Title
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Concur with the Housing Programs Advisory Committee and Adopt the Resolution Amending the Village of Oak Park’s Small Rental Property Rehabilitation Loan Program Guidelines
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Introduction
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A Resolution supporting amendments to the Village’s Small Rental Property Rehabilitation Loan Program Guidelines, which were last updated February 3, 2014.
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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):
• 2014-R-28: A Resolution Adopting Amended Guidelines for the Small Rental Rehabilitation Program
• 2012-R-153: A Resolution Adopting Amended Guidelines for the Small Rental Rehabilitation Program
• 2011-R-119: A Resolution Adopting Amended Guidelines for the Small Rental Rehabilitation Program
• 2010-R-128: A Resolution Adopting Guidelines for the Small Rental Rehabilitation Program
Background
The Small Rental Property Rehabilitation Loan Program was established in 2010. It uses Community Development Block Grant (CDBG) funds to make forgivable loans to owners of rental property with fewer than 8 units for the rehabilitation of affordable rental housing units. In exchange for the loan, the property owner must rent at least 51% of the units to households earning less than 80% of the Area Median Income (AMI) and abide by the yearly rent schedule for a specific period of time, either 2 years or 5 years. This is known as the affordability period. The guidelines were last amended in 2014.
Currently, the program has a minimum project budget of $2,000 per unit and a maximum of up to $5,000 per unit. Property owners are required to commit (or leverage) a minimum of 25% of the total project cost.
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. Using the recommendations from HPAC, staff formulated and incorporated these into revised guidelines for these programs.
Several of the changes being suggested to the SRP program guidelines include: 1) increasing the project budget minimum amount to $5,000 per unit and the maximum amount not to exceed $25,000 per unit, 2) expanding the affordability period based upon the loan amount and, 3) including a Lead Paint Hazard Reduction component to the project scope with an owner contribution of 25%.
In May of 2025, staff presented to HPAC the revised SFR and SRP program guidelines, including a stand-alone guideline for an Emergency 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. The program is funded by the Community Development Block Grants (CDBG) program.
Staffing Impact
The Neighborhood Services Department will continue to facilitate the Small Rental Property Rehabilitation Loan Program. There is no staffing impact associated with this item.
DEI Impact
The purpose of the Small Rental Property Rehabilitation Loan Program is to provide assistance to owners of rental buildings with fewer than 8 units in order to increase the supply of affordable housing for persons earning less than 80% of the Area Median Income (AMI) and to ensure the upkeep of multi-family buildings.
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 HPAC to 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 Small Rental Property (SRP) Rehabilitation Loan Program.
Staff Recommendation
Staff recommends the Board of Trustees approve the resolution adopting the amended Small Rental Property Rehabilitation Loan Program Guidelines.
Advantages:
• Clarifies language for ease of readability.
• Cleans up outdated language references.
• Increases the project budget minimum amount to $5,000 per unit and the maximum amount not to exceed $25,000 per unit.
• Refers emergency repairs that will not exceed $5,000 to the Emergency Residential Rehabilitation Loan Program.
• Includes a Lead Paint Hazard Reduction component to the project scope with an owner contribution of 25%.
• Expands the affordability period based upon the loan amount.
• The affordability period stays with the building upon a change of ownership.
• Adds a warranty section to the guidelines.
• Adds a performance measurement and evaluation to the program.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
The Board can choose not to approve the resolution amending the guidelines.
Advantages:
• Provides staff with additional opportunity to refine the guidelines based on Board feedback.
Disadvantages:
• Changes will not be made to address existing opportunities to clarify the guideline.
• The opportunity to expand the program would be put on hold or delayed.
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