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Oak Park approves village purchase and development agreement to advance 36‑unit supportive housing at 1106 Madison
Summary
After public comment from the Housing Programs Advisory Commission, the Village Board approved a purchase and development agreement that lets the village buy 1106 Madison and transfer it to Interfaith Housing if the developer secures competitive tax‑credit funding; the deal includes a one‑year funding and clawback structure to limit village holding time.
The Oak Park Village Board on Feb. 10 approved a purchase and sale agreement with Fellowship Christian Church and a companion development agreement with Interfaith Housing to advance the Keystone apartment project at 1106 Madison, a planned 36‑unit permanent supportive housing development.
Assistant Village Manager Jonathan Birch outlined a two‑step approach designed to reduce the village’s financial exposure while improving the developer’s eligibility for Low Income Housing Tax Credits (LIHTC). Under the proposed structure, the village would initially use $1,000,000 from general revenue reserves to acquire the parcel; if Interfaith secures the necessary capital (including a 9% LIHTC award expected to be decided in June 2026), the village would transfer the property to Interfaith and then draw $1,000,000 from the housing trust fund in place of the reserve payment. Birch told the board that the development has prior land‑use approvals and that granting site control improves Interfaith’s competitive standing in the Feb. 25 LIHTC application process.
Members of the Housing Programs Advisory Commission and residents urged the board to proceed cautiously. Maggie Santos, of HPAC, said the commission did not think the proposal was ready and raised concerns that the developer had not secured its capital stack. “My hope is that Interfaith gets a plan together … and that this does go forward through the standard process without the village needing to buy the property ahead of time,” Santos said.
Board members pressed staff on the risks of village ownership, the appraisal supporting the $1,000,000 price, and whether encumbering housing trust fund dollars would prevent other projects. Birch said a recent appraisal supported the price and that staff had attempted to limit risk through the short encumbrance period, transfer terms and a clawback if Interfaith does not obtain funding. Trustees said the short, four‑month encumbrance was tolerable given the project’s potential to add needed affordable housing and to strengthen Interfaith’s funding application.
The board approved the purchase and the development agreement by roll call. Staff said they will monitor the funding round in June 2026 and that the village could reclaim the property if Interfaith is unsuccessful.
