City of Highland Park Housing Commission Met March 3.
Here is the minutes provided by the commission:
CALL TO ORDER
At 6:30 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 Absent: Fishman & Keyser
Staff: Fontane, Later
Chairman Berkun introduced HC Commissioner Ms. Isis Fernandez Sykes who noted she is a non-practicing attorney, and policy implementation is her specialty. She has two children and is involved with Highland Park schools. Everyone welcomed Ms. Fernandez Sykes.
BUSINESS FROM THE PUBLIC
Senior Planner Later advised there are audience members who have no comment at this time. Chairman Berkun asked audience members to feel free to comment.
APPROVAL OF MINUTES
Remote Access Meeting of the Housing Commission – February 3, 2021
Commissioner Bernstein moved to approve the regular (remote access) meeting minutes of February 3, 2021, as amended. Commissioner Tapia seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun; Commissioners Abreu, Bernstein, Dennison, Fernandez Sykes, Paushter, & Tapia
Voting Nay: None
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 and Housing Trust Fund
• Consideration of ERES Management Reports and Financials
Senior Planner Later advised the Housing Trust Fund financials were sent separately via email. She noted the Albion $400,000 payment-in-lieu was received.
o Ravinia & Peers
Commissioner Bernstein referred to Page 28 and line 6380. She noted there is a $6,500 consulting cost for each property. Senior Planner Later will review same.
Commissioner Dennison:
∙ highlighted a software fee (perhaps licensed?). Senior Planner Later noted it’s used to manage the waiting list for Ravinia, Peers, and Walnut.
∙ stated, in Unit 111 at Peers, there is a delay. Senior Planner Later explained same. She noted those eligible may have declined.
∙ referenced the graph on Page 41, noting the savings overlap the security; he would like to expand this to see all of the lines. Senior Planner Later will advise HODC.
∙ identified a tenants receivable at Walnut went from $13,000 to $20,000; rental revenue is only $1,000 higher than budget. Senior Planner Later noted HUD did not provide the payment on time as expected.
• Housing Trust Fund Financials
Nothing is outstanding.
• Sunset Woods’ Financials
Nothing is outstanding.
• Other Association Business
Nothing is outstanding.
OLD BUSINESS
1. Potential Refinance of Ravinia and Peers
Senior Planner Later advised Staff met with the Evergreen team and reviewed financials.
Director Fontane provided a presentation:
Peers & Ravinia Finance Options
∙ Goals – Affordable Housing Strategy Discussion
∙ Review Goals & Strategic Choices
o Overarching Goal
o Key Overarching Strategic Choices
∙ There are Three Financial Paths:
o Refinance to Reduce Debt-Service Payments
o Refinance to Fund Limited Repairs or Cash Out
o Utilize LIHTC to Rehabilitate Buildings with Tax-Advantage Capital
∙ Required Capital Improvement Program
Commissioner Abreu asked if there is an extra zero missing. Director Fontane concurred.
Director Fontane asked the HC for feedback on the scope of needs (EBI’s suggestion or more?). He expounded on same.
Chairman Berkun asked if this money could be used for new construction. Is spending $40,000 per unit possible?
Director Fontane reiterated the question – do we go with the status quo or upgrade? Chairman Berkun asked if EBI’s recommendation is the minimum. Director Fontane concurred and read the purpose of the EBI report.
Chairman Berkun asked if the upgrade would require a consultant. Director Fontane said a more in depth review would need to happen from a professional. An architect would be hired to develop a scope of work that would be approved by IHDA.
Commissioner Fernandez Sykes asked about what the extra things are and how long residents live there. She is concerned about the HVAC systems. Director Fontane advised he would provide this information as we get more in depth with the scope of work.
Commissioner Dennison asked if $40,000 includes paying off debt. Director Fontane will verify this, and noted this is the amount to achieve an investment to qualify for the program. He will check about soft costs. ERES will be able to advise on this.
Senior Planner Later said this is most likely $40,000 per unit but could include improvements to be done in common areas, and exterior work or systems like HVAC. Director Fontane advised it is for the whole building.
Commissioner Dennison stated an idea of the benefits would be helpful. He asked if there is space to add units. Mr. Fontane said that the properties are built out. Commissioner Paushter asked, if the $40,000 minimum is met, who approves that this is reasonable? Director Fontane said the costs and scope of work in the application are reviewed and approved by IHDA.
Commissioner Bernstein asked if the building feels tired from the residents’ perspective. Senior Planner Later said the building is over 40 years old; fixtures are original. The HC needs to decide to repair items as they are needed (as we are doing now) or be proactive. She noted, during the ten years of the projected capital plan, things may be required to be taken care of. Director Fontane expounded.
Chairman Berkun said implementing this while residents are in place can be very difficult. Director Fontane believes residents may be receptive with proper planning (as in the past); he referred to the window project. Councilwoman Holleman stated, with Senior Planner Later’s assistance, that project helped build credibility and goodwill.
Director Fontane explained Evergreen’s turnkey operation with guarantees for the investor seeking tax credits or the builder, the HC/City. He compared occupied and vacant scenarios.
Commissioner Abreu asked if this would be on a 10-year or rotational basis. He asked if there are true needs or infrastructure, common space, etc., and what the cost range is. This may not be the driver of the decision. Mr. Fontane said this would be discussed when developing a scope of work.
Chairman Berkun asked if Evergreen would consolidate. He expounded on methods of financing and guidance.
Director Fontane said the approach of the HC toward the buildings must be known. Doing more and faster requires more money. He noted they are analyzing what is affordable. He asks that the Commissioners give serious thought to this.
Commissioner Dennison reminded of the benefit of the LIHTC option; it pays for the tax credits – essentially free – to do some of this work.
Commissioner Bernstein asked about the application process and competition for LIHTC monies. Director Fontane said a consultant would need to be hired; Evergreen has that arm; a partnership formation would occur. Senior Planner Later said there are some strings and restrictions. This would be a 35-year commitment. She expounded. Director Fontane reiterated this analysis would be provided. She added that this is not a competitive tax credit program.
Commissioner Fernandez Sykes asked how much the consulting cost is along with a timeline. Director Fontane said refinancing is the faster way to go. Low-income tax credits takes about one year. Senior Planner Later added that construction, renovations need to be taken into consideration. She stated the developer and general-contracting fees have a cap and are established by IDHA. Evergreen has a turnkey solution. Director Fontane noted tax credits are a government-funding stream. This program has safeguards in place.
Senior Planner Later reminded of the goals for financing Ravinia and removing the second note. She said Peers could do better due to low interest rates. These properties could be dealt with separately.
Chairman Berkun asked when Evergreen would have this report available. Director Fontane noted there isn’t a specific date, but there is urgency; he will find out same.
Director Fontane asked for thoughts on the timeliness of projects. Chairman Berkun stated the sooner, the better. He referenced the leaks in single-family homes. Director Fontane noted Staff concurs, and said the financial analysis will be a better guide. Commissioner Tapia concurred.
NEW BUSINESS
1. 1063 Half Day Road (Pilot Project Home) Refinance Approval
Senior Planner Later stated the owners are not yet ready. She noted these pilot projects don’t have ground leases. Affordable housing needs to remain. The bank is reviewing. Corporation Counsel is assisting.
STAFF REPORT
Senior Planner Later expressed that the Disclosure Statements from Lake County need to be submitted by the end of March.
Senior Planner Later stated Corporation Counsel will provide Open Meetings Act training in April. Please forward any questions.
Director Fontane informed everyone that a new Staff member will be devoted to the HC 50% of their time beginning in April.
ADJOURNMENT
Commissioner Fernandez Sykes moved to adjourn the meeting at 7:46 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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