Lake County Gazette

City of Highland Park Housing Commission met May 4.

Here are the minutes provided by the commission:

CALL TO ORDER

At 6:36 p.m., Chairman Berkun called an on-site meeting (and virtually through audioconference or video call via Zoom) 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, & Valbrun

Commissioners Absent: Paushter

Councilmember Absent: Blumberg

Student Council Absent: Chase

Staff declared that a quorum was present.

Staff Present: Fontane, Later, Akash, & Coleman

Guests Present: Rob Anthony/CPAH

Mark Mueller & Kyle Fell/Fulton Developers

BUSINESS FROM THE PUBLIC

There was no Business from the Public.

APPROVAL OF MINUTES

Regular Meeting of the Housing Commission – April 6, 2022

Commissioner Bernstein moved to approve the April 6, 2022, regular meeting minutes as presented. Commissioner Gonzalez seconded the motion.

On a roll call vote:

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

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

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 advised there is nothing outstanding.

• Sunset Woods Financials

Deputy Director Later advised there is nothing outstanding.

• Other Association Business

Deputy Director Later advised there is nothing outstanding.

OLD BUSINESS

1. Consideration of Preliminary and Final Approval of Inclusionary Housing Plan for 1950 Sheridan Road Deputy Director Later stated this is the Final Plan. The Petitioner has made two alterations: ∙ adding ½ bath in affordable units

∙ offering a $150,000 payment-in-lieu for the affordable unit not included

Planner Coleman highlighted:

∙ Project Summary

∙ Location of Affordable Housing Units

o First Floor Plan

Senior Planner Akash illustrated:

∙ Revised Floor Plans that includes the ½ bath in the affordable units

∙ Summary of Final IH Plan

o Departures from Code Provisions

∙ HC Action Requested

o $150,000 payment-in-lieu amount for the affordable unit not included

o ½ bath proposed (affordable baths have 1.5 baths in total)

Director Fontane summarized:

∙ Final Review and Findings

o $125,000 payment-in-lieu is the minimum set forth in the Code

o Applicant revised payment-in-lieu offer to $150,000

o City Council has not altered the current payment-in-lieu

o Budget time is a factor

o HC may respond to Applicant’s proposal

o City Council will then review and set the payment-in-lieu or not

Some HC comments are:

∙ Commissioner Dennison – believes a 3-bedroom unit would be fantastic. When a 3-bedroom unit is not on site, a payment-in-lieu is agreeable at a higher number. He explained $320,000 is an average cost and referenced scattered site locations and purchase price information. The number offered is significantly less.

Director Fontane stated the HC never set the payment-in-lieu amount. Commissioner Dennison clarified same, and Director Fontane said he would recommend against setting a payment-in lieu number. The HC could recommend the payment-in-lieu is sufficient or not.

∙ Commissioner Bernstein stated the request is for $125,000 for a 3-bedroom unit. She noted CPAH is good at finding attractive prices.

∙ Commissioner Dennison said the subsidy CPAH gets is not guaranteed. He noted we shouldn’t count on CPAH.

Director Fontane said City Council worked hard to attain CPAH as a partner. He expounded. The payment-in-lieu and other funding sources are used to cover the subsidy. Director Fontane explained the sources for the HTF.

Commissioner Bernstein reminded that CPAH has an annual operating grant. In the past year, $67,000 was used per scattered site unit.

Director Fontane said this is to leverage money. The ability is through CPAH.

Chairman Berkun thanked the developer for revising the plan. He asked if Mr. Anthony has comments.

Mr. Anthony reported construction costs are higher; harder to find properties in Highland Park; and prices are up. There are more communities in Lake County interested in supporting affordable housing. CPAH is competing with other communities now. He offered an example with Libertyville. A fixed amount of resources is available.

Director Fontane said they look for ideas from the HC. He believes it is not a good idea to set policy for one petition.

Mr. Muller noted they considered inflation and homes that sold in the last 3 months. Information was distributed on this data. He stated inflation led them to the $150,000 payment-in-lieu number - as the purchase of 2 homes could be leveraged. The ½ bath (worth $30,000-40,000) is now offered. The same finishes and windows are being placed in the affordable units and the market rate units. They hope to receive a positive recommendation to City Council.

More HC comments:

∙ Commissioner Gonzalez asked for a percentage or range applicable for the payment-in-lieu. Director Fontane said that is setting a policy.

Director Fontane reiterated the applicant’s proposal with a recommendation is what is at hand.

Commissioner Gonzalez said the HC has to be sure it offers more affordable housing and CPAH’s support is needed.

Director Fontane said the HC should decide if the $150,000 is adequate or not. He stated the general affordable housing needs should be a separate conversation.

Chairman Berkun reminded $125,000 for payment-in-lieu is the minimum.

∙ Commissioner Dennison said the code states affordable units should be on-site. This plan would lose an affordable unit in a great location.

∙ Commissioner Fernandez Sykes said the ½ bath may be taking away from living space. Mr. Mueller explained the relocation of the former closet to accommodate the powder room. Mr. Fell expounded.

Director Fontane explained motion options.

Commissioner Fernandez Sykes said the HC is approving:

o Location of affordable units

o ½ bath

o Payment-in-lieu

Deputy Director Later said a Preliminary Approval was made for the location of the affordable units. A revision was made by the Applicant for ½ bath in each of the affordable units along with a larger payment-in-lieu offering.

Chairman Berkun asked for a straw poll on if the additional ½ bath and payment-in-lieu are sufficient or not.

Additional HC comments:

∙ Commissioner Gonzalez appreciates the ½ bath. Regarding payment-in-lieu, he believes this needs to be checked as he is not happy with the number.

∙ Commissioner Valbrun appreciates the revisions.

∙ Commissioner Bernstein appreciates the ½ bath and expense. She likes the $150,000 offer. ∙ Commissioner Dennison said the ½ bath and location is excellent. He believes the payment-in lieu should be higher.

∙ Commissioner Fernandez Sykes likes the ½ bath offering. She believes the payment-in-lieu is a low number.

∙ Chairman Berkun said he believes we are changing course to ask for a higher amount. He supports what is offered.

Director Fontane suggested a vote for a recommendation or not as proposed.

Mr. Mueller said there are 3-bedroom home demands. He asked if the fee-in-lieu is too low, would a higher amount satisfy the payment-in-lieu? Chairman Berkun stated the payment-in-lieu amount discussion cannot be made by the HC.

Director Fontane reminded a 3-3 vote is a tie.

Commissioner Dennison moved to recommend approval of the Inclusionary Housing Plan for 1950 Sheridan Road subject to an increase in the payment-in-lieu. Commissioner Valbrun seconded the motion.

Commissioner Gonzalez asked to amend that this offer as presented by the Applicant and continue with the project as it is good for the City of Highland Park.

Deputy Director Later said this will go to City Council following this recommendation.

Commissioner Dennison amended the motion to recommend approval of the Inclusionary Housing Plan for 1950 Sheridan Road with a payment-in-lieu amount to be equal to or greater than units that would be on site.

Director Fontane stated he doesn’t recommend amending the motion. Commissioner Dennison withdrew the amendment.

Deputy Director Later restated Commissioner Dennison’s motion:

Commissioner Dennison moved to recommend approval of the Inclusionary Housing Plan for 1950 Sheridan Road as proposed with a payment-in-lieu amount to be more than offered. Commissioner Valbrun seconded the motion.

On a roll call vote:

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

NEW BUSINESS

1. Consideration and Approval of CPAH 2021 Scattered Site Drawdown #4 – 1287 Ridgewood Commissioner Bernstein moved to approve $67,500 for CPAH’s 2021 Scattered Site Drawdown #4 for 1287 Ridgewood. Commissioner Dennison seconded the motion.

On a roll call vote:

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

2. Consideration and Approval of CPAH Operating Grant Request and Status Report – Q1 2022 Commissioner Gonzalez and Deputy Director Later referenced Page 166.

Mr. Anthony stated the report is in the packet. He shared, regarding the Land Trust Program, construction was completed. He explained the family is happy. Race and ethnicity data are included.

Mr. Anthony also noted CPAH just received a 3-year grant for a Housing Counselor and Community Engagement Specialist who will assist to close the black/white and wealth gap regarding affordable housing.

He shared the following:

∙ 1968 Linden was purchased by a mixed Asian/Caucasian male (his mother had a shop in Highland Park).

∙ 1958 Linden is under contract to sell in May. The buyer is a Hispanic family that grew up in Highland Park.

∙ 1246 Ridgewood is undergoing rehabilitation and expected to be available in late Spring Mr. Anthony noted all inclusionary units are occupied.

Commissioner Bernstein moved to approve CPAH’s Operating Grant Request and Status Report for Q1 2022. Commissioner Gonzalez seconded the motion.

On a roll call vote:

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

3. Consideration and Approval of CPAH 2022 Development Grant Request

Deputy Director Later referenced Page 173 noting this is a request for a grant for 8 townhomes.

Commissioner Fernandez Sykes moved to approve CPAH’s 2022 Development Grant Request. Commissioner Valbrun seconded the motion.

On a roll call vote:

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

Director Fontane said they are happy about the 8 townhomes. He noted the Planning and Zoning Commission will review the proposal. Mr. Anthony said the PDC pre app meeting is in June.

Deputy Director Later referenced Page 186 noting this authorizes the Chair to execute this agreement with CPAH. Director Fontane said the resolution and grant agreement should be approved separately.

Mr. Anthony said he has to return to the HC, so he is not opposed to having this at the next meeting.

Director Fontane said Staff will draft this. Deputy Director Later noted Corporation Counsel would review same.

Commissioner Dennison moved to direct Staff to draft the Grant Agreement and Resolution. Commissioner Sykes seconded the motion.

On a roll call vote

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

4. Consideration of Payment-in-Lieu Update and Recommendation

Director Fontane said this is an introduction. The next meeting will have the details. A memo will be sent to the HC before the next meeting. He noted this is a policy discussion on the fee amount to be recommended to City Council. This fee has not been changed since 2013. It is intended to defray costs on Affordable Housing. Highland Park is one of the first to do Affordable Housing in a meaningful way.

When setting a payment-in-lieu, if the amount is too high, a developer won’t offer it. If it is too low, units won’t be on-site.

City Council has granted discretionary payment over the years. Director Fontane referenced such buildings. He noted these payments bolstered the Housing Trust Fund (HTF). Scattered Sites were referenced. The intent is to have on-site inclusionary units. The HTF is in good shape with the funding received.

∙ Sale of 1974 Green Bay Road

∙ $74,000 at Walnut Place of city owned property to owners. The long-term relationship ended. The building will still be affordable.

Director Fontane noted these are rare deposits. The main source is the demo tax, fees. He summarized noting this is a background.

Commissioner Dennison asked about surplus funds from Peers. Director Fontane said those funds are separate from the HTF.

The payment-in-lieu is a relief valve instead of providing on-site units. If the HTF is low, the impetus would be for payment-in-lieu. The HTF is not low now. There is no magic number but considerations of many things (leverage, inflation). The key policy question is for the HC to consider is the estimated costs of providing an affordable unit.

A secondary policy is intended to remedy the lack of investment and upgrades in these units; bringing units up to a higher standard. These costs should not be deferred to the buyer. Director Fontane asked how much are we trying to capture from the government subsidy that’s required?

There are broad items to be aware of. It’s not about acquisition but bringing units that can be occupied up to productive status. Units being demolished are more affordable than those replacing them.

Director Fontane asked the HC to think about these things. Programmatic assumptions will be discussed. Setting a payment-in-lieu makes sense. There has to be some balance.

Former criteria was:

∙ amount should relate to the cost of making a unit of market rate housing affordable to households at target income level

∙ amount should be reasonable to not put a burden on the developer

∙ easy to understand based on presumptive data

STAFF REPORT

Deputy Director Later introduced Senior Planner Rati Akash who will be the new HC liaison. She and Planner Coleman will still attend HC meetings in the near future.

Ms. Akash shared she has a background in architecture and a master’s degree in urban planning. She worked privately and in public sector. Deputy Director Later said Senior Planner Akash and Planner Coleman work with the HPC as well. Chairman Berkun welcomed Ms. Akash and thanked Deputy Director Later for her efforts.

He asked about the Peers and Ravinia refinance. Deputy Director Later said there is nothing to report. She noted a concept memo will go to HUD for approval and expounded. Chairman Berkun asked and Deputy Director Later stated HUD has strict guidelines; there is no option to expedite this. Director Fontane said HUD is aware of the context.

ADJOURNMENT

Commissioner Valbrun moved to adjourn the meeting at 8:16 p.m. Commissioner Dennison seconded the motion.

On a roll call vote

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

Voting Nay: None

Chairman Berkun declared that the motion passed unanimously.

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