Oak Park approves pilot loan and asks staff to seek equity options as lead-service-line costs loom

Oak Park trustees on Monday approved a pilot low-interest loan program aimed at helping homeowners pay to replace private-side lead water service lines, while directing staff to return with further options to shield low- and fixed-income residents.

The resolution authorizes a village-managed loan program tied to village-contracted crews and capped unit prices: $7,500 for a standard single-service copper replacement, $10,000 for a 1½-inch service and $12,000 for a 2-inch service. The loan would carry roughly a 2.16% interest rate and be repaid over 72 months via the homeowner’s water bill, officials said.

Deputy Public Works Director Erin Duffy summarized the regulatory and technical backdrop that pushed the board to act. She told trustees that state and federal rules require communities to inventory service-line materials and accelerate replacement schedules; Oak Park’s inventory and validation work could change the total count of lead services the village must address. "The federal rule lowers the action level and shortens the timeline," Duffy said, and staff estimated that meeting obligations — including associated water-main and roadway work — could push the village’s capital burden into the hundreds of millions of dollars.

Public-health staff also urged attention to exposure risks. Greg Olsen, Oak Park’s public health director, said there is no safe level of lead in the body but noted that most childhood lead cases still come from contaminated dust and paint. Still, he said, "any opportunity to remove a potential exposure when it comes to lead is a good one."

Several residents who live in blocks slated for near-term replacement asked the board to reduce the private-side burden. Michelle Sue, whose neighborhood received a village notice estimating homeowner costs between $7,500 and $12,000, said that timing and sticker shock are acute: "Paying $7,500 to $12,000 in such short notice is a big ask in this economy," she told the trustees.

Trustees emphasized equity. Several members signaled support for a hybrid approach that pairs the loan program with targeted grants or principal-forgiveness for income-qualified households. Staff told trustees they can restart or expand existing federal CDBG-funded grants for households at or below 80% of area median income and will model additional thresholds (100%–120% AMI) if the board wants a broader subsidy. Jonathan Birch, Neighborhood Services director, said available CDBG funding could cover some households this year but would help only a small number unless supplemented with local funds.

The resolution passed on a roll call vote. During discussion, trustees asked staff to bring the finance committee a refined affordability plan with scenarios for income-based assistance, reimbursement options for homeowners who already replaced private lines, and further outreach and translation of materials for affected blocks.

Next steps: staff will continue negotiations with the state IEPA on grant/loan eligibility, present detailed customer-impact modeling for upcoming water/sewer rate work, and return to the finance committee with the recommended affordability options and a proposed budget amendment to implement the pilot program.