The Illinois Housing Development Authority has approved Low Income Housing Tax credit funding and Illinois Affordable Housing Tax Credit funding for the Keystone Apartments project, a planned 36-unit affordable housing development in Oak Park.
In February, Oak Park’s Village Board authorized the use of $1 million in Affordable Housing Trust Funds to acquire property at 1106 Madison Street from Fellowship Christian Church in Oak Park, where the apartment complex will be located.
The property was owned by the church and was transferred to Interfaith Housing Development Corporation, which has been working to develop Keystone Apartments for over two years, according to village officials.
“Keystone Apartments is proof of what’s possible when a community remains committed,” said Vicki Scaman, Oak Park’s village president, in a statement. “From land use approvals, to acquiring the site to now securing this funding, every step has been in service of one goal: making sure Oak Park remains a place where people of all incomes can afford to live. I want to thank IHDC for their partnership and persistence in bringing this project to life.”
The two tax credits are set to generate more than $12 million of the capital costs for the near $17 million project, according to a statement released by Dan Yopchick, Oak Park’s chief communications officer.
The Low-Income Housing Tax Credit, a federal program, provides developers with a dollar-for-dollar reduction on taxes in exchange for creating affordable housing in the U.S.
The Illinois Affordable Housing Tax Credit, a state program, gives donors credit on their state income taxes for qualified donations to the project, which can also be transferred to assist in financing the development.
“Securing this tax credit funding is a critical step toward moving the Keystone Apartments forward,” said Kevin Jackson, Oak Park’s village manager, in a statement. “There is no doubt that affordable housing is a cornerstone of a diverse and welcoming Oak Park, and this project reflects the village’s long-term commitment to all community members.”
Other initiatives have been taken to bring affordable housing to Oak Park.
In 2025 the Community Builders, a real estate development business, received Low Income Housing Tax Credits for a mixed-use affordable housing project in Oak Park, according to Yopchick.
The project to be located at 6104 Roosevelt Road would assist 26 affordable apartments and two artist live/work units, he said.
Of those 26 units, Yopchick said, 22 would be affordable to households earning less than 60% of the area median income, and all units would be affordable households earning less than 80% of the AMI, he said.
The village is also providing $450,000 in Housing Trust Funds to buy 118 S. Clinton Ave., in Oak Park and convert it into a nine unit condo building into affordable apartments, Yopchick said.
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After the conversion, the property will provide six affordable housing units for households earning less than 60% of the AMI, he said.
Three units will be offered to households earning less than 80%, Yopchick said. There aren’t any set dates for when those projects would be completed.
Over 80% of the capital cost is now committed to the Keystone Apartment project and Interfaith Housing is aiming to start construction fall 2027.
“Interfaith wants to acknowledge the important role that Village leadership has had in this project,” said Perry Vietti, the Interfaith Housing Development Corporation President, in a statement. “While Interfaith celebrates the capital funding from the Illinois Housing Development Authority, it also recognizes that this project would not have happened had the Village Board not agreed to secure the site and rezone it for the intended use. Village leadership was willing to take a risk with Interfaith, and that is why the project will now become a reality in the village of Oak Park. Clearly the board is committed to ensuring that affordable housing, especially for special- needs populations, is being produced in the village.”