Loading...
HomeMy WebLinkAboutMinutes 2007EVA NSTON HOUSING COWNIISSION MINUTES January 18, 2007 Present: Robin Snydennan Pratt, Chair, Carol Balkcom, Eric Beauchamp, Judith Hutwich, Jean Keleher. Michael Marcus, Susan Munro Absent: Sara Ashmore Diggs, Sue Sinnamon Staff: Donna Spicuzza. Housing Planner 1. Call to Order The meeting was called to order at 7.15 p.m. and the Minutes of the December 14, 2006 meetings were approved. New member Michael Marcus introduced himself. II. Communications Ms. Spicuzza noted that at its December meeting, the Housing Commission recommended that Planning and Development Committee (P&D) approve the proposal for HOME funds from Housing Opportunity Development Corporation (HODC) for construction of a single family home at 1820 Dodge, pending any considerations from the Loan Committee. She said the Committee met and supported the application, and it was scheduled to go the P&D on February 12. Ms. Spicuzza said the City has about $1.5 million 1n HOME funds available to spend but may need to commit a portion of that by March 31 in order to meet timeliness requirements, according to the HUD Field representative. She suggested that the Commission consider priority uses for HOME funds similar to what was mentioned in relation to the City's Affordable Housing Fund. Ms. Spicuzza said that a request for proposals for a downpayment assistance program could be done that would combine both funds in order to reach buyers under 80% AMI with home funds, and up to 100% of median or higher with local funds. Members were concerned about the short time period and the threat of losing the funding. Ms. Spicuzza clarified that the amount was about $200.000 but she needed confirmation from HUD, as the reports that she consults on-line did not Include 2005 funding in the calculations and so did not indicate a shortfall. She said she would confirm the amount and may come back in February with a plan for committing the needed funds. (It was later confirmed by HUD that the calculation was a mistake and the shortfall was $80,000) Ms. Spicuzza also said that there would be an application for another Families in Transition Program on next month's agenda. 11. Election of Officers for 2007 Robin Snyderman Pratt announced that she was resigning from the Commission after five years and the passage of the Inclusionary Housing Ordinance. She said she feels the Commission there's good momentum. She said she feels she would be able to help the Housing Commission through her job at Metropolitan Planning Commission. Members expressed their thanks for her leadership. Judith Hurwich announced her term expires in February and that the February 15 meeting would be her last meeting as a Commissioner. Members asked Ms. Spicuzza to see if there were any applications for vacancies. Page 2, DRAFT January 18, 2007 Housing Commission Minutes Members then elected new officers for the new year. Judith Hurwich nominated Susan Munro as chair, it was seconded by Carol Balkcom, and passed unanimously. Susan Munro nominated Eric Beauchamp as vice-chalr, it was seconded by Carol Balkcom and passed unanimously. The members discussed having a liaison to the Planning and Development Committee. Ms. Snyderman Pratt said it was a big responsibility to have an organized presence at those meetings that could be shared, and she thanked Ms. Hurwich for her work as liaison and sharing that responsibility with the chair and vice chair. Ms. Hurwich said that she felt it was very Important for the Commission to have a consistent presence at those meetings. The meeting dates and times were discussed and the designation of liaison was tabled until the next meeting. They discussed whether they wanted a formal rote for a liaison to the Citizen's Lighthouse Community Land Trust (CLCLT). Ms. Snyderman Pratt said it would be important to Integrate the land trust into the way we do business in Evanston. Ms. Munro moved that Carol Balkcom be the liaison to the CLCLT and it was seconded by Ms. Snyderman Pratt and passed unanimously. Ill. Discussion of Inclusionary Housing Ordinance Amendment Approval Discussed its passage by a 54 vote. and noted the amended ordinance added some affordable housing on -site (30% of the set -aside). They discussed the amount of fee -in -lieu and how various amounts had been discussed and felt it was important to monitor its impact on developers and on the housing fund, since it could be revised annually. IV. Recommend uses for Affordable Housing Tax Fund Continuation of discussion on administration and uses of the Affordable Housing Tax Fund and review of the subcommittee reports. Ms. Munro summarized the Ideas for uses of a fund that the subcommittee discussed, and said they drew from Lake Forest and St Charles ordinances. They recommended that the Mayor's Special Housing Fund be merged, and recommended general principals: > Address a wide spectrum of housing needs throughout the city, I.e., ownership, rental, construction, rehabilitation, and preservation Align Evanston priorities with State priorities (housing for low- and moderate -income seniors, people with disabilities, people unable to afford housing near their work, persons at risk of homelessness, and persons living in existing affordable housing in danger of becoming unaffordable) to take maximum advantage of State programs Y Give preference to persons who live and/or work in Evanston 1- Target people eaming less than 120% of area median income (AIM) for ownership construction or rehab or 60% AIM for rental construction or rehab i Involve the Citizens Lighthouse Land Trust to increase opportunities for long-term affordability Allow proposals from both non -for -profit and for -profit developers who propose to build or rehab affordable housing Y Include both grants and loans Allow grants to build the capacity of not -far -profit organizations to respond to housing needs of low- and moderate -income persons (e.g., with homebuyer counseling) ➢ Maximize the impact of the fund by looking for new opportunities that are not covered by federal allocations and/or supporting proposals that will use the allocated fund to leverage additional resources v Be both responsive to proposals and proactive, issuing at least one request for proposals (RFP) a year based on an analysis of housing needs Page 3, DRAFT January 18, 2007 Housing Commission Minutes > Conduct periodic analysis of housing needs and use results to determine percentage of yearly allocation to be granted through RFP process and the nature of the RFP > Leverage additional public and private (philanthropic) funds, with the goal of obtaining matching dollars for funds released through the RFP process > Use the RFP process to stimulate partnerships among developers, not -for -profit organizations, and government Members discussed a number of points in depth, notable the income levels, some possible integration with area In Skokie that is in Evanston school districts, proposals from for -profit developers, affordability periods, and how to maximize leveraging other funding sources. Carol Saikcom suggested that the name of the fund should be changed to Affordable Housing Trust Fund or something that does not have the word Tax in it. The fund was named the Affordable Housing Tax Fund In the Demolition Ordinance and carried through in the inclusfonary Housing Ordinance. Ms. Balkcom then went over a document relating to the administration of the fund which she and Jean Keleher. She noted that it would include the following funds: 1. Proceeds from the affordable housing demolition tax 2. Fee in lieu payments as specified in the Inclusionary Zoning Ordinance 3. Any existing housing funds including the Mayor's Special Housing Fund 4. Proceeds from any future housing related taxes 5. Any donations from the Public Members suggested that the fifth example should be donations from the public or private sector. Ms. Balkcom said they recommended that the Community Development department would be responsible for the day-to-day maintenance and management of the fund and that fiscal management should follow current investment policies and practices. She noted, however they are not familiar with current practices. Mr. Marcus suggested that there might be a way to leverage investments from financial institutions by rewarding them with management of the fund similar to how the Chicago Community Trust is managed, but he did not know the specifics. Members suggested talking to the City's new finance director at a later point in time to talk about current practices and other possible options. Ms. Balkcom said they also recommended that an Affordable Housing Tax Fund Board assist in the management and administration of the fund, making recommendations on the following: (1) the goals for the Affordable Housing Tax Fund (AHTF); (2) the AHTF's operating budget --projected revenue and expenditures; (3) the AHTF's funding and award policies and priorities; (4) the AHTF's program requirements; (5) the AHTF's procedures for disbursing Fund resources, (6) the review of applications for AHTF awards; (7) the granting of awards; (8) the monitoring of Eligible Activities funded by the AHTF; and (9) the evaluation of AHTF activities. Members discussed the monitoring and evaluation In more detail, Page 4, DRAFT January 18, 2007 Housing Commission %Sinuses Ms. Balkcom said they also recommended that the Tax Fund Board subsume the existing Housing Commission, and be made up of 7 members, appointed by the City Council. Members discussed the current roles and purpose of the Housing Commission and whether subsuming the Commission was the best route. Ms. Munro pointed out that in addition to recommending funding, a large role of the Commission Is In recommending policies related to housing, such as the demolition tax, incluslonary housing, or vacant housing issues. Ms. Snyderman Pratt suggested that perhaps the composition of the commission be reviewed. so that It did not only focus on whether members are landlords, tenants or owners, and suggested that persons with legal expertise would be beneficial . Members suggested that the Commission might need to be broadened rather than subsumed. They suggested that in addition to reviewing HOME funds, it should have oversight of the local fund, which would be especially helpful in trying to leverage other funding sources as suggested. Ms. Munro said that she would try to merge the two documents discussed and would e-mail copies to Commission members for responses, The Commission will finalize the documents at the February meeting. Vil. Adjournment The meeting was adjourned at 8:50 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner IS EVA,1STOti HOUSING COWNIISSIO\ INII\UTES February I5, 2007 Present: Susan Munro, Chair, Carol Balkcom, Eric Beauchamp, Judith Hurwich. Absent: Sara Ashmore Diggs, Michael Marcus, Sue Sinnamon Staff: Donna Spicuzza, Housing Planner L Call to Order The meeting was called to order at 7:10 p.m. without a quorum present. 11. Communications Staff reported on a number of issues. Members received a copy of the Mayor's veto of the amended lnclusionary Housing ordinance and were Informed that the previously passed lnclusionary Housing Ordinance was scheduled to be implemented in mid March. The Law Department has concems about the ordinance being an Impact tax rather than a land use regulation because it requires payment of a fee from developers without addressing the creation of affordable units In new developments. Ms. Spicuzza said after the Mayor vetoed the amended ordinance a number of aldermen expressed a desire to try again to amend the ordinance. Commission members discussed various scenarios regarding inclusionary housing ordinances. Ms. Spicuzza reported that Housing Opportunity Development Corporation's HOME Proposal for 1820 Dodge will be on the February 26. 2007 Planning and Development Committee meeting. She referred to the HOME Program Timeliness Report which was members received and said that the commitment shortfall shown will be eliminated If funds are committed to HODC's project. Ms. Spicuzza also reported that Commission member Jean Keleher had resigned. The memo from Sue Calder of the Evanston Alliance on Homelessness to the Housing Commission was acknowledged and the Chair said they would discuss that during their discussion of the Affordable Housing Fund. Ili. Request for Mayor's Special Housing Funds from Connections for the Homeless for the Families In Transition program Members received a copy of the application from Connections to sponsor a household of two for the Families in Transition (FIT). This is Connection's third sponsorship of a family who graduated from their transitional housing program for homeless young families. The subsidy for the family they sponsored last year will expire in April and they are not requesting a renewal. Ms. Spicuzza said the exact amount of the subsidy for the new family will not be known until they know the contract rent, but her memo indicates that based on caps it would be between $425 and $495 per month or S5,100 to S5,950 for a year. She said it would likely be less than the cap so that the subsidy and the tenant's share covered the amount of the contract rent. Ms. Spicuzza introduced Cheryl Refuerzo of Connections for the Homeless. Ms. Refuerzo said since the agency is on the line for rent and supportive services when they sponsor an FIT applicant, they look for someone who has taken advantage of all the resources of Connection's transitional program and this family fits that criteria. The mother is now a full time Page 2, February 15, 2007 Housing Commission Minutes student at Oakton and wants to become a nurse. She works between 30 and 34 hours as a pharmacy technician. Ms. Balkcom asked more about their choice of for sponsoring a family. Ms. Refuerzo said that all the people in their transitional program were homeless, with limited education and job skills, During the two year program, the mother in this family has increased her job skills, has job stability, demonstrated she can follow through, and has other resources in place, such as day care. Ms. Hurwich asked about the previous family. Ms. Refuerzo said they have chosen to move out of state to be with other family members, but they did well in the program and the choice was not caused by any type of crisis. She said she went from working two part time jobs to one full time job that was better paying, so she did succeed in attaining some of her goals. Ms. Hurwich asked about long term goals for the proposed applicant and Ms. Refuerzo said that she has applied to universities in Chicago and also outside the area to study nursing. If she is accepted to a Chicago school she will attend In fall, 2007. but if she is only accepted at one outside the area. she will defer enrollment for a year. Right now she has limited choices for housing and since she hasn't heard from any of the schools yet, she feels the safest bet is to secure housing first. Mr. Beauchamp asked about the rent payments in Connection's program. Ms. Refuerzo said that families pay 10% of their monthly Income for rent up to S100 maximum, and pay 20% into a savings escrow account. Save. This family has been paying $100 for rent and S223 for savings. She said she always makes payments on time and has over S4,000 in savings from her monthly savings and tax returns. Ms. Munro asked to make sure she was accessing all the Earned Income Tax Credit regarding income tax. Carol Balkcom made a motion, seconded by Eric Beauchamp, to recommend that the Planning and Development Committee recommend Connection's funding request for a year up to a maximum of 55,950. Although there was not a quorum, the members present agreed that this is a suitable candidate for Families In Transition program. IV. Recommendations for Affordable Housing Tax Fund Members went over their recommendations for the fund, in response to the charge from the Rules Committee. The chair and vice chair will present to Planning and Development Committee on February 26. Kelli Harsch from BPI was In attendance to offer comments. Ms. Munro noted that they received a memo from the Evanston Alliance on Homelessness with suggestions for fund guidelines. Susan Munroe noted that they also received a staff memo regarding downpayment assistance program, which was a more specific program than their general recommendations. Ms. Spicuzza explained that the memo suggested a program that would serve two income levels, using HOME for households under 80% AMI, and the Affordable Housing fund for persons over 80%. The memo outlined points to consider in setting up such a program. Ms. Munro asked about the Employer Assisted Housing Program which provides downpayment funds. Ms. Spicuzza said that In the pilot program, 2 households received downpayment grants, and currently 3 or 4 currently are going through housing counseling and working with the housing counselor at HODC. She said the proposed program would be for anyone buying a home in Evanston, not just City employees. Members asked if it would be for first time homebuyers and Ms. Spicuzza said that was one of the identified issues that would need to be considered. Members moved on to discussing the general recommendations they prepared and the draft Power Point slide that Ms. Munro prepared. Mr. Beauchamp suggested adding a list of successes Page 3. Fcbnw), 15, 2007 Housing Commission Minutes In fast five years to demonstrate what affordable housing funds have been used for in the past They noted that the inclusionary policy is geared more for people in the low/ middle income range who can't afford to buy in Evanston, not for very low income households. They wanted to emphasize that in spite of the revenues they have, they are not necessarily where they want to be In terms of affordable housing. They noted that the stock has declined, even though they are above the state mandated minimum of 10% and discussed using BPI's analysis using the state's methodology of the amount of housing that is affordable to certain income levels. Kelli Harsch said she would provide that again for the members. Members discussed the slide about existing and potential sources of revenue in the fund and thought they should have data on current amount of revenue in the fund, Ms. Spicuzza said she would provide that information for them. They noted that they have used the Mayor's Special Housing Funds for a variety of uses including technical assistance for the Community Land Trust. matching funds for the Homeless Alliance's Information System, in addition to specific housing projects. However, there are no written guidelines for its use. They briefly discussed the memo from Sue Calder of the Evanston Alliance on Homelessness which asked the Commission to consider keeping the fund flexible in order to fund housing related activities other than specific projects. Another recommendation in their presentation is to be pro -active and use analyses to help determine priority needs for a year and seek requests for proposals that address identified needs. They also suggested leveraging other funds, such as foundations or state programs. Members discussed various options for administering the fund and decided not to make a specific recommendation other than to expand the composition of the housing commission to include other areas of expertise, such as realtors, attorneys, housing advocates, and so on. They also suggested incorporating the existing Mayor's Special Housing Fund into the Affordable Housing Fund. They talked about getting a staff person to administer the fund as it increases, suggesting that the person could also look for ways to generate additional funds to support staffing. In conjunction with that they discussed the state rental housing support act and Sue Calder talked briefly about the program, noting that the RFP has not yet been issued. She said Evanston would need to decide how they want to proceed, as a single entity, either through the City or a non-profit organization. or become part of the Cook County group. They requested more information on the program and Ms. Splcuzza said she is working on a summary and will provide it for next month. They did not discuss in detail suggestions to use funds for a downpayment assistance program and felt it would be a good idea to have a recommendation for a specific program, so will discuss It at the March meeting. Public Comment Fran Seidenberg noted that the League of Women Voters doing a survey of Commissions and is looking at other cities of similar size as Evanston. She said she was looking at a municipality in Colorado which has a more structured method of reuniting members and managing board composition. Other business This was Judith Hurwich's last Housing Commission meeting and members thanked her for her six years of service on the Commission. The meeting adjourned at 8,55 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner EVANSTON HOUSING COMMISSION MINUTES March 15, 2007 Present: Susan Munro, Chair, Sara Ashmore Diggs, Carol Balkcom, Eric Beauchamp, Michael Marcus Absent: Sue Sinnamon Staff: Donna Splcuzza, Housing Planner 1. Approval of Minutes Minutes of the meetings of January 18 and February 15, 2007, as corrected, were approved 5-0. ll. Communications Members received a report prepared by Property Standards on approximately 60 Vacant Buildings. Members asked about payment of fines and costs for board up or demolition that appeared on the report and decided that they would ask Community Development Assistant Director Stan Janusz to speak to them at the next Housing Commission meeting. They discussed the difficulties of determining ownership and getting contact information. Susan Munro suggested that property addresses or PINS could be entered into a program such as Reallnfo to get more Information. Ms. Spicuzza said that the Citizens Lighthouse Community Land Trust has done some Initial research into foreclosure issue, which contributes to vacant buildings. They have asked the City to request technical assistance from HUD to help them develop a program that would identify owner -occupied properties in the first stages of foreclosure, so that they could work with the owners before they lose their property. They would like to assist owners in refinancing their mortgage and putting the property in the Land Trust. Ms. Munro said that with the sub -prime mortgage Industry collapsing, there will be many more foreclosures in the future. Ill. Discussion of State's Rental Housing Support Act and Request for Proposals Ms. Spicuzza distributed a summary of the guidelines and regulations which recently came out, to Inform members about the program. They discussed the amount of money available and how it's divided between City of Chicago, suburban Chicago, and small metropolitan and rural areas. It is expected that the funding will provide 4,000 rental vouchers statewide, of which 2,500 will be outside of Chicago. She said that either a government, non-profit agency or housing authority can apply for funding as a Local Administering Agency to get an allocation of funds for rental unit subsidies. The program provides subsidies to private landlords for units that would be rented to extremely low income (<30% Atdi) persons. Applications must discuss how and where they would find landlords with suitable units who are willing to use the rental subsidies. The proposals should also target some severely low income persons (<15410 AMI) and would get points for serving special needs households, such as homeless, at risk of becoming homeless or persons with disabilities. This program differs from the Housing Choice Voucher program in that the vouchers are tied to specified units rather than given to households to find apartments on their own. Ms. Spicuzza said that the program has another component that provides separate pot of money for developers, offering long term operating support for units in new developments. The Request for Proposals for that program will be issued in the fall. DRAFr Housing Commission Minutes :March 15, 2007 Sue Calder, chair of the Evanston Alliance on Homelessness, told the Commission that the Alliance is considering how they can take advantage of the program but are not sure of the best strategy. The application is due in November. She said there's the option to apply just for Evanston or take a regional approach by joining with other groups in Cook County.. Members discussed how many vouchers Evanston could get and were told that it is based on need, according to the number of persons at poverty level in the defined service area. Ms. Munro said that the question before them is where Evanston will stand on applying for rental support through this program and what role the Housing Commission would play. Paul Selden of Connections for the Homeless spoke from the audience and noted that the Chicago Housing Authority is identifying landlords for Chicago's application. He said while a public housing authority is theoretically an ideal applicant, he feels that with Cook County government in turmoil, it would be unwise to depend on the Housing Authority of Cook County to administer the program and find suitable units. He encouraged the Commission to think locally, considering the City, Connections for the Homeless or another non profit agency as the Local Administering Agency. There was a discussion about defining a service area such as the north shore, neighboring communities, or northern Cook County. Ms. Calder said that the Suburban Cook County Alliance on Homelessness Is considering applying for funds, and since Evanston is not a member of that Alliance, they would not be included in the service area. She explained that years ago Evanston decided for establish a separate Continuum of Care for the homeless and so they are not part of the formal Suburban Cook County Continuum. Sara Ashmore Dunn noted that housing availability is limited in Evanston and she thought it would be good to include other areas. Eric Beauchamp said they should figure out what the rental maximum is and was told it would likely be the Fair Market Rents calculated by HUD. He said if the rent payment with the subsidy is less than a landlord is likely to get with a market rate rent, a landlord has no incentive to get involved. Mr. Seldon said that there is an incentive in the guarantee that the rent will get paid, Ms. Ashmore Dunn said that in today's market and with rising property tax bills it is difficult to meet rental building expenses, even with vouchers at HUD Fair Market Rent. Members agreed that they did think the City would be eager to be a Local Administering Agent but could endorse an application from a non-profit group for funds for Evanston. Ms. Spicuua said that both the Cily's Strategic Plan and Consolidated Plan mention the goal of working regionally to try to address housing problems. Many members thought that it was a good Idea to take in a larger area, and would be a good fit for Connections for the Homeless to administer the program. Ms. Calder said she was looking for input and the Evanston Alliance will decide how to proceed so that Evanston doesn't get left out if Suburban Cook County Alliance applies for funds. Ms. Munro suggested it might be worthwhile for staff from Connections who know area landlords to talk to City Community Development staff as well to share information and see if they have any ideas about landlords or sites. Ms. Calder said that if Connections for the Homeless does go forward with a proposal, they would seek an endorsement next fall from the City. Members said they support the concept and would recommend that the City endorse a proposal. V. Downpayment Assistance Proposal Members discussed the proposal from Ms. Spicuzza for using affordable housing funds in conjunction with HOME funds for a downpayment assistance program. The material included a chart showing existing programs and their characteristics, such as type of housing, Income limits, DttAFr Housing Commission Minutes March 15. 2DO7 and grant amounts. She said that most target households at or under <80% AMI, and are funded with local, rather than federal sources of funding, such as municipalities, counties or mortgage companies. The amount of the grants ranged from S3,000 to $30,000. A memo outlined basic program issues that would need to be decided. Ms. Spicuzza said that she still needs to do more research and provide data on sales prices and listings, and compare that to income levels to help determine the affordability gap. She said that typically most downpayment programs have offered S3,000 or S5,000, but that wouldn't make much of a difference in Evanston and the subsidy would have to be higher. She said the need is not simply augmenting the downpayment, but being able to afford the prices, Ms. Munro said that there needs to be a reasonable limit on purchase prices or people wouldn't be able to sustain the housing expenses. Mary Ellen Tamasy of Housing Opportunity Development Corporation spoke from the audience that the affordability restrictions attached to the subsidy could impact on going affordability. She said that if resale restrictions were placed on the property, that could lower the assessment and property tax bill. She said you could just require repayment upon sale but that doesn't provide long term affordability, Mr. Beauchamp noted that a number of lenders just recently announced they were discontinuing their 0% downpayment programs recently so this is a timely program. However, he said he felt capping the resale value was a high cost for homeowners to pay for a small amount of subsidy. Ms. Ashmore Dunn agreed and said resale restrictions start hitting the essence of ownership. Members agreed that have to look at the issues of how high the subsidy would be and whether It should be resale or recapture, as well as the length of the affordability period. Ms. Munro noted that the New Homes for Chicago program carried a 15 year affordability period for subsidies of about $50,000. The idea of structuring recapture so that at resale the owner returns a percentage of equity appreciation along with the subsidy was mentioned, which could help can grow the fund. Members discussed the first time homebuyer requirements. Most programs required it, and it was noted that the HUD definition states to qualify you can't have owned a home in the last three years although there are exceptions including displaced homemaker. Mr. Marcus asked about the Federal Home Loan Bank's program which did not require buyers to be first time homebuyers. Ms. Spicuzza responded that she worked at the Bank administering that program, and it originally had a first time buyer requirement, but their experience found that it disqualified many people who needed assistance. Other issues discussed included providing a preference for Evanston residents or workers and the maximum price. Members considered the possibility of tying it to Evanston's median sale price, which could be determined annually. Ms. Spicuzza said she could provide that either for all residential properties or separately for attached and detached homes. Ms. Balkcom said they should be careful about determining the subsidy amount and she felt that if it amounted to too much money she would rather see the funds going into a land trust for permanent affordable housing. Ms. Spicuzza also mentioned the need for housing assisted with HOME funds to be inspected and to meet property standards. She said they could educate realtors so they knew that any home likely to be eligible for a purchase subsidy would need to meet standards. Ms. Tamasy suggested they could also require that the purchaser get a home inspection and educate Inspectors on what they needed to took for. The issue of lender choice was discussed and it was agreed that they should work with local banks on the program and ensure that people don't gel risky loans. They noted that they would also have to allocate money for program administration as there would be a number of costs associated with the program, including homebuying counseling, marketing, working with lenders and others, preparing documents, and preparing subordinations after purchase. DRAFT Housing Commission Minuics March 15. 2007 They requested staff to get detailed information on other local programs including Arlington Heights, DuPage Home Ownership Center, and Lake County. They were also interested in how many people they served a year, to help them determine an appropriate goal and allocation of funds. Vl. Updates on Incluslonary Housing Ordinance Ms. Munro reported that the amended Inclusionary Housing Ordinance passed with a strong vote, It requires new residential owner -occupied developments of more than 25 units to set aside 10% of the units for affordable housing. Developers can also pay S40,000 in lieu of providing any set - asides. V11. Affordable Housing Fund Ms. Munro reported that Alderman Moran asked the Legal Department to draft an ordinance incorporating the Housing Commission's recommendations for the administration and uses of the Affordable Housing Tax Fund. She said the recommendation for establishing criteria for members of the Housing Commission to incorporate representation from various areas of the housing industry would be a separate step. Vill. Other Business Ms. Balkcom asked about the status of pledges for affordable housing from developers. She wondered if any developers with pledges had other projects In the pipeline. Ms. Spicuzza said she would get some information. She noted that many of the relevant developments had not yet come in for permits, but that Roszak's Sienna project was sent a bill for the first phase of the development. Members reviewed a letter from interfaith Housing Center regarding April Fair Housing Month, which encouraged the City to pass a proclamation supporting Fair Housing Month. A motion was made by Michael Marcus and seconded by Carol Balkcom to recommend that the City issue a Proclamation for Fair Housing Month. The motion passed 5-0. IX. Public Comment Betty Ester of the Citizen's Lighthouse Community Land Trust said that three years ago they asked the Housing Commission for help with technical assistance to establish a community land trust and that Sara Ashmore Dunn had been a liaison from the Commission to the Land Trust. She said she is back to say thank you and inform them that they have moved forward. She Introduced their new director, Wilfred Gadsen, who formerly worked on affordable housing with the City of Chicago. The meeting adjourned at 8:40 p.m. 4 ab Evanston April 18, 2007 NOTICE OF MEETING CANCELLATION EVANSTON HOUSING COMMISSION The April 19, 2007 meeting of the Evanston Housing Commission has been cancelled. It has not been rescheduled at this time, but notice will be provided if it is rescheduled. The next regularly scheduled meeting is Thursday, May 17. If you have any questions about the Evanston Housing Commission, please call the Planning Division at 847-866- 2928. APPROVED EVANSTON HOUSING CO` MISSION �ILNUTES Nlay 17,2007 Present: Susan Munro, Chair, Sara Ashmore Diggs, Bruce Nelson, Joanne Zolomij Absent; Carol Balkcom Eric Beauchamp Sue Sinnamon Staff: Donna Spicuzza, Housing Planner 1. Approval of Minutes Minutes of the meetings of March, 2DO7, were not approved I. Minutes: The meeting was called to order awaiting the arrival of a fifth Commissioner. New and continuing members introduced themselves. Minor corrections were made to the March minutes but were not approved because there was not a quorum. It. Communications: Donna Spicuzza reported that the draft Consolidated Annual Performance and Evaluation Report (CAPER) was approved by the Community Development Committee and is available on the web. It reports on the City's use of CDBG, HOME and ESG funds and will be submitted to HUD at the end of the month. She also reported that most of the 12 homeowners of City subsidized, resale restricted houses had applied for the Affordable Housing Incentive with the Assessor's office and will be getting reduced assessments which will lower their property taxes. III. Confirm Certification of Consistency with Consolidated Plan for HUD. The Commission heard from Sue Calder, chair of the Evanston Alliance for the Homelessness about the HUD funding available for Supportive Housing Programs, and the nine applications that the Alliance is submitting for funding. They confirmed that the proposals are consistent with the City's Consolidated Plan for continuing to provide housing and support for homeless persons. tv. Request for HOME funds from Evanston Housing Coalition for Wesley Apartments George Gauthier presented the funding proposal Purchased in 1986 and rehabbed again in 1990 by Evanston Housing Coalition. The original purchase and rehab was a partnership with National Equity Fund using tax credits but that partnership is now completed. The current funding request is for exterior repairs to the three California style buildings with open balconies at 2014, 2018 and 2024 Wesley. There are cracks in surfaces which allow water to get through and corrode the reinforcing steel in the concrete form and the concrete courtyard between the two buildings is cracking. Mr. Gauthier explained how the repairs and epoxy coatings will prevent water damage from reoccurring. There will also be tuckpointing as needed. He said the building hasn't been rated for violations but it has a bad appearance. Members discussed the need to make repairs and maintain safety. They talked about the process and need for possible temporary relocation of residents while some of the work is taking place. Ms. Ashmore Dunn noted that Evanston Housing Coalition does quality work and this work is necessary to preserve existing affordable housing. Ms. Spicuzza said staff recommended the five year affordability period which is the minimum required by the HOME regulations based on the per unit subsidy. She also recommended rounding up the funding request to S180,000 to cover any temporary relocation if necessary, but funds will be paid out based on contractor sworn statements and owner statements. She said the request would go to the Planning and Development Committee on May 29. 2007. Housing Commission %linutcs %fay 17, 2007 The members present recommended HOME funding of $180,000 for exterior repairs to the three adjacent buildings that serve 24 low and very low income tenants. V. Request for $50,000 In CHDO Operating Funds from Citizens Lighthouse Community Land Trust (CLCLT) Ms. Spicuzxa said CLCLT was granted CHDO status last year and recently applied for CHDO operating funds in the amount of S50,000. Staff reviewed the request and recommends funding of $15,000. She said this is in line with the amount the other three CHDO's received last year, and also complies with HOME regulations that limit CHDO operating funds to the lesser of $50,000 or 50% of the annual operating budget. She said that based on the organization's operating budget they wouldn't qualify for more than $15,000. The regulations state that the funding amount is based on fiscal year, but doesn't specify whether the fiscal year is for HUD In terms of allocations, the participating jurisdiction's or the organization. However, she said that based on expenses to date and expected increases, an award of S15,000 paid out over the organization's two fiscal years would meet the requirements. Wilfred Gadsen, executive director, elaborated on their need and thanked staff for their assistance with their funding requests. He said that board members often paid for expenses out of pocket but they were not costed out, and in the future they will be. He said that there have been significant increases in operating costs by quarter and they just started paying for office space and part time staff. Mr. Gadsen said the organization has worked for many years to prepare and is ready to take on projects, Their original request was based on the expectation that expenses will increase greatly as they take on projects, but they agree with the rationale of recommending $15,000. In response to questions from the Commission, Mr. Gadsen said that the land trust is a national model for promoting affordable housing and has been around for over 20 years. Locally there are community land trusts in Highland Park and Chicago. He said the non-profit land trust gains title to the land and owns It while time family seeking affordable housing purchases the improvement on the land — the housing - with mortgage financing. They don't purchase the land itself. The resale formula keeps it affordable in the future and addresses property appreciation. The formula provides some equity appreciation for the homeowner, but keeps the housing affordable when it is resold. Ms. Zolomij asked if that lowers property taxes. He said the properties will be assessed separately from market rate properties. The members present supported the staff recommendation of $15.000 in CHDO Operating funds. Vl. Request for HOME funds from Citizens Lighthouse Community Land Trust for their first Affordable Housing Projects The Commission reviewed the three proposals for approximately $100,000 each with the Executive Director Wilfred Gadsen and Board members Betty Ester and Jill Graham. One proposal was for a house for sale through a realtor in lieu of foreclosure, another was a new condominium conversion, and a third was a single family house in move -in condition for sale on the open market. Ms. Spicuzza said that the HOME Loan committee met with staff and land trust to discuss the applications, she said they need more review, but were brought to housing commission to give them opportunity to see what the land trust is proposing. She said the Loan Committee recommended they start with one project at a time. Since the organization is still negotiating prices on some properties, they did not discuss specific addresses during the meeting, Ms. Spicuzza said she had to do further investigation into whether a community land trust can use HOME funds for acquisition and resale without any rehab and the HUD Geld representative referred her to another HUD staff resource. Housing Commission Minutes fay 17, 2007 Members discussed the Issue of purchasing homes in move4n condition and asked whey they weren't targeting vacant buildings as originally conceived. Mr. Gadsen described their efforts to purchase vacant buildings over a period of months and noted that after they had looked at some properties with their development partner, Evanston Housing Coalition, the houses were sold to other purchasers. They had reviewed some of the projects with staff as well, but those were subsequently sold. He said they were interested in putting their model to work, and if the land trust purchased a house in move -in condition on the open market, they were still fulfilling the mission of creating and maintaining affordable home ownership. He noted that unlike Chicago, Evanston did not have property or vacant lots that It could provide to affordable housing organizations. Some of the members agreed with the Loan Committee's recommendation that the organization should start with one project, and all members present recommended that staff review the proposals in light of the issues identified In more detail and bring their recommendations directly to the Planning and Development Committee for funding up to 5100,000 per property in order to expedite the organization's purchase of a property. Vll. Request for additional HOME funding from Evanston Community Development Association for condo conversion at 736-738 Dobson Keith Banks of ECDA and architect and project manager Kevin Campbell updated the Commission on the status of the rehab of 736-38 Dobson and discussed the cost overruns. They are requesting between $100,000 and $125,000 in additional funding for rehab costs associated with electrical. plumbing, lead abatement on the back porch and sprinkler system work. They have used all the 10% contingency that was in the budget and encountered additional costs related to plumbing drainage, and the need for new water service and supply pipe, which were not included in development estimates. The new water service was related to the sprinkler system requirements and it took awhile to determine whether or not it was needed. Members asked about marketing, targeted income levels and the curriculum for home purchase counseling. They suggested that post purchase counseling include segments on individual budgeting and condo budgeting Including the importance of replacement reserves. Mr. Banks said that Reunion Management has made a commitment to work with the association for three years. Members also discussed ECDA's other funding sources and the availability of HOME funds. The members present agreed that the request for additional funding should be considered by the City Council. VIII. Discussion of Downpayment Assistance Program Proposal The discussion was tabled until next month after review of the Affordable Housing Fund Guidelines at which time additional information on programs in Arlington Heights, Lake County and DuPage County will be provided. IX. Update on Recommendations for Affordable Housing Fund Members received a copy of the Guidelines recommended by the Planning and Development Committee X. Public Comment. There were no public comments. The meeting adjourned at 9:00 p.m. The next meeting is scheduled for 6121/07. Respectfully submitted, Donna Spicuzza _ J City of Evanston - June 21, 2007 NOTICE OF MEETING CANCELLATION EVANSTON HOUSING COMtiiiSSiON The June 21, 2007 meeting of the Evanston Housing Commission has been cancelled. The next regularly scheduled meeting is Thursday, July 19, 2007. if you have any questions about the Evanston Housing Commission, please call the Planning Division at 847-866-2928. APPROVED EVANST04N HOUSING COMMISSION i1INUTES July 19, 2007 Present: Eric Beauchamp. Acting Chair, Sara Ashmore Diggs, Carol Balkcom, Bruce Nelson, Joanne Zolomij Absent: Susan Munro Staff: Donna Spicuzza, Housing Planner 1. Call to Order The meeting was called to order at 7:10 p.m. The minutes for March15 and May 17, 2007 were approved. 11. Communications Members were updated on funding requests they had reviewed: Evanston Housing Coalition was awarded S180,000 In HOME funds for exterior rehab on Wesley Apartments; Citizens' Lighthouse Community Land Trust was awarded S99,500 for the purchase and rehab of a single family house for resale to an income eligible purchaser, Evanston Community Development Association's request for additional funding of about $123,000 for rehab of its condo conversion at 736-738 Dobson will be presented to the Planning and Development Committee on July 23. Ms. Spicuzza also mentioned the opportunities for public Input into the downtown planning process. Member Carol Balkcom asked for an updated status of developer contributions on pledges to the Affordable Housing Fund. III. Consideration of a request for Affordable Housing Funds from Connections for the Homeless for HMIS Matching Funds Paul Seldon of Connections for the Homeless discussed their request for $11,035 for the HIED mandated Homeless Management Information System for the Evanston Alliance on Homelessness. He said that Connections manages the system for the Evanston agencies in the Alliance that receive supportive housing program funds from HUD. Ms. Seldon said HUD requires continuums of care to have a management information system if they use Supportive Housing Program funds and therefore the system leverages over S1 million in federal money for homeless programs in Evanston. He said that Connections will receive S45,764 from HUD for its $56,700 HMIS program, and must match 20% of the HUD funding. Members reviewed the report from Connections on the use of the S10,000 received from the Mayor's Special Housing Fund for the same purpose in 2005. Bruce Nelson asked if their system can interface with the Chicago continuum's system and Mr. Seldon said it could not - He added, however, that Chicago uses a different vendor and they have had so many problems with their system, it is not even operational yet. He said that Evanston's system has been in plane for a full year, and they are very pleased with the results. He noted that in addition to collecting data and creating reports from the agencies, the system works well for daily operations and the caseworkers at Connections use it to manage their case loads. Carol Balkcom moved to recommend funding the S11,035 request and it was seconded by Joanne Zolomij. The motion to recommend funding passed 5-0. Housing Commission Nfinutcs July 19, 2007 IV. Consideration of a request for Affordable Housing Funds from Housing Opportunity Development Corporation for repairs to 1930 Jackson Mary Ellen Tamasy of HODC presented information about two funding requests, the first being the request was for 584,760 for repairs and maintenance of the interior and exterior of the 2-flat 1930 Jackson. She said that that HOME funds cannot be used for the project because HODC received 544,000 in HOME funds in 2004 for rehab of the three -unit property and the affordability period is still in place. Ms. Tamasy said the rear coach house is currently rented and does not need any repairs, but the 2-flat needs significant repairs. They include roof, siding and porch repair, security Improvements, and repairing the wall damage that occurredafter pipes burst this winter. She said the property is a challenge to rent and many people on their waiting list don't want to live on the block because of the drug dealing and the incidents of gunfire. They have also had tenants move out because they did not feel it was safe for their children. Members discussed the conditions and challenges of the 1900 block of Jackson and how to attract stable tenants. They asked why HODC was able to keep tenants at the property across the street. Ms. Tamasy said they discovered that drug dealers were hiding drugs under the siding of the house at 1930 and they also run through the property to the alley because it dead ends at the north, making it easier to escape. She said that after the building Is rehabbed, they plan to move the tenants from 1929 into 1930 because it has larger units which the tenants need. Carol Balkcom asked how much funds were in the Affordable Housing Fund, and Ms. Spicuzza said it was about 5350,000, Ms. Balkcom moved to recommend the funding and it was seconded by Joanne Zolomij. Members voted 5-0 to recommend funding of $84,760 from the Affordable Housing Fund for repairs to 1930 Jackson. V. Consideration of a request for HOME funds from Housing Opportunity Development Corporation for rehab at 1929 Jackson. HODC's request for 5195,000 in HOME funds for the rehab and condominium conversion of the 2-unit building across the street at 1929 Jackson was reviewed and discussed in conjunction with the 1930 Jackson project. Ms. Tamasy said the property didn't provide a positive cash flow as a rental, but they were interested in keeping it as affordable housing rather than selling it at market rate. Ms. Tamasy described changes they would make to the building and said they'd establish a monthly assessment fee and set up a maintenance contract for the units. Members asked whether there would be potential purchasers. She responded that their home ownership counseling program has client families who rent in the neighborhood and would be Interested In purchasing. The units would sell for about 5149,000 each. Members asked about the number of owner -occupants on the block and Ms. Spicuzza said she would have to get more information on that. They asked about some of the rehab estimates and felt that the numbers weren't firs enough. HODC did not know yet whether there were any lead hazards that would need to be addressed and require costlier lead supervisors. Ms. Ashmore Dunn said she was not comfortable with the development budget as presented. Members said they supported the idea of offering ownership opportunity on the block, with ongoing resources and support for the owners from HODC. They suggested that HODC return next month with firmer estimates and development budget. VI. Consideration of Downpayment Assistance and Vacant Building Programs Members discussed the proposals which would use both HOME and local Affordable Housing Funds. They felt that if the Vacant Building program offered a pre -approved line of Housing Commission Minutcs July 19. 2007 credit to developers it would be beneficial since timing is tight when dealing with foreclosure sales. They would litre to see a cash flow analysis of the use of the fund, and more information on expected acquisition costs of targeted vacant buildings. Members supported the Downpayment Program proposal and said it would just have to be seen if it provides enough of a subsidy for low and moderate income purchasers to afford Evanston housing. They liked its flexibility and its applicability to market housing. They asked if the City was required to inspect the housing and Ms. Spicuaa said a visual inspection for lead based paint hazards would be required. Other suggestions including stipulating the housing must be owner -occupied and requiring the purchasers to obtain a home inspection. VII. Public Comment George Gauthier of Evanston Housing Coalition spoke on behalf of local non-profit affordable housing developers about the vacant building proposal. He said they are Interested In addressing vacant buildings and noted that obtaining the initial acquisition costs Is difficult. He said that City assistance with acquisition would allow developers time to assemble other money for the rehab, because timing is everything when it comes to foreclosure sales. The meeting adjourned at 8:55 p.m. Respectfully submitted, Donna Spicuzza APPROVED EVANSTON HOUSING COMIMSSION tiiINUTES August 16, 2007 Present: Susan Munro. Chair, Carol Balkcom, Bruce Nelson, Joanne Zolomij Absent: Eric Beauchamp, Sara Ashmore Diggs Staff: Donna Spicuzza, Housing Planner. Stan Janusz. Assistant Director, Community Development I. Call to Order The meeting was called to order at 7:05 p.m. without a quorum present. 11. Communications Members were updated on funding requests they had reviewed: Connections for the Homeless was awarded S11.035 in matching funds from the Affordable Housing Fund for the HUD funded Homeless Management Information System for the Evanston Alliance on Homelessness; HODC was awarded $84.760 in Affordable Housing Funds for repairs and maintenance on the interior and exterior of the 2-flat 1930 Jackson; the Downpayment Assistance pilot program was approved; and more information was requested on the Vacant Building proposal. Ms. Spicuzza also distributed a list of voluntary housing fund contributions and the payment status. She said that the fees were usually due when the certificate of occupancy is issued, and most of the developers who hadn't paid yet were just starting construction. Consideration of a request for HOME funds from Housing Opportunity Development Corporation for rehab and condo conversion of 1929 Jackson. Mary Ellen iamasy of HODC presented more information as requested by the Commission regarding their request for S195,000 in HOME funds for the rehab and remodeling of the 2-unit condo conversion. She presented one contractor's bid which was just a general estimate, but was slightly lower than her original estimates. She also presented a revised development budget and revised sources and uses which showed a request for $60.000 in IHDA funds. The four members present supported the proposal and suggested that the information be sent to the two absent members for their comments since they previously raised concerns about the budget. Ms. Spicuzza said staff would review the revisions and most likely bring It to Planning and Development Committee on September 10. IV. Discussion of Vacant Buildings Status and Programs to Address Vacant Buildings and Foreclosures Stan Janusz, Community Development Assistant Director, presented a current list of vacant buildings, which were mostly 1 — 3 unit buildings. He discussed the history of some of the properties and reasons for vacant properties, which are due to foreclosures, absentee owners, or the death of an owner. He also discussed the Property Standards Division's efforts to enforce the Vacant Building Ordinance. Mr. Janusz also said that they recently subscribed to a foreclosure data service which lists all the filings, so they will have information on properties likely to go into foreclosure. He noted that one of the properties he researched was owned by a bank that since went bankrupt, so the ownership of that property is unknown. Members discussed the challenges of reducing the number of vacant buildings and asked if the Planning and Development Committee gave any reasons for not acting on the staffs vacant building proposal presented in the summer. Ms. Spicuzza said there were no specifics about the proposal but they had asked for more analysis of the vacant buildings including the amount owed. Members encouraged staff to continue to research the issue and develop a proposal to assist non-profit developers to purchase vacant buildings and turn them into affordable housing. V, Status of Downpayment Program Proposal Members received a copy of the approved program guidelines. Ms. Spicuzza said she was scheduling a meeting for lenders to enroll participants. and that the program would probably not be implemented before late September or early October. There was no public comment. The meeting adjourned at 8:45 p.m. The next scheduled Housing Commission meeting is 7 p.m. Thursday. September 20. 2007. The meeting adjoumed at 8:55 p.m. Respectfully submitted, Donna Spicuzza i APPROVED EVA,NSTON IIOUSING COWMISSION MINUTES September 18, 2007 Present: Susan Munro, Chair, Carol Balkcom, Eric Beauchamp. Bruce Nelson. Joanne Zolomij Absent Sara Ashmore Diggs Staff: Donna Spicuzza, Housing Planner I. Call to Order The meeting was called to order at 7:05 p.m. Minutes of the July 19 and August 16, 2007 meetings were approved 5-0 after Mr. Beauchamp arrived and a quorum was present. Ill. Communications Members received communications from ECDA regarding an Open House at 736-38 Dobson, a Foreclosure Prevention Seminar in October coordinated by Interfaith Housing, and an invitation from Evanston Housing 4 All to be involved in a dialogue next spring about the utilization of the Affordable Housing Fund. Susan Munro said that the Evanston Housing 4 All is an evolving group but they want to develop a collaborative model to look at housing issues and help implement the Affordable Housing Fund. Members were updated on the Commission's recommendation to approve rehab funds for HODC for 1929 Jackson. The request was held in the Planning and Development Committee on September 10 and will be brought back to Committee on October 8. Commission members discussed the issues raised by the Committee. Donna Spicuzza said the Committee asked for better construction estimates but she noted that contractors have a hard time with estimates because of the general scope of work. She said that the project needed architect drawings because rooms were going to be reconfigured, but HODC did not want to pay for an architect until their funding was committed. She noted that they did perform a lead paint inspection and risk assessment, so the amount of lead work was known. Ms. Spicuzza told the Commission that HOME funds can be used for pre -development loans to pay for certain costs, although the City hasn't used funds this way before. She wondered if this might be helpful for some projects. The regulations allow the pre - development loan to be folded into the project budget if it is eventually funded, but if the project does not go ahead, the loan would be due. However, the participating jurisdiction could waive repayment. Members asked for more details on pre -development loans and suggested that they meet with CHDO's to see if that kind of funding would be desirable. They wondered how such loans would be approved, if it meant going through City Council twice for the same project. Ill. Discussion of Housing Priorities Members discussed the housing strategies from the 2004-09 HUD Consolidated Plan and City Strategic Plan and Identified areas they would like more information. They walked through the prepared flip charts which listed the strategies from both plans, Itemized the strategies being Implemented through existing programs and those without existing programs or activities. The flip charts are attached to the minutes. i DRAFT Housing Commission Minutes September 20, 2007 Page 2 Relating to the homeownership assistance, Joanne Zolomij mentioned that the State of Illinois recently announced a new Individual Development Account program called Asset Illinois which provides a two -to -one match on individual savings accounts for home purchases, and thought that would be a good strategy to publicize. Ms. Munro noted that IDA programs are targeted to households with annual incomes at or below 200% of the poverty levels, which is about $40.000, so she thought it would still be hard for those households to afford to purchase in Evanston. Members felt though that it might work In combination with other assistance, and said the housing counselors should be aware of it. Ms. Spicuzza said she would consider putting the information in a Highlights newsletter article on housing resources in general. After briefly reviewing the current programs or activities that address Con Plan strategies, members discussed new strategies. Carol Balkcom asked if the City had assisted any housing for the elderly. and Ms. Spicuzza said no except for some gap funding for the Jacob Blake senior rental project that received HUD 202 funds for its construction. Members discussed housing needs of the targeted groups, rental housing, and geographic location of projects. Ms. Zotomoji said acquisition for rental development was hard to do without providing a 50% downpayment on the purchase price, otherwise the debt service was too high. Eric Beauchamp suggested they look at maintaining the existing affordable rentals. He said With the acceleration of expenses and taxes, privately managed rentals are hard to keep affordable. He said perhaps owners do not know what programs are available. There were questions about the CDBG multi -family rehab program and more information Will be presented at the next meeting. Carol Balkcom suggested that perhaps they should have a meeting with landlords to see what their issues were, if they were aware of Clty programs, and if they feel the programs are beneficial for owners and can help them preserve affordability. Members discussed how to reach out to owners or and gel information on common building violations. Ms. Spicuzza said she would ask Jeff Murphy, the supervising property standards inspector, for some information. Ms. Zolomij said larger buildings are owned by corporations that often are not local, but the property managers should be aware of cash flow issues. Ms. Balkcom said as they are trying to determine priorities that they have to reach out to low income persons and elderly for input. Members might consider a joint meeting with the Commission of Aging to get more input on senior housing needs. Foreclosure strategies were discussed at length. Ms. Munro noted that she wrote to Ald. Hansen, current chair of the Planning and Development Committee, regarding the special P&D meeting on foreclosures which Ald. Rainey requested, to say she hoped the Housing Commission could be part of that meeting. Ms. Munro said the City could support non-profit agencies that provide counseling to people who are facing foreclosure. She also felt there should be more outreach to people and education about it, and that lenders may be open to renegotiating loan terms. Ms. Zolomij noted that it's often difficult to find a contact person to negotiate with, especially with large institutions such as Countywide and Wells Fargo. She said it costs lenders about S25,000 - S50,000 in legal expenses, holding costs, and sale costs to go through foreclosure, so they should be open to solutions. She also said that if a lender agrees to a short sale — taking less than they are owed — the balance of the amount is considered taxable income for the homeowner. She said there is federal legislation to forgive that temporarily. I DRAFT Housing Commission Minutes September 20, 2007 Page 3 Mr. Beauchamp noted that it is key to educate people before the situations get to the foreclosure stage. They need to know when their rates will adjust, and try to refinance before they can't make new mortgage payments and get a bad credit rating and then can't refinance. Members reviewed suggestions for getting input from seniors and landlords, and added the homeless agencies as well to see if there is a need for City funds for permanent supportive housing, or whether there are other sources for that. They suggested they need more information on rental vacancies by rent levels to help determine the need for affordable rental housing. N. Public Comment Richard Mosely, Jr. introduced himself and said he had applied for appointment to the Housing Commission. Members encouraged him to submit an electronic application and the chair said she would follow up with the Mayor's office. The meeting adjourned at 8:30 p.m. The next scheduled Housing Commission meeting Is 7 p.m. Thursday. October 18, 2007. 3 EVANSTON HOUSING COMMISSION NUNUTES October 18, 2007 Present: Susan Munro, Chair, Sara Ashmore Diggs, Carol Baikcom, Bruce Nelson, Joanne Zolomij Absent: Eric Beauchamp Staff: Donna Splcuzza, Housing Planner I. Call to Order The meeting was called to order at 7:05 p.m. Minutes of the September 20, 2007 meetings were unanimously approved. it. Communlcatlons Members were updated on their recommendation for rehab funds for HODC for 1929 Jackson which was approved by the City Council on October 8. Ms. Spicuzza said that HOME funds can be used for pre -development costs such as architectural drawings in order to determine feasibility, and they might want to consider using funds that way, She said the funds are a loan which would be rolied into the development budget but the City would have the option of waiving repayment if the project did not proceed. Members asked for more Information on this and the approval process. Ms. Spicuzza also told members that there will be a discussion on affordable housing and vacant buildings at the Oct. 22 the Planning and Development Committee meeting. Ill. Families In Transition from Connections for the Homeless Ms. Spicuzza presented information on the Families in Transition (FIT) application from Connections for the Homeless which is for a second year of funding. The representative from Connections did not attend due to a communications error, but Ms. Spicuzza said she had talked to her last week and there were no changes in the proposal. She noted that the FIT program was set up to provide up to two years of rental subsidy for a family sponsored by a non-profit organization, but lately the City Council has been approving funds for a year at a time and considers a renewing funding after reviewing the progress and need. The application is for a family who received the FIT subsidy for one year from April, 2006 to April, 2007. During that time, the mother rented an apartment for $750 a month, found a full time job and took some college classes. She had decided not to request a second year of subsidy and gave up the apartment because she planned to move out of state, where she had a stronger support network. However, those plans did not materialize, and she is now doubling up with family members for housing because she is in school full time and working part time so it is difficult to afford an apartment on her current income. Therefore, Connections has asked for a second year of housing subsidy to help her with her transition plans toward self-sufficiency. Ms. Spicuzza said that the application notes that the mother was very successful in both Connections' transitional housing program and in the FIT program, achieving the goals identified and excelling at budgeting and saving money. The mother has requested that if she gets the rental subsidy again that Connections set up an automatic savings program so that she will have funds to fall back on when the subsidy ends. Mr. Nelson asked if the FIT subsidy would continue beyond another year because the mother planned to continue her education after getting the associates degree. Members noted that the subsidy could only be for two years, and the mother would have to use her savings or work more hours. Ms. Munro noted that the mother was not eligible for a child care voucher because she was going to college rather than getting vocational training, but she may be able to get some assistance from a state program. Housing Commission Minutes October 18, 2007 Page 2 Ms. Ashmore Diggs expressed reservations about recommending the request without hearing from the sponsor that nothing in the proposal has changed, and asked that staff get confirmation of that before it goes to the Planning and Development Committee. She said putting off the request another month was not ideal. Ms. Spicuzza said she would confirm with Connections. Members gave unanimous approval to recommend up to $5,160 for second year of assistance IV. Request for Additional Funds from Reba Place Development Corporation for completion of 602 Mulford David Janzen and Mary Goering of Reba Place Development Corporation discussed the development at 602 Mulford and described why needed an additional S80,000 in HOMS subsidy to complete the project. Mr. Janzen said It was a combination of construction Issues and timing of the subsidy from IHDA_ Improvements to the building included new kitchens, bathrooms, walls, and doors, tuckpointing, a new room roof, electrical upgrades, and a new fire suppression system. As noted in his memo, the City instituted the fire suppression requirement after they were approved for funding. Because they also discovered the need for a new roof as well as electrical upgrades when the walls were opened, their contingency funds could not cover the sprinkler system. The sprinkler system also required a new water service, but it took a while for the City to confirm that, which delayed the start of the rehab work. He said they applied for additional funding from the Federal Home Loan Bank of Chicago and from IHDA. The IHDA request was postponed for 9 months and after approval they had to negotiate revisions to IHDA's repayment requirements in order to conform with the City's resale restrictions, which added another 3 months. He said this added 12 months of additional interest costs on the bank's acquisition and construction loans. He noted they did not want to forego the modest developer fee, as there was quite a lot of project management time devoted to the project, and the fee will also help them to do more affordable housing in the future. Members discussed the pricing and whether the purchase prices could be raised. Ms. Goering said they had marketed the units at those prices and although they couldn't offer purchase contracts until the IHDA funds were committed, they were working with applicants based on the advertised prices. She said most of them couldn't afford higher prices. They range from $80,000 to $140.000 for the HOME -assisted units. Mr. Nelson asked if in future there could be a mechanism to fund an architectural assessment so that development costs were known. Ms. Spicuzza said that condominium converters are required to submit a report from an architect or engineer on the building's condition prior to Issuance of permits, and this is reviewed by the Building Division. However, some issues don't surface until construction is underway and mechanical systems are revealed. She said they have learned to do lead based paint testing prior to finalizing the development budget, even if the funds have not been approved. Ms, Ashmore Diggs wondered if the development was still cost effective, and what was the benefit. Mr. Janzen said it would have been more cost effective without the delays and extended interest payments. As a result the total development costs are more than the appraised value but Mr. Janzen said that the City benefits from a building in better condition, and it provides needed affordable ownership opportunities. Ms. Goering said now that they are at the point of buyer selection, she feels it has been worth it. Ms. Goering discussed characteristics of some of the applicants and how this provided a unique opportunity for them, and described the selection process. She said now that they have the IHDA commitment, they hope to close on some of the units by the end of the year. oil Housing Commission Minutes October 18, 2007 Page 3 Commission members detailed the reasons they supported the funding request and decided they would put it in a memo to the Planning and Development Committee for their consideration of the request for more funds. They listed six reasons; 1. The project benefits people with a range of incomes 2. The Fire Sprinkler and water service requirements were enacted after the project was approved for funding, and added additional costs 3. IHDA took one year to grant their funds 4. The City needs developers like Reba Place Development Corporation and they should get some fee for their efforts, and not be expected to take a loss 5. If prices were raised to cover costs, they wouldn't be able to use all the other subsidy funds from other sources 6. There was a learning curve for implementing the fire suppression system code changes which resulted in delays. Carol Batkcom made a motion, seconded by Bruce Nelson, to recommend approval of $80,000 In additional funds. The motion passed 5-0. IV. Public Comment Fran Seidman commented that the City' should make some plans for use of affordable housing funds. The meeting adjourned at 8:20 p.m. The next scheduled Housing Commission meeting Is 7 p.m. Thursday. November 15, 2007. APPROVED EVANSTON HOUSING COMMISSION MINUTES November 15, 2007 Present: Susan Munro, Chair, Sara Ashmore Diggs, Carol Balkcom, Eric Beauchamp Joanne Zolomij Absent: Bruce Nelson, Staff: Donna Spicuzza. Housing Planner 1. Call to Order The meeting was called to order at 7:05 p.m. Minutes of the October 18, 2007 meeting were approved 5-0 with one minor correction. 11. Communications Donna Spicuzza updated members on their prior recommendations. She said the City Council approved the second year of funding for Families in Transition for Connections for the Homeless, and they also approved the additional funds for HOME funds on 602 Mulford developed by Reba Place Development Corporation. She said the Committee members received the Housing Commission's memo explaining their recommendation, and noted there was not much discussion regarding the request. except that Aid. Rainey said the neighbors complained about landscaping and the exterior appearance of the property. Ms. Spicuzza also provided a HUD funding update. She said the House approved the transportation and HUD funding bill this week. The National Community Development Association expects the Senate to approve it soon, and also expects the President to veto It because it exceeds his recommendations. If it is vetoed, NCDA staff said it may be Included In an omnibus spending bill which would make it more difficult to veto. They expect that the HOME program will get the same level of funding as last year. Susan Munro mentioned that a new Illinois anti -predatory lending law includes an outreach component and recommends homeowner education for borrowers getting nontraditional loans. Ms. Spicuzza said she would try to get more Info on the outreach workshops and publicize it on the City web site. Ms. Munro wondered what kind of homebuyer education would be required and whether local housing counseling agencies will need more funds to increase their capacity. There was a discussion about the sub -prime lending and credit situation. Ill. Comments on HOME application from Econ Development Corporation for 241 Callan affordable condominiums Ms. Spicuzza said the developer for the project was unable to attend this meeting because he was out of town but had asked that it be presented to the Commission so the proposal could go forward to the Planning and Development Committee. The proposal was reviewed by staff and the Loan Committee. Therefore, Ms. Spicuzza asked if the Commission would like to comment on the application rather than make a formal recommendation. The proposal is for S300,000 in HOME funds to create three affordable units in a rive unit condominium conversion. The units would be rehabbed and an additional bathroom created to make them all two -bedroom, two -bath units. Ms. Balkcom asked if this developer had requested additional funding on a prior affordable development and Ms. Spicuzza noted that he had. Ms. Munro asked if tenants were being displaced in this project, and Ms. Spicuzza said that there were two tenants left in the rive unit building. She said if HOME funds are used they must be offered relocation assistance. She said the seller did not renew leases when he marketed the building so most tenants left, and most were probably low income because they had housing choice vouchers. DRAFT Housing Commission Minutes November 15. 2007 Page 2 Ms. Munro said there were different figures in the application. Ms. Splcuzza said staff asked for revisions of the development budget and proforma, so the figures in those dated documents differ from some of the numbers that appear in the application. She said the budget originally did not include installation of a fire suppression system so it had to be revised. The developer later provided bids from contractors, which staff entered in a spreadsheet, and the hard construction costs total S431.250, up from the original S214,000. Ms. Munro felt that leaving in the original information in their information packets added to the confusion about the numbers. Members discussed the buyer financing scenario. his. Munro said it looked like the price for the three affordable units, targeted to 80% AMI, were only affordable to households at exactly 80% AMI, which is too narrow and limiting and Ms. Balkcom agreed. Mr. Beauchamp said the market rate units were going to be priced at $295.000. even though the market analysis provided by the realtor suggested lower prices, which he did not think made sense. He also thought It was unrealistic to price the garden unit the same as the other units. Ms. Ashmore Diggs questioned the value for the S100,000 subsidy per affordable unit, noting that the developer acquired the building for $132.500 per unit and final development costs totaled $300,000 per unit. Ms. Spicuzza said recent rehab subsidies from the City were around S60,000 per unit, while new construction used higher subsidies of around S100,000 per unit. Members said they were skeptical about the value added for the amount of subsidy. Mr. Beauchamp said that the development budget numbers don't seem to be supported and he also didn't feel the market prices were realistic for the building and the location_ Some members noted that the rooms appeared to be good sizes and the units had nice layouts. Sue Carlson from the audience commented that it is troublesome when so called affordable units are priced above a realistic affordable price. such as the Siena condo development, because then it appears to indicate that there is not a market for affordable units. Mr. Beauchamp said they did not want to put themselves in that situation again. Tim Angell from the audience commented that since there were major questions, he thought the developer should appear before the Commission at a later date. Because of their questions regarding the value for the subsidy, the feasibility of market rate and subsidized pricing, and questions about the development budget, members agreed that the developer should come to the December meeting and go through the regular process. Ms. Munro asked staff to take their comments back to the developer. IV. Input on Housing Needs Assessment proposed by Leadership Evanston team Ms. Munro observed that the Leadership Evanston team is looking at housing issues but has not yet finalized a project to work on. They were thinking of doing a needs assessment to be completed by May. Members cautioned that they should make sure the project is not so broad that it's unmanageable. Ms. Munro said she suggested they speak to developers to help Identify barriers to doing affordable projects in Evanston. Another project idea came from Sue Calder at the Evanston Alliance on Homelessness, who said they could use help with the count of homeless, particularly those who are not in shelters or on the street but don't have a home of their own. V. Identify Funding Prioritles Ms. Spicer" discussed the materials that were included in the packet in conjunction with the Commission's ongoing discussion on funding priorities. She said there was a map of affordable housing developments in Evanston if members wanted to consider geographic priorities, as well as a map that was prepared for the Planning and Development Committee, showing "affordable" market rate listings under $300,000, superimposed over the CDBG target area. The map didn't Identify homes by bedroom size, and Mr. Beauchamp said that many were likely not affordable, DRAFr Housing Commission Minutes November 15, 2007 Page 3 since a 1 bedroom or studio under 5300,000 would be too high for a one or two person low or moderate income household to afford. Members agreed the map should be identified as housing for sale under $300,000, rather than 'affordable " Members noted that the majority of market rate and subsidized affordable housing was in the 5".8t1, and 9'0 wards. Ms. Munro commented that there was no subsidized housing in the southwest. Members also discussed the Vacant Housing list and memorandum concerning the demolition of vacant and unsafe housing. Ms. Munro noted that the addressing any single house requires an enormous investment of time. Ms. Balkcom asked if there was a definition of "reasonable repair" relating to the Demolition memorandum, and had some questions about the status of some vacant buildings, including three properties on Leonard Place which Ms. Spicuzza said she would check. She said that they hoped to get an intem to do more follow-up on the status of properties in foreclosure or owned by the lender, and get more information on the amount owed and building conditions. Ms. Ashmore Diggs said that the foreclosure and vacancy problem is everywhere, not just in Evanston and asked what we'd do with the information. Ms. Spicuzza said there were two tracks to take: one was to identify pre -foreclosures and try to help people avoid foreclosures; the other was to address the vacant stock, figure out the best way to turn them around and determine if they are they suitable for affordable housing. Ms. Ashmore Diggs said one problem now is that rents can't cover the mortgage payments, so people can't rent them out to ride out financial trouble, and investors can't make money on their rentals. She said it's not a big mystery. it's a money problem. Ms. Spicuzza said they need to find out what kind of subsidy is needed In order to make them affordable for sale to low income buyers. Members also talked about the problem of high property taxes and how that affects affordability. Ms. Spicuzza said that because the City's recent subsidized ownership units had resale restrictions, the buyers were able to apply for the Cook County Assessor's Affordable Housing Incentive. About twelve owners applied and their properties were re -assessed based on the restricted value rather than market value, reducing the assessed valuation by an average of $9,000 per home. Ms. Spicuzza also said that staff will be working on the One Year Action Plan to submit to HUD In January, outlining plans for using federal CDBG, HOME and ESG funds. She said at the next meeting she will provide a draft on the affordable housing section for comment by the Commissioners. She said in addition to affordable housing development, other housing needs to be addressed in the next year include homebuyer education and condo management education. Ms. Spicuzza said she is working with a community organization in Rogers Park that provides condominium workshops to present a series of workshops in Evanston next year, and she fell this could be partially funded through the Affordable Housing Fund. Mr. Beauchamp agreed that was a huge need. Other plans to address housing needs include a landlord forum to get their input and inform them about City programs, and a rental survey on rents and vacancy rates. Ms. Balkcom noted that an earlier discussion about setting priorities and meeting with citizens and developers never went anywhere. Ms. Munro said that they are laying the ground work now by getting information. VI. Public Comment Suzanne Carlson asked if the Chair had more information on the MacArthur funding proposal. Ms. Munro said it has been used mostly in Chicago, areas of high need. Carol Balkcom asked Tim Angell to introduce himself since the Mayor submitted his name for appointment to the Commission. The meeting adjourned at 8:20 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner