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HomeMy WebLinkAboutMinutes 2008EVANSTON HOUSING COMMISSION MINUTES January 17, 2008 Present: Susan Munro, Chair, Timothy Angell, Sara Ashmore Diggs, Carol Batkeom, Eric Beauchamp, Brooks Harding, Bruce Nelson, Joanne Zolomij Staff. Donna Splcuzza, Housing Planner 1. Cali to Order The meeting was called to order at 7:05 p.m. Minutes of the December 13. 2007 meeting were approved 84 with typographical corrections as noted. ll. Communications Information distributed in the packet was discussed. The Affordable Housing Fund Summary showed a balance of about S574,000. A total of $192,500 was transferred from the Mayor's Housing Fund and included S90,000 in Demolition Fees and S40,000 in developer contributions. Additional revenue included $40.000 in Demolition Fee revenue, S91,000 in rehab loan repayments and $315,000 in Developer Contributions. Expenditures were approximately $64,000. Members discussed the mechanics of the voluntary developer contributions and new contributions resulting from the Inclusionary Housing Program, and asked to receive regular reports. Upcoming housing related activities were discussed and Donna Spicuzza said that staff Is planning to provide Condominium Workshops in the spring for Evanston residents through Lakeside Community Development Corporation, which has offered them on a regular basis in Chicago. Members discussed information on resale restrictions related to affordable ownership developments. They received information that is distributed by the City to new purchasers which details subsidy requirements. It explains the resale restrictions, homeowner's insurance requirements, refinancing guidelines, and property tax appeals through the Assessors Affordable Housing program. if. Consideration of application from Evanston Community Development Association to purchase and subsidize units at 829 Case condominium conversions Susan Munro said an earlier version of this application was reviewed by the Commission in December when ECDA was considering making a purchase offer on five condominium units In an undisclosed seven unit completed condominium conversion. At that time they agreed that it seemed a good idea in concept and encouraged ECDA to work on the project. Keith Banks, executive director of ECDA, said the property is in south Evanston, east of Ridge, two blocks south of St. Francis, and just north of the Skokie Swift in a mixed residential neighborhood. He explained that the aNner was unable to sell the units after they were rehabbed and now ECDA has the opportunity to sell them as affordable units. Mr. Banks said it is a beautiful vintage building, and that the City's Housing Planner and property rehab specialist toured it. Ms. Spicuzza commented that rehab specialist Ted Partika did not find any significant issues and thought it appeared in good condition, although they didn't get up on roof. However, Mr. Banks said the roof was torn off and redone about five years ago. He said it needs some minor punch list items, but has new or refinished hardwood floors, all new kitchens with new appliances, new baths, electrical, and washers and dryers. It has been on the market for about a year, and the owner is now in foreclosure. He said ECDA paid market value for its first two projects so they required more funding layers, and this is an opportunity to buy at below market value. Housing Commission Minutes January 17. 2008 Page 2 Members asked if ECDA had met with the alderman. Mr. Banks said they talked to Aid. Rainey and she has some issues about all the affordable housing being in the Eighth Ward. He said they understand that, but feel that they have to take opportunities as they come. Members asked about the owner's unit which is not included in the sale and were wanted to ensure he had no additional mortgages and would not face foreclosure on his unit in the future. Mr. Banks said when they purchase it they would pay off all the debt on the building and get five units. The owner would keep the unit he has lived in for over 25 years. He had hoped to turn the building into a condominium, make some profit and retire, but it didn't tum out that way. They discussed the plans for the five units and confirmed that ECDA would sell four as affordable and one at market price, so the building would have three unrestricted units and four affordable units with resale restrictions. Ms. Ashmore Dunn asked about the price of the market rate unit and Mr. Banks said it would be S190.000, which was lower than the owner's asking price. He said the unit prices were provided on the pro -forma, and they planned to sell the one -bedroom garden unit for $100,000 and the two -bedroom units for S140,000 and S130,000. He clarified that the owner would provide the warranties for the work performed. Tim Angell asked how large the pool of potential buyers was, referred to in the application. Mr. Banks said they had about 60 applicants for the Dobson building, and the City has a list of about 100 people who are interested In affordable housing, and they would reach out to other organizations and churches, Carol Balkcom asked if the Declaration of Covenants, a sample of which members received, would apply to this condo. Mr. Banks said it would and that the units would be income and resale restricted for 15 years for HOME funds, plus an additional rive years during which the resale price would gradually increase to market price, for a total of 20 years. He confirmed the owner's unit would be unrestricted. Members discussed holding costs and Brooks Harding asked what the contingency costs would cover. Mr. Banks said it's necessary to cover canying costs if the project goes longer than expected. David Janzen of Reba Place Development Corporation, which Is partnering with ECDA on the project, said it would also be used if they end up doing any of the punch list items in case the owner doesn't do them all. In addition, there was some work recommended by the City, such as adding a door for additional access to the heating unit which is difficult to reach because of the placement of the water heater. He said they felt 10% of the project costs would be too high and this Is only about 2.5% of the project Eric Beauchamp thought the utilities budget was high, but Mr. Banks said the building had to stay heated and those costs have risen. Ms. Spicuzza noted that while funds would be provided upfront for acquisition, the remainder would be drawn as expenses arose, so if funds are not needed they won't be disbursed. Mr. Angel) asked if the $72,400 developer fee was high and whether that is in the normal range. Ms. Spicuzza said it comes to 8% of the project cost which is in the middle range, but wouldn't want to see if any higher since ECDA is not doing any rehab. Mr. Janzen said they estimated that S40,000 would take care of the costs for all the oversight, and that hopefully they would then have a little left over to apply to their next project. Mr. Angell made a motion that the Housing Commission recommend a HOME grant of $200,000 and a one year loan of up to S310,000 in Affordable Housing Funds to be retumed at resale, in HOME funds, with the stipulation that ECDA file a complete application, seconded by Carol Balkcom. Ms. Munro suggested that ECDA consider how to address concems about the owner retaining his unit if that comes up. Ms. Ashmore Dunn said she did not think that should be an issue as he has owned the building for 25 years and certainly had some equity in it. Eric Beauchamp said he felt they should stress the positive side which was that they would be creating a mixed Income building, which the Commission supports, and in essence they are spending $700,000 for five move -in condition units. Housing Commission fttinutes January 17. 2008 Page 3 Members voted 8-0 to recommend HOME grant of $200,000 for purchase price reduction, and an Affordable Housing Fund of $140,000 for acquisition and $170,000 for operations, for up to one year at 0%, to be returned at resale. Members asked about the status of the Callan project which they recommended, and were informed it was postponed until January 28 because of the number of items on the Planning and Development Committee agenda. Joanne Zolomij said she still had a problem with the selling price. She said she had looked up comparables for Ms. Spicuzza and there was nothing in that location selling at or close to $285,000. Ms. Zolomij said she wondered if they will appraise out in order for the purchasers to gel a loan. Mr. Beauchamp said he had the same feeling after the December meeting and felt the market sale prices seemed wrong, He asked if it was possible to look at the purchase contracts. Ms. Spicuzza said she received copies but discussed it with Ms. Zolomij and concluded they should remain confidential but could be generalized. Mr. Beauchamp asked about earnest money and financing. Ms. Spicuzza said there was no pre -approval letter provided or indication of what amount they were qualified for and the earnest money deposit was $1,000. Mr. Beauchamp noted that the Case project seemed much more appropriate with a lower subsidy and lower selling prices. Mr. Angell asked if they could receive a spreadsheet showing the status of recommended projects in order to track where they were in the approval and construction processes, and what other funds were used. Ms. Spicuzza said she had a list of the affordable projects and would update it with a status category. Members discussed the kind of project reporting they would like and It was agreed they will receive final written summaries with narrative information to help them understand the challenges faced by the developers. IV. Election of Officers for 2008 Ms. Munroe said she did not have the opportunity to recruit new officers or plan a nominating committee. She said, however, that she was willing to continue as chair for another year and members expressed their approval. Mr. Angell made a motion to elect Susan Munro as chair, seconded by Bruce Nelson. Ms. Munro amended the motion to elect Eric Beauchamp as vice - chair. Members voted 8-0 to elect Susan Munro as Chair and Eric Beauchamp as Vice Chair for 2008. V. Review housing section of draft One Year Action Plan for 2008.09 submitted to HUD and Discussion of funding priorities Before reviewing the priority housing issues identified in the Action Plan, Ms. Munro talked about how the Housing Commission could help stimulate affordable housing in Evanston. She said she thinks there are fewer projects coming to us and wondered if they could have the CHDOs come and talk to the Commission about projects they might be working towards, and brainstorm creative ways to have an impact. Members supported the idea and discussed details. It was decided to limit this discussion to CHDOs and ECDA, which plans to apply for CHDO status, and perhaps have a separate conversation with other organizations that provide supportive or transitional housing. They reviewed some questions they'd like to discuss. which ranged from technical aspects such as the amount of subsidy per unit and acceptable developer fees, to broader issues such as whether there's a need for more affordable rental housing, how can the Commission help them create affordable housing, and what type of projects are they thinking about. They agreed to send out an Invitation for the February meeting, a list of questions and a request for a summary of past projects. Ms. Spicuzza then went through the housing sections of the 2008-09 Action Plan which she said was submitted to HUD that week. She explained that the Annual Action Plan is part of HUD's 4 Housing Commission Minuics January 17, 2008 Page 4 planning process for communities that receive CDBG, ESG, HOME and or HOPWA funds. Entities must prepare a Five Year Consolidated Plan and subsequent one year Action Plans that discuss how they plan to use the funds and provide other information. She said there are prescribed guidelines for preparing the plans which sometimes makes them seem repetitive. This is the fourth year of the City's Five Year Consolidated Plan. She said the housing section reported on the use and plans of HOME funds which differ from CDBG funds where the annual allocation is awarded at one time. HOME applications all accepted throughout the year, so they don't know specific projects when writing the plan. She said in the early years of receiving HOME funds, the City used it primarily for large multi -family rental buildings that were in need of reinvestment and renovation. When the market changed In the last few years, it became difficult to buy a multi -family building and operate it with affordable rents because many developers were competing for those buildings for condo conversions and drove prices up. The focus changed to creating home ownership opportunities. However, they noted In the 2008-09 Action Plan that they would like to explore how to do rental projects. Ms. Spicuzza suggested the Commission should discuss this in more detail and consider how much subsidy might be needed and how much the City should provide. Ms. Spicuzza referred members to page 14 which mentioned reserving the annual allocation for use by CHDO's. HUD requires that Participating Jurisdictions reserve a minimum of 15% for use by CHDOs, but she said that Evanston has typically used much more although only the minimum Is reserved. Changes in HUD's calculations of commitments will make it necessary for Evanston to reserve more. HUD requires that the annual HOME allocation be committed within two years and disbursed within five years. Ms. Spicuzza said Evanston is on target for disbursals but faces a shortfall in the commitment requirement. HUD used to count program income, such as loan repayments, as meeting the commitment requirement, but will no longer do so beginning in 2008. Evanston received a large amount of program income because some large loans were repaid, and those funds have to be spent before drawing down entitlement funds. The shortfall is approximately half a million dollars. She said that can be met, however, if funds are reserved for CHDOs. The reservations don't have to be project specific, but there must be a written agreement with the CHDO. She said she would bring information to the Commission on that next month, A member asked if CHDOs could form a coalition to share the funds or use as necessary, and Ms. Spicuzza said she didn't think so. Ms. Balkcom commented that with all the HOME funds that need to be spent, she wondered if more could be provided to CHDOs for operating funds. She said last year they all received S15,000 and asked if that amount could be raised. Ms. Munro said that the overall amount for all CHDOs is limited to 5% of the annual entitlement, Ms. Spicuzza said there might be some unused funds reserved for CHDO operating from previous years that could be used, and she would detail that in a memo. Vl. Public Comment Suzanne Carlson invited members to come to one of the open houses in February at 2212 Washington, which is the affordable single family house rehabbed by Citizens' Lighthouse Community Land Trust. They are scheduled every Saturday afternoon in February from 1 to 3 pm, with one on Sunday, February 17 from 1 — 5 pm. The meeting adjourned at 8:40 p.m. The next scheduled Housing Commission meeting Is 7 p.m. Thursday, February 21, 2008. Respectfully submitted, Donna Spicuzza, Housing Planner Approved EVAa\STON HOUSItNG CONtM1SS1ON `11NUTES February 211, 2008 Present: Susan Munro, Chair, Carol Balkcom, Eric Beauchamp, Brooks Harding, Bruce Nelson and Joanne Zolomij Absent: Timothy Angell, 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 January 17.2008 meeting were approved 6-0. with typographical corrections as noted. If. Communications Susan Munro said BPI sent a draft report updating the state of affordable housing in Evanston, and will make some changes. She said she has a copy if members wanted to see it. Ms. Munro also reported that on Wednesday, February 27, there will be a neighborhood meeting on the proposed planned development for high end rental on Chicago Avenue. She said she will attend and urged others to do so and discuss the possibility of affordable units. The meeting will be at 7 pm at the Firehouse Grill. Ms. Munro said that they had a few agenda items In addition to the Round Table discussion and would get through as many as they could before starting the discussion at 7:15. She asked Housing Commission members to stay after the discussion if they didn't get through all the action items before that time. III. Consideration of Families In Transition renewal application from Connections for the Homeless Ms. Spicuzza introduced Sarah Manaher from Connections for the homeless and referred members to the renewal application and estimated FIT subsidy they received. Ms. Spicuzza said the subsidy for one year would be approximately $5.520 based on the new rent estimate they just received. The family's income has decreased because the mother was accepted into nursing school and will cut back her work hours. Her income going forward is estimated at about S16,000 which is under the Income cap of S24,000 for a two person household. At that level, the most she would pay would be S399 for rent and utilities. The estimated cost for rent and utilities is S890, and the maximum FIT subsidy is S460 (half of contract rent plus $30 for utilities) Connections is willing to pay the monthly balance, estimated at $31.00. Ms. Balkcom said the mother has done great in the year she was with Connections. Mr. Harding asked for an explanation of the program and Ms. Munro said the program offers a rent subsidy for up to two years to a non-profit agency that sponsors a family with a transition plan for self- sufficiency. The program was established in the 19B0's with local housing funds work and the City has assisted about 26 families over the years. Ms. Balkcom asked about the plan for the tenant to take over the lease and Ms. Manaher said that Connections will worts with her before the FIT subsidy ends to renew the lease in her own name or secure other permanent housing. Carol Balkcom moved that the Commission recommend a second year of FIT funding, seconded by Eric Beauchamp. The motion was approved 6-0. Housing Commission Minutes February 21, 2008 Page 2 iV. Reservation of up to $500,000 in HOME funds for four Community Housing Development Organizations for future projects in order to prevent loss of funds Ms. Spicuzza said this will a3orir the City to meet HUD's regulation that HOME funds must be committed within two years of their allocation. She said HUD sent a notice in the summer of 2007 that they were changing the Kay they calculate commitments and would no longer count program income, which includes loan repayments from previously disbursed HOME funds. As a result, the City needs to commit or spend more HOME funds to make up for more than $600,000 in program income previously disbursed which no longer meets the commitment requirements. Ms. Spicuzza said she has been talking about ways to meet the shortfall with the HUD field rep, and discussed with the Commission the possibility of using Downpayment funds to meet the commitment. However, the funds earmarked for downpayment grants can only count as a commitment if the funds are subgranted to anoner agency, and the Council did not approve an outside administrator for the program. Ms. Spicuzza said that because there is not an upcoming project that would take care of the shortfall amount, the only altemative to avoid losing the funds is to reserve them for future use by CHDOs, She said the HOME regulations require that 15% of the entitlement be reserved for CHDOs, but in fact Evanston has used a much larger percentage on CHDO projects. Funds reserved for CHDOs without a specific project meet HUD's commitment definition, as long as there is a written agreement, but the City still needs to approve the specific project before the funds can be awarded. Ms. Munro encouraged making reservations for the City's four CHDOs of approximately $200,000 each. Ms. Spicuzza said she is still working with the data base to determine the exact number, and wants to bring to Planning and Development Committee on March 10 because the agreements need to be in place by March 31. Ms. Balkcom asked if any funds can be used to provide CHDO operating funds. Ms. Spicuzza said only 5% of the annual allocation can be used for that, which is S25,000 based on an allocalon of approximately S500,000. Ms. Balkcom asked how that related to the HOME regulations which state CHDO operating funds are limited to the greater of 50% of the CHDOs operating budget or $50.000. Ms. Spicuzza said that referred to the Individual grants, but the overall total cannot be more than 5% of the allocation. She said that last year, for example, the City of Chicago provided about S750,000 In CHDO operating funds, with around S35,000 per organization, because their annual allocation is close to S4 million. Ms. Balkcom asked how it was that four CHDOs received S15,000 in operating funds last year and Ms. Spicuzza said that funds reserved from previous years were used. She is not sure if there are any prior year reservations remaining. Ms. Balkcom expressed disappointment that CHDOs can't expect more in operating support. She said that the affordable housing business is so difficult, it is a shame that there's not more money available for operating funds. Ms. Munro asked when the decisions are made to award operating funds and Ms. Spicuzza said there is no set time frame. Ms. Munro asked if the amount available could be on the agenda next month. Ms. zolomij asked if there are limitations on how the program income can be spent. Ms. Spicuzza said up to 10% can go to administration of the HOME program, which is only the City in Evanston's case, since no other agencies administer a HOME program or activity. The rest of the program income must go to affordable housing projects. Members confirmed with Lis. Spicuzza that if the funds were not reserved, HUD would take back the funds. Bruce Nelson made a motion to reserve up to $800,000 for four CHDOs, seconded by Eric Beauchamp. The motion passed 6-0 Ms, Munro asked if the next two agenda items could be discussed after the CHDO Roundtable was finished and members agreed. V. Approval of up to $6,000 for Four Condominium Workshops for Evanston Condominium Owners Housing Commission Minutes February 21. 2008 Page 3 Mr. Harding suggested that instead of recommending four workshops during the year, that they consider offering two for a cost of S3.000 maximum to the City. He said some industry people often offer put on these types of workshops for free and he wasn't sure how many people would come. He offered to attend one of the workshops and report an it, since he is in the property management business. He asked for more information on the topics that would be covered. Ms. Spicuzza said the focus would toe on condo management and board responsibilities. She said that Lakeside Community Development Corporation offers the workshops throughout Chicago, and get support from City of Chicago. The price includes copying the 200 page resource booklet, and staff time. She said that sometimes they may bring in speakers, but are very specific about the guest speakers' content. Mr. Beauchamp asked what Lakeside's core business was and Ms. Spicuzza said advocacy and education and some housing development, and that they are a non-profit agency. Mr. Beauchamp said they could provide an unbiased presentation, as they don't have a vested interest In trying to get associations' business. He said with the number of condo associations in the City, it could be worthwhile. Mr. Brooks agreed that there was value in having them do the workshops. He felt, however, that committing to four workshops was too much. Ms. Spicuzza said she would ask local lenders to co-sponsor the events, so hopefully the City wouldn't pay the full amount by itself. She said that the City had a very positive experience a few years ago with a condo seminar which was attended by almost 100 people who had more questions to ask and indicated a desire for more seminars. She said she had hoped to be able to coordinate more seminars, but it just never happened. Mr. Nelson moved that the Commission recommend spending $3,000 for Lakeside Community Development Corporation to present two condominium workshops and It was seconded by Joanne Zolomij. The motion passed 6-0. Vt. Authorizing use of HOME Administrative funds for Lead Abatement Ms. Spicuzza explained that the use of federal funds for residential projects triggers lead based paint requirements. In order to comply and abate or mitigate any lead based paint hazards, the developer must first determine if there is lead and if it presents hazards. She said that they have been getting risk assessments from a company that uses XRF technology to determine the presence of lead in the paint, which is less invasive but more expensive than taking paint chip tests. It Is helpful to perform the risk assessment before funding is approved, because the rehab costs can increase if lead hazards need to be addressed. She said the HOME regulations allow HOME administrative funds to be used for meeting the lead requirements. She said the amount used would most likely be less than $10,000. Members commented that it was important to address lead hazards because lead poisoning Is a threat to young children. Susan Munro moved and Joanne Zolomij seconded that the Commission recommend authorizing up to $10,000 In HOME administrative funds to perform lead risk assessments on proposed affordable housing projects. The motion passed 6-0. V. CHDO Round Table Discussion Representatives from four CHDOs joined Commission members for a discussion about affordable housing activities. Representatives were Betty Ester, president, and Wilfred Gadsen, director. from Citizens' Lighthouse Community Land Trust; David Janzen, director, Reba Place Development Corporation,, George Gauthier director, Evanston Housing Coalition, and Mary Ellen Tamasy, director, Housing Opportunity Development Corporation. Keith Banks, director of Housing Commission Minutes February 21, 2009 Page 4 Evanston Community Development Association, also participated at the Commission's invitation, as ECDA has done two projects and will apply for CHDO status. A summary of the discussion is attached at the end of the minutes. Ms. Munro said there were some good ideas that were raised and thanked everyone for their time. She said she would summarize the discussion from the notes written on the flip charts, and encouraged people to send her any other ideas. Ms. Munro said she sees the Commission as allies not adversaries, and since there`s not enough affordable housing, they all need to work together and learn from each other. Ms. Balkcom asked the non-profit housing organizations to inform the Commission of any issues that are raised when the organizations get together and share information. Vill. Public Comment Sue Robinson commended participants on this meeting. She said she is concemed with affordable housing, particularly young professionals who can't afford housing in Evanston. Suzanne Carlson noted that Ms. Ester's comment on requiring a longer affordability period wasn't written on the flip charts. .sill Graham suggested the City maintain a closer connection to the County Treasurer's office regarding Evanston properties about to go up for tax sale due to tax arrearages. She said if a CHDO expressed interest in such a property in order to turn it into affordable housing, the City could ask the Treasurer not to put it on the block but instead sign it over to the City. She said this Is done with Chicago properties. Keith Banks added that he hopes the project approval process could be streamlined, as It often takes about four months and that Is difficult If you're trying to purchase a property. Betty Ester said that it is difficult to determine the property tax calculation for the homebuyer's scenario on the funding application because buyers will apply for the County Assessor's Incentive but they don't know what it will be. so they would like to see a better mechanism for that. The meeting adjourned at 9:25 p.m. The next scheduled Rousing Commission meeting is 7 p.m. Thursday, March 20, 2008. Respectfully submitted, Donna Spicuzza, Housing Planner Housing Commission Minutes February 21, 2008 Page 5 Summary of Housing Commission Roundtable with CHOOs February 21, 20oa Participants: Housing Commissioners: Carol Balkeom, Eric Beauchamp, Brooks Harding, Susan Munro, Bruce Nelson, Joanne Zolomij Staff: Donna Spicuzza CHDO representatives: Keith Banks, Evanston Communication Development Association (ECDA). Wilfred Gadsen and Betty Ester, Citizens Lighthouse Community Land Trust (CLUT), George Gauthier, Evanston Housing Coalition (EHC), David Jansen, Reba Place Development Corporation (RPDC), Mary Ellen Tamasy, Housing Opportunities Development Corporation (HODC) What projects do you expect to propose to the commission In 2008? We are talking here about types of projects, not specific addresses. • CLCLT. Six projects altogether, including new construction. condo and single-family rehab. • HODC: Rehab of 2 two -fiats for rental. • ECDA: Rescue of 5-unit building in foreclosure; looking for opportunities for new construction. • Reba: Finishing units on Mulford; not anticipating new projects. • EHC: Single-family rehab. What would you recommend that the Housing Commission do to stimulate the development of affordable housing In Evanston? • Help with efforts to increase supply of qualified buyers. Potential buyers often have credit issues that may take a couple years to resolve. • Address the need for large units, 3 or 4 bedrooms. • Advocate to the City Council more frequently and forcefully regarding affordable housing Issues. • Develop, in collaboration with the CHDOs, a long-term plan that provides for people at different income levels and with different housing needs; Increase predictability for CHDOs. Develop housing continuum, defining housing needs and goals for people at 50160I801100 AMI. • Pay more attention to the need for preservation. Immediate issue: proposed Increase in licensing fee will be a burden on low-income renters and on not -for -profits providing low-income rental units, like HODC. • Increase supply by developing strategy with regard to vacant housing (look at what is done in Chicago); don't allow long-term vacant and boarded -up housing. • Increase supply by working with Cook County to acquire propertlesliand being sold at tax sale (as Chicago does). Housing Commission Minutes Februmy 21. 2008 Page 6 • Be more public and vocal in the community about the need for affordable housing. Define and educate public about what "affordable" means. • Revisit and improve inclusionary zoning ordinance. Issues: o require units on site o increase the buy-out figure, which is currently at $40,000tunit—tar below the cast of creating an affordable unit) o put affordable units into CLCLT to preserve affordability o include rental projects in the ordinance • Increase demand of qualified buyers by implementing and enhancing first-time homebuyer downpayment program. • Streamline the process of applying and getting approval for subsidies; process takes too long. What strategies might we pursue to stimulate affordable housing development in wards/neighborhoods where we have not funded projects (i.e., outside of the south and west sides)? • Since this involves going against market forces, increase subsidy above $100,000 per unit for development in these areas. • Anticipate NIMBY opposition If development is more than one unit; assist in building public will and countering opposition. • Clarify policy regarding use of HOME or AHF funds for acquisition without rehab (turning land over to land trust). Most projects that have come to us recently have been for homeownership. Do you see a need and potential for affordable rental projects? • Tremendous need: HODC gets 50 calls a week from people looking for rentals; this will increase with more foreclosures. • Need for units for larger units for low-income families. Working at top edges of the allowed income level makes it hard to fit family needs with affordable units. • Barrier. CHDOs cannot be competitive with developers looking to turn rental buildings into condos. Few large rental buildings left. CHDOs need help finding properties. • Barrier. Can't make the economics work. Operating costs rising much faster than renters' incomes. Rental development more expensive than homeowner development. • Increase the subsidy to reduce the capital cost, so that CHDO-landlord carries smaller mortgage. • Build political will. Legacy of Darrow Comers. • Look to other ways to build funds for rental, such as Issuing bonds. • Consider mixed income rental (as in CHA redevelopment areas). Very challenging because of lack of affordable land for construction of larger buildings. Housing Commission !Minutes Febmiary 21, 2008 Page 7 What strategies might be pursued to Increase the number of qualified homebuyers for affordable housing and to improve marketing efforts? • Recognize and provide for long-term. one-on-one nature of homebuyer counseling. Consider IDA-type matching savings program as incentive for potential buyers to stay on track. • Provide Gear, concise information to potential buyers about market conditions. • Need a large pool of qualified buyers because of the narrow parameters of HOME - funded projects (e.g.. family of 3 can qualify for unit pegged at an income level for a family of a) • Implement and enhance downpayment assistance program. Under what circumstances would your organization be willing or likely to partner with another CHDO or a for -profit developer on a project? • Local CHDOs have history of partnerships. HODC has done joint ventures with for - profit developer. You have to choose partner who understands affordable housing and isn't just looking for the CHDO to contribute a subsidy to the project. • Find good for -profit developers and bring them to Evanston. HODC has worked with Brinshore on a project in Highland Park fwww.brinshore.comj. Mother possibility is Related Development (www.Irreattv.com) in Chicago. EVANSTON HOUSING COMMISSION 1%IINUTES March 20, 2008 Present: Susan Munro. Chair, Carol Balkcom, Bruce Nelson and Joanne Zolomij Absent: Timothy Angell. Sara Ashmore Diggs, Eric Beauchamp, Brooks Harding Staff: Donna Spicuzza, Housing Planner I. Call to Order The meeting was called to order at 7:05 p.m. without a quorum present. Minor corrections to the minutes of the February 21 meeting were noted but not approved. II. Communications Staff updated the Commission on the status of their recommendations to the Planning and Development Committee. The Council approved HOME funding of $250,000 for Econ Development Corporation's 5 unit condominium conversion at 241 Callan, the amount recommended by the Housing Commission. The developer reduced his request from the original S300,000. Staff noted they still had concerns about the amount of subsidy per unit and the pricing of the affordable units. The vote was 5-4. Evanston Community Development Association withdrew Its request for funds to purchase 5 units at 829 Case after the developer lost the building through foreclosure. The request had been removed from an earlier Planning and Development meeting by the City Manager who requested that staff provide more information on the conversion costs and the owner's Investment because of concerns about the owner retaining his unit. The Council approved two condominium workshops as recommended by the Housing Commission but voted to charge S15 per association rather than request support from lenders. The Council approved reserving HOME funds of S200,000 each for two years for the City's four Community Housing Development Organizations. Ms. Spicuzza said she would work with the CHDOs to identify appropriate projects within a year. Ms. Balkcom asked about the per unit limit of $100,000 for projects. Ms. Spicuzza said it was an informal policy, based on historical uses, and a way to get more leverage out of the HOME funds. She said typically rental projects used less subsidy per unit. Ms. Balkcom asked that the Commission discuss that policy because of the need for large subsidies in order to make units affordable. Ms. Spicuzza passed out the rental survey that was mailed to owners of all rental buildings with two or more units, and described the project that is being undertaken by a Northwestern student in the Learning Certificate program. Members discussed the importance of having someone attend the Planning and Development Committee, but no official liaison was named. III. Discussion of "Preservation of Affordable Homeownership: A Continuum of Strategies" and City of Evanston Affordability Terms, Recapture and Resale Options Bruce Nelson provided a brief outline of the article by Rick Jacobus and Jeffrey Lubell and pointed out the different strategies for preserving affordable ownership. Mr. Nelson went over the four strategies: subsidy forgiveness which can be grants or forgivable loans, subsidy recapture at the time of resale, shared appreciation loans where the loan Is repaid at sale, and subsidy retention which reduces the cost to the next homebuyer. Housing Commission Minures March 20, 2008 Page 2 Members discussed how affordable resale and recapture restrictions worked as well as second or junior mortgages. Ms. Munro asked Ms. Spicuzza why staff did not support resale restrictions in perpetuity. Ms. Spicuzza said she felt that the value of the subsidy should be limited since the investment value is limited in terms of the improvement and the life span of a building. She said a building will usually require additional capital improvements at some point in time. which would affect the affordable resale price. She said it would probably require additional subsidy if it were to remain affordable given the additional investment. The federal regulations which govern HOME do not allow additional HOME subsidy to be added during the affordability period. She also said that the regulations do not allow combining resale restrictions and recapture provisions, so if it were restricted for a period of years, there could not be any shared equity recapture at the end of the term. Members asked about the land trust home and Ms. Spicuzza said that the HOME fund affordability period would 20 years although the land trust ground lease would still be in effect, with its resale provisions. They asked if they could apply the concept of two separate affordability periods to other affordable developments and Ms. Spicuzza said she would have to look into it. Ms_ Zolomij said she favored the shared appreciation loan and the subsidy with resale restrictions because she looks at housing as not just an investment, but a place to live. Ms. Munro noted that the charts indicated that recapture wouldn't always provide enough return to fill the gap for future affordable housing but that shared appreciation or subsidy retention could. She said that subsidy forgiveness Is appropriate for small grants, but they still need to grapple with the two different resale policies for HOME loans and for inclusionary housing projects. She said she hears the argument presented by staff but doesn't think it is sufficiently balanced by the loss of affordable units after 15 years. She said the owner could also get quite a windfall. Ms. Spicuzza said the Commission discussed that issue a few years ago and referred to those minutes which she distributed. She said that is why RPDC and ECDA have formulas for gradual appreciation over five years after the 15 year HOME affordability period, so that between years 15 and 20 the home does not have to be sold to an income -eligible household but the resale price is still below market value and the potential windfall profit Is reduced. Members asked what other cities have done and if they have longer retention periods. Ms. Spicuzza said she hasn't seen a lot of information on that but would try to find some information. Members noted the inclusionary policy requires units to remain affordable through resale restrictions in perpetuity or as long as allowed by law. However, there is a provision for shared equity recapture if the Court rules against perpetual resale restrictions are challenged. Ms. Munro noted that there has never been a challenge. Members agreed the topic needed more discussion with all members present and more information. VI. Discuss Recommendations for Now Fee -In -Lieu for the Incluslonary Zoning Ordinance Ms. Munro distributed a memo from BPI which outlined reasons to increase the amount of the fee -in -lieu since it was not representative of the cost of units and thus developers subject to the inclusionary program would choose to contribute a fee rather than create affordable units in their developments. Members agreed that the S40,000 fee should be reconsidered, as the policy states that the fee can be reviewed and adjusted after April 1, 2008. Ms. Zolomij commented that BPI's cost of current units combined both single family and condos, and she thought they should be separated. After discussion they agreed that using the lowest quartile as an example, for a S245,000 average, seemed reasonable. They discussed the alternatives proposed by BPI and discussed which scenarios would be most likely to be considered by the Council. Since no developments have yet been approved that are subject to the program, there is no experience base. However, members felt it was important to Housing Commission Minutes March 20, 2008 Page 3 build a case for creating more affordable units in new developments by making set -aside and fee - in -lieu options more compatible. They talked about matching the fee to the cost of building the unit, cost of building, but felt a market based approach was more reasonable than a cost approach. However. Ms. Spicuzza said she would see if she could get some cost information from permit data. Members will make a recommendation for a higher fee lin lieu in order to get developers to take a harder look at creating affordable units on -site, and to get more funds in the Affordable Housing Fund to assist CHDOs with development projects. Ms. Munro asked if the proposed changes in zoning outlined in the downtown plan would Impact planned developments and the applicability of the inclusionary ordinance. Ms. Spicuzza said her initial reading indicated that any time a development goes above the recommended criteria there would be bonuses, so the developer must provide some consideration to the City. She thought that including affordable units was in the list, but she would try to get more input from staff on the effect of the proposal. Ms. Munro said she would write a draft memo outlining their recommendations, for further discussion. Other Business Ms. Munro said that vacant building issue was not on the agenda but the City needs to develop a strategy and could use the Affordable Housing Fund as a resource. Ms. Balkcom asked whds working on vacant buildings, and Ms. Spicuzza said it Is primarily Stan Janusz, Community Development Assistant Director, Property Standards Division. In addition, one property standards inspector is assigned to vacant buildings, and the property standards supervisor is involved In those inspections. Ms. Spicuzza said she was working on the procedures for the Downpayment Assistance Program and would have them for the Commission at the next meeting. She said three lenders are likely to participate. VI1. Public Comment Eb Moran commented that it Is good the Commission Is talking about all these issues and agreed they should consider a formal policy of per unit subsidy limits. He also said that rental housing has to be part of the affordable housing plan. The meeting adjourned at 8:55 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner EVANSTON HOUSING COAIAIISSION MINUTES April 17, 2008 Present: Susan Munro, Chair, rim Angell, Eric Beauchamp, Brooks Harding, Richard Mosley, and Joanne Zolomij Absent: Sara Ashmore Diggs, Carol Balkcom, and Bruce Nelson Staff: Donna Spicuzza, Housing Planner I. Call to Order and Approval of February and March, 2008 Minutes The meeting was called to order at 7.00 p.m. with a quorum present. Approval of minutes was deferred. The Chair's suggestions for a rearranged agenda and time frames were accepted. II. Communications New member Richard Mosley was welcomed and everyone introduced themselves Members reviewed Affordable Housing Fund Summary and Affordable Housing Project List and Map they received in the packet. Information was distributed on April 30 Condominium Seminar April 30 and Downpayment Assistance Program which will begin in May, and HUD 2008 Income tables, Mr. Harding and Ms. Zolomij Indicated they planned to attend the Condo training. Staff distributed funding proposals which were received but not yet reviewed by staff so they were not on the agenda. Ms. Spicuzza said that the Citizen's Lighthouse Community Land Trust hoped to bring their request for $15,000 in additional funding for 2212 Washington to the Planning and Development Committee on May 12. Members agreed to try to schedule a special meeting the week of April 28 to review a request so they could get on the agenda as they were trying to sell the home. Housing Opportunity Development Corporation submitted a proposal for $17,000 for home purchase counseling which members felt could be considered at the regular May meeting Ili. Housing Commission Representation on HOME Loan Committee Ms. Munro said that she asked the Community Development Director if a Housing Commission member could sit on the ad loan committee that reviews development proposals, and Mr. Wolinski said they should name a representative. She said the meetings are held at 8 or 8:30 am during the week at the Civic Center, on a day that is most convenient to a majority of the members. Eric Beauchamp volunteered to serve on the ad hoc loan committee IV. BPI's April, 2008 Examination of Affordable Housing Needs in Evanston Members discussed the paper prepared by BPI which updated the availability of affordable housing in Evanston and the current need Ms. Munro said it could lead to a Comprehensive Plan for Affordable Housing. She said while the City has its Strategic Plan and the Consolidated Plans for HUD, there's not one place where all the affordable issues are located and are easy to understand. The BPI report provided recent median sales figures for condos, townhomes and single family homes and demographic data from the 2006 American Community Survey. Members commented that the facts, and the way they were presented in tables, made a strong case for the gap between the supply and the need for affordable rental and ownership housing. They felt that before making a recommendation for an increase in the inclusionary fee in order to encourage affordable set -asides in new development, they should educate and inform Council members about the need. Housing Commission Minuies April 17, 2008 Page 2 It was suggested that a definition of household be included in the report, and a discussion of how student households affect data and needs. After discussion, it was agreed that they would ask to present the Information to the Planning and Development Committee on May 27or soon thereafter. V. Discuss Recommendations for New Fee -in -Lieu for the lnclusionary Zoning Ordinance Ms. Munro prepared a draft memo from the Housing Commission recommending an increase in the fee in lieu -of creating affordable units in developments subject to the lnclusionary Housing Ordinance. Members discussed the draft, debated various recommendations, and agreed on a suggestion. They decided to bring the recommendation to the Planning and Development Committee along with a vacant building proposal sometime this summer after they presented Information on the need to create more affordable housing units. They will also look at an old memo from the Law Department regarding the need to receive a bonus. It was suggested that they rebrand time "tool box" term to something like cost offsets or developer Incentive, because of the negative connotations the term carries for some aldermen. They also plan to meet individually with aldermen and assigned commissioners by ward. Vl. Vacant Building Discussion Members reviewed the staff proposal for a vacant building program presented last summer and discussed current data on vacant buildings and foreclosures prepared by Stan Janusz, Community Development Department Assistant Director. They felt the previous proposal had merits and asked Ms. Spicuzza why the Planning and Development Committee did not want to consider it. She said there was no indication of what was unfavorable in the proposal, but some aldermen wanted more information on the characteristics of vacant buildings, such as ownership and sale prices. She said some information was obtained last summer but it was difficult to find the time to do intensive follow up and investigation. Ms. Munro said she has been looking at other cities and how they deal with the issue. Mr. Angell said he heard about Youngstown Ohio, where the City is buying foreclosed and vacant properties, demolishing them and making green space. Members said they would like to look at other examples of how municipalities address this issue and continue to study various solutions. Mr. Angell said he would contact Neighborhood Housing Services of Chicago to talk to them about their vacant building program. VJI. Discussion on maximum subsidy per unit for HOME and Affordable Housing Funds The decision on a formal policy was tabled, but members felt they should consider higher amounts if a proposal requested it. Vlll. Public Comment George Gauthier of Evanston Housing Coalition encouraged the Commission to continue to look at solutions for turning around vacant buildings, and said he thought the previous proposal had merit. He said it proposed making up to 5100,000 available for an acquisition loan which would be paid back when the unit sold, as well as a forgiveable loan or grant for rehab and purchase price reduction. He said the timing is critical when trying to acquire foreclosed properties and it is necessary to have funds available on short notice. He said he liked the idea of approving a general plan from developers and providing a line of credit so they developers could investigate properties and be prepared to act quickly. The meeting adjourned at 9:10 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner Ilk EVANSTOr HOUSItiG COINI IISSION MINUTES May 15, 2008 Present: Susan Munro, Chair. Sara Ashmore Diggs, Card Balkcom, Eric Beauchamp, Brooks Harding Bruce Nelson, Richard Mosley, and Joanne Zolomij Absent: Tim Angell Staff: Donna Spicuzza, Housing Planner I. Call to Order and Approval of March and April Minutes The meeting was called to order at 7:00 p.m. with a quorum present. The minutes of the March 20 and April 17, 2008, meetings were approved 6— 0 (two members arrived late), with minor corrections. II. Communications Ms. Spicuzza said that James Wolinski, Community Development Director, was unable to attend, and he is retiring at the end of May. She said that Dennis Marina, currently the Assistant Director of Community Development, Planning Division, has been named Interim Director. Members said they would like to invite him to a Housing Commission meeting. Ms. Spicuzza said the Condominium Workshop in April was a success. About 40 people attended from 20 associations, and the City collected $300. She said that there were a number of people from established condominiums who were new to their condo board. Many people thanked the City on the way out for having the workshop and said how informative it was. Brooks Harding and Joanne Zolomij also attended and said they were impressed with the presentation and the turnout. They suggested the next seminar could be put on the City's web site, and perhaps add a link to web site for Lake Side Community Development Corporation. Members discussed when the next seminar should be, and thought late September would be good so that it could be advertised in the fall Highlights issue. Members reviewed the Affordable Housing Fund summary and had some questions which Ms. Spicuzza answered. They asked if the names of projects could be tied to expenditures or revenue. They asked about developer pledges and Ms. Spicuzza the developments that haven't contributed yet are not complete, except for the Sienna. The developer wants to modify the Planned Development to replace townhomes with a hotel, and is negotiating the contribution In conjunction with the modification. Ill. Consideration of Request from Citizen's Lighthouse Community Land Trust (CLCLT) for additional $15,000 In HOME funds CLCLT request for additional HOME funds to supplement the S99,500 in HOME funds received in order to complete the rehab of single family property at 2212 Washington. Betty Ester, CLCLT president, spoke to the Commission. She said the purpose of the request is to write down the cost of the home and no: necessanly cover project costs. She said they provided the cost breakout at staffs request. Ms. Ester said they want to reduce the price to the purchaser to S169,000 and make it affordable to a family of four. Since HUD guidelines increased for 80% AMI households in 2008. the Board felt they could reach that group if the price were less than the current price of S 180,000. Ms. Munro asked if they have such interested families on their list if the price was reduced and Ms. Ester said they have one family of five and two families of four who are interested. She said they would talk about marketing the home at the CLCLT annual meeting next Sunday and invited Commissioners to attend. Mr. Beauchamp noted that not everything in the development budget had been completed yet and asked about that. Ms. Ester said whether the garage will be repaired or Housing Commission Minutes May 15, 2008 Page 2 demolished is still under discussion with City staff. She said their contractor said it couldn't be saved as they originally planned. When he tried to raise it in order to put in new boards on the bottom to replace the rotted ones, the top beam started to crumble. Mr. Beauchamp said it's better to demolish it and just have a parking pad. The City's rehab specialist is going to look at the garage in the next week to help make a decision and finalize costs. Mr. Beauchamp asked how the S15,000 was going to be structured. Ms. Ester said it's a loan to the CLCLT in addition to the previous 599,500, which is not repayable because the land would never be sold. Members asked if they will market it at S165,000. Ms. Ester said no but she didn't have the financing scenario with her so she wasn't sure. It would be marketed at $180,000 and reduced if needed, based on the buyer's income. Ms. Munro wanted to clarify if the additional $15,000 would be added to the borrower's junior mortgage for 599,500 and Ms. Spicuzza said yes, it would be added to the 599,500. Members asked if they wouldn't need the additional funds if the house was sold to a household of five. Ms. Ester said it would depend on the buyer's income and any money the CLCLT gets would help subsidize the land trust and keeping the house. Mr. Beauchamp asked why staff recommended 58,500 additional of the $15,000 requested. Ms. Spicuzza said they didn't see how the 515,000 tied in to just reducing the purchase price. She said some of the extra casts were borne by board but it looked like they needed some of extra money to pay for uncompleted work. She said they looked at the costs for work not yet completed which the City could cover. Ms. Ester said the board just wanted money to write down the cost, not cover the overruns and they sent the financing scenario to show that. Staff asked for the cost breakout and they provided that, but the original request was just for writing down the cost of the house, so a family of four could qualify. Many members said they were confused. Ms. Ashmore Diggs said she could see it if the money was going to a separate fund for borrowers if needed, but was confused about how it would be done. She asked if there was more work to do that will incur more costs. Ms. Ester said they didn't want to ask the City for that. Ms. Munro said they had difficulty getting clarity and if they recommended additional funds, the Planning and Development Committee would have the same difficulty understanding the request. Members made recommendations for presenting the information and suggested staff discuss the request with CLCLT again. Ms. Ester said they could rewrite the request and it would be just a request for the money to bring the cost down, with a purchase scenario. She said if the Committee needs to know project budget, it would raise the same questions you have now. Ms. Ester explained the steps after the purchase offer, which she said would probably take a few months. Eric Beauchamp moved that the Commission recommend up to $15,000 additional funds to reduce the purchase price from S180.000 based on purchasers income level and needs. The motion was seconded by Mr. Nelson. Carol Balkeom and Richard Mosely recused themselves from the vote and the motion passed 6-0. IV. Consideration of Request from Housing Opportunity Development Corporation for $17,000 for Home Purchase Counseling and Workshops for Evanston Residents HODC proposes to hold 5 pre -purchase counseling workshops in Evanston and provide individual counseling to 50 Evanston clients Erica Page, HODC's housing counselor, presented information on their request. Ms. Munro asked about last year's grant. Ms. Page said they received counseling funds the previous year and received funds last year for employer assisted housing. Ms. Page said they planned to provide structured pre -purchase seminars and individual counseling. She passed out a copy of the seminar curriculum and the FannieMae booklets that participants receive. She said the seminars are made up of three 2 Yz hour sessions: credit and budget, financial aspects including grant programs, and the structure of real estate deals from contracts to closing. Housing Commission Minutes May 15. 3008 Page 3 She said they also intend to add a new component for post -purchase counseling. They would reach out to people who have closed within the last 9 months for a post -purchase workshop that would cover such things as maintaining property, tax exemptions, and what to watch for in home equity loans Members asked about the success rate of their seminars. Ms. Page said they receive excellent feedback on the workshops. She said the seminars build confidence, but not everybody is 100% ready to buy yet. She said that eight Evanston participants had bought homes in Evanston. She says people sometimes keep in touch after the seminars, and one woman contacted her a year after she attended a seminar to let her know she had a house under contract. Members noted that homebuyer counseling is essential to help educate buyers and also because all the City's assisted ownership developments require it. Ms. Ashmore Diggs asked about other funding for housing counseling. Ms. Page and Ms. Tamasy, Executive Director of HODC, said they get donations and have funds from HUD and Cook County, but that tatter can't be spent in Evanston. Members asked about the budget in the request and Ms. Page explained that the $39,000 budget was only for the Evanston portion of their services. She said the largest group of people are from Evanston but they serve other communities which are not shown in the budget. Mr. Beauchamp said he would like to see how many people were counseled and if any homes were purchased, to get a sense of whether City money is being well spent. Ms. Zolomlj said it would be helpful to even provide a sense of where they are in the process, such as working on credit issues or building up a downpayment. She noted that even if they make an informed decision not to buy, that would be good to know. Bruce Nelson moved that the Commission recommend funding of $17,000 for HODC's homeowner counseling program, seconded by Mr. Beauchamp. The motion passed 8 — 0. V. Plan for June 9 P&D Presentation on Affordable Housing Needs Before discussing the presentation, Ms. Munro reported that two affordable units at Reba's Mulford condo project are closing and are getting mortgages through Evanston Housing Coalition. Ms. Spicuzza confirmed that and said one unit had previously dosed, with another lender. Members then discussed the information and power point presentation for the Planning and Development Committee meeting on June 9 where they will discuss SPI's Housing needs analysis. Members also reported on efforts to meet with aldermen individually and discuss their concerns or Issues about affordable housing efforts. V1. Vacant Building Discussion The representative from Neighborhood Housing Services was not able to attend to discuss the NHS vacant building program, so they will reschedule. Ms. Munro said that she and Mr. Moseley attended a foreclosure workshop through the Federal Reserve, where they provided Information on six levels of strategies, including actions that municipalities can take an vacant properties. One of the recommendations included a vacant building ordinance and registering vacant buildings. Ms. Munro pointed out that Evanston requires that vacant buildings be registered, and the Vacant Building Ordinance also requires other actions, such as submitting plans for the building, evidence of insurance, and posting a sign with the owner's contact information. Mr. Beauchamp asked if the City was enforcing the ordinance. Ms. Spicuzza said yes, and that the Property Standards Division now has an inspector dedicated to vacant buildings, and they are stepping up enforcement of the ordinance. She said she attended Administrative Adjudication a few weeks ago where a number of vacant building cases were scheduled, and noted there is still sometimes a problem of finding the current owner. For instance, the taxpayer of record may be different from the last known owner. They are working on a better system to find the owners, but the City sends notice to all names they have to try to make sure that proper notice is served. Members suggested that someone from Property Standards could come and discuss the Issue, I Housing Commission Minutes May 15, 2008 Page 4 and that the Commission could get a report on the status of the vacant building enforcement, and how the ordinance is working. Mr. Mosley talked about the seminar. and said they discussed how predatory loans were often responsible for foreclosed and vacant properties. Municipalities shared their strategies, some of which he felt would not work in Evanston, but they were helpful to hear. He said the attorney who presented was very informative and she stressed the importance of having a law and an ordinance. Mr. Beauchamp asked how long Evanston's vacant building ordinance has been in place and if it is working. Members said it's been about 2 years. He wondered if it is harsh enough, and he thinks Chicago's ordinance has been effective in reducing vacant buildings because they have taken property and tumed it over to affordable housing developers. Ms. Spicuaa said that they need to do more analysis on the list of vacant buildings, but a preliminary review shows that generally property taxes are being paid, so that makes it more difficult to take property. Members spent more time discussing the ordinance and problems of vacant buildings and also noted that lending institutions are now more open to talking about short sales and avoiding foreclosures. They said they would spend more time discussing a program for Evanston. V)I. Public Comment There was no public comment. The meeting adjourned at 8.45 p.m. Respectfully submitted, Donna Spicuzz , Housing Planner EVANSTON HOUSING COMMISSION LNiiNUTES June 20, 2008 Present: Susan Munro, Chair, Tim Angell, Carol Batkcom, Eric Beauchamp, Richard Mosley, Bruce Nelson, Joanne Zolomij Absent: Sara Ashmore Diggs, Brooks Harding Tim Angell Staff: Susan Guderley, Interim Assistant Community Development Director, Planning Donna Spieuzza, Housing Planner 1. Call to Order, Approve Minutes The meeting was called to order at 7:10 p.m. and the minutes of the May 15.2008 meeting were approved with minor corrections 6.0 with one abstention ll. Communications - Staff updated the Commission on City Council approval of S17,000 in Affordable Housing Funds for HODC's home purchase counseling program in Evanston and $15,000 In additional HOME funds to CLCLT for S8.500 in rehab and S6,500 in downpayment assistance on 2212 Washington - Staff reported that approximately S75,000 in CHDO Operating funds is available, pending: confirmation. Funds can be used by four current CHDO's and possibly a fifth as ECDA has applied for CHDO status. Members asked about the uses and CHDO Operating and HOME Administrative funds - Members reviewed the Affordable Housing Fund Report and asked that committed funds also be listed - Members received a copy of the Dennison Associates Technical Assistance Report and comments on the report from CLCLT Ill. Information on the adopted West Evanston Plan Susan Guderley. Neighborhood Planner and Interim Community Development Assistant Director, Planning Division, presented the approved West Evanston Plan, and discussed with members its Impact on affordable housing issues. She noted that Aid Holmes would have like to attend and discuss the plan with commission members but she had her regular ward meeting. Mr. Beauchamp commented that large lots are not economically feasible for non -profits to acquire, but they could partner with another developer. Mr. Angell suggested that the Commission make recommendations to get affordable housing in the planning areas and be proactive for redevelopment. Ms. Munro suggested that the Commission and staff could provide guidance to Interested developers regarding affordable housing programs and how to use funds for their projects. Ms. Guderley said that she and Ms. Spicuzza talked about doing a roundtable with developers to discuss what we could have in the planning area, and noted that they need to find the right players. Ms. Munro noted that the Commission did a round table discussion with CHOOs recently. Ms. Guderley said that Metropolitan Planning Council did a series of workshops on Affordable Housing, and perhaps Evanston could have a joint program for its CHDO and other developers. Mr. Angell said he thought developers like to know all the rules before going through the approval process and that having elected officials at the round table might be a good idea. Mr. Beauchamp brought up the inclusionary housing option of a fee in lieu of affordable housing and thought it would make sense to mandate onsite affordable development in the Plan rather than a allow a fee in -lieu. Members noted that since the Plan would have form based codes rather than Planned Developments. the Inclusionary program would not apply. Members Housing Commission Minutes June 20, 2008 Page 2 discussed this issue and the impact of the planning area being a Tax Increment Financing (TIF) district. Mr. Angell felt that the provision of low/mod housing is an eligible expense in a TIF. Members also discussed how the plan addressed problem issues such as building height. and Ms. Guderley also talked about for} based code in more detail. She said is it very specific about some things, but less specific about uses. It follows a rigorous process she said, and is an innovative zoning tool that looks at design and how buildings relate to the public realm and other buildings. She said it is very prescriptive. After discussing aspects of the plan and the implications of form based code on Planned Developments and the Inclusionary Housing requirement. members listed Action steps they want to consider: 1. Convene non-profit and for -profit developers, possibly in conjunction with a meeting with Ald. Holmes, to talk about opportunities for affordable housing partnerships that would conform to proposed development in the Plan 2. Consider whether the Housing Commission should request that any proposed residential developments In the TIF area should present to the Housing Commission before going to Planning and Development Committee, so that they will include Affordable Housing 3. Promote a City policy that would require developers to provide affordable housing In residential developments using TIF incentives. IV. Vacant Building DIscusslon Mr. Gardner of Neighborhood Housing Services of Chicago was not present but members discussed the Chicago program for vacant buildings and how to implement programs in Evanston to turn around vacant buildings. Ms. Munro said that it's easier to design a program, but someone is needed to do the research, and identify properties and go after sellers. She didn't think CHDOSs have the capacity. The discussion turned to ways to help owners prevent the loss of their property through foreclosure. Members and staff talked about getting out the information on foreclosure prevention counseling. Ms. Spicuzza said there will be an article in the City newsletter and she would look Into getting a notice on water bills. V, Update from Reba Place Development Corporation and Evanston Community Development Association on Current Projects Keith Banks of ECDA and Mary Goering of RPDC presented information on their marketing efforts to sell the remaining affordable units in their projects at 736-738 Dobson and 602 Mulford. VI. Comprehensive Housing Plan Discussion Members discussed goals and the process for a task force on a comprehensive affordable housing plan. Mr. Beauchamp recommend they keep it very focused, otherwise it would be unmanageable. Members suggested they ask aldermen for recommendations for members, although Ms. Munro noted that the Mayor would probably want to appoint the members after recommendations were made. They talked about the stakeholders who should be part of it and additional data they will need. Members agreed with Ms. Munro's recommendation that they need a facilitator. VII. Public Comment Housing Commission Minutes June 20, 2008 Page 3 Keith Banks suggested that someone in need of affordable housing, perhaps a senior or a person with a disability, be part of the Task Force. Priscilla Giles commented that TIF districts were presented as if it would benefit people who live in the district but she felt it was the opposite. Mr. Angell noted that the Housing Commission did not have anything to do with the TIF District. Ms. Giles said that people have lost their homes because someone built luxury buildings and taxes increased with higher values. She said people also wanted the West Side Plan to address places of employment. Betty Ester advised Commission members to look at page 5 of the Zoning Plan. Fran Seidman suggested the Commission look at the experience of the Inclusionary Housing Task Force as a cautionary tale. The meeting adjourned at 9:35 p.m. Respectfully submitted. Donna Spicuzza, Housing Planner EVANSTON HOUSING COWNIISSION MINUTES July 17, 2008 Present: Eric Beauchamp, Acting Chair, Sara Ashmore Diggs, Carol Balkcom. Brooks Harding, Richard Mosley, Bruce Nelson, Joanne Zolomlj Absent: Tim Angell, Susan Munro Staff: Donna Spicuzza, Housing Planner I. Call to Order, Approve Minutes The meeting was called to order with a quorum present at 7:00 p.m. Minutes of the June 19 meeting were not available to approve. II. Communications -Staff presented Information on communications about Foreclosure Prevention Resources and noted some members of the Planning and Development Committee were not satisfied. AM. Jean -Baptiste asked the Human Relations Commission to discuss foreclosure prevention workshops and the chair of that commission will talk to the Housing Commission chair about involvement and roles. Members felt the Housing Commission could work on speakers and resources and the Human Relations Commission could work on outreach. Staff distributed information on the federal housing stimulus package and the HUD budget and discussed their statuses Staff reported that Aid. Tisdahl asked whether the City is reaching out to large local employers to talk about employer assisted housing. Donna Spicuzza discussed the City's Program and asked if any commission members were interested in doing outreach to employers. Sara Ashmore Diggs said she would be interested In initial meetings, with help from MPC and staff Ill. Request for CHDO Designation from Evanston Community Development Organization Members discussed ECDA's application for certification as a CHDO with the City's HOME Program. They asked how long ECDA has been in existence and Mr. Banks, executive Director of ECDA. said they started out In 2002 and got their 501(cx3) two years ago. Carol Balkcom moved to recommend ECDA for CHDO certification, seconded by Bruce Nelson. The motion passed 7-0. IV. Status of CHDO Operating Funds and Consideration of Allocation Members discussed the use of $81.834 in current and prior year HOME funds available for CHDO Operating grants. Richard Moseley cautioned that the Commission's vote is only a recommendation and not final, and members confirmed they realized that. After reviewing the memo and information regarding funds and CHDOs, members agreed they would like to see all the available funds divided among five CHDOs, rather than saving some funds some for distribution next year. Members reviewed the funding chart and asked how funds were allocated in the past. Ms. Spicuzza said the funding since 2003104 was evenly divided among the CHDOs. They discussed different ways to allocate funds and Mr. Harding wcndered if they wanted to base it on the organization's expenses or other Issues. They agreed to defer voting on a recommendation until August after the CHDOs submitted operating budgets and project updates. V. Update on Comprehensive Housing Plan Task Force • Housing Commission Minutes July 17, 2008 Page 2 Mr. Beauchamp said that so far one alderman and one citizen have expressed an interest in participating in the Task Force. Members will discuss the appointment process In August. They agreed that a few members of the Commission should work with staff to propose a work plan for the Commission to review at the August meeting. VL Public Comment Keith Banks and Mary Ellen Tamasy updated members on a recent meeting of affordable housing organizations. Mr. Banks said everyone in attendance felt that turning around boarded up buildings was a priority. Ms. Tamasy said they also discussed affordable housing funding sources and how they have changed. She said that IHDA has less money In its Affordable Housing Trust Fund, because less revenue is collected from transfer taxes and the governor used some funds for other uses. She said tax credit financing has also changed since last year and investors are paying less for the credits. Mr. Banks said that they also said those at the meeting felt it Is key to develop qualified buyers and that they have to pay attention to rental housing needs. The meeting adjourned at 8:DO p.m. Respectfully submitted, Donna Spicuzza, Housing Planner EVANSTON HOUSING CO.WMISSION ,NII UTES August 21, 2008 Present: Susan Munro. Chair, Tim Angell, Sara Ashmore Diggs, Carol Salkcom. Richard Mosley. Joanne Zolomi Absent: Eric Beauchamp, Brooks Harding, Bruce Nelson Staff: Donna Spicuzza, Housing Planner I. The chair called the meeting to order at 7:04 and declared a quorum was presenL The The .tune 19, 2008 meeting minutes were approved 6 — 0. Approval of the July 17, 2008 meetings was tabled because there was not a quorum of commissioners who were present at the Julye meeting. 11. Communications • Staff will present a report on the Downpayment Program to the Planning and Development Committee in September and will provide the Commission with a copy of the report. • Staff reported that there were no recent revenues into the Affordable Housing Fund. Members asked for a written report at every meeting. + Susan Munro said she talked with staff from Senator Obama's office about the possibility of meeting to learn more about the Housing and Economic Recovery Act of 2008 and how Evanston can take advantage of the resources it will create. Members talked about the possibility of meeting the week of September 2. Ms. Spicuzza presented information In a staff memo to the Planning and Development Committee regarding the provisions of the legislation. Ill. Recommend Allocation of CHDO Operating Funds Members discussed the allocation of $81,834.15 in current and prior year HOME funds for Community Housing Development Organization (CHDO) operating grants to the City's five CHDOs. This item was first discussed at the July meeting and members asked for budget and project information from the CHDOs. Members received a spreadsheet that listed budget and project Information for the four existing CHDOs, Housing Opportunity Development Corporation (HODC), Evanston Housing Coalition (EHC), Reba Place Development Corporation (RPDC), and Citizens' Lighthouse Community Land Trust (CLCLT), as well as for Evanston Community Development Association (ECDA), which has applied for CHDO certification. A table of all CHDO operating funds that have been reserved and awarded was also presented. CHDO operating funds of S 15,000 each were last awarded to EHC, RPDC and HODC In 2006 and to CLCLT in 2007, If the available funds were split evenly among five potential CHOOs, each would receive $16,366.83, Ms. Spicuzza presented a memo that recommended allocating grants based on the organizations' budgets, scope of housing activities and likely benefits to the City. The memo also recommended that the grants be disbursed in two payments. The recommended grant amounts and percent of expenses were as follows: $18.000 HODC 4.8°% $18,000 RPDC 6.8% $16.000 EHC 53% Housing Commission Minutes August 21, 2008 Page 2 $14.000 CLCLT 28% $15.000 ECDA 25% Members discussed splitting the amount equally among the organizations, as well as varying it by organization. Ms. Balkcom said basing it on budget was not necessarily the best method since sometimes actual expenses are higher due to volunteer donations. Ms. Munro said those should be in the budget. Mr Angell said he might not vote on the item because he did not receive the information soon enough to make an informed decision. Rev. Moseley said he felt the distribution should be equal. Ms. Zolomij said she was not convinced about either method and remarked about the wide range in percentages of operating expenses the grants represented. After further discussion, members reached a consensus that the operating funds should be split evenly among all five CHDOs, at about 516,366 each, and that they should receive their grant In one payment, without requiring a mid -year report for the second disbursement. Members then discussed whether they could vote on the matter at that meeting. Ms. Balkcom and Rev. Moseley, who serve on a CHDO board, said they would recuse themselves from voting since the matter applied to all CHDOs, and therefore there would not be a quorum. Members agreed to table the item until they had a quorum. There was further discussion about such members voting on development funds for other CHDOs, and Ms. Munro said she did not think they had to recuse themselves from such votes, but asked staff to confirm. IV. Discuss Foreclosure Situation In Evanston and Implications of federal Housing and Economic Recovery Act of 2008 Members continued the discussion begun earlier in the meeting about using funds throughTitle III of the Act, Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes. Ms. Balkcom asked If administrative funds could be used by the legal department or staff to research housing in foreclosure or being sold by banks after foreclosure. Ms. Munro said she felt those tasks and the administrative funds should go to a non-profit organization. Ms. Zolomij said that now many houses that were foreclosed are being sold through the Multiple Listing Service because of the increase in numbers, and finding properties is not as difficult or time consuming. Members asked staff to develop a request for proposals from CHDOs or non -profits to address vacant residential property. Ms. Spicuzza said that staff will continue to do research of Real estate owned properties and pre -foreclosures using a data base to which the City subscribes, and will meet with staff to discuss a plan about vacant housing. V. Planning for Comprehensive Housing Plan Task Force Susan Munro reported that the Mayor told her the Housing Commission could appolnl members to the Task Force and she asked commissioners to submit names of possible participants to her by September 8 so she can send then an information letter. VI. Public Comment Suzanne Carlson asked if there were City funds available to assist first time homebuyers and also advised the Commission to consider the issues and rental strategies addressed in the Urban Land Institute's Preservation Compact. Keith Banks from Evanston Community Development Association said that the CHDOs felt it was fair to split operating funds evenly because the available funds are limited. Adjournment. The meeting adjourned at 8:25 p.m. The next scheduled meeting is Thursday, September 18, 2008. Respectfully submitted, Donna Splcuzza, Housing Planner EVAINSTON HOUSING CONVAIISS10N �1INUTES September 18, 2008 Present: Susan Munro, Chair, Tim Angell, Sara Ashmore Diggs, Carol Balkcom, Eric Beauchamp, Brooks Harding, Richard Mosley, Bruce Nelson, Joanne Zolomij Staff: Donna Spicuzza, Housing Planner The meeting was called to order at 7 pm with a quorum present. Ms. Munro said she recommended that minutes be shortened in the future to simply include the actions taken and a summary of discussion. The Minutes of the Julu19, 2008 and August 21, 2008 meetings were approved 8 — 0. IL Communications • Staff informed members that on September 29, HUD plans to release information on the implementation of the CDBG neighborhood stabilization funds that are part of the Housing and Economic Recovery Act of 2008. Members received a summary of the highlights of the legislation • Members reviewed the Downpayment Assistance Report and asked about use of funds on subsidized developments • Members reviewed the Affordable Housing Fund report and Developer Contribution list and asked for an update on status of projects where pledges have not yet been received • The Chair informed members of an October 16 "Snapshot Evanston 2008" event The Chair noted that Betsy I-assar was being honored that evening at the annual meeting of Interfaith Housing Center of the Northern Suburbs and suggested that the Commission send her a letter of congratulations. Members concurred. Ill, Recommend Allocation of CHDO Operating Funds Ms. Munro noted that this item was tabled at the August 21 meeting after a lengthy discussion because two members planned to recuse themselves from the vote and there would not be a quorum. She said she since researched Robert's Rules of Order and found that if a quorum of members is present, a board or commission can take action even if the number of people voting is less than a quorum. A motion was made by Bruce Nelson and seconded by Tim Angell to divide the $81,834 In available HOME CHDO operating funds equally among the five CHDOs. The motion passed 7-0, with two recusals. Another motion was made by Bruce Nelson and seconded by Sara Ashmore Diggs to disburse the funds In one lump payment to each CHDO. The motion passed 7-0, with 2 recusals. N. Certify Continuum of Care Applications for Consistency with Consolidated Plan Members received a summary of the ten Supportive Housing Program applications and the Homeless Management Information System (HMIS) program application, which are being submitted by the Evanston Alliance on Homelessness to HUD. The applications must include certificates that the applications are consistent with the City's 2005-2009 Consolidated Plan. Suzanne Calder, chair of the Evanston Alliance on Homelessness, spoke about the application process Housing Commission .Minutes September 18, 2008 Page 2 Bruce Nelson moved that the Commission certify that the applications meet the strategies and objectives in the City's 2005-2009 Consolidated Plan, and the motion was seconded by Joanne Zolomlj. The motion passed 9-0. V. Comprehensive Affordable Housing Plan Task Force Ms. Munro said there were 37 people who either volunteered or were nominated for participation on the Task Force. Three of the commissioners will review the names then divide them for all commission members to call them up to discuss their interest Members discussed the procedure for getting funds approved to hire a consultant to facilitate the Task Force and help draft the Affordable Housing Plan. Mr. Angell suggested that funding should be determined before a Request for Qualifications or for Proposals went out, and if an RFQ was issued they could choose a firm, and then negotiate the cost Members noted that the funding would come from the Affordable Housing Fund, and discussed what amount might be required and about getting on the Planning and Development Committee for funding. Members received a draft of the Request for Proposals with staff revisions, and were asked to look it over in the next week and make any comments on the scope of work and see if it can be a Request for Qualifications. VI. Public Comment Keith Banks of ECDA suggested that sensitivity was needed in considering use of the Downpayment Assistance Program with subsidized ownership developments. Adjournment The meeting adjourned at 8:25 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner EVANSTON HOUSING COMMISSION AIINUTES October 16, 2008 Present: Susan Munro, Chair, Carol Balkcom, Eric Beauchamp, Brooks Harding, Richard Mosley, Bruce Nelson, Joanne Zolomij Absent: Tim Angell Staff: Donna Spicuzza, Housing Planner The meeting was called to order at 7:02 pm with a quorum present. The Minutes of the September 18, 2008 meetings were approved 6— 0. If. Communications Susan Munro noted that the Mayor responded positively to her letter regarding plans to form an Affordable Housing Comprehensive Plan Task Force. Members discussed the proposed Green Building Ordinance and made recommendations to submit to the Human Services Committee meeting on October 20, 2008. They voiced their concern about the cost of requiring affordable housing projects to attain LEEDS certification, and thought there should be an incentive for affordable housing projects. They felt attaining certain specified standards would not always be economically feasible. Joanne Zolomij reported the Planning and Development Committee discussion of the Housing Commission's recommendation for CHDO operating grants. The Committee tabled the item until October 27 because they didn't know how funds would be spent without seeing operating budgets, and they questioned whether funds would be better spent on projects which are currently unsaid. Members discussed Planning 8 Development's concerns. They are also concerned about unsold units and were going to discuss that problem and the related issue of Increased development costs due to carrying costs. They commented that they felt it is important to ensure the CHDOs are able to keep operating and operating grants represent a way to support the CHDOs in all their efforts. Ms, Munro said she thought they could help the organizations raise funds in other ways and make sure they are aware of other resources and tools. Richard Mosley said he thought the HUD guidelines required Evanston to provide 10% of funds to CHDOs. Ms. Spicuzza said the regulations only require that 15% of funds be used for CHDO projects and allow up to 5% to be used for CHDO operating grants but don't require it. She said she would send the relevant section of the regulations to members. Ms. Spicuzza said that the CHDO budgets will be included in the P&D materials for the 27"' along with a memo from the Housing Commission regarding their recommendation for funding. Ms. Spicuzza said there is not a report on the Affordable Housing Fund because she needed to get more information on some expenses, but said there would be a report at the November meeting. III. Report on Sales and Development Costs of on -going City -assisted affordable ownership projects Ms. Munro said that both the Commission and the Council were concerned about the affordable units not selling and wanted to use this opportunity to discuss it rather than make any specific recommendations about requests for additional funding at this meeting. She chair invited the representatives of organizations which are marketing affordable ownership units to the front for a discussion of their ongoing projects and problems related to slow sales, availability of credit, and extended carrying casts, in order to discuss possible solutions. The group the discussed the ownership projects which have the following carrying costs: 2212 Washington Citizen's Lighthouse Community Land Trust; $2,2761 mo. carrying costs 736-738 Washington Evanston Community Development Association; $4,450/mo. Housing Commission %linulcs October 16, 2008 Page 2 602 Mulford Reba Place Development Corporation, S8, 2901mo. 241 Callan Econ Development Corporation; 56,947imo. Ms. Spicuzza reported that she had reviewed materials submitted by the three CHDOs asking for additional funds to cover carrying costs but staff needed to meet again with the organizations and analyze their needs and possible solutions. She said they wanted to consider different scenarios for the various situations, such as lease -to -purchase deals, use of organizations' reserves and assets, and assistance with broader advertising through the Round Table or the Evanston Review. She said she hadn't yet reviewed or discussed the request from Econ Development for additional funds for overruns and making all five units affordable. Rev. Moseley, who is on the board of the Land Trust, said their situation was different from others because fewer lenders will make loans for a property in a land trust. He said they refer interested buyers to two banks. He said they had one interested buyer but they decided not to purchase at this time. Neil Davidson of Econ Development said that the unsold units take away from his profitability, because he is a for -profit organization. He said he had two units with contracts when the project was approved but they couldn't get financing so no units have sold. Ms. Munro asked the developers what they could do to turn the situation around at the end of six months. David Janzen of Reba Place Development listed a number of Ideas. 1. He said he felt the CHDOs, the City and the banks should recognize they're in it together and if the developments fail, it then becomes the banks' or the City's problem, which Isn't a good solution. 2. He said he liked the idea of getting help with publicity costs; that could be very helpful. 3. He appreciated getting help from Housing Commission Eric Beauchamp, a realtor, with getting their projects listed on the MLS without taking a listing commission, and felt that would help bring in potential buyers. 4. He also said he feels that selling to purchasers who are not from Evanston is okay, because while it may not be the preferred target audience, it would get a unit sold. He felt we should welcome people who want to make Evanston their home and be part of the community. 5. He also said that they should work to change the public perception about whether now is a good time to buy property. He said they had interested buyers who they thought would qualify for a mortgage but didn't because lenders started to change their guidelines, so some potential purchasers gave up. He said the organization needs to identify lenders who will make the loans, and know their guidelines so they can help pre -qualify buyers. Mr Janzen said that they have to figure out how to do Affordable Housing in the present climate because the people who need the housing have not gone away. He said that previously when they developed the Elmwood condos, they had five people interested which resulted in their two affordable sales. With Mulford, they had 60 people interested which resulted in four sales. Ms. Zolomij, a realtor, suggested that they might talk to some local realtors or provide fliers to them to distribute at their Monday staff meetings, as some realtors may not be aware of the developments and might know clients who fit the guidelines. She said right now there are about 600 condos on the market, and sales are slow. She said that there were no safes made the previous week. Mr. Davidson said the developers should go to banks and ask them to pre -certify their projects, so they can refer buyers to them. He also said that he liked the idea of getting financial assistance to pay the realtors' commissions if they sold units, and that would be very helpful for him. He said with Interest of 56,000 a month, he needs to stop the bleeding on monthly carrying costs. Members referred to his request for S200,000 in additional HOME funds to sell all five units as affordable, rather than just 3 units. Members said they wouldn't consider additional funds for more affordable units unless the existing affordable units were sold. Mr. Davidson agreed and 1 Housing Commission Minutes October 16, 2008 Page 3 said he would withdraw that request at this time but he still needed help with carrying costs and cost overruns. Keith Banks of Evanston Community Development Association said that many potential buyers have a dream of owning a single family home, and the organizations need to work to educate people how the economies of scale of a condominium home can be less expensive than owning a single family house. Members discussed the timing of sales and Mr. Beauchamp said typically the down time is between Thanksgiving and the Super Bowl. It was noted that the affordable housing market might not track with market rate housing, however. He also said he is concerned about the time it takes an interested buyer, if they haven't already gone to a home purchase workshop, and the scheduling of the workshops. Usually he said, the longer they wait, the less likely they will buy. Ms. Spicuzza said there are other sources for homeowner counseling. She said they can refer them to CEDA for individual counseling, do it themselves with a Fannie May booklet and then refer them to a counselor, and use sources in Rogers Park. Mr. Beauchamp felt it is important for the developers to be aware of timely homeownership counseling opportunities and also to sit down with lenders who will provide financing so they can refer potential purchasers to willing lenders. Members talked about the consequences if the lenders foreclosed on the projects and Ms. Spicuzza said if units were not sold as affordable the City would have to pay the money back. Members said that then the City could not only lose its investment if all the subsidy is not repaid at a foreclosure sale, but there would still be vacant units on the market and no affordable housing created. Ms. Munro said she felt it would help to get information on developers' marketing efforts and how many people have expressed interest, how many were qualified, how many could get a mortgage. In the meantime, she would like to prepare a graphic presentation showing a timeline and steps going from buyer -interest to getting a mortgage, so that in 60 days there can be lots of activity, possibly resulting in 1 or 2 contracts. Mr. Beauchamp said he would meet with the developers to help them put together a detailed marketing plan, because they need to ensure that if they get help for carrying costs for six months, they won't be coming back in another six months for more help. Ms. Munro said they would discuss the requests for additional assistance again at the Housing Commission meeting next month after staff has had a chance to review situations in detail. 1V. Update on Neighborhood Stabilization Program Funding through the Housing and Economic Recovery Act of 2008 Ms. Spicuzza referred to the October 6 on NSP funds which was sent to Planning and Development Committee and said the City would apply to the State and the County for funding since Evanston did not receive a separate allocation. She said the funds must be used on abandoned or foreclosed property and not to help people avoid foreclosure. The entities receiving allocations must submit their plans to HUD by December 1, so staff will learn more as the entities ask for public comment on their draft plans. She said staff is looking at eligible uses such as funding purchase and rehab of foreclosed houses. funding multi -family rental project, land banking, or helping homebuyers with rehab funds if they acquire a foreclosed property. In addition to herself, Dennis Marino and Susan Guderley, the planning team includes Jeff Murphy, Assistant Community Development Director for Property Standards and Rehab and Sarah flax, the CDBG Grants Administrator, because the program follows CDBG guidelines, Members asked if there are foreclosed multi -family properties. Ms. Spicuzza said that staff is working to identify properties. Ms. Munro said that the City definitely would want to get some of the funding and hoped they propose a range of strategies and if wondered if there was a role for Housing Commission Minutes October 16, 2008 Page 4 CHDOs and if they could be include. She asked if the land banking use was a land trust. Ms. Spicuzza said no, it was simply acquiring properties then determining whether should provide rental or ownership housing and who could best develop them. Ms. Munro also asked it they could put in some consideration to use the Citizens' Lighthouse Community land Trust an opportunity to build in permanent affordability. Ms. Spicuzza said she would mention that to the staff. She noted that properties also have to be purchased at below market value, and can't be sold at a profit. Ms. Munro asked if they can use the money to fund a staff person, for example to do purchase negotiations. Ms. Spicuzza said that was one of many areas that was not clear and they needed more guidance, although she said perhaps some costs could be built into the project. She said she would provide the web address for NSP. V. Discussion of Comprehensive Affordable Housing Plan Task Force Ms. Munro said she put together a slate of Task Force members from the list of people who volunteered or were nominated, and thanked the Commssion members who had interviewed the nominees. The names are: Aid Delores Holmes Susan Munro AI Hunter Cherylette Hilton Mary Friedl James Ticus Michael Corr Rob Anthony Judy Levey Janet Morgan Phil Nyden Andrew McGonigal Paul Seldon Tim Nimrod Brooks Anthony Yvonne Dickerson Staff: Dennis Marino or Susan Gudedey may alternate One more Housing Commission member was needed and Richard Moseley volunteered. Bruce Nelson made a motion to accept the slate, seconded by Eric Beauchamp. The motion passed i-0. Members also discussed having a consultant facilitate Task Force meetings and drafting a plan, and looked over the draft Request for Qualifications. They also reviewed the draft from Ms. Munro to the Planning and Development Committee. Ms. Munro said that BPI offered to help the Task Force with research but could not to facilitate the meetings or draft the plan. VI. Public Comment Fran Seidman urged Commission members to attend Planning and Development Committee and Council meetings. Adjournment. The meeting adjourned at 9:05 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner EVANSTOti HOUSING COINU IISSION IN11NUTES November 20, 2008 Present: Susan Munro, Chair, Tim Angell, Carol Balkcom, Eric Beauchamp, Brooks Harding, Bruce Nelson, Joanne Zolomij Absent: Richard Mosley Staff: Donna Spicuzza, Housing Planner 1. The meeting was called to order at 7:05 pm with a quorum present. The Minutes of the October 16, 2008 meeting were approved 6— 0. II. Communications • Members received an update of foreclosure information and activity that was sent to the Planning and Development Committee for November 24 • Members discussed information on Affordable Housing Month and plans for a Proclamation at the December 8 Council Meeting. The chair agreed to work with staff on a letter to the editor or a news release on affordable needs and activities. Other related City activities were discussed in conjunction with Agenda Item III • Members reviewed the report on Affordable Housing Fund income and expenses and related 2009110 budget material Ill. Consideration of Funding Needs of Affordable Ownership Projects Citizen's Lighthouse Community Land "trust — 2212 Washington Evanston Community Development Association — 736-738 Washington Reba Place Development Corporation — 602 Mulford Econ Development Corporation — 241 Callan Members discussed a staff memo regarding HOME -assisted ownership developments with unsold units. Staff plans to meet with developers and their lenders to discuss project status, plans for the next six months and possible City involvement In loan modifications. Ms. Spicuzza reported that some type of Interest subsidy is the most likely form of additional City assistance. She also noted staff is considering paying for display advertising tied in with Open Houses for all the developments, planning a Housing Fair in early 2009 and providing $15.000 in downpayment assistance to purchasers if needed. Members discussed other ideas, including a bus tour of the available developments, and developers of the affected projects discussed the difficulties potential purchasers are facing in today's market. Members were in favor of the City providing assistance and additional funding to help keep the projects afloat and acknowledged that time was critical since construction loans are coming due. Ms. Spicuzza said a recommendation would be presented to the Planning and Development Committee and City Council at the next meeting, December 8, which is the last meeting before the end of the year. Mr. Beauchamp also said he would continue to work with the developers on the MLS listings and on marketing strategies. IV. Discussion of Pending HOME Fund Request from Over the Rainbow Association for Rehab of Hill Arboretum, 2040 Brown Ms. Spicuzza said that the organization had applied for CDBG funds in the fall for kitchen and heating improvements but staff determined that HOME funds would be an eligible and more appropriate funding source. She said that the scope of rehab work expanded because all code violations and other short term rehab needs should be addressed in this application since additional HOME funding could not be used during the 5 year affordability period. She said the Housing Commission Minutes November 20, 2008 Page 2 HOME application was not completed yet, but she wanted to present it to the Commission so they could discuss the need for funding in the form of a grant rather than a loan. Eric Huffman and Leo Kirwan from Over the Rainbow Association provided information on their organization and apartment building at 2040 Brown, Mr. Kirwan described the need for fully accessible and adaptable housing for people with disabilities so they can live as independently as possible. Mr. Huffman presented information on their proposed request and their operating budget. Additional funding would be requested for tuckpointing and an engineering study to analyze a soil settlement problem. The total request would be 5375,575. Members asked questions about the building and funding needs and indicated their support for their request to receive a HOME grant for the necessary repairs. The complete application will be presented to the Commission in December for a recommendation to the Planning and Development Committee. V. Discussion of Comprehensive Affordable housing Plan Task Force Members discussed the Planning and Development Committee's opposition to the Commission's proposal to use affordable housing funds for a task force facilitator and consultant to help write the Comprehensive Affordable Housing Plan. Ms. Munro suggested that the Commission convene the Task Force with volunteer facilitation from one of the members. Members discussed this and other alternatives and agreed the Task Force should start meeting. VI. Public Comment Suzanne Carlson commented that when the City Council recently approved the Climate Action Plan they Indicated their satisfaction with the fact that the Plan was prepared without using a consultant. Adjournment The meeting adjourned at 8:40 p.m. Respectfully submitted, Donna Spicuzza Housing Planner EVANSTON HOUSING CO,r1liISSION NII1UTES December 18, 2008 Present: Susan Munro, Chair, Tim Angell, Carol Balkcom, Eric Beauchamp, Bruce Nelson, Richard Mosley .Joanne Zolomij Absent: Brooks Harding Staff: Donna Spicuzza, Housing Planner I. Call to Order, Approve Minutes of November 20, 2008 The meeting was called to order at 7:05 p.m. It was moved by Tim Angell and seconded by Joanne Zolomij to approve the minutes of the November 20 meeting. The motion passed 7.0. II. Communications • Members acknowledged receiving the 2009 Meeting Calendar. • Donna Spicuzza spoke about the request from Hill Arboretum for HOME funds to rehab the 33 unit rental building at 2040 Brown, which the owners discussed with the Commission in November. They have not yet finalized their application so it will be brought to the Commission for formal recommendation in January. • Members received a hard copy of affordable housing sections of the City's draft Action Plan for 200912010, which is due to HUD on January 15, 2009. Ms. Spicuzza said the draft is available on-line and comments will be accepted through January 6. The Housing and Community Development Committee will hold a Public Hearing on the Draft Action Plan on December 16 and the final Plan will be presented to the City Council January 12. • Members accepted the report of the Affordable Housing Fund as of November 30, 2008, Ill. Funding Needs of Affordable Ownership Projects Members discussed the staff recommendation presented to the Planning and Development Committee (P&D) for up to S67,066 in additional HOME funds to help four developers pay carrying costs on their completed affordable ownership projects and to pay for joint marketing efforts. Staff recommended funding of S33,566 to cover 50% of the monthly interest payments on the construction loans, an additional S8,000 for marketing and up to $25,500 to cover a 1% commission for broker -assisted sates. The proposal was presented to the P&D Committee on December 8 and at the meeting Susan Munro and Eric Beauchamp made presentations in support of additional assistance because of the difficulty selling units in the current housing market. The Committee voted to defer a funding decision about marketing support until January but recommended approval of an additional $30.000 for monthly interest payments for the three projects that were developed by CHDOs. The Committee did not approve additional funds for the five -unit, mixed -income condominium at 241 Callan developed by Econ Development Corporation, a for -profit developer. Members said they were disappointed that the Commission did not have an opportunity to see the final recommendations and comment on them before the meeting and wanted a more collaborative effort between staff and the Commission. Ms. Spicuzza said it was unfortunate there wasn't time for Commission input on the staff recommendations after staff discussed the individual project needs with each of the developers and their lenders. She noted that the deadlines were very tight because there was only one P&D meeting in December instead of two so the specific recommendations came from staff and not the Housing Commission. She said that staff would try to work on the Commission's concern so this wouldn't happen again. Mr. Angell said he did not think that was enough. Ms. Munro concurred and said they could have provided comments on the recommendations by e-mail before they were finalized. Ms. Munro said she asked the developers if the assistance recommended by staff was enough to keep their projects afloat and some indicated that it wasn't. Housing Commission Minutes of December 18, 2008 Pagc 2 Mr. Beauchamp presented a revised marketing plan he developed which proposed about $5,300 on joint marketing efforts and up to 525,000 for broker commissions. He recommends preparing more marketing material and planning other activities and spending less on print advertising. Members asked for clarification about being able to use HOME funds for commissions and Ms. Spicuzza said it would be allowable but was checking whether project funds or administrative funds should be used. She said the marketing proposal would be presented to P&D January 26 instead of January 12 because that agenda is already full_ Members supported the plan. Mr. Angell said he would like the Community Development Interim Director to attend the January Housing Commission meeting to talk about the strategy in 2009 for bringing affordable housing recommendations to P&D. Members later agreed they would like to discuss a better way for staff and the Commission to collaborate on affordable housing funding recommendations before going to the P&D Committee and City Council. They would also like the Director to articulate the vision of the Housing Commission and affordable housing overall in Evanston. Mr. Angell said he wanted to tell staff what the Commission expects from City staff when Commission members go to P&D on housing issues. Ms. Munro said she would extend an invitation to the Interim Director. Members reviewed the staff memo about changing Econ Development Corporation's condo project at 241 Callan to a rental project for a period of time, due to lack of Council support to provide additional funding until the units can be sold. Members agreed It was necessary and asked if they needed to take action on the change. Ms. Spicuzza said there would probably need to be Council approval. They suggested that the developer submit a revised pro -forma and attend the January Housing Commission meeting so they could review it. Members asked about the number of affordable rental units and the possibility of getting Section 8 subsidy. Ms. Spicuzza said two units would have to be affordable but she did not think a rental subsidy would help the property's cash flow because those rents would probably not be above HUD's Fair Market Rents. Mr. Beauchamp asked if it was correct that the City would have to repay HUD funds used for a project that was not completed and Ms. Spicuzza confirmed it was. He said that should be stressed when presenting the recommendation for converting the Callan project to a rental project, so it is clear that not only would the City lose the HOME money invested because affordable units were not provided, but that they would have to repay the investment from City funds. He said that has tremendous ramifications. IV. Discussion of Foreclosed and Abandoned Property and NSP funding Members reviewed a prior memorandum to P&D updating the Committee on the federal Neighborhood Stabilization Program (NSP). Evanston will apply for NSP funds through the State of Illinois and Cook County.Members discussed the location of three census tracts to be targeted. They noted that neither agency has a timeline for accepting applications and awarding funds. Joanne Zolomij said that the loan programs of the federal legislation (of which NSP Is a part) are not successful because lenders are not willing to write down the loans. Members commented that the federal program doesn't do enough to help people facing foreclosure, including middle income households. Ms. Spicuzza said the NSP funds can assist households up to 120% of Area Median Income who rent or buy foreclosed properties. V. Update on Comprehensive Affordable Housing Plan Task Force Ms. Munro said that the first meeting of the Task Force would be January 14. She said she would chair the Task Force for the time being since P&D did not approve the Commission's request for a consultant to facilitate the meetings and help draft the Plan. She also said that she would like to add another member to the Task Force. Jean Butzen, who is an Evanston resident and consultant. It was moved by Tim Angell and seconded by Joanne Zolomij to accept the addition of Jean Butzen to the Task Force. The motion passed 7-0. VI. Public Comment There was no public comment. The meeting adjourned at 8:15 p.m. Respectfully submitted, Donna Spicuzza