City of Highland Park Housing Commission met Oct. 19.
Here are the minutes provided by the commission:
CALL TO ORDER
At 6:35 p.m., Acting Chair Dennison 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: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez
Commissioners Absent: Chairman Berkun; Commissioners Paushter, & Valbrun
Councilmember Absent: Blumberg
Student Council Absent: Chase
Staff declared that a quorum was present.
Staff Present: Later & Akash
Guests Present: Irina Leykin/ERES
Richard Koenig/HODC
BUSINESS FROM THE PUBLIC
There was no Business from the Public.
APPROVAL OF MINUTES
Regular Meeting of the Housing Commission – September 7, 2022
Commissioner Bernstein moved to approve the September 7, 2022, regular meeting minutes as presented. Commissioner Gonzalez seconded the motion.
On a roll call vote:
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
Acting Chair Dennison declared that the motion passed unanimously.
SCHEDULED BUSINESS
1. Items for Omnibus Vote Consideration
• Payment of Invoices
• Ratification of Payments
Senior Planner Akash advised there is nothing outstanding.
2. Peers, Ravinia, Walnut, Sunset Woods Associations, & Housing Trust Fund
• Consideration of ERES Management Report and Financials
Peers
Acting Chair Dennison referred to his memo and Page 15, balance sheets, other assets, and asked why accounts receivable went negative. Ms. Leykin said an inspection took place. No leaks were found, and no toilets are running. She noted inspections will continue. Regarding accounts receivable, she will research.
Commissioner Gonzalez inquired about the vacant apartment. Ms. Leykin replied the apartment is filled, and Peers is 100% occupied.
Commissioner Bernstein referenced the new Administrative Assistant. Ms. Leykin advised her name is Svetlana. Senior Planner Akash will forward her contact information.
• Sunset Woods Financials
Acting Chair Dennison referenced Page 30 and raised the issue of accounts receivable going negative. Mr. Koenig stated sometimes there are prepaid rents so the accounts receivable goes negative. He noted it evens out over time.
• Housing Trust Fund (HTF) Financials
Senior Planner Akash advised there is nothing outstanding.
• Other Association Business
Deputy Director Later advised this will be discussed later in the meeting.
OLD BUSINESS
1. Approval of Walnut Housing Association (WHA) Dissolution and Transfer of Funds Senior Planner Akash provided an overview from the June meeting. She noted a vote will take place of a dissolution of Walnut Place and a resolution of its assets to Sunset Woods Association
Deputy Director Later advised the assets from the Walnut Housing Association should be transferred to Sunset Woods Housing Association. It would pay off Sunset Woods loan; a good opportunity rather than paying that loan for 19 years. Acting Chair Dennison concurred.
Commissioner Gonzalez asked about the $105,000. Deputy Director Later shared there is a $112,000 loan remaining that will be transferred to Sunset Woods. There will be $6,000 left and none remaining by 2024.
Commissioner Fernandez Sykes moved to approve the plan for the Dissolution of Walnut Housing Association. Commissioner Bernstein seconded the motion.
On a roll call vote:
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
Acting Chair Dennison declared that the motion passed unanimously.
Commissioner Bernstein moved to approve the Resolution for the transfer of the asset of Walnut Place Housing Association to the Sunset Woods Housing Association for the repayment of the loan from the Peers Housing Association. Commissioner Gonzalez seconded the motion.
On a roll call vote:
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
Acting Chair Dennison declared that the motion passed unanimously.
2. Ravinia Refinance Update
Deputy Director Later referred to the memo. She attends a meeting every Wednesday with PNC and Evergreen’s financial analysts. They refrained from pursuing Peers. The hope was to relieve the burden of the mark-to-market. It is not recommended to refinance at this time with the high interest rates.
Deputy Director Later advised the PCNA was conducted. She noted we are above the cap, are more aware of what needs to be done with Ravinia repairs, and explained the same.
Acting Chair Dennison asked that the results of the report/repairs be noted on the next meeting’s agenda. Deputy Director Later advised there is $277,000 in reserves at Ravinia. She shared Ravinia is in a good place, in good shape, is stable, has good debt service, etc. Money is still being invested in the property. Regarding the 75% payment that Commissioner Bernstein had requested, it generally is $35,000-$45,000. The payment does not need to be paid to HUD.
PNC will be giving back a considerable amount of the money with some amount that was used for PCNA report and analysis done.
In summary, PNC and Evergreen staff recommend the HC hold off on the refinancing of Ravinia.
Commissioner Fernandez Sykes moved to recommend to postpone the refinance of Ravinia Housing Association and to request to move the funds back from PNC. Commissioner Gonzalez seconded the motion.
On a roll call vote:
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
Acting Chair Dennison declared that the motion passed unanimously.
NEW BUSINESS
1. Consideration and Approval contract with Novogradac for Audit and Tax Preparation Services for Peers, Ravinia, and Sunset Woods Associations
Acting Chair Dennison referred to Staff’s memo. He noted:
• CohnReznick stated Ravinia would be more costly than Peers. Deputy Director Later stated she is unsure why and expounded.
• CohnReznick discussed Sunset Woods being below the filing threshold. Deputy Director Later said IDHA and City Council require these audits.
• Page 83, an A-133 audit. Mr. Koenig stated an A-133 has to do with federal grants; an additional review audit for more than $750,000 grant money. Acting Chair Dennison asked if Sunset Woods get federal grants. Mr. Koenig said it’s not relevant. Acting Chair Dennison said, based on the experience, he recommends Novogradac. Commissioners Bernstein, Gonzalez, and Fernandez Sykes concurred.
Commissioner Sykes asked why they went from 5 to a 3-year contract. Deputy Director Later advised this went out to bid for 3 years; a good reasonable time. Novogradac prefers a new contract every 3 years rather than renewing.
Comissioner Bernstein moved to recommended to approve a three-year contract, with an option to renew for another three-term if poosible, between the Peers, Sunset Woods, and Ravinia Housing Associations and Novogradac for audit and tax preparations services. Commissioner Fernandez Skyes seconded the motion.
Commissioner Fernandez Skyes moved to authorize the HC Chair to execute as amended the invidual three-year engagement letters between Novogradac and the Peers, Sunset Woods, and Ravinia Housing Association for audit and tax preparations services, Staff to work with Attorney to finalize them. Commissioner Gonzales seconded the motion.
On a roll call vote:
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
STAFF REPORT
1. CPAH Updates
Deputy Director Later advised there are no updates. She noted Deerfield contracts were approved at City Council.
2. Agenda Items
Deputy Director Later noted this will resume next month.
Acting Chair Dennison commended Senior Planner Akash and Deputy Director Later on preparing everything for this meeting.
Commissioner Gonzalez asked about a particular property for sale. Senior Planner Akash stated she will review and respond. Deputy Director Later noted that response will be sent to everyone.
ADJOURNMENT
Commissioner Bernstein moved to adjourn the meeting at 7:21 p.m. Commissioner Fernadez Sykes seconded the motion.
On a roll call vote
Voting Yea: Acting Chair Dennison; Commissioners Bernstein, Fernandez Sykes, & Gonzalez Voting Nay: None
Acting Chair Dennison declared that the motion passed unanimously.
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