Submitted By
Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
A Resolution Approving the Village of Oak Park’s Housing Trust Fund Program Guidelines
End
Overview
Overview
Staff has developed program guidelines for operation of the Housing Trust Fund.End
Recommendation
Recommendation
Staff recommends that the Village Board adopt the guidelines. Program guidelines allow staff to implement identified programs and activities in a consistent and intentional way. These guidelines are structured to address identified operational challenges, particularly the process for monitoring and evaluating funded projects. Importantly, they define a consistent set of criteria for evaluation of new projects to ensure alignment with Village Board Goals (specifically Goal 4, Priority 1) and the Strategic Vision for Housing.
Background
In spring 2022, the Village Board created the Housing Trust Fund for the equitable distribution of funds to affordable housing projects and programs. While the ordinance includes many details about the operation of the Housing Trust Fund, including affordability levels, permitted uses, and general criteria for decision-making for proposals, it does not cover nuanced operational factors. These guidelines will direct staff on how to administer the program on a day-to-day basis. Staff has created draft program guidelines for the Housing Trust Fund and recommends adoption by the Board.
These guidelines cover essential operational aspects identified via the following subsections in the draft guidelines:
• Policy Foundation
• Application Process
• Criteria for Application Review
• Monitoring
• Evaluation
The criteria for application review are particularly important as they provide applicants with a clearer sense of the Village’s priorities. They also provide the Housing Programs Advisory Committee (HPAC), which reviews and makes recommendations to the Board on applications, a firmer sense of how to evaluate those applications. These guidelines include the criteria for application review outlined in the Housing Trust Fund Ordinance (12-7) and best practices for application review (e.g. development or program design, feasibility, timeline, readiness). The criteria also include elements that link application evaluation with goals for implementation of the Strategic Vision for Housing.
Applications for the Housing Trust Fund are currently open. Approving the program guidelines allows staff to be ready to work with the Housing Program Advisory Committee to review any submitted applications.
Fiscal Impact
Adoption of the program guidelines has no direct budgetary impact. Fiscal impacts will occur as the Village considers applications to the Housing Trust Fund.
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 median income or renters making less than 60%. The guidelines are consistent with the purpose and requirements of the Housing Trust Fund Ordinance (12-7), while also prioritizing applications that address multiple goals under the Strategic Vision for Housing and those that offer deeper impact.
Alternatives
1. Alternative #1 - The Board can choose not to adopt the program guidelines.
a. Advantages
§ Provides staff additional opportunity to refine the guidelines based on Board feedback
§ Provides the Board opportunity for additional deliberation
b. Disadvantages
§ Delays review of any applications to the Housing Trust Fund by HPAC
Previous Board Action
• 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")
Citizen Advisory Commission Action
The Housing Programs Advisory Committee reviewed iterations of the program guidelines during its June, July, and August meetings, significantly influencing the proposed guidelines.
Anticipated Future Actions/Commitments
Staff anticipates returning to the Board with the results of the Housing Programs Advisory Committee’s review of any applications submitted to the Housing Trust Fund using these program guidelines.
Intergovernmental Cooperation Opportunities
N/A