City of Highland Park Housing Commission met Jan. 8.
Here is the minutes provided by the commission:
CALL TO ORDER
At 6:30 p.m., Commissioner Ross called the regular meeting of the Highland Park Housing Commission, Peers Housing Association, Ravinia Housing Association, Walnut Housing Association, and the Sunset Woods Association to order. Each of the Commissioners also serves as Directors of each of the Housing Associations. Commissioner Ross asked Staff to call the roll.
ROLL CALL
Commissioners Present: Chairman Ross; Commissioners Abreu, Berkun, & Bernstein
Commissioner Remotely: Commissioner Adler
Councilwoman Present: Holleman
Student Rep Present: Rosen
Staff declared that a quorum was present.
Guests Present: Andres Tapia/Upcoming HC Member
Dan Baigelman, Architect/Full Circle Architects
Cal Bernstein, Attorney for Albion Jacobs Development
Keith Jacobs, Albion Jacobs
Robert Wasserman, Albion Jacobs
Staff Present: Fontane, Later
BUSINESS FROM THE PUBLIC
There was no Business from the Public
APPROVAL OF MINUTES
Regular meeting of the Housing Commission – November 6, 2019
Commissioner Adler moved to approve the November 6, 2019, meeting minutes. Commissioner Bernstein seconded the motion.
On a voice vote:
Voting Yea: Chairman Ross; Commissioners Abreu, Adler, Berkun, & Bernstein
Voting Nay: None
Commissioner Ross declared that the motion passed unanimously.
SCHEDULED BUSINESS
1. Items for Omnibus Vote Consideration
Approved February 5, 2020
• Payment of Invoices
Senior Planner Later advised nothing is outstanding.
• Ratification of Payments
Senior Planner Later advised $70,000 was received for the sale of the RHA property at 735 Pleasant. She noted HUD required these funds go towards the Mark-to-Market note. The funds were sent electronically and the payment confirmation is in the packet.
Commissioner Abreu moved to ratify the payment of $70,000. Commissioner Saret seconded the motion.
On a roll call vote
Voting Yea: Commissioners Abreu, Adler, Berkun, & Bernstein
Voting Nay: None
Chairman Ross declared that the motion passed unanimously. He moved up item #1 in Old Business to be next.
OLD BUSINESS
1. Approval for Peers’ Window, A/C, & Bay Improvement Final Payment Request
Senior Planner Later mentioned the delay of payment was due to hardware on the windows needing to be adjusted. She introduced Dan Baigelman, Architect, for the project.
Chairman Ross asked for an explanation of the issue. Mr. Baigelman provided background advising that, previously in 2018, there were only a handful of windows that required hardware adjustments. In October of 2019, there were 12 additional units requiring hardware adjustments. All were tested and worked properly. Once adjusted, windows have not had to be readjusted. These were all new frames, windows, and hardware that had to be adjusted, which is not atypical. The original warranty says that the original contractor would return for 5 years if further adjustments are needed. Chairman Ross asked what happens after 5 years and if this is a quality issue. Mr. Baigelman noted this was a very small percentage of the installed windows; not unusual for adjustments to be made after new installation.
Commissioner Abreu moved to approve the final payment. Commissioner Berkun seconded the motion.
On a roll call vote
Voting Yea: Chairman Ross; Commissioners Abreu, Adler, Berkun, & Bernstein
Voting Nay: None
Chairman Ross declared that the motion passed unanimously.
2. Approval of Property Management Contract Document – Evergreen Real Estate Services
Chairman Ross reminded that at the last meeting, Evergreen’s services were approved. Senior Planner Later referred to Page 92 of the packet highlighting the management agreement documents. She noted Corporation Counsel reviewed and approved same. It was noted this contract is the same as the current one with one change - office for all three developments are at the Peers building at 400 Central.
Chairman Ross asked if the contract is cancellable. Senior Planner Later advised it is according to the RFP; she referred to and read an excerpt of same on Page 119.
Commissioner Saret asked if Evergreen gives a 60-day notice, is that enough time to locate another management company. Chairman Ross stated it might be difficult. Commissioner Saret asked if this could be altered to a 90-day notice. Others agreed this makes sense.
Commissioner Saret moved to approve the management documents and change the termination clause on Page 119, Section 26A, from 60 days to 90 days. Commissioner Adler seconded the motion.
On a roll call vote
Voting Yea: Chairman Ross; Commissioners Abreu, Adler, Berkun, & Bernstein
Voting Nay: None
Chairman Ross declared that the motion passed unanimously.
SCHEDULED BUSINESS
2. Peers, Walnut, Ravinia, and Sunset Woods Associations
• Consideration of Management Reports for Peers, Walnut, and Ravinia
A brief discussion took place on bathtubs, drains, replacement, elevators, entrapments, etc. Senior Planner Later will review and provide more information at the next meeting.
• Housing Trust Fund Financials
Senior Planner Later advised nothing is outstanding.
• Sunset Woods’ Financials
Senior Planner Later advised nothing is outstanding.
• Other Association Business
There was no Other Association Business.
Chairman Ross rearranged the Staff Report to precede New Business.
STAFF REPORT
1. Commissioner Membership Changes
Senior Planner Later advised Chairman Ross would no longer be the Chair as his term is up. She noted Commissioner Saret had resigned.
2. Amendments to Article 21 – Inclusionary Housing Regarding Policy
Director Fontane offered a presentation/update. He noted City Council recently adopted some changes in October, 2019, as recommended by the HC. This amendment is a result of discussions on these matters. He reviewed the Purpose Statement and noted what it was previous to the revisions. Comments will be provided to the Plan Commission then onto City Council.
Councilwoman Holleman asked and Senior Planner Later will send a red-line version of these policy changes to the HC.
1. Commissioner Membership Changes
Senior Planner Later advised that Commissioner Arnold had also resigned.
3. Upcoming Albion Saks Development Proposal
Director Fontane advised a Pre-Application was received. He noted this is a multi-family project across the street from 1850 Green Bay Road; the Karger Center redevelopment. Feedback on the design of the building was received at the Plan Commission. This is an update report to the HC on that information.
Mr. Bernstein introduced himself. He stated the intention is to come before the HC in February or March and obtain a preliminary recommendation for their affordable housing plan. They will be using what was approved at the Karger Center as a template for the Saks location. The plan is to demolish the Saks building and erect a 5-story compliant building and obtain air rights over the existing east parking lot and build 4- stories over the parking lot. This would go from Second Street to Green Bay Road with a pathway to the lot line north – between Renaissance Place and the existing building. This is for 93 rental units at this time which are in huge demand.
Commissioner Bernstein asked and Mr. Bernstein explained the parking layout. He noted the parking garage in the lower level is owned by the City and leased by the owner of the Renaissance. In the lease, roughly 100-160 spaces are allocated to the Saks building. The intention is to continue with that lease. Regarding parking, they will comply with the ordinance.
Chairman Ross asked and Mr. Bernstein stated they would build on the existing foundation. They are seeking to amend the existing development at Renaissance Place.
NEW BUSINESS
1. Fee for Payment-in-lieu of Inclusionary Units 2. Housing Program & Housing Stock Report
Director Fontane stated the items under New Business are results from City Council’s Committee of the Whole Meeting. He noted this is an overview; City Council is requesting the HC to offer recommendations.
Director Fontane provided a presentation. He noted City Council requested information on elements of the Housing Program. Thus, a Housing Program and Housing Stock Report was developed to answer questions (still in draft form) and provided to City Council and the HC tonight.
Director Fontane advised there are 5 main elements under the Housing Program:
HC and Associations
City-Managed Housing Projects (Buildings)
Housing Trust Fund (funded by demolition tax and payment-in-lieu)
Inclusionary Housing Code (Zoning)
Community Land Trust & Scattered Site program
In terms of administration, there is:
HC with City Council approvals
Program Staff
Property Management Staff
CPAH (Scattered Site Grant & Operating Support Grant)
Auditors, Bookkeepers, Minute Takers
The report includes:
Overview of Policies
Housing Trust Fund
Inclusionary & Affordable Housing Production
Waitlists, ongoing need for programmatic efforts, housing stock overview, and housing costs for rentals were highlighted.
Director Fontane offered specifics on the below referrals to the HC:
Fee for payment-in-lieu for Affordable Housing
Five-Year grant making strategy for the Housing Trust Fund
Analysis of Mortgages, Finances, and Association Loan Making Policies
Land Use Restrictions for Current & Future Affordable Housing Acquisitions
Use of Peers’ Unit 111
Discussion took place on the above.
Mr. Anthony commented on the difference between market rate data and CPAH’s data based on experience. Mr. Bernstein reiterated his comments to say that Albion is building a luxury multi-family structure. He noted comparisons are different regarding market demands and affordable units.
Director Fontane stated these topics are on the HC’s work plan for 2020. Recommendations should be provided to City Council by the first meeting in May regarding the payment in lieu fee. This will precede and inform the budget process.
Chairman Ross asked that Mr. Anthony share CPAH’s data and Commissioner Abreu share real estate data and experience. Commissioner Bernstein suggested adding maintenance costs. Mr. Anthony said CPAH could provide some data based on their experience. Chairman Ross asked that Albion share data, cost parameters (from pro forma data, analyses, etc.). Senior Planner Later reminded there is a difference in costs regarding a luxury building with amenities vs. those that do not have luxury amenties. Mr. Bernstein
stated there are a considerable number of moving parts as they have to build something that could be financed as well as something that is acceptable in the market.
Mr. Bernstein raised a policy issue of zoning changing in the downtown area to include more density though the housing market has not changed (all affordable units in one building vs. spreading them throughout the city).
Ms. Lassar shared her view on options in Highland Park, developer idiosyncrasies, waiver of impact fees, incentives, etc. Chairman Ross stated the incentives offset the extra costs – but it’s not always a one to one.
Ms. Bassi stated Highland Park residents value affordable housing because we want our children to be able to come back to this community and our parents to be able to stay here. She noted the struggle is how do you make the fee reasonable enough for the developer but not so low. We want to be an inclusive community.
Commissioner Berkun asked that information on other communities be provided. Director Fontane suggested establishing the methodology first. Chairman Ross stated that other communities, and their fees-in-lieu, are all in different context with different priorities. Commissioner Saret stated these are based on economies, population, etc.
Director Fontane stated he looks forward to revisiting these issues in March.
ADJOURNMENT
Commissioner Saret moved to adjourn the meeting at 8:09 p.m. Commissioner Abreu seconded the motion.
On a voice vote
Voting Yea: Chairman Ross; Commissioners Abreu, Adler, Arnold, Berkun, & Bernstein
Voting Nay: None
Commissioner Ross declared that the motion passed unanimously.
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