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Concur with the Housing Programs Advisory Committee's Recommendations and Adopt a Resolution Awarding a Funding Grant Agreement for an Affordable Housing Project Totaling $450,000 from the Housing Trust Fund and Authorizing Execution of the Agreement with the Oak Park Residence Corporation
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Introduction
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The Housing Programs Advisory Committee (HPAC) has reviewed an application from the Oak Park Residence Corporation (OPRC) for the Housing Trust Fund and is recommending its approval.
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Recommended Action
Staff recommend that the Board concur with the recommendation of HPAC and authorize staff to enter into a funding agreement with the OPRC for conversion of a nine-unit condominium building into affordable rental apartments.
Prior Board Action
The Board has taken the following prior action(s):
• September 16, 2025: RES 24-285 (A Resolution Approving the Village of Oak Park's Housing Trust Fund Program Guidelines)
• June 4, 2025: RES 24-225 (A Resolution Approving an Amendment to the Oak Park Residence Corporation Funding Grant Agreement)
• March 20, 2023: 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)
• February 13, 2023: 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)
Background
On March 20, 2023, the Village Board approved four (4) Funding Grant Agreements for Affordable Housing Projects totaling $1,484,000 from the Housing Trust Fund and authorized its execution of the agreements. One of the four agreements was with OPRC, which was awarded a one-year funding grant agreement of $450,000 for a condo deconversion project. OPRC sought to acquire an 8-10 unit condominium building in Oak Park and de-convert it into affordable rental housing.
In early 2024, OPRC reported it had not located a suitable condominium building for the project and requested a contract extension. On March 20, 2024, HPAC recommended an extension of the OPRC agreement until March 31, 2025. The Village Board approved this extension in June 2024.
At the March 2025 HPAC meeting, David Pope, Executive Director for OPRC, explained that although there were discussions with several prospective condominium associations, the condo deconversion project had not panned out due to challenges in acquiring units. OPRC committed to HPAC that, rather than seeking a further extension, OPRC would instead return when they had an immediately actionable request in hand. On March 31, 2025, the agreement with the OPRC expired with no funds being withdrawn.
Since that time, OPRC re-engaged with a condominium association that is faced with a sizable capital investment need and seeking an alternative to making that investment themselves. OPRC submitted an application for $450,000 from the Housing Trust Fund in early October 2025 to support the acquisition cost of a nine (9) unit condominium building. OPRC would acquire the units from the current owners, make the needed capital repairs, convert it into an apartment building, and offer the nine one-bedroom apartments as affordable rental housing. The total project cost is $1,740,000. The remaining funding for the project would come from loans or from OPRC itself.
Post conversion, the property will provide six (6) affordable housing units as defined by the Housing Trust Fund for households earning less than 60% of the Area Median Income (AMI), two (2) of which will be offered for households earning less than 50% of AMI. Three (3) units will be offered to households earning less than 80% of AMI. Current residents of the building will be given an opportunity to stay in their units. OPRC is offering three, six, and twelve-month lease options for current owners to remain following closing.
Timing Considerations
In their application, OPRC indicates March/April of 2026 as the likely closing date given the need to finalize the purchase contract, the condo association conducting a formal voting, and providing a due diligence period for the buyer.
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 |
December 31, 2025 |
|
Community Builders Development Project (6104 Roosevelt Road) |
$700,000 |
Conditional approval. TBD. |
|
Icon Capital Group, Inc. (Elevator for 855 Lake Street) |
$260,000 |
NA. Due upon CO. |
|
Total |
$1,559,360 |
|
The unencumbered balance available through the Housing Trust Fund is currently $1,762,183. The total amount requested from the Housing Trust Fund by OPRC is $450,000.
Staffing Impact
The provisions of the funding agreement will not require additional staff. Staff will need to monitor and report on the terms of the agreement related to the 15-year affordability period.
DEI Impact
This application proposes to increase the supply of deed restricted affordable rental housing in Oak Park, thereby supporting economic inclusion.
Community Input
Consistent with the processes outlined in the Housing Trust Fund Program Guidelines, once staff confirmed the application was complete, the Housing Programs Advisory Committee (HPAC) reviewed the application. HPAC heard a presentation and asked questions related to the application at its October 15, 2025 meeting. At an October 29, 2025 special meeting, HPAC voted unanimously to recommend that the Board fund the OPRC application with the following conditions.
• The Housing Trust Funds are reserved through November 1, 2026, and
• The agreement includes a 15-year affordability term that contains a recapture clause if the property is sold early with a progressive forgiveness provision.
Staff Recommendation
Staff recommends that the Board concur with the recommendation of the HPAC and authorize staff to enter into an agreement with the Oak Park Residence Corporation for the conversion of a nine-unit condominium into affordable rental apartments with a 15-year affordability term.
Advantages:
• The project increases the number of deed-restricted affordable rental units in Oak Park.
• The owners of condominiums in the building are relieved from a sizable capital investment need.
Disadvantages:
• There are no disadvantages to the recommendation.
Alternatives
Alternative 1:
The Board can elect not to concur with the recommendation of HPAC and not authorize staff to enter into a funding agreement with the Oak Park Residence Corporation.
Advantages:
• The Housing Trust Fund could be used for future to-be-identified projects.
Disadvantages:
• The owners of the condominium units would be burdened with obtaining the necessary funding for a major capital investment repair.
Alternative 2:
The Board can direct staff to modify the terms of the agreement.
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• The new terms may not be agreeable to the Oak Park Residence Corporation.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Jeffrey J. Prior, Neighborhood Services Programs Manager
Reviewed By: Jonathan Burch, Assistant Village Manager/ Neighborhood Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution - Oak Park Residence Corporation
2. Agreement - Oak Park Residence Corporation
3. Exhibit 1 Scope of Services - Oak Park Residence Corporation
4. Exhibit 2 Draft Mortgage 118 Clinton Ave.
5. Exhibit 3 Draft Note 118 Clinton Ave.
6. Exhibit 4 Affordability repayment Schedule
7. Exhibit 5 Funding Distribution - Oak Park Residence Corporation
8. Exhibit 6 Addendum - Oak Park Residence Corporation
9. Exhibit 7 Oak Park Purchasing Policy
10. HPAC (HTF) Project Score Summary 2025 Final