A 36-unit affordable housing development at 1106 Madison St. in Oak Park cleared its biggest financial hurdle in June when the Illinois Housing Development Authority approved more than $12 million in tax credit funding for the project. More than 80% of the nearly $17 million in capital costs is now committed, according to village officials and the Chicago Tribune.

Interfaith Housing Development Corporation, the nonprofit developer, is now targeting a fall 2027 construction start for Keystone Apartments, which will rise on the site of the former Fellowship Christian Church.

Facts of record

The IHDA approved both Low Income Housing Tax Credit and Illinois Affordable Housing Tax Credit allocations for the project at a June 2026 board meeting, according to a Village of Oak Park press release. The two credits together will generate more than $12 million toward the project's capital costs.

Oak Park's Village Board had already committed $1 million from its Affordable Housing Trust Fund in a unanimous February 2026 vote to acquire the 1106 Madison St. property from Fellowship Christian Church and transfer it to Interfaith Housing. That $1 million was actually a reduction from a $1.2 million pledge the village made in 2024.

Perry Vietta, president of Interfaith Housing Development Corporation, said the village's willingness to secure the site made the difference after prior unsuccessful tax credit applications.

"It takes the potential of losing the property as we're applying for the funding out of the equation," Vietta said in February 2026. "We've applied a couple times before, but I'm hoping this is the charm this time."

It was.

Village President Vicki Scaman said the funding approval reflects Oak Park's commitment to housing residents at all income levels.

Who it serves

Keystone Apartments is classified as permanent supportive housing. All 36 units will serve residents earning 30% or less of the area median income, which translates to $25,200 a year for a single-person household in the Chicago area. The building will include dedicated space for Housing Forward to provide on-site social support services.

Interfaith Housing has a track record on the same corridor. The organization developed Grove Apartments, the affordable housing above the Sugar Beet Food Co-op at 812 Madison St.

Broader context

The Keystone project is one of several affordable housing efforts underway in Oak Park. In 2025, Community Builders received Low Income Housing Tax Credits for a mixed-use project at 6104 Roosevelt Road that would include 26 affordable apartments and two artist live/work units. The village is also spending $450,000 in Housing Trust Funds to convert a nine-unit condo building at 118 S. Clinton Ave. into affordable apartments. No completion dates have been set for either of those projects.

What comes next

If the development proceeds as planned, construction will begin in fall 2027. If the project does not move forward, the village retains ownership of the 1106 Madison St. property under the terms of the February 2026 agreement. As of July 2026, the Fellowship Christian Church building still stands on the site.