Housing Trust Fund

Oak Park

Cook County

Oak Park established a Housing Trust Fund – supported by in-lieu fees, short-term rental taxes, and demolition fees – to strategically preserve and produce affordable housing, provide emergency rental assistance, and fund housing-related programs.

Background

For years, the Village of Oak Park collected funds for affordable housing initiatives through various sources, primarily via redevelopment agreements tied to downtown multifamily developments. These funds were distributed through periodic Request for Proposals but were not yet housed in a formal Housing Trust Fund. In 2019, the Village adopted an Inclusionary Housing Ordinance, which required developments of 25 or more units within transit-oriented development areas seeking zoning relief to either provide a portion of affordable units or pay a fee in lieu. In May 2022, the Village Board established a standalone Housing Trust Fund to preserve and produce affordable housing, provide housing-related financial support and services to eligible households, and provide financial support for organizations that actively address the affordable housing needs of eligible households. In 2024, the Village adopted a short-term rental surcharge and demolition fee to provide additional funding to the Housing Trust Fund.

How It Works

The Housing Trust Fund (HTF) is a structured, flexible tool that enables the Village of Oak Park to strategically support a wide range of affordable housing initiatives through grants, loans, and other funding mechanisms. Key operational features include:

Dedicated Fund Structure: As a standalone fund, the HTF can generate interest over time and ensures consistent oversight and transparency.

Clear Eligibility: The HTF has defined eligible activities, including:

  • Production of affordable housing through construction, rehabilitation, and adaptive reuse.
  • Acquisition and conversion of properties that may be used in whole or in part to provide affordable housing.
  • Grants or loans to nonprofits addressing housing needs of eligible households.
  • Financial assistance to eligible households for rental assistance or to purchase a home.
  • Emergency repairs or weatherization of units occupied by eligible households.
  • Financial assistance to preserve and/or maintain existing affordable housing.

Rolling Application Process: Initially distributed through broad RFPs (e.g., 2018, 2022, 2023), the Village transitioned in 2024 to a rolling application model. Applications are reviewed by staff and the Housing Programs Advisory Committee (HPAC), which makes recommendations to the Village Board for additional consideration and approval.

Criteria for Review

  • The Village’s 2022 ordinance outlined three factors that must be prioritized when awarding HTF resources:
  • Providing for the leveraging of funds for projects that yield a larger amount of housing provided or a larger dollar value for the level of funding being sought.
  • Providing the longest term of permanent affordability.
  • Providing housing to serve the needs of households with the lowest incomes.

In 2025, the Village added structured scoring criteria to guide HPAC’s evaluation of both development and program proposals.

Goal

To support the production and preservation of affordable housing and provide emergency rental assistance to income-eligible households.

Target

Developments and organizations addressing affordable housing needs.

Financing

The HTF is funded through in-lieu fees collected through the Village’s Inclusionary Housing Ordinance, as well as a short-term rental tax and a demolition fee.

Success

Funded 129 units of affordable and supportive housing production, emergency rental assistance programs for 3 years, and financed accessibility improvements in existing affordable housing developments.

Lessons Learned

Establishing a dedicated fund with clear guidelines enhances transparency and impact. Transitioning to a rolling application process allows for more timely and strategic funding decisions. It is also important for staff to have clear procedures for application review and for monitoring the outcomes of funded projects.

Annual Budgeting: Each summer, staff and HPAC prepare a budget projecting revenues and recommending annual spending levels. This timing aligns with the Village’s broader budget process and allows HPAC to suggest adjustments to revenue sources if needed.

Strategic Alignment: All applications must align with the Village’s Strategic Vision for Housing and Board goals, including racial equity and affordability.

Monitoring: Staff regularly report the status of each approved application to HPAC. Monitoring includes:

  • Customized timelines for each project determined by HPAC at the time of application approval.
  • Evaluation tools to assess project progress.
  • Authority for HPAC to recommend to the Village Board that it grant a one-time extension, or a funding callback for lack of performance or not meeting the timeline of activities.
  • Long-term monitoring by staff of housing units to ensure occupancy by eligible households, with annual reporting requirements.

Evaluation: HPAC produces an annual report summarizing funded activities, assessing outcomes, and recommending improvements to the operation of the HTF. This report is submitted to the Village Board.

To date, the HTF has received approximately $5,067,000 in funding and used these funds to support projects like the following.

  • Gap funding for interim housing and medical respite for people experiencing homelessness.
  • Gap funding for 36 units of new affordable rental housing.
  • Emergency rental assistance to prevent evictions and respond to the needs of people experiencing homelessness during the years of 2018, 2023, and 2024.
  • Payment of renovation costs for a 63-unit apartment building in exchange for an affordable deed restriction.
  • Renovations that added 30 residential units at the YMCA and improved elevator safety.

Public Involvement

The Housing Programs Advisory Committee (HPAC) plays a central role in managing the HTF by:

  • Reviewing applications and making funding recommendations to the Village Board.
  • Monitoring the status of funded projects and evaluating their outcomes.
  • Producing an annual report to evaluate fund performance and inform the Village’s budget process.
  • Including a diverse group of residents with professional experience or topical interest with housing issues.

Contact Information

Village of Oak Park Neighborhood Services Department, www.oak-park.us

This case study was last updated in February, 2026.

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