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Lake County Gazette

Sunday, December 22, 2024

City of Highland Park Housing Commission met May 6

Meeting 07

City of Highland Park Housing Commission met May 6.

Here is the minutes provided by the commission:

CALL TO ORDER 

Hart Passman, Elrod and Freidman, introduced himself and advised he would be present for half of the meeting and return later.

At 6:32 p.m., Chairman Ross called a meeting via remote access 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. Chairman Ross read an introduction for the remote meeting procedures.

Chairman Ross asked Staff to call the roll.

ROLL CALL 

Commissioners Remotely: Chairman Ross; Commissioners Adler, Berkun, Bernstein, Paushter, & Tapia

Commissioner Absent: Commissioner Abreu

Councilman Remotely: Holleman

Student Rep Absent: Hozmann

Staff declared that a quorum was present.

Guests Present Remotely: Andrew Yule, Deirdre Clein/Albion Development 

Cal Bernstein, Attorney/Samuels & Bernstein 

Paul Alessandro, Architect/Hartshorne Plunkard Architecture 

Staff Remotely: Fontane, Later

Also Remotely: Hart Passman/Elrod Friedman

BUSINESS FROM THE PUBLIC 

There was no Business from the Public

APPROVAL OF MINUTES 

Regular meeting of the Housing Commission – March 4, 2020 

Commissioner Bernstein advised David Wigodner’s name was misspelled and moved to approve the March 4, 2020, meeting minutes as noted. Commissioner Berkun seconded the motion.

On a roll call vote:

Voting Yea: Chairman Ross; Commissioners Adler, Berkun, Bernstein, Paushter, & Tapia 

Voting Nay: None

Chairman Ross declared that the motion passed unanimously.

Emergency meeting of the Housing Commission – April 4, 2020 

Commissioner Berkun moved to approve the April 4, 2020, meeting minutes. Commissioner Paushter seconded the motion.

On a roll call vote: 

Voting Yea: Chairman Ross; Commissioners Adler, Berkun, Bernstein, Paushter, & Tapia 

Voting Nay: None

Chairman Ross declared that the motion passed unanimously.

Chairman Ross read the agenda. He noted public participation is encouraged but challenging. Chairman Ross continued to read and discuss the procedure, resident emails, etc. He advised this is not a public hearing and shared there is more information on virtual meetings on the City web site. Chairman Ross asked everyone to identify themselves and to please refer to relevant pages of the packet materials if referenced.

SCHEDULED BUSINESS 

1. Items for Omnibus Vote Consideration

• Payment of Invoices

Senior Planner Later advised nothing is outstanding.

• Ratification of Payments

Senior Planner Later advised nothing is outstanding.

Senior Planner Later stated there are emails regarding the Albion Development. Chairman Ross asked that these be read during the Albion presentation. Corporation Counsel Passman asked if any other comments were received. Senior Planner Later advised there were none. He stated anyone can send an email to planning@cityhpil.com and these will be read at the end of the meeting.

2. Peers, Walnut, Ravinia, and Sunset Woods Associations

• Consideration of Management Reports for Peers, Walnut, and Ravinia

Commissioner Bernstein asked how virtual inspections at Peers and Walnut work. Senior Planner Later advised a program is downloaded at the site on a laptop and the rooms, logs and areas of the building is shown via video camera (with limitations).

Housing Commission May 6, 2020 Chairman Ross remarked February reports are in the packet. Senior Planner Later advised March is also included. He asked, regarding financials in February, about the significant maintenance expense of $8,000 per month at Walnut and Peers. Senior Planner Later shared this is for the temporary contractor with BG Staffing. She will review same. Chairman Ross identified that March is $2,000. Senior Planner Later responded they were for an employee on a one-year medical leave. Chairman Ross suggested hiring someone temporarily. Senior Planner Later said she does not believe that employee can be replaced while on medical leave. Chairman Ross advised it might be due to FMLA. Commissioner Tapia asked if this employee is on insurance coverage. Chairman Ross advised we do not replace staff, we pay Workmen’s Comp. Senior Planner Later stated she would review with Evergreen.

• Housing Trust Fund Financials

Chairman Ross referred to the Housing Trust Fund March statement. He asked if there are any revenues coming in. Director Fontane stated there are. He advised the demolition permit revenue is zero right now and referred to a footnote that indicates $417,000 will be submitted by September, 2020, from the Albion Development. There is one payment this year and a future payment. He stated perhaps permit demolition and permit tax would be forthcoming.

Councilman Holleman stated the City is conducting budget meetings. She asked if we are expecting a building slowdown. Director Fontane said they have seen and are expecting a slowdown beyond this fiscal year due to Covid-19. He noted it is hopeful this is a recessionary, not depression, issue; expecting significant building development downfalls.

Councilman Holleman asked about the 150% of balance for the Housing Trust Fund. Director Fontane advised every fund has a fund target. When budgeting, expenditures are relative to fund balance (1.5 times the expenditures). This is policy but may be amended with discussion (extenuating circumstances, etc.) with City Council. This fund should not be taken down too low in the event there is a recession or depression. This provides versatility. Staff may recommend a different level of activity.

Chairman Ross asked about CPAH funds that they return. Director Fontane advised CPAH would leverage funds but none would be returned. He stated City Council changed a policy with demolition tax (2/3 vs. 1/3); now 100% of demolition tax goes to the Housing Trust Fund.

• Sunset Woods’ Financials

Senior Planner Later advised nothing is outstanding.

• Other Association Business

o Audit for Ravinia Housing Association, Submitted

Chairman Ross noted this was submitted one week ago

o Sunset Woods Desk Review – No Findings/Passed

Chairman Ross noted IHDA had no findings; the Manager should be commended.

o Weekend Cleaning at Walnut and Peers 

Chairman Ross stated that part-time temporary staff was hired. Senior Planner Later advised the cost is $225 per building per weekend. Chairman Ross noted this was not a budgeted expense. Senior Planner Later stated Evergreen advised that Peers operating budget is being used and is sufficient, Walnut may have budgetary issues. She asked the HC’s thoughts. Director Fontane reminded there was an emergency meeting where Evergreen advised of emergency protocols. He stated, based on the Covid-19 situation, Staff recommended this be added for the weekends.

Councilman Holleman stated this is critical due to the vulnerable population; could be devastating if there was a Covid outbreak in the building. Grants may be available through the CARES Act, HUD; the Housing Trust Fund could be a source. She indicated she cannot see this being cut back.

Chairman Ross advised Peers has funds, Walnut could become an issue but maybe can draw down on reserves (with a request from the management company). Senior Planner Later stated she is unsure if staffing is an eligible expense. Chairman Ross asked that Evergreen request reimbursement. Director Fontane advised this could be long-term. Chairman Ross suggested there might be an alternative service. Councilwoman Holleman recommended looking at funding sources for the foreseeable two years. Director Fontane suggested that a loan could go back and forth from Peers to Walnut. Chairman Ross reminded the City does not own Walnut. Director Fontane asked if reserves should be used or rather a budget amendment. Chairman Ross advised the Housing Trust Fund should be used as the last resort. Sr. Planner Later said she would confirm if reserves can used for the cleaning service.

Commissioner Bernstein asked about Sunset Woods. Chairman Ross stated this is a condominium building where the HC owns rental units. Senior Planner Later advised there is a cleaning service seven days a week. She noted when there was a positive Covid-19 case, the building was deep-cleaned. Commissioner Berkun stated if we could commit with a contract, costs may be reduced. Commissioner Berkun suggested Evergreen create a longer contract. Chairman Ross asked Senior Planner Later to conduct research (accessing reserves, long-term contracts, etc.).

OLD BUSINESS

• CPAH drawdown #2 – Land Use Restriction Agreement

Senior Planner Later explained the draw down process. She noted staff recommends the process be formalized along with memorializing City funds were used to obtain the property. This is a Land-Use agreement. Senior Planner Later asked if the HC is in favor of this. Commissioner Berkun said it sounds like succession planning. Senior Planner Later stated CPAH’s portfolio would be transferred to another similar not for profit in the event they were no longer in business. Chairman Ross asked if there is a timeframe. Director Fontane further explained said covenants. Chairman Ross asked Staff to review the draft. Senior Planner Later advised she would prepare same for the June meeting.

NEW BUSINESS

• Albion at Elm Inclusionary Housing Plan – Preliminary Review and Approval

Senior Planner Later invited tonight’s guests – Andrew Yule and Deirdre Clein from Albion Development; Cal Bernstein, Attorney with Samuels & Bernstein; and Paul Alessandro, Architect with Hartshorne Plunkard Architecture. Mr. Bernstein advised they presented at the PDC last night.

Director Fontane offered a presentation:

o Project Summary

▪ 89-unit apartment building with affordable units and cash-in-lieu, parking. Applicant will use City waitlist. Amenities are offered. 

o Summary of Consideration

▪ One exception and two departures 

o Calculation of Units Required 

o Exception Related to Cash Payment 

o Fiscal Year (January 1-March 31) 2020 – Fund Balance

▪ Market unit bonuses are provided when an affordable unit is added 

o Departures

▪ By Unit Type (number of bedrooms)

• Dens are not counted as bedrooms (different than what is in packet)

• Waitlist Analysis (process and content)

▪ Related to Affordability (income tier) o Recommendation to City Council

Mr. Bernstein thanked the HC for making this meeting possible and introduced Albion Renaissance Place (the former Saks Fifth Avenue location). He noted that air rights would be purchased from the City for the area above on the east side of existing parking lot.

Ms. Clein presented and shared information:

o About Albion Residential 

o About The Jacobs Companies (owners are Highland Park residents) 

o Hartshorne Plunkard Architecture 

o Aerial View (Green Bay Road and Elm Place and atop existing parking lot) 

o Context Plan 

o Project Facts

▪ 89 apartments including 10 inclusionary units, 5 stories, 158 underground parking stalls, public walkway

▪ applying for Green Building Certification

▪ existing parking lot will be maintained

Mr. Bernstein reviewed the following:

o Affordable Housing Plan

▪ Calculation

• Preliminary approval is requested; Final Plan submitted later in the process

▪ Unit Matrix

• Rob Anthony submitted an email regarding document in packet (not based on the revision)

▪ Distribution Matrix 

o Elevations (building is scaled down – three stories in some areas) 

o Site Plan (Karger development amenities are available also to residents of this development) 

o Floor Plans 

o Q & A

Mr. Bernstein said all units would have the same fixtures and finishes with no differences. He stated each unit has one parking space. Proposed unit sizes exceed Code. Mr. Bernstein explained the purpose of receiving the fee-in-lieu. He indicated they are helping the Housing Trust Fund remain healthy (as of today’s predicament). High-quality units are being offered along with providing the Housing Trust Fund with varied options in the community. Mr. Bernstein shared that the HC’s input is appreciated.

Chairman Ross asked Senior Planner Later to read the emails received which she did from the following:

o Betsy Lassar and Janet Swartz 

o David Wigodner 

o Rob Anthony, CPAH

Chairman Ross thanked Director Fontane, Ms. Clein, and Mr. Bernstein. He asked that each point be discussed with Commissioners’ input:

o Payments-In-Lieu

▪ Commissioner Paushter – the concept of fee-in-lieu should be tailored to the needs of the community; demand

▪ Commissioner Tapia – appreciates the unit mix and rationale (building HTF reserves)

▪ Commissioner Bernstein – concurs with Commissioner Tapia; seeking more scattered site options is a plus

▪ Commissioner Adler – appreciates comprehensive presentation. Proportion of larger to smaller units is a concern (as per Mr. Anthony’s email)

▪ Commissioner Berkun – concurs with Commissioner Adler

▪ Chairman Ross – the waitlist would be relevant as to how long someone is on the list. Director Fontane advised the turnover of units is low. Chairman Ross believes there is an enormous opportunity to seek source funds. Chairman Ross asked how many units CPAH would develop if the HC grants money. Director Fontane responded three per year. Chairman Ross noted CPAH leverages this with other funds. Director Fontane stated it is 25-30% of projects. Senior Planner Later reported the grant for 2020 is four units. Chairman Ross believes the amount for fee-in-lieu is okay. Regarding Ms. Lassar’s comments, he noted the Code is limiting; not necessarily in agreement as we must look at the big picture; there is an advantage to putting units elsewhere.

▪ Councilman Holleman – identified that the $125,000 is set annually by City Council; this will be reconsidered for next year. Chairman Ross stated if $600,000- 800,000 comes in annually, the HC must use it wisely.

o Location of Units in Building (floor plans were shown; affordable units were highlighted)

▪ Commissioner Tapia – asked about rationale. Ms. Clein stated there are minimum requirements for square footage in Highland Park’s code. Units are distributed throughout the building. Mr. Yule, with Albion, stated the units stack on top of each other; square footage is limiting; tried to take units to view north, south, east, and west. He noted this often comes down to construction – how the building lines up.

▪ Chairman Ross – is not satisfied where inclusionary units are spread out. He stated he would not cluster affordable units; would like to see an affordable unit on the 5th floor.

▪ Other commissioners agreed and asked applicant to come back with a revised layout.

o Unit Amenities

▪ Chairman Ross – these are quite commendable. Mr. Yule advised the balconies are stacked. Chairman Ross stated there appears to be more balconies on the renderings than in the plans. Mr. Yule advised they would review same.

▪ Commissioner Adler – recommends scattering balconies. Mr. Yule stated there are terraces on the 4th floor.

▪ Commissioner Tapia – does not feel strongly about scattering balconies

o Unit Mix

▪ Chairman Ross – there is not a lot of flexibility

▪ Commissioner Berkun – asked how this compares to Mr. Anthony’s comments. Director Fontane stated those comments were based on the report that has since been revised.

▪ Chairman Ross advised an adjustment could be 4, 4, and 2. Director Fontane identified the proposed vs. required column from his presentation chart. Chairman Ross summarized that one-bedrooms have the most departure; average it out.

Suggestions for this development were discussed. Chairman Ross stated he would like to reflect demand in the affordable market.

Councilman Holleman asked if there are demographics on this building (including families). Ms. Clein shared, with this building and the Karger site, the target is empty nesters and younger professionals. Mr. Bernstein stated they don’t anticipate having an impact on the schools. Some may test Highland Park by renting a unit first before buying a home here. Mr. Yule stated government/police and fire staff, teachers, healthcare professionals are the target markets for smaller units. He compared their building in Evanston. Commissioner Paushter stated he agrees with Councilman Holleman regarding three-bedroom units and scattered housing with a dedicated yard for families. Chairman Ross agrees a house is a better option for a family; but there are not a lot of rental opportunities. Mr. Bernstein shared he would review same.

o Size of Units

▪ Chairman Ross advised this is covered well.

o Income Targeting

▪ Chairman Ross -- you do not want to overweight the income tiers.

▪ Councilman Holleman – there is a financial component to the developer; this building has the most affordable units in Highland Park and is a generous development in a difficult time.

▪ Commissioners Tapia, Bernstein, and Adler – concur that this is balanced distribution and meets the needs of the city and the developer.

▪ Commissioner Berkun – appreciates the upfront work. Mr. Bernstein stated they tried to mirror the Karger Center. He asked if there’s an interest to have more fees-in-lieu. Chairman Ross shared he believes this is a nice mix.

▪ Commissioner Tapia – how are social-worker families served. Director Fontane said there are no other provisions for social services in private-sector buildings. He noted these are privately-managed and explained CPAH’s role. Commissioner Berkun asked if CPAH could provide rental advisement services. Senior Planner Later explained same. Director Fontane reminded this is a private building and doesn’t have the HUD requirements.

Chairman Ross thanked everyone and asked to list dimensions on floor plans. Councilman Holleman reminded this is a very uncertain time. She thanked the developer for following through. This is a positive element to the community. Mr. Yule stated the business plan is to hold this building for 10 years. He appreciates all the comments. Chairman Ross concurred with Councilman’s Holleman’s comments.

• Affordable Housing Planning and Appeals Act AHPAA Report

Senior Planner Later stated IHDA requires this every five years. Director Fontane stated the last time was in 2015. Chairman Ross stated we are doing better than other communities. Director Fontane advised there is one change to have a 10% threshold goal. Commissioner Berkun asked where the percentage is with the two Albion properties. Director Fontane stated we are 80 units short currently minus these 27 inclusionary units. He expounded on same.

Mr. Bernstein stated Albion would return for the June HC meeting with revised plans as directed by the Commission.

Commissioner Tapia moved to approve the Affordable Housing Planning and Appeals Act (AHPAA) Report. Commissioner Adler seconded the motion.

On a roll call vote Voting Yea: Chairman Ross; Commissioners Adler, Berkun, Bernstein, Paushter, & Tapia Voting Nay: None

Commissioner Ross declared that the motion passed unanimously.

STAFF REPORT There was no Staff Report.

Senior Planner Later reminded the next HC meeting is June 3, 2020.

ADJOURNMENT Commissioner Berkun moved to adjourn the meeting at 9:26 p.m. Commissioner Bernstein seconded the motion.

On a roll call vote 

Voting Yea: Chairman Ross; Commissioners Adler, Berkun, Bernstein, Paushter, & Tapia 

Voting Nay: None

Commissioner Ross declared that the motion passed unanimously.

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