City of Highland Park Housing Commission met April 6.
Here are the minutes provided by the commission:
CALL TO ORDER
At 6:31 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. Staff was asked to call the roll.
ROLL CALL
Commissioners Present: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, Commissioners Absent: Dennison & Valbrun (Commissioner Paushter arrived late) Councilmember Present: Stone
Student Council Present: Colin Chase
Staff declared that a quorum was present.
Staff Present: Later & Coleman
Guests Present: Irina Leykin, Natalia Garnovska, John Noonan, & John Kennedy/ERES Amy Kaufman/CPAH
Richard Koenig/HODC
Mark Mueller & Kyle Fell/Fulton Developers
APPROVAL OF MINUTES
Regular Meeting of the Housing Commission – March 2, 2022
Commissioner Bernstein noted a typo on Page 5. The percentage should state .55%. She moved to approve the March 2, 2022 regular meeting minutes as amended. Commissioner Fernandez Sykes seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
BUSINESS FROM THE PUBLIC
Deputy Director Later said there are people in the audience. She asked if anyone wishes to speak about items not on the agenda. No one responded.
Deputy Director Later noted two letters were received and distributed to the HC.
She introduced Colin Chase, Student Representative. Chairman Berkun welcomed Student Rep Chase and the community to this meeting.
Councilmember Stone said she is here tonight in place of Councilmember Blumberg.
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 reminded Ms. Irina Leykin is Regional Supervisor with ERES. Ms. Leykin introduced Natalie Garnovska, the new Building Manager, who began on March 14, 2022. She has 14 years of experience in managing housing.
• Sunset Woods Financials
Commissioner Gonzalez referenced Page 29 and stated the parenthesis is noted incorrectly. He said it typically shows a loss when in parenthesis. Under expenses, the actual is zero, the budget is 50, and the variance is -50 when he believes it should be +50. Mr. Koenig with HODC asked if this is the variance column. He said the software subtracts the budget from the actual; it is a difference. Mr. Koenig expounded and noted if more money is spent than budgeted, then it’s a positive number.
Commissioner Gonzalez said, at Ravinia, the measure is different from Sunset Woods.
Deputy Director Later said the management reports from Sunset Woods are generated by HODC, and the Peers/Ravinia reports are generated by Evergreen. Each have their own financial software and reporting formats. The property financials are coordinated at the end of the month.
• Other Association Business
o Audits for Sunset Woods, Peers, and Ravinia Housing Associations
There was no comment.
o Contract for Gas Service for Peers – ERES
Facilities Director from ERES Mr. John Noonan introduced himself and stated he is available for questions. Deputy Director Later referenced Page 148 of the packet regarding Evergreen’s recommendation on costs. Mr. Noonan said last year there were storms in Texas that affected gas prices in February across the country. ERES is purchasing 80-90% of gas needs at a locked-in price. This contract switches suppliers. A flat price cannot be locked-in for 100% of consumption.
Commissioner Gonzalez asked, with everything going on in Russia and Ukraine, if there is a risk. Mr. Noonan said he does not see one except perhaps an increase in demand. He noted the U.S. produces natural gas (which will increase). As ERES is purchasing gas for the next 3 years, prices are locked-in.
Councilmember Stone asked if the building has had an energy audit. Mr. Noonan said it has. Vendors have been interviewed, the boilers are high efficiency, pipes are insulated, and flow restrictors are in apartments, etc.
Deputy Director Later referenced Page 149 of the packet and suggested the motion on the memo.
Commissioner Bernstein moved that Evergreen Real Estate Services, LLC has full authority to act as agent on behalf of Frank B. Peers Senior Housing and Peers Housing Association (“Owner”) for the purpose of executing the subject natural gas agreements with IGS Energy and acknowledges that Owner will be bound by the provisions of such agreement. Commissioner Gonzalez seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez,
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
o Approval of Management Contract Renewals for ERES and HODC
Deputy Director Later referenced Page 154 and explained same. The contract renewals are noted: HODC for 14 rental units at Sunset Woods Condominiums and ERES for Peers and Ravinia Housing Associations. She stated, from a staff standpoint, the representatives at these entities are a pleasure to work with and both have sensitivity for the residents, especially during the last two years with the pandemic
Commissioner Bernstein is the Housing Commission liaison on the Sunset Woods Condominium board. She asked:
∙ Mr. Koenig if HODC is not increasing its fee. Mr. Koenig said fees have been the same for 10-15 years.
∙ Commissioner Bernstein noted for Ravinia, the management fee 3.8%, and for Peers, it is 5.2%. Mr. Kennedy concurred and said this also has not been increased.
∙ why there is a difference. Mr. Kennedy said it was a competitive bid submittal and is due to the number of units at each property. There are 68 units in Peers and 17 with Ravinia.
Chairman Berkun concurred with Deputy Director Later’s sentiments.
Commissioner Sykes moved to approve the management agreement contract renewals for HODC with Sunset Woods Condominiums and Evergreen Real Estates Services, Inc. for Frank B. Peers Senior Housing and Ravinia Housing Associations. Commissioner Gonzalez seconded the motion.
On a roll call vote:
Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously. Deputy Director Later noted these contracts will be forwarded to Chairman Berkun for signature after City Council approval.
3. CPAH Updates
Ms. Kaufman advised:
• 1287 Ridgewood was closed
• there was a resale of a townhome at Hyacinth Place
• 704 Broadview went under contract
• the 3 affordable condos at were 1560 Oakwood were sold (2 closed this month)
• CPAH is working on the new 8 townhomes development
Ms. Kaufman said IDHA is rolling out a mortgage assistance program. The maximum assistance amount is $30,000.
Commissioner Bernstein asked if CPAH’s property owners are involved. Ms. Kaufman does not believe so. She said they are aware ahead of time if a CPAH owner is having trouble with their mortgage. She expounded.
Chairman Berkun asked about the status on renovation properties.
Ms. Kaufman stated:
∙ there is a second home on Ridgewood (will be ready in summer)
∙ 1958 Linden is completed
Commissioner Bernstein said there is more money in the HTF. She wonders if CPAH is interested in acquiring more properties. Ms. Kaufman shared the timing is not necessarily right but will review. Deputy Director reminded that CPAH is embarking on the construction of the 8 new townhomes potentially using a development grant from the HTF.
OLD BUSINESS
1. Peers and Ravinia Refinance
∙ Update – Approval by City Council and Next Steps
Deputy Director Later advised the refinance with PNC was approved by City Council. She shared weekly zoom phone calls are held with PNC Bank, Evergreen, and City Staff (Deputy Director Later and Planner Coleman). Preparation is taking place now for the meeting with HUD.
Chairman Berkun:
∙ asked when a rate becomes locked in. Deputy Director Later said closer to August, 2022
∙ asked how this could be expedited. Deputy Director Later advised this is a process with HUD regulations. PNC and Evergreen have prior experience with this. There is no expedited process. Setbacks are not anticipated.
∙ said the timing is terrible. Councilmember Stone concurs the timing is awful, and fees are substantial. Deputy Director Later said it is unfortunate but certain concerns needed to be addressed. It will not be pursued if it’s not a value to the properties.
∙ asked what happens with operating cash, based on current financing; Ravinia mark to market. Deputy Director Later explained this has been in place since 2012. She provided history. Available cash (75%) goes to HUD. The goal is to get out of the program (refinance, etc.). This will be beneficial for Ravinia.
NEW BUSINESS
1. Consideration of Preliminary Inclusionary Housing Application for 1950 Sheridan – Fulton Developers
Deputy Director Later introduced Mark Mueller and Kyle Fell and asked that Planner Coleman begin with his overview presentation. Planner Coleman proceeded:
∙ Proposed Project Summary
o 20-unit residential development
▪ 2 and 3-bedroom condo units
▪ Two 2-bedroom inclusionary units (with comparable finishes)
∙ Property Location was shown (2 properties will be demolished)
∙ Floor Plans
o First floor offers two inclusionary units (Units 105 and 106)
∙ AMI Affordability of Units (income tier)
∙ Public Comment (Summary of Proposed IH Plan
∙ HC Action Requested
Commissioner Paushter arrived at 7:25 p.m. He asked about affordable and market-rate units as they are not equivalent in size. Commissioner Bernstein concurred saying they are less than half of the square footage of the market-rate units. Commissioner Paushter asked what the pricing is. Deputy Director Later shared it is based on the HUD income limit requirements. Planner Coleman said the application only has inclusionary units for the first floor.
Mr. Mueller shared his screen and showed the second floor plans.
Commissioner Fernandez Sykes asked what kind of community outreach there is.
Mr. Mueller offered background and a presentation of past projects:
∙ Laurel Court
∙ Laurel Apartments
∙ Laurel Residences
∙ One Highland Park
He noted tonight’s Proposal includes:
∙ Location map
∙ Exterior, lounge, underground parking, individual storage units, amenities, etc.
∙ Elevations were shown
∙ Landscape Plan (large parking lot will be converted into a park)
Regarding 2 inclusionary units vs. 3, Mr. Mueller said they are proposing 20 units within 4 stories. He advised a preliminary meeting took place. They are applying for a payment-in-lieu. For a 2 out of 3 inclusionary-unit building, that equates to a 1/3 payment of cash-in-lieu. Regarding the location of affordable units, Mr. Mueller shared information on Laurel Court, Laurel Apartments, Laurel Residences, and One Highland Park.
Chairman Berkun asked about the total number of units at One Highland Park. Mr. Mueller responded there are 20.
Mr. Mueller said the proposed development first floor has 10.6 ft. ceilings. The units are 150 square feet more than what is required (though half the size of the market-rate units). For this project, 2/3 of units are 2-bedrooms and 1/3 are 3-bedrooms. Most buyers of condos are a 1 or 2-person household with no children. Chairman Berkun asked if this applies for affordable units. Mr. Mueller said it does for condos.
In closing, Mr. Mueller said the proposed affordable units with high ceilings and outdoor patios will be among the nicest in Highland Park. They have met with the Plan & Design Commission once and have another meeting on April 19, 2022. Neighbors have been advised. Letters were sent to 85 nearby homeowners. Comments are positive. This project has been worked on for 1 year. Chairman Berkun expressed it is a beautiful-looking building. He said we are here tonight to address affordable units.
Commissioner Gonzalez asked Staff how many requests there are for affordable housing. Deputy Director Later replied Mr. Anthony provided a summary of the wait list. She noted the number is significant though includes variables.
Mr. Mueller shared there are different lists for multi-family, etc. Affordable units are sold last. When the project was finalized, there were no units left. Deputy Director Later said CPAH finds qualified buyers. Mr. Mueller described the affordable process as not very flexible.
Councilmember Stone asked how many condos are in Highland Park. She stated there is a need for family housing. Deputy Director Later shared at 425 Bloom there are 3-bedroom units. At 55 St. Johns, there are
2 and 3-bedrooms. She noted 3-bedroom units are in demand. Income levels must be qualified. All available affordable inclusionary units are full.
Mr. Mueller said the above relates to rental buildings. He is referring to condo purchases where 1-2 people per unit is typical. Deputy Director Later said she could obtain more information from CPAH.
Commissioner Bernstein said it is known the greatest need is for families. Mr. Mueller said families want houses with a backyard. Empty nesters are moving into condos from their homes (as there is no maintenance, yard work, etc.).
Commissioner Paushter asked if there is marketing for 3 bedroom units. Mr. Mueller stated there will be five 3-bedroom units with this project. Residents in these units elsewhere still house 1 or 2 people. At Laurel Court, the 3-bedroom didn’t sell so it was converted to a 2-bedroom. Deputy Director said that unit was a four bedroom converted to a three bedroom and was converted by the owner of the unit.
Mr. Gonzalez asked what the costs are for single-family or 2-bedrooms for affordable housing. Mr. Mueller said 2-bedroom units sold for $175,000 and $230,000 (at 65 and 100%% AMI). Deputy Director Later said the 2022 HUD income units are coming. Everything will be updated.
Councilmember Stone asked how does the payment-in-lieu proposed create affordable housing opportunities. Mr. Mueller said a unit could be purchased off-site and donated to the City. The code offers this option. She asked if this has been done in the past. Deputy Director Later said no, but it is an option in the code. Mr. Mueller said it will provide affordable housing in Highland Park. He noted this was approved for the Albion project (the City can determine how to use the payment-in-lieu funds).
Chairman Berkun said the fee-in-lieu is not the cash amount for a home or unit. It is used to leverage property. Mr. Mueller concurred.
Councilmember Stone read the code 150.2115 and said the HC has to make the determination.
Mr. Mueller asked what the $1.4 million from the Albion project went to. Deputy Director Later said at that time the HTF was at a record low amount. Cash was a benefit. This was a consideration for the payment-in-lieu. Mr. Mueller said they are intending to pay 1/3 of the units. Commissioner Paushter said Albion money was used for scattered sites. The HC needs to decide the best utilization.
Chairman Berkun said, though the fee-in-lieu is a minimum acceptable number, the intent is to create the housing unit. The onus is on the developer as to why or why not.
Deputy Director Later shared the intent of the code is to have the units on site, a discretionary approval of the HC for the payment in-lieu should be equal to or greater to having a unit on site.
She identified Betsy Lassar, Janet Swartz, and Steve Sanderman in the audience. Ms. Lassar said she wrote one of the letters and emphasized this conversation is thoughtful. It is a process issue. The intent of the code is to provide units on-site. If a developer is proposing an exception, the timing is key; has to be a high bar. For all projects seeking an exception, the HC must review affordable unit location.
Mr. Mueller said, when reviewing the second the third floors, the 2 affordable units have no alternate location. The project must be flexible. The provision for fee-in-lieu should be on a case-by-case basis. If another affordable unit is added, it would sacrifice a market-rate unit.
Student Rep Chase asked if the $125,000 fee-in-lieu is fair. Chairman Berkun said this is a valid point. He believes the number needs to rise. Deputy Director Later advised staff is preparing an update analysis regarding payment-in-lieu. The $125,000 is a minimum. Chairman Berkun summarized they are not insensitive to the market reality. He stated we are not there yet.
Commissioner Sykes asked, regarding the size of the affordable unit, if it could be reconfigured to add a ½ bath, a full bathroom, or three 2-bedroom units. Mr. Mueller said, regarding market rate and affordable units, finishes are different. For this project, finishes are the same with the exception of appliance brands. Chairman Berkun said less expensive appliances can be replaced easier than higher end ones. Mr. Mueller said they could consider a revision for a half bathroom. Commissioner Sykes said she would rather have more units than an additional bath.
Chairman Berkun would like to give the developer time to reconsider. He reminded the developer said it is difficult to market a 3-bedroom. A ½ bath could be added, and a fee-in-lieu for an off-site unit.
Mr. Mueller said they would use the $175,000 to buy an off-site unit (perhaps the Spanish Courts and condo buildings across the street). He believes the City should make that purchase. Chairman Berkun stated the developer could pay the fee-in-lieu for athe 0.4 unit without discussion. She said the location of affordable units could be discussed, etc.
Commissioner Gonzalez asked if there are other options for the location. Mr. Mueller said they could relocate the affordable units, but they would be inferior. Commissioner Gonzalez asked, if the locations are changed, if a third unit could be added. Mr. Mueller said – no. Chairman Berkun asked that a ½ bath be added to the inclusionary units
Commissioner Bernstein is astounded that only 1-2 people are housed in these condos. She referenced the Comprehensive Plan, and the HC’s priorities.
Councilmember Stone said the waitlist includes different demographics and families.
Mr. Mueller reminded, in this building, ¾ of the units are 2-bedrooms. Projects for condos don’t usually include children.
Commissioner Paushter believes if a ½ bath was added, it would remove living space. Mr. Mueller said it could be in a closet area, etc.
Commissioner Sykes asked about the five 3-bedroom market rate units. Mr. Mueller said the third bedroom would be used as a study. He shared ¾ of the units are 2-bedrooms.
Chairman Berkun asked and Deputy Director Later said she would obtain marketability from CPAH. She noted the developer could amend his plan and come back to the HC with a new proposal rather than the HC telling the applicant what to do.
Mr. Mueller said, as the Plan Commission meeting is in two weeks, they prefer not to continue this meeting. Deputy Director Later shared the HC reviews this plan preliminarily, and then a final approval takes place. She read same from the code. There is a 60-day period for the HC to make its recommendation. Councilmember Stone said a preliminary and final approval can be combined for the Plan and Design Commission but not the HC.
Chairman Berkun asked if a special meeting could be added to review any revisions (from the developer with input from CPAH).
Ms. Swartz expressed, based on appropriate discussion about payment-in-lieu, etc., a condition could be a greater fee-in-lieu amount.
Deputy Director Later advised to keep the discussion of the payment in-lieu separate from the HC review of this project. The analysis of the payment in-lieu would be a recommendation to the City Council for the 2023 budget and would affect all projects. She summarized the HC’s options tonight.
Commissioner Paushter feels the time pressure is surprising as the HC just heard this proposal tonight. Mr. Mueller said they have been trying to meet with the HC since December 2021. Deputy Director Later explained that the inclusionary housing plan is part of the PUD application; it does not stand alone as a separate application so it cannot go before the HC until the full PUD public hearing application is submitted. Mr. Mueller said there would not be HC’s information to present to the Plan and Design Commission on April 19, 2022.
He would like to know the HC’s concerns – ½ bath, increased fee-in-lieu, etc. Commissioner Sykes recalls the options are to have the developer purchase units elsewhere, increase fee-in-lieu, etc. Chairman Berkun would like a conditional approval tonight with a ½ bath added, and an increased fee-in-lieu to be established at a later date. He does not believe adding a 3-bedroom unit is feasible.
Commissioner Gonzalez read the least deviation option. He suggested the fee-in-lieu should cover a 3- bedroom rather than a 2-bedroom. Discussion took place on AMI percentages on 2 or 3 affordable units.
Ms. Lassar stated, if there are 3 units, it would have to be 2 at 65% AMI.
Councilmember Stone asked if the fee-in-lieu proposed creates greater affordable housing opportunity. She asked if the fee-in-lieu is appropriate at all.
Ms. Swartz said buying an off-site condo is not always easy due to condo by-laws. The developer should not purchase an off-site condo.
Commissioner Paushter said perhaps preliminary approval should be based on adequate gain of the fee in-lieu. Commissioner Bernstein concurred. She likes the idea of a 3-bedroom condo being purchased.
CPAH should offer input. Deputy Director said a three-bedroom unit in this development is a known product. Buying a three bedroom unit elsewhere in the City may not be commensurate with what is being offered at this development.
A requested by the Chair, Deputy Director Later summarized the motion could entail conditions such as:
1. Provide plans to incorporate a ½ bath in the 2 inclusionary units
2. Approve a concept of a payment-in-lieu to be determined at a future time at a rate equivalent or better than a 3-bedroom that would be sold at 1950 Sheridan Road
Ms. Lassar said the fee would be tied to what a buyer would need to purchase for a 3-bedroom unit in the building.
Commissioner Paushter said the motion could be stated to receive a payment that we are not getting with a 3-bedroom condo in this building.
Councilmember Stone questions the motion being vague. Perhaps Planner Coleman could provide more background on the history of the payment in-lieu. Deputy Director Later said that is part of the payment in-lieu analysis and separate conversation. Councilmember Stone said if the $125,000 is the base amount for a fee-in-lieu, though the 3-bedroom is not being provided, the payment could be higher and decided later.
She rephrased that:
∙ one option could add a ½ bath in the inclusionary units
∙ payment-in-lieu is acceptable because the 3-bedroom unit is not being provided, and a higher rate would be determined as to what a cost would be at 1950 Sheridan Road
Commissioner Paushter suggested a motion that the developer consider and provide plans to add a ½ bath in the inclusionary units. The HC accepts a payment-in-lieu for a more marketable unit comparable to an affordable unit at 1950 Sheridan Road to be greater than the base, all for approval by City Council.
Deputy Director Later reiterated the plan review and approval process of the Plan and Design Commission, the HC, and City Council. City Council can adopt, modify, accept, etc. the recommendation from the Housing Commission. Discussion took place on wordsmithing the motion.
Commissioner Paushter moved that plans be provided for ½ baths in the inclusionary units with the developer to provide a fee-in-lieu the HC determines as appropriate with the amount to be decided at a future date. Commissioner Sykes seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously. Deputy Director Later said Staff would provide draft Preliminary Findings of Facts at the May HC meeting. Mr. Mueller said he will bring a final application in May.
A break was taken at 10:20 p.m.
Chairman Berkun thanked Student Rep Chase for his good comments. Councilwoman Stone thanked everyone for the thoughtful discussion.
The meeting resumed at 10:25 p.m. Planner Coleman departed the meeting.
2. Reopening of Peers Senior Housing Property
Deputy Director Later stated ERES provided Covid guidelines for low-to-moderate risk on Pages 210-211 of the packet. She asked the HC for feedback on 7-day cleanings. After some discussion, no one objects to reducing cleanings. Deputy Director Later said the patios had been closed and chairs reduced. Commissioner Paushter suggests reopening the patios. No one objected. Deputy Director Later mentioned reinstating events, mahjong games, and other activities. Everyone is in favor of reopening activities. Chairman Berkun asked and Deputy Director Later said she would work with Evergreen staff to post information to residents, etc.
Student Rep Chase departed the meeting at 10:33 p.m.
3. Tours of Peers, Ravinia, and Sunset Woods Properties
Deputy Director Later said two City Council members would tour Peers on April 22, 2022. Tours for Ravinia and Sunset Woods are forthcoming for the HC members.
Councilmember Stone said she and others on City Council might attend as well. Deputy Director Later will work with the City Manager. She asked that HC members provide her with available dates and times. An email reminder will be sent.
STAFF REPORT
A new Senior Planner and Housing Commission staff liaison begins on April 18, 2022. Deputy Director Later will still be present, involved, and available for questions at the HC meetings. She noted the Housing program is complicated with all its facets.
ADJOURNMENT
Commissioner Bernstein moved to adjourn the meeting at 10:38 p.m. Commissioner Fernandez Sykes seconded the motion.
On a roll call vote
Voting Yea: Chairman Berkun, Commissioners Bernstein, Fernandez Sykes, Gonzalez, & Paushter
Voting Nay: None
Chairman Berkun declared that the motion passed unanimously.
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