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Oak Park board reviews multi-part homeownership proposal — education, down-payment aid and mortgage tax credits proposed
Summary
Staff recommended a package of measures — $125,000/year homebuyer education, a $6,000 down-payment assistance pilot for condominium buyers (funded at $96,000/year), joining Illinois Assist to enable mortgage-credit certificates, and options on transfer-tax refunds and supply expansion — and requested board feedback before bringing implementation proposals and budget items back for approval.
Village staff and trustees spent the bulk of the meeting on a study session about a comprehensive homeownership strategy that pairs affordability supports with supply measures.
Assistant Village Manager and Neighborhood Services Director Jonathan Birch told trustees the proposals flow from the Village’s 2024 strategic housing vision and offered two success metrics: affordability and reduced racial/ethnic disparity in homeownership. ‘‘Our starting point is how we evaluate success,’’ Birch said, outlining a five-year target to support about 250 homeowners earning up to 120% of area median income.
Staff’s short-term recommendations include a $125,000-per-year homebuyer education and counseling program to provide deeper pre- and post-purchase support and affirmative marketing to underrepresented buyers. Birch recommended a targeted $6,000 down-payment assistance program focused on condominium purchases, with $96,000 per year from the housing trust fund to assist roughly 16 households annually (about 80 over five years).
Birch also proposed that Oak Park allocate its annual private activity bond cap to Illinois Assist, a consortium that helps municipalities offer mortgage-credit certificates (MCCs). ‘‘It gives eligible first-time buyers and veterans a federal tax credit of up to $2,000,’’ Birch said, noting the village would need to approve using the cap each year and that yields vary by market conditions.
On transfer-tax refunds — a seller- or buyer-side rebate used in other towns to encourage local moves that unlock housing supply — staff presented modeling showing potential reductions in transfer-tax revenue and several design choices (refund caps, buyer vs. seller, or revenue-neutral tax-rate adjustments). Birch said the packet includes staff estimates of revenue impacts and that a larger change in the transfer-tax rate would require voter referendum.
Trustees pressed on sequencing and funding. Several members said education and the Illinois Assist option could move quickly, while down-payment assistance and supply strategies would take longer to stand up and require partner agreements or larger budget actions. Concerns centered on limited existing supply at price points targeted by the programs, condominium assessments and long-term affordability risks, and the potential for village acquisition efforts to affect market prices if not narrowly targeted to distressed or abandoned properties.
Manager Jackson and trustees directed staff to return with refined proposals, budget details and legal analysis where necessary (including on transfer-tax mechanics and any referendum requirements). Birch said staff will also align these proposals with the Shape Oak Park process so supply measures and zoning outcomes inform program design.
The study session concluded with broad support for homebuyer education and further work to define program parameters and funding sources before formal approvals.
