Small Rental Property Rehabilitation Program

For more than 30 years, the Village of Oak Park has been in a leader in ensuring stability of the community through a commitment to integration and fair housing. Oak Park has a history of supporting its housing stock through a wide range of support programs. The preservation of housing stock has become one of the primary objectives of citizens, elected officials and staff professionals who believe that the quality of housing is a primary source of neighborhood stability. The decline of a community’s housing stock can be attributed to three factors: strict loan underwriting standards leading to deferred maintenance, the minimum extra income of recent purchasers, and the increasing age of our housing stock. The Small Rental Property Rehabilitation Loan Program helps to preserve the existing housing stock. Our effort will insure adequate housing to more low and moderate income families because it will help to preserve and stabilize our community. The objectives of the Small Rental Property Rehabilitation Loan Program are: • To prevent moderately declining neighborhoods in the Village of Oak Park from further deterioration by providing rehabilitation funding and technical assistance. • To provide safe and efficient housing within the financial reach of our area residents. • To stimulate broad interest in neighborhood preservation. • To increase the economic and racial diversity of our community. • To partner with other programs for maximum impact.

The funding for this program is through Community Development Block Grant (CDBG) Funds. Funding is available for $5,000 per unit, with a maximum of 7 units, with a 25% owner match required.

Owners of rental properties who meet all of the following criteria: 1. The property contains one to seven units. 2. The property to be improved is renter-occupied. Properties with two to seven units may have one owner-occupied unit. 3. Owners must provide a minimum of 25% of the rehabilitation cost. 4. During the term of the loan, Owners agree that at least 51% of the units are or will be rented to tenants whose income does not exceed 80% of the area median income AND the units are at or below the HUD Fair Market rent limits. (See attachment A, Income Limits)

ELIGIBLE repairs may include, but are not limited to, the following: 1. Correction of structural deficiencies or failures 2. Replacement of faulty private water and sewage systems 3. Repair or replacement of inefficient or dangerous heating systems 4. Repair or upgrading of electrical systems and fixtures 5. Replacement of defective plumbing, including defective sinks, tubs and toilet facilities 6. Elimination or control of lead paint hazards in the interior, exterior and soil 7. Elimination of all serious insect and rodent infestations 8. Creation of safe exit ways 9. Hardwired smoke detectors 10. Removal of all blighted exterior conditions. 11. Remodeling type improvements (i.e. kitchen and bath upgrades, floor refinishing). INELIGIBLE items include, but are not limited to, the following: 1. Reimbursement for an Owner’s Personal Labor 2. Room Additions and extensions 3. Appliances (except built-in stove, cook-top and garbage disposal when the existing is deteriorated, hazardous and beyond repair) 4. Purchase, installation or repair of furnishings 5. Demolition that does not improve the existing structure 6. Free standing concrete block walls 7. Interior wood paneling 8. Bookcases 9. Wrought iron security bars 10. Barbecue pits/outdoor fireplaces 11. Bath houses - swimming pools - saunas - hot tubs 12. Burglar alarms 13. Dumbwaiters 14. Flower boxes - greenhouses - greenhouse windows 15. Kennels 16. Photo murals 17. TV antennas 18. Tennis courts 19. Valances, cornice boards, drapes 20. Materials, fixtures or equipment of a type or quality exceeding that customarily used on properties of the same general type as the property to be rehabilitated. 22. General maintenance items. 23. Accessory structures. This program does not relieve the owner of the responsibility to comply with all Village Codes.