HOUSING OAK PARK

Larger-Sized Affordable Rental Units

Issue Two: The lack of larger-sized affordable rental housing units and the continued loss of rental housing to condominium conversion

Description: Over the past 20 years, Oak Park has experienced a significant decline in the number of rental housing units as formerly rental units have been converted into condominiums. According to the 2003 Report of the Ad Hoc Affordable Housing Committee, more than 400 units of rental housing were lost to condominium conversion during the decade of the 1990s. The pace of the loss has accelerated since the year 2000.

The Oak Park rental housing supply contains very few 3-bedroom or larger units. Many of the units that have been converted are 2-bedroom and larger units, putting increasing pressure on this limited supply. For example, out of the approximately 500 units of rental housing in Oak Park Residence Corporation’s buildings, only eight are three-bedroom units or larger.

It is extremely difficult for large families, particularly Housing Choice Voucher families, to find rental housing in Oak Park. Because of the limited supply of larger-sized units, the rents on larger units frequently exceed the maximum rents that are allowable under the Federal guidelines for the Voucher program.

Recommended Actions: The Village of Oak Park should take affirmative steps to preserve and increase the supply of affordable rental housing in the community. Working in conjunction with its housing partners, the Village should provide incentives to owners who increase the number or size of affordable rental units. One method would be to provide development allowances (e.g., height or density) for developers who include affordable rental units in larger development proposals. Additional incentives can be provided in the form of grants or low-interest loans to developers who convert smaller rental units to larger-sized units by combining units.

The Village should also consider financial incentives to developers who agree to preserve affordable rental housing as opposed to converting rental buildings into condominiums. Income guidelines for this program can be patterned after the tax incentives that are available to property owners through the Cook County Class 9 property tax incentive system. The financial resources necessary to fund these incentives can be obtained through developer impact fees imposed on new construction projects.

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