City of Highland Park Housing Commission met March 2

By Angelica Saylo Pilo

Jul 19, 2022

City of Highland Park Housing Commission met March 2.

Here are the minutes provided by the commission:

MEETING LOCATION: Virtual & On-Site (Council Chambers, City Hall, 1707 St. Johns Avenue, Highland Park, IL)

CALL TO ORDER

At 6:32 p.m., Chairman Berkun called a meeting via remote (virtual) 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.

ROLL CALL

Commissioners Present: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun

Councilmember Present: Blumberg

Student Council Absent: Fishman, Chase

Staff declared that a quorum was present.

Staff Present: Fontane, Later, & Coleman

Guests Present: Harold Eich, Irina Leykin/ERES

Rob Anthony/CPAH

Elizabeth Flatley/EREG

Hart Passman/Elrod Friedman

BUSINESS FROM THE PUBLIC

Deputy Director Later advised there is one audience member, but no hands are raised.

APPROVAL OF MINUTES

Regular Meeting of the Housing Commission – February 2, 2022

Commissioner Paushter moved to approve the February 2, 2022 regular meeting minutes. Commissioner Bernstein seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

Deputy Director Later asked that tonight’s agenda be rearranged as such:

∙ New Business (CPAH 2022 Scattered Site Grant)

∙ Old Business (Peers and Ravinia Refinance)

∙ E&F Housing Commission Training

Chairman Berkun concurred.

NEW BUSINESS

1. Consideration and Approval of CPAH 2021 Operating Grant – 3rd Draw Request Deputy Director Later introduced Mr. Anthony with CPAH.

Mr. Anthony stated this 3rd draw down request is for $67,500. The townhome at 1968 Linden closed on February 7, 2022. He provided background of a young man from Highland Park who bought this for $155,000. Chairman Berkun stated he is impressed with the quick turnaround.

Commissioner Dennison moved to approve CPAH’s Scattered Site Grant, 3rd Draw Request, Resolution No. 03-2022. Commissioner Gonzalez seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

Mr. Anthony updated the HC. He noted two units at McGovern are filled. The rent was reduced from $1,950 to $1,789. The One Highland Park project has two out of three units sold. Director Fontane stated he is very happy to hear that. He noted Staff recommended the rent adjustment years ago.

Commissioner Bernstein asked how the properties on Ridgewood are doing. Mr. Anthony said one is finished and will close before April 15, 2022, and another will be completed in May.

Mr. Gonzalez asked Mr. Anthony if these updates could be shared more regularly. Mr. Anthony replied CPAH is scheduled to be present quarterly but can update more frequently.

Director Fontane thanked CPAH for its work.

Chairman Berkun suggested adding a CPAH update to the monthly HC agenda.

OLD BUSINESS

1. Peers and Ravinia Refinance

Deputy Director Later advised Director Fontane and Elizabeth Flatley with EREG will present this evening. She noted there are three motions tonight.

Director Fontane offered a presentation:

∙ Background and Summary

∙ Estimated Refinancing Costs

o Incorporating refinancing costs into loan (doesn’t include financial advisor costs by EREG) ∙ Refinancing Costs – Funding Options

o Option 1 (staff recommends)

o Option 2 (alternate approach)

∙ Option 1 Rationale

o Fees Financed using Entity Funds from Peers

o Entity funds are reimbursed to Peers at closing

∙ Recommended Next Steps

∙ Next Steps

Chairman Berkun asked why an additional loan is difficult if expenses are paid for and loan to value is low. Director Fontane responded securing a second mortgage is difficult for a FHA-backed loan.

Ms. Flatley concurred with Director Fontane, and said it is a HUD policy.

Commissioner Dennison:

∙ stated, regarding fees of 1.55%, this is inexpensive along with low interest rates. He noted these funds are important for the buildings. Director Fontane agreed this is good for capital improvements.

∙ asked if 155% is correct. Ms. Flatley and Director Fontane concurred. Director Fontane said a good-faith deposit will be returned. The fees were conservatively calculated at higher loan amounts.

Commissioner Paushter shared he believes these are standard industry fees.

Director Fontane said HUD items are non-negotiable. Ms. Flatley stated these fees are typical for Fannie, Freddie, or insurance and bank loans.

Commissioner Bernstein believes the HC is taking advantage of Peer’s cash. Director Fontane expounded. He noted they are recommending using Peers funds for both properties’ up front costs. Director Fontane referenced the window project at Peers where entity funds were used in conjunction with operating funds.

Deputy Director Later noted there would be three motions.

1. Commissioner Bernstein moved to authorize the Association President to execute the engagement letters with PNC along with any other documents necessary to initiate and prepare the HUD loan applications. Commissioner Gonzalez seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, Paushter, &

Voting Nay: None

Abstain: Commissioner Dennison

Chairman Berkun declared that the motion passed.

2. Commissioner Gonzalez moved to authorize the use of PHA entity funds to cover upfront refinancing fees and required deposits for both RHA and PHA loans with the understanding that they will be refunded to the PHA using loan proceeds after closings. Commissioner Fernandez Sykes seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

3. Commissioner Fernandez Sykes moved to authorize that all refinance costs associated with the RHA and PHA be financed through their respective RHA and PHA loan. Commissioner Bernstein seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

Deputy Director Later advised these recommendations will go to City Council for their approval. Deputy Director Later and Director Fontane thanked Elizabeth Flatley and Kevin Beard from EREG.

Councilman Blumberg thanked the HC for rearranging tonight’s. He expressed if anyone has a question, as a rep of City Council, either before or after a meeting, he suggested contacting him via email, etc.

Chairman Berkun asked and Director Fontane stated Elizabeth Flatley and Kevin Beard with EREG are the legal advisors.

Councilman Blumberg thanked the HC for rearranging tonight’s agenda. He expressed if anyone has a question, as a representative of City Council, either before or after a meeting to contact him via email or phone.

NEW BUSINESS

2. E&F Housing Commission Training

Mr. Hart Passman introduced himself and provided background on Elrod Friedman. Not much has changed from last year. It is always a good refresher on best practices, etc.

Mr. Passman stated he will review the following:

∙ Agenda

o Overview

o Review of Commissioner Jurisdiction

o Procedures & Requirements

o Ethics

Then offered a presentation:

∙ Statutory & Legal Authority

∙ City Code Provisions

∙ City Council Oversight

∙ Open Meetings Act

∙ Public Participation

∙ Closed Sessions

∙ Robert’s Rules of Order

∙ Ethics – City Guidelines

Mr. Passman said he appreciates everyone’s time. He hopes this is a good resource, and he is available for questions anytime.

Deputy Director Later asked, when someone recuses him/herself, if they have to divulge the reason why they are recusing. Mr. Passman answered that a general summary should be given to the group. If the individual who is presenting is a neighbor, that is not a good enough reason to recuse oneself. He expounded on when and when not to recuse.

Chairman Berkun thanked Mr. Passman for his informative presentation.

APPROVAL OF MINUTES

Special Meeting of the Housing Commission – February 16, 2022

Commissioner Dennison moved to approve the February 16, 2022 Special Meeting minutes. Commissioner Gonzalez seconded the motion.

On a roll call vote:

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, & Valbrun

Voting Nay: None

Abstain: Commissioner Paushter

Chairman Berkun declared that the motion passed.

SCHEDULED BUSINESS

1. Items for Omnibus Vote Consideration

• Payment of Invoices

• Ratification of Payments

Deputy Director Later advised there is nothing outstanding.

2. Peers, Walnut, Ravinia, Sunset Woods Associations, & Housing Trust Fund

• Consideration of ERES Management Reports and Financials

Deputy Director Later stated Harold Eich and Irina Leykin are present from ERES.

Commissioner Dennison shared he asked questions in advance. Mr. Eich stated written responses will be prepared and sent to the Housing Commission through Deputy Director Later.

Mr. Eich said there is a change in property management staff. A new Property Manager for Peers and Ravinia begins on March 14, 2022.

Mr. Eich advised that a pipe burst at Peers. A vendor tended to this, and all repairs are complete. Deputy Director Later added this was during below zero weather.

Commissioner Bernstein asked if RES will be reducing extra cleanings at the Peers building. Deputy Director Later reminded the HC requested this and ERES was doing the extra cleanings at the HC direction. Mr. Eich said weekend cleanings are still happening but the other communities ERES manages are not conducting weekend cleanings. He and Chairman Berkun noted the virus is not catchable via surfaces (per the CDC).

Commissioner Dennison concurs and asked if anyone is uncomfortable with discontinuing weekend cleanings. Deputy Director Later noted this is not on the agenda so a vote cannot be taken.

Commissioner Paushter shared the CDC is recommending a rollback on masks and cleaning.

Chairman Berkun asked about activities. Ms. Leykin said, as of March 1, 2022, masks are being worn, and activities have not started. Mr. Eich shared, at all communities, masking is optional indoors. While working with the Social Service Coordinator, activities could be restored with the HC’s permission. Deputy Director Later added entertainment could be added as well.

Mr. Eich added that outdoor areas can be opened. He noted an introduction of the new Property Manager will be provided to Staff.

Commissioner Dennison asked and Deputy Director Later concurred tours can be scheduled as the buildings open. He asked if the MOR report will be affected by the refinancing. Mr. Eich said it would not.

• Housing Trust Fund Financials

Deputy Director Later advised they are in the packet (and sent via email). She noted these would be provided on a quarterly basis.

• Sunset Woods Financials

Deputy Director Later stated the Sunset Wood Association has a promissory note from to Peers for the purchase of units that were not selling due to the economic climate at that time. The rebate SWA received from obtaining property tax exemption had been used to help pay down the note. The balance is now $118,000. Staff and HODC recommend using the money that would have been earmarked to pay property taxes towards the repayment of this note to Peers. This was intended to be included in the 2023 budget. However, a check for $6,000 was inadvertently issued from SWA to PHA. She would like the HC to provide direction either to deposit the funds in the PHA account or return the check to SWA.

Chairman Berkun asked if there is a problem accepting the check. Deputy Director Later advised there is not. Commissioner Fernandez Sykes said we are just accepting it early. Deputy Director Later concurred. Deputy Director Later said she would deposit the check in the PHA account.

• Other Association Business

Deputy Director Later advised nothing is outstanding.

STAFF REPORT

There is no Staff Report.

Deputy Director Later summarized that she will add these items to next month’s agenda:

∙ Reopening of Peers recommendations

∙ CPAH updates

Commissioner Dennison agrees these items should be added.

ADJOURNMENT

Commissioner Dennison moved to adjourn the meeting at 8:23 p.m. Commissioner Fernandez Sykes seconded the motion.

On a roll call vote

Voting Yea: Chairman Berkun, Commissioners Bernstein, Dennison, Fernandez Sykes, Gonzalez, Paushter, & Valbrun