IHDA approves funding for Keystone Apartments project
Published on July 06, 2026
The Illinois Housing Development Authority (IHDA), at a recent June meeting, approved Low Income Housing Tax Credit funding and Illinois Affordable Housing Tax Credit funding for the Keystone Apartments project, marking a major milestone for the affordable housing development planned for 1106 Madison St. in Oak Park.
The two tax credits, one federal and one state, will generate more than $12 million of the capital costs for the almost $17 million project. The Low-Income Housing Tax Credit (LIHTC) is a federal program that gives developers a dollar-for-dollar reduction on taxes in exchange for building affordable housing. The Illinois Affordable Housing Tax Credit (IAHTC) is a companion state program that gives donors credit on their state income taxes for qualified donations to the project, which can also be transferred to help finance the development.
In February of this year, the Village Board adopted a resolution authorizing the use of $1 million in Affordable Housing Trust Funds to acquire the property on Madison Street from Fellowship Christian Church. Ownership was then transferred to Interfaith Housing Development Corporation, which has been working to develop Keystone Apartments for more than two years.
“Keystone Apartments is proof of what's possible when a community remains committed,” said Village President Vicki Scaman. “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."
"Securing this tax credit funding is a critical step toward moving the Keystone Apartments forward,” said Village Manager Kevin J. Jackson. “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 can plant roots and grow here."
"Interfaith wants to acknowledge the important role that Village Leadership has had in this project,” said Interfaith Housing Development Corporation President Perry Vietti. “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."
Keystone Apartments is planned as a 36-unit affordable housing development built by Interfaith Housing (IHDC). IHDC’s mission is to promote and develop long term affordable housing for low-income, underserved populations in collaboration with local communities like Oak Park. IHDC is recognized by the U.S. Department of Housing and Urban Development as a Community Housing Development Organization (CHDO). As a nonprofit 501(c)3 CHDO, IHDC develops or facilitates the development of high-quality, financially and environmentally sustainable, affordable housing for low-income individuals and families that provide a safe, healthy and thriving environment with supportive services as a foundational strategy.
With more than 80% of the capital costs now committed, Interfaith is targeting a construction start in the fall of 2027.
About Oak Park - The Village of Oak Park, located just nine miles west of downtown Chicago, offers a distinctive urban/suburban lifestyle in a thriving, multi-cultural community. Well-known for progressive values, tree-lined streets and bustling business districts, Oak Park serves as an ideal place to live, work and play. As a longstanding community of choice, the Village benefits from convenient access to local and regional transit, high-quality public schools, and arts and cultural attractions, including Frank Lloyd Wright’s home and studio and his acclaimed Unity Temple, which was recently designated as a UNESCO World Heritage site.