Oak Park trustees have resubordinated more than $1.3 million in village housing loans for the Oak Park Residence Corporation, a local housing provider.
OPRC is refinancing eight loans it holds with the village, for five of its properties. Refinancing these loans, according to village officials, “will help OPRC continue to provide housing affordable to households with low to moderate incomes,” a priority for trustees.
Trustees have been working to further housing goals outlined in their 2024 goals and in the Metropolitan Mayors Caucus housing study presented earlier this year.
According to village officials, this decision allows the OPRC “to access up to $4 million in financing to rehabilitate existing buildings” through bank lines of credit. Trustees did not change the terms of the village’s loans with the OPRC.
The possibility of additional funding could also let the OPRC improve or invest in the corporation’s existing buildings, village officials said. The OPRC owns and manages 32 multi-family buildings, or nearly 700 rental units, according to its website.
“Our primary mission is to promote Oak Park as a diverse and economically balanced community by providing high-quality multi-family rental housing at reasonable rates for households of all income levels,” OPRC officials wrote.
According to village officials, an OPRC-provided analysis stated that more than 99% of its units in 2023 were affordable to those earning less than 70% of the area median income. And almost 10% of OPRC units were found to be affordable for those earning less than 50% of the area median income.
The village is resubordinating the eight loans to Hinsdale Bank & Trust.
Four of the loans, which total $541,000, come from the village’s revolving loan fund, funded with community development block grant dollars. These loans were intended to help “support the acquisition, rehabilitation, and – ultimately – resale of the properties once stabilized.” Now, the OPRC is trying to hold on to properties to provide more affordable housing, so this loan has been resubordinated or extended several times. The loans are now due Dec. 31, 2026.
Three of the loans, totaling $29,533.33, come from the multi-family housing incentive grant program, financed by the village’s general fund. The loans will be forgiven at the end of a three-year period, estimated to be May 15, 2026.
One other loan, for $750,000, comes from village housing bond funds. According to village officials, this loan comes from a village plan to acquire and rehab 20 OPRC apartment buildings. The loan is due April 3, 2031.