City of Highland Park Housing Commission met Feb. 3.
Here is the minutes provided by the commission:
CALL TO ORDER
At 6:37 p.m., Chairman Berkun 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. Staff read an introduction for remote meeting procedures and noted public comments may be emailed to city@hpil.com or phoned into at 847.432.0867. The City web site is www.cityhpil.com. Staff was asked to call the roll.
ROLL CALL
Commissioners Remotely: Chairman Berkun; Commissioners Abreu, Bernstein, Dennison, Paushter, Fernandez Sykes, & Tapia
Councilwoman Remotely: Holleman
Student Reps Present: Fishman & Keyser
Guests Remotely: Kevin Beard/Evergreen, Rob Anthony/CPAH
Residents Remotely: Betsy Lassar, Janet Schwarz
Staff: Fontane, Later
BUSINESS FROM THE PUBLIC
There was no Business from the Public
Chairman Berkun welcomed new members. Senior Planner Later introduced new HC Commissioner Ms. Isis Fernandez Sykes and Student Reps, Ms. Samantha Fishman and Ms. Sophie Keyser.
APPROVAL OF MINUTES
Remote Access Meeting of the Housing Commission – December 2, 2020
Commissioner Abreu noted a revision to read: Commissioner Abreu asked if equity is necessarily a good thing.
Commissioner Bernstein moved to approve the regular (remote access) meeting minutes of December 2, 2020, as amended. Commissioner Abreu seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun; Commissioners Abreu, Bernstein, Paushter, & Tapia Voting Nay: None
Abstain: Dennison, Fernandez Sykes
Approved March 3, 2021
Chairman Berkun declared the motion passed unanimously.
Commissioner Dennison moved to approve the regular meeting minutes of January 6, 2021. Commissioner Tapia seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun; Commissioners Abreu, Bernstein, Dennison, Paushter, & Tapia
Voting Nay: None
Abstain: Fernandez Sykes
Chairman Berkun declared the motion passed unanimously.
SCHEDULED BUSINESS
1. Items for Omnibus Vote Consideration
• Payment of Invoices
• Ratification of Payments
Senior Planner Later advised nothing is outstanding.
2. Peers, Walnut, Ravinia, and Sunset Woods Associations
• Consideration of ERES Management Reports for Peers, Walnut, and Ravinia o Peers
Commissioner Dennison asked about maintenance staff. Senior Planner Later advised the head janitor retired. Commissioner Dennison asked if someone is on medical leave. Senior Planner Later referred to Page 17, staffing on all communities. Senior Planner Later noted that the section he was looking at is historical information.
Commissioner Bernstein advised residents are concerned about getting vaccinated. Senior Planner Later said the Social Services Coordinator is reaching out to CVS, etc. The City Manager is also working with Lake County regarding vaccination sites and access.
o Ravinia
Regarding Capital Improvements, Commissioner Abreu asked about water heater costs (multiple, etc.). Senior Planner Later will review same.
• Housing Trust Fund Financials
Senior Planner Later advised the Finance Department staff is finalizing Year 2020. • Sunset Woods’ Financials
Nothing is outstanding.
• Other Association Business
Nothing is outstanding.
OLD BUSINESS
1. Potential Refinance of Ravinia and Peers’ Notes
Senior Planner Later referenced Page 57 for the HC to review refinancing through City bonds. She noted the City’s Finance Director provided in a memo to the HC.
Chairman Berkun said bonds are usually sold by governments to provide funding for short term capital Expenditures.
Senior Planner Later introduced Kevin Beard with Evergreen who touched on options and refinancing at Peers and Ravinia. He works with Evergreen’s Development and Acquisitions’ Team.
Director Fontane offered background on repackaging debt on affordable housing projects that the City owns. He noted this is timely due to low interest rates. Director Fontane discussed general obligation bonds, other types, etc. He advised what they are looking for is to improve their financial position and have money for key capital projects.
Chairman Berkun shared the mark-to-mark financing we have now ties up our reserves. This could be simplified.
Mr. Beard continued with a PowerPoint presentation and explained the following: ∙ Peers and Ravinia: Debt Metrics: Properties are well positioned financially.
∙ Interest Rates are at Historic Lows
∙ Debt products: FHA Insured and everything else
∙ Peers and Ravinia Options
∙ Refinance to Reduce Debt-Service Payments
Director Fontane said that both projects financial position will improve with some form of refinancing.
Commissioner Tapia asked about no cash out, no funds for rehab, and no increase in revenue. Mr. Beard explained same. Commissioner Abreu commented that this is a first layer. He noted layer two includes cash out and a capital plan. It was agreed these options are better than the current status.
Mr. Beard continued:
∙ Refinance to fund limited repairs with a cash out
Commissioner Dennison asked about the amortization period. Mr. Beard replied – 35 years.
∙ Utilize LIHTC to rehabilitate buildings with tax-advantage capital
Discussion took place on increased rents. Mr. Beard clarified that residents would still pay the same portion of their income for rent; contract rent could be increased to reflect the newer condition of the units. HUD would still pay the difference between the rent paid by the tenant and the approved contract rate rent.
Commissioner Dennison asked if this would require a lot of coordination to renovate the units. Senior Later advised all windows and air conditioning units were replaced at Peers and coordinated with Evergreen staff – so there has been some experience with coordination.
Commissioner Dennison asked if this requires rehab. Mr. Beard concurred that LIHTC cannot be utilized without a major capital investment and rehab of the property. Commissioner Tapia asked if we would need a high amount to rehab. Director Fontane said they are exploring options to qualify. Significant work must be done to the buildings. Projects that would be done on a longer period could be accelerated.
Chairman Berkun inquired if this is rehab only or new construction. Mr. Beard said it could be either.
Mr. Beard continued with examples of Evergreen’s LIHTC projects:
∙ Rehabilitation
o Garden House Maywood
∙ New Construction (with existing main building)
o Martin Avenue Apartments
∙ With Local Government
o Independence Library with affordable apartments atop
He continued:
∙ How LIHTC Works: Sponsor (HC) and Investor (Bank)
∙ How LIHTC Works: Process (12 months) and Timeline
Director Fontane asked that Mr. Beard expound on cents on the dollar. Mr. Beard said the amount of credits are tied to its eligible (depreciable) basis. The LITHC investor contributes equity (in price per penny; less than $1.00 per credit).
Commissioner Dennison asked if it is a guaranteed amount and could we qualify? Mr. Beard said there are pre-development costs. Evergreen pays upfront and is reimbursed at closing.
Senior Planner Later said the HC worked with CPAH on competitive tax credits. She noted this is not that type of program.
Mr. Beard continued:
∙ Keys to successful tenant-in-place rehabilitation
Director Fontane said he was very impressed with the coordination of new windows and new air conditioners for residents and its execution. Senior Planner Later discussed the process and said residents were appreciative.
Chairman Berkun thanked Mr. Beard stating the presentation was very enlightening. Staff thanked Mr. Beard as well. Councilwoman Holleman thanked Mr. Beard for a great presentation. She said there are a lot of exciting options. Director Fontane said this is part of project planning. He concurs this would be a larger project with third-party services. Councilwoman Holleman stressed that the HC be cognizant of Senior Planner Later’s time.
Director Fontane said the window and air conditioning project was on a long to-do list but took a relatively short time to complete once it started. Senior Planner Later discussed the redraft of the project scope and coordination with ERES, the architect, and contractors. Director Fontane agrees a large-scale project certainly needs to be properly staffed with outside contract services.
NEW BUSINESS
1. 2021 Operating Grant Request – CPAH
2. 2021 Scattered Site Request - CPAH
Commissioner Abreu recused himself at 8:01 p.m. due to conflict with his employment.
Senior Planner Later introduced Rob Anthony, Executive Director with CPAH (Community Partners for Affordable Housing). She noted there is a profile of CPAH in the packet.
Mr. Anthony offered a general overview of CPAH:
∙ Resident profiles were shared (low-income families, seniors, families with children having disabilities living in homes and rentals, single parents, etc.)
∙ Mission/Vision
∙ Illinois Housing Costs vs. Income
∙ Job Categories (who can afford housing)
∙ CPAH, AHC (Affordable Housing Corporation of Lake County), LCRDC (Lake County Residential Development Corporation)
∙ Programs & Services
∙ Various housing property photos were shared
∙ Community Impact
Commissioner Tapia asked about low to moderate-income housing. He asked if there are other programs to capture these individuals. Mr. Anthony explained local programs (down payment assistance, etc.).
Senior Planner Later advised there are two grants CPAH is requesting and explained same. She noted there are two resolutions in the packet – one on Page 76 Resolution #02-2021 for an Operating Grant and the other on Page 90 Resolution #01-2021 for a Scattered Site Grant. Director Fontane stated the resolutions if adopted will approve the grant.
Mr. Anthony advised the five units request comes from previous discussions. He noted it is a seller’s market now and challenging. Foreclosures may become available. Better buying options may be much later in 2021.
Chairman Berkun asked and Senior Planner Later noted CPAH provided a timeline. Director Fontane said they trust Mr. Anthony & CPAH’s expertise and concurred with the time period which can be extended. He reminded about the budget in 2021 for 7 units (two are under contract). This is for an additional 5 units.
Commissioner Dennison moved to approve the Operating Grant & Resolution #02-2021 to CPAH for affordable housing. Commissioner Bernstein seconded the motion.
On a roll call vote
Voting Yea: Commissioners Bernstein, Dennison, Paushter, Fernandez Sykes, & Tapia Voting Nay: None
Abstain: Chairman Berkun
Chairman Berkun declared that the motion passed unanimously.
Commissioner Dennison moved to approve the Scattered Site & Resolution #01-2021 to CPAH for affordable housing. Commissioner Fernandez Sykes seconded the motion.
On a roll call vote
Voting Yea: Commissioners Bernstein, Dennison, Paushter, Fernandez Sykes, & Tapia Voting Nay: None
Abstain: Chairman Berkun
Chairman Berkun declared that the motion passed unanimously.
3. Update on Scattered Site Grant – 2 Units
Mr. Anthony reminded this is the grant that was approved in October, 2020, for 2 units:
∙ 1341 Arbor Avenue 3 bedroom, 2 bath
$45,000 worth of rehab. Will be available in a couple of months.
∙ 1364 Ferndale Avenue 3 bedroom, 2 bath
Paid $334,000. Needs minimal work. Will be available next month.
4. Affordable Housing Program – 5-Year Housing Program Strategic Action Plan
Senior Planner Later referenced a memo on Page 107 and the 2003 Housing Implementation Plan as a background piece for the HC; existing housing. She added discussion should take place on the future/where the HC would like to be as well as a meeting schedule.
Director Fontane stated they are proposing Special Meetings every third Wednesday of the month.
Commissioner Abreu returned to the meeting at 8:40 p.m.
Commissioner Paushter agrees that these discussions need to have time devoted. Director Fontane advised a quorum would be needed as well as a posted meeting (for three or more members). He said a Subcommittee could be formed.
Commissioner Dennison asked for a straw poll on adding the Special Meetings.
Commissioner Tapia asked what time the meeting would be. Director Fontane said at 6:30 pm like the regular meetings. Commissioner Bernstein asked about the time period. Director Fontane stated the goal would be through the summer.
Chairman Berkun suggested an initial structure be set with opportunity for change. Director Fontane said a loose structure would occur initially with flexibility for specifics. Director Fontane stated this meeting would begin at 6:30 p.m. He noted the Special Meetings could begin this month.
Director Fontane thanked the HC as these are important issues. He noted this entails long-term capital and financial planning.
Commissioner Dennison asked and Staff advised a vote is not necessary.
Director Fontane said the 2003 report is worth the read though it doesn’t have to be daunting as there are a lot of attachment to the document itself. He noted the current program is beyond its initial phase and expounded on strategic points. Director Fontane reminded the HC brings a lot of value and is important to the City of Highland Park.
Chairman Berkun thanked Director Fontane and Senior Planner Later for their efforts and work. Director Fontane said this is an exciting time as the HC is helping to shape the future for the City’s affordable housing.
STAFF REPORT
Senior Planner Later said she contacted Evergreen staff for an energy audit. She learned they already are working with an energy firm. Senior Planner Later will update the HC. Chairman Berkun asked if CPAH staff could be asked for their input. Senior Planner Later will contact CPAH staff. She reminded that the homes under CLT are owned by the residents of the homes.
ADJOURNMENT
Commissioner Dennison moved to adjourn the meeting at 8:58 p.m. Commissioner Abreu seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun; Commissioners Abreu, Bernstein, Dennison, Paushter, Fernandez Sykes, & Tapia
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
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