN03 and BD03.
In FY2025, the Sustainability budget included $750,000 allocated towards the Climate Ready Energy Grants. Grant awards previously fell into three tiers based on income.
• Households at 80% or below AMI were eligible for up to $10,000.
• Households between 80% and 120% AMI were eligible for up to $5,000, matching.
• Households above 120% AMI were eligible for up to $1,000, matching.
As of December 2025, 84 applications were submitted, including 34 for Tier 1, 15 in Tier 2, and 35 in Tier 3. These applications represent less than the $750,000 allocated for the program in 2025. Hearing feedback from applicants and potential applicants and seeking input from the OPCAN Climate Coaches, staff determined that there are changes that could be made.
One need identified was to provide upfront capital for higher income levels. Choosing a loan format to do so provides larger upfront capital while also creating a revolving fund for future loans and grants.
The proposed loan guidelines create a $10,000 no-interest five-year loan for owner-occupied single family and small multifamily properties. The loan will be repaid in annual payments with the total amount due at the end of five years or at the sale of the property, whichever comes first. Staff recommend allocating $200,000 of the overall $750,000 budget to this loan program. Future program years will be supported by the annual loan repayments.
Timing Considerations
Funds are allocated for FY2026. Approving grant guidelines in early 2026 will allow more time to advertise and award grants.
Budget Impact
The loans will utilize the funding allocated for the Climate Ready Grant program. Funds are allocated in GL#2310.41020.101.570668.0000.
Operating Impact
Staff in the Sustainability Office have put in approximately 15 hours while developing the loan guidelines. This includes engagement with stakeholders and Village staff.
Neighborhood Services and Finance will administer the loan program. Staff time will be required to administer the program. Staff from these departments administer other housing and loan programs and the Energy Loans will be rolled into that operation.
DEI Impact
The Climate Ready Energy Loan program provides a financing opportunity to all households without regard to income or other characteristics. Funding to support energy efficiency for low income (80% AMI or below) households is allocated in the Energy Grant program. The creation of the Climate Ready Energy Loan will create a revolving fund, sustaining energy programs in the long term. The no-interest loan can be stacked on top of Energy Grants and CDBG Efficiency Grants for a total of $35,000 available to low income homes for energy efficiency projects.
Community Input
Village Staff considered input from participants and potential applicants of the Energy Grant program when developing the Energy Loan program. Village staff spoke with OPCAN Climate Coaches who helped identify the need for more up-front assistance for higher income homes. The Environment and Energy Commission reviewed the Loan guidelines at their December 2025 and January 2026 meetings.
Staff Recommendation
Adopt the Resolution
Advantages:
• The community will have access to new resources for energy efficiency work.
• A loan program creates a revolving fund for future energy efficiency work.
Disadvantages:
• This action will require additional administration by Village Staff.
Alternatives
Alternative 1:
The Board can elect not to adopt the Resolution
Advantages:
• No staff time will be needed to administer the loan program.
Disadvantages:
• There will not be a loan program available for residential energy efficiency work.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Lindsey Roland Nieratka, Chief Sustainability Officer
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Loan Guidelines