Oak Park board hears range of options to expand homeownership and address racial gaps

The Village Board of Oak Park held a study session on homeownership on an evening in February, hearing presentations from staff, local Realtors, the Illinois Housing Development Authority and Community Partners for Affordable Housing about rising prices, limited inventory and options to expand access to homeownership.

The meeting opened with Jonathan Birch, assistant village manager and neighborhood services director, who framed the discussion around two board goals: expanding the variety of homeownership opportunities and addressing racial disparities in access to homeownership. Birch said staff sought trustee feedback to shape policy development and later return with concrete proposals.

The Oak Park Area Association of Realtors presented data showing sharply higher prices and severely limited supply. Realtor Lisa Palermo said the median sales price for all housing types in Oak Park has climbed substantially since 2015; the association’s materials cited a median of about $423,000 (up roughly 33% since 2015). Palermo and Michael Bailey, Illinois Realtors’ local government affairs director, flagged a record-low months-of-supply figure — 1.4 months in January 2025 — and said lack of inventory was the primary driver of price gains. Bailey urged the village to consider zoning and permitting reforms to increase housing supply.

Representatives of the Illinois Housing Development Authority described several down-payment assistance products available statewide. Fabiola Candelich said IDA offers three commonly used products: an Access Forgivable loan (described in the presentation as a secondary loan up to $6,000 that forgives after a period), an Access Deferred option (a deferred loan up to $7,500 that becomes due on refinance or sale), and an Access Repayable option (up to $10,000 with monthly payments). Candelich also highlighted SmartBuy, IDA’s student-debt relief pilot, which the presenter said included up to $40,000 to help borrowers with qualifying student debt and an additional flat $5,000 for closing costs in some cases; she said remaining SmartBuy funds were limited at the time of the presentation.

Amy Kaufman of Community Partners for Affordable Housing described how a community land trust (CLT) works and how a CLT can preserve long-term affordability by retaining ownership of the land while selling the home with resale restrictions. Kaufman said CLT homes remain affordable across successive resales because the subsidy stays with the property; she also described a resale formula that shares a modest portion of appreciation with the seller while preserving affordability for the next buyer. Kaufman emphasized the operational requirements of a CLT — acquisition and rehab capacity, stewardship, and startup administrative costs — and said most CLT homes are targeted at households at or below 80% of area median income when federal funds are involved.

Speakers and staff discussed program design trade-offs. Birch noted that down-payment assistance is a demand-side intervention (helping individuals buy at current market prices) while a shared-equity model such as a CLT is a supply-side, long-term affordability strategy that requires larger per-unit subsidy. Trustees and presenters discussed layering programs (village funds stacking with IDA and lender programs), whether village housing trust funds could be used, and the role of homebuyer counseling. Kaufman and other presenters urged pairing any financial assistance with counseling: Kaufman said purchasers who receive pre-purchase counseling are less likely to experience foreclosure.

Trustees asked staff to return with clear goals and options. Trustee Robinson and others urged a two-track approach: (1) expand supply through zoning and permitting changes focused on “missing middle” housing (two-to-four-unit buildings, townhouses, smaller multi-unit buildings) and (2) design assistance programs (down-payment layering and homebuyer education) targeted at first-time and first-generation homebuyers to address racial disparities. Several trustees asked staff to evaluate how housing trust fund dollars, CDBG funds and other local dollars could be combined with state and lender programs to maximize reach.

The board also discussed operational tactics: whether the village should partner with an existing CLT or help stand up a regional CLT, using the Cook County land bank opportunistically to acquire distressed properties for long-term affordability, and the need to coordinate zoning updates with an advisory or task force so changes are thoughtful and community-informed.

Trustees did not take formal action at the study session. Staff said it would prepare a set of options with estimated costs and impacts, propose measurable goals for homeownership expansion and racial equity, and return to the board for further direction.

Looking ahead, Birch and several trustees suggested continuing the public engagement process, convening a stakeholder advisory group on zoning and missing-middle strategies, and modeling the trade-offs between supply-focused and subsidy-focused approaches so the board can weigh the long-term fiscal and equity outcomes.