City of Highland Park Housing Commission met Aug. 4.
Here are the minutes provided by the commission:
CALL TO ORDER
At 6:34 p.m., Chairman Berkun 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. Chairman Berkun asked Staff to call the roll.
ROLL CALL
Commissioners Present: Chairman Berkun, Commissioners Abreu, Dennison, Paushter Commissioner Absent: Commissioners Bernstein, Fernandez Sykes, & Valbrun
Councilmember present: Tapia
Staff declared that a quorum was present.
Staff Present: Fontane, Later
Guests Present: Michael Schwartz, NFP Property & Casualty
Amy Kaufman, Community Partners for Affordable Housing
BUSINESS FROM THE PUBLIC
There was no Business from the Public.
APPROVAL OF MINUTES
Regular meeting of the Housing Commission – July 7, 2021
Commissioner Dennison moved to approve the July 7, 2021, regular meeting minutes. Commissioner Paushter seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioner Dennison
Voting Nay: None
Abstain: Paushter, Abreu
Commissioners Paushter and Abreu abstained as they were not at the meeting so there was not a majority of a quorum to pass the motion. The approval of the July meeting minutes will be moved to the September meeting.
SCHEDULED BUSINESS
It was stated Other Association Business would be first on the agenda then New Business.
1. Peers, Walnut, Ravinia, Sunset Woods Associations, & Housing Trust Fund
Approved September 1, 2021
• Other Association Business
o Approval of Umbrella and Excess Insurance Policy Renewal for Peers, Ravinia, and Walnut Place
Senior Planner Later reminded that at the July 7th meeting, the HC approved the base policy which expires August 9, 2021. She noted Michael Schwartz with NFP Property & Casualty is present this evening. Staff is asking the HC to consider and approve the umbrella and insurance policy.
Mr. Schwartz shared they approached a number of insurance companies (some quotes were higher, some declined). What’s presented is the best and most competitive. Discussion took place.
Commissioner Dennison asked about Walnut. Mr. Schwartz said when Walnut is sold, the base policy would be reduced. He noted this is a tough insurance cycle; premiums are going up, coverage is substantially reduced (want to increase deductible, etc.).
Commissioner Abreu moved to approve the Umbrella and Excess Insurance Policy Renewal for Peers, Ravinia, & Walnut Place. Commissioner Paushter seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Abreu, Dennison, & Paushter
Voting Nay: None
The motion passed unanimously.
NEW BUSINESS
1. 2022 Budget Request from Community Partners for Affordable Housing
Senior Planner Later said this is a Development Grant proposal from CPAH in lieu of a Scattered Site grant request. She noted a $1 million grant is requested to help fund the development of eight new affordable townhomes. Page 65 of the packet was referenced for the breakdown of units and AMI. She stated the grant funds would be leveraged to obtain other funding sources. Senior Planner Later advised that Amy Kaufman from CPAH is present. Staff is recommending approval that the request be included in the proposed 2022 HTF budget.
Director Fontane stated this is being recommended for inclusion in the City 2022 proposed budget. He expounded and noted a grant agreement would come later. The actual project would be presented to the HC at a later date. Director Fontane stated this is a recommendation to City Council.
Commissioner Paushter asked if this could have more discussion. Ms. Kaufman explained this is a relevant time to pursue this opportunity in order to leverage other funds. She shared that Lake County is supportive. City funds are requested in order to leverage the other funds now available and needed to do this project. Scattered site and new development are tools in the affordable housing tool box and can be dictated by market conditions. These are likely to be close to town; checks a lot of boxes; fits the economic model. Senior Planner Later added that the HC has affordable townhomes at Ravinia and Walnut Place.
Commissioner Dennison asked about construction costs - if they go down, will the budget be affected. Ms. Kaufman said it would bring the budget down. Savings would not be shifted to another project. The sales proceeds from houses bring the cost down; offsets budget.
Commissioner Dennison said the average is $240 per square foot for construction. Director Fontane noted he asked CPAH the same question. He expounded and shared this is what is being budgeted at this time. When a grant agreement takes place, and a final number would be developed.
Director Fontane raised the issues of prevailing wage and the Uniform Relocation Act. Ms. Kaufman described same. If there are residents in the properties to be removed, there is a HUD required obligation to pay for their relocation.
Commissioner Dennison asked about the historical balance of the HTF. Director Fontane said this is an atypical request, not a scattered site project. The past balances don’t reflect the future, especially regarding payment-in-lieu. He is presenting a conservative HTF budget projection. The HC can have confidence this is a realistic view. A change was made in 2019 to the demo tax so that the full amount collected now goes to the HTF. He referred to the graph; stay above a 1.5 fund balance requirement. We are healthy at 3.46 ratio; want to deploy the HTF resources; a strategic drawdown.
Chairman Berkun asked about how this would affect a refinance. Senior Planner Later and Director Fontane said it is not affected; this is a separate City fund.
Ms. Kaufman said there is confidence that scattered site development will to continue to happen. This project will offer a diverse new affordable housing stock; housing desires of buyers/tenants vary.
It was asked when the neighbors have to buy-in. Director Fontane said this request is only for budgeting, not for any zoning approvals. Ms. Later advised this project would receive the same planning approvals and review as any other development project. Ms. Kaufman noted CPAH is in negotiations for land right now; not speculative.
Commissioner Dennison moved to approve a recommendation that the request of $1 million request form CPAH be included in the 2022 Budget including a fund balance waiver request. Commissioner Abreu seconded the motion.
On a roll call vote:
Voting Yea: Commissioners Abreu, Levy, & Paushter
Voting Nay: None
Abstain: Chairman Berkun
Chairman Berkun declared that the motion passed unanimously. Director Fontane said this goes to City Council in September, 2021.
2. Consideration and Approval of CPAH Q2 Operating Grant Draw Request
Senior Planner Later stated quarterly reports are being provided by CPAH. She noted the balance sheet only accounts for the expenditures against Highland Park activities.
Commissioner Dennison asked about tours. Ms. Kaufman is amenable to view the Arbor property. Senior Planner Later reminded only two Commissioners can be present together so as to not violate the Open Meetings Act.
Commissioner Abreu asked about recusing himself. Ms. Kaufman and Senior Planner Later said the properties listed have already been closed on and the vote is on the Operating Grant draw down not any property acquisition.
Ms. Kaufman concluded every house, applicant has a story; expands the mission. It is labor intensive to buy properties. They are all investments and worthwhile.
Commissioner Abreu moved to approve the Operating Grant Disbursement. Commissioner Dennison seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Abreu, Dennison, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
SCHEDULED BUSINESS
1. Items for Omnibus Vote Consideration
• Payment of Invoices
• Ratification of Payments
Senior Planner Later advised there are none.
2. Peers, Walnut, Ravinia, Sunset Woods Associations, & Housing Trust Fund
• Consideration of ERES Management Reports and Financials
Senior Planner Later advised nothing is outstanding.
• Housing Trust Fund Financials
Senior Planner Later advised nothing is outstanding.
• Sunset Woods Financials
Senior Planner Later advised nothing is outstanding.
OLD BUSINESS
There was no Old Business.
NEW BUSINESS
3. Consideration and Approval of 2022 HC Budget Work Plan
Senior Planner Later stated that as part of the budget process, a Work Plan is developed annually for each Board and Commission that details the upcoming year’s actions and associated costs. She explained the itemized expense requests, objectives. This is a standard format for all Commissions.
Commissioner Dennison moved to approve the 2022 HC Budget Work Plan. Commissioner Abreu seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Abreu, Dennison, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
4. Extension of Walnut Place Operating Agreement
Senior Planner Later noted this request came late from the owners of Walnut Place and explained same. She shared the Operating Agreement expires on August 28, 2021. The owners have not yet closed on the sale of Walnut Place. The City closed on the sale of the property beneath the senior residences. The owner wishes to know if the HC would like to extend the Operating Agreement. As there will be no City ownership interest in the property, Staff recommends the HC allow the Operating Agreement to expire and a temporary one be generated with Evergreen, the current management company, if need be. Discussion took place and the HC decided they did not want to extend the Operating Agreement beyond its current expiration date. Senior Planner Later will notify the owners the HC is not interested in extending the Operating Agreement.
Commissioner Abreu asked and Senior Planner Later said the tenants are not affected. Senior Planner Later said when there is a transfer of ownership IDHA must be notified as well as the tenants.
STAFF REPORT
Senior Planner Later updated the HC on the Ravinia property that was damaged. The City’s Structural Engineer and Evergreen’s engineer have inspected the property. Permits will be requested. A scope of work has been initiated. Materials have been ordered.
Regarding the refinance, Senior Planer Later said she received the draft of the RFP from Corporation Counsel. It will be reviewed and sent to the City Manager for approval.
Director Fontane said the Walnut Association will need to be addressed. Senior Planner Later is working with Corporation Counsel. She will have more information at subsequent meetings.
Commissioner Dennison asked if the resident of the damaged Ravinia unit is okay. Senior Planner Later advised they are living with their daughter now and staff is working with Moraine Township on temporary housing assistance.
CC Tapia asked where we stand on the strategic plan. Director Fontane advised staff has been working on the following and explained same:
∙ Financial Advisory Services RFP
∙ Key Interviews & Focus Groups
∙ Collection of demographic and census data
∙ Updating information from previous plan
ADJOURNMENT
Commissioner Abreu moved to adjourn the meeting at 7:53 p.m. Commissioner Dennison seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun, Commissioners Abreu, Dennison, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
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