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Concur with the Housing Programs Advisory Committee and Adopt the Resolution Creating the Village of Oak Park’s Emergency Residential Rehabilitation Loan Program Guidelines
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Introduction
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A Resolution supporting the creation of a stand-alone Emergency Residential Rehabilitation Loan Program Guidelines, which are currently included in the Single-Family Rehabilitation loan program guidelines that were last updated November 19, 2012.
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Recommended Action
Staff recommends that the Board concur with the recommendation of the Housing Programs Advisory Committee to revise the guidelines and approval of the resolution.
Prior Board Action
The Board has taken the following prior action(s):
• 2012-R-246: A Resolution Adopting Amended Guidelines for the Single-Family Rehabilitation Loan Program.
• 2012-R-80: A Resolution Adopting Amended Guidelines for the Single-Family Rehabilitation Loan Program.
• 2009-R-168: A Resolution Adopting Amended Guidelines for the Single-Family Rehabilitation Loan Program.
• 2008-R-086: A Resolution Adopting Amended Guidelines for the Single-Family Rehabilitation Loan Program.
• 2008-R-019: A Resolution Amending Guidelines of the Single-Family Rehabilitation Loan Program.
Background
The Single-Family Rehabilitation Loan Program was established in 1978 with funding provided from the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The purpose of the rehabilitation program is to assist low- and moderate-income owners earning less than 80% of the Area Median Income (AMI) with maintaining their properties. The program has been revised several times throughout its history. The guidelines were last amended in 2012. The program has long included an emergency loan option for high-priority repairs.
The current program allows no-interest loans of up to $5,000 to be repaid in one lump sum at the end of 5 years or when the property is sold if earlier. The nature of the work must be emergency repairs. The loan does not require the Housing Programs Advisory Committee (HPAC) or Board approval.
In January of 2025, the Housing Programs Advisory Committee (HPAC) began reviewing the Single-Family Rehabilitation (SFR) Loan Program and the Small Rental Property (SRP) Rehabilitation Loan Program. One of the major changes suggested was to create a stand-alone Emergency Residential Rehabilitation (ERR) Loan Program. This emergency loan is included in the SFR program but is buried within the program guidelines and is not readily apparent to property owners. The creation of the stand-alone emergency program recognizes this program as being just as important as the other two. One distinctive feature of the ERR program guidelines is that it includes loan assistance for both owner-occupied single-family properties and rental dwelling buildings with 7 or fewer units.
In May of 2025, staff presented to HPAC the revised program guidelines, including a stand-alone guideline for an Emergency Residential Rehabilitation Loan Program. HPAC provided their feedback on these guidelines. Staff took these suggestions and returned to HPAC in June of 2025 with finalized versions of the Guidelines. HPAC voted unanimously to recommend each guideline for Board approval.
Timing Considerations
There are no specific timing considerations associated with this item.
Budget Impact
There is no budget impact associated with this item. Rehabilitation projects are funded through the CDBG revolving loan fund.
Staffing Impact
The Neighborhood Services Department will facilitate the Emergency Residential Rehabilitation Loan Program. There is no staffing impact associated with this item.
DEI Impact
The purpose of the Emergency Residential Rehabilitation Loan Program is to provide emergency rehabilitation assistance to low- and moderate-income homeowners earning less than 80% of the Area Median Income (AMI).
Community Input
On January 15, 2025, the Housing Programs Advisory Committee reviewed the Single-Family Rehabilitation (SFR) Loan Program and the Small Rental Property (SRP) Rehabilitation Loan Program. HPAC recommended several changes to the programs to staff.
On April 16, 2025, staff introduced to HPAC potential program revisions to the SRP and SRF programs based on staff analysis.
On May 21, 2025, staff presented the fully revised SFR and SRP program guidelines to HPAC for review and feedback. This presentation included new stand-alone policy guidelines for the Emergency Rehabilitation Loan Program, which was previously included within the SFR program guidelines.
On June 18, 2025, HPAC voted to recommend that the Board approve the draft guidelines for the Emergency Residential Rehabilitation Loan Program.
Staff Recommendation
Staff recommends the Board of Trustees approve the resolution adopting the creation of the Emergency Residential Rehabilitation Loan Program Guidelines.
Advantages:
• This action includes loan assistance for both owner-occupied single-family properties and rental dwelling buildings with 7 or fewer units.
• Retains a quick approval process.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
Alternative 1:
The Board can choose not to approve the resolution amending the guidelines.
Advantages:
• This action provides staff with additional opportunity to refine the guidelines based on Board feedback.
Disadvantages:
• Changes will not be made to address existing opportunities to improve the guidelines.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Jeffrey J. Prior, Neighborhood Services Program Manager
Reviewed By: Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Presentation
2. Resolution
3. Guidelines