Oak Park board adopts ordinance to join Illinois Finance Authority CPACE program

Chief Sustainability Officer Lindsay Noratka presented an ordinance to establish a CPACE area that would enable property owners in Oak Park to access Illinois Finance Authority (IFA) commercial Property Assessed Clean Energy financing for eligible projects such as energy efficiency, renewable energy, EV infrastructure and water conservation.

Noratka said CPACE can cover up to 100% of eligible project costs up to roughly 25% of a property’s value, typically at fixed interest rates with terms that commonly range from 10 to 30 years (and in some cases up to 40). She stressed the village would have minimal financial or legal liability: the Illinois Finance Authority administers the program and the village’s role would be to execute assessment contracts and promote the program to building owners.

Brad Fletcher, a representative of the Illinois Finance Authority, walked trustees through how CPACE operates as voluntary special assessments secured by property liens. He said CPACE fills “gap” financing when mortgage lenders provide lower loan‑to‑value ratios, and emphasized that CPACE financing is non‑recourse to the village and other taxpayers.

Trustees asked detailed questions: several sought clarity on whether single‑family conversions (two‑ or three‑flat conversions) would qualify (Noratka and IFA staff said CPACE is designed for multifamily properties of more than five units, commercial, industrial and nonprofit properties and is not available for typical single‑family homes), and one trustee asked whether the village’s administrative burden would be significant (Noratka said it would be small). Trustees also discussed prevailing‑wage requirements in Illinois and the effect that has on lenders’ interest.

Motion and vote: the ordinance to create a PACE area and participate in the Illinois Finance Authority CPACE program was moved by Trustee Enos and seconded by Trustee Wesley; a roll call showed all members present voted yes and the ordinance was approved.

The ordinance delegates authority for program administration tasks to authorized village officers and preserves the village’s reservation of rights to decline particular projects. Staff and IFA officials said the CPACE option complements existing Cook County PACE availability by offering an additional market choice to property owners.

Next steps: staff will execute assessment contracts when property owners voluntarily request CPACE financing and will promote the program to eligible building owners.