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Minutes 2001-2005
DRAFT DRAFT EVANSTON HOUSING COMMISSION MINUTES January 18, 2001 Members Present: R. Brooks, D. Browne, Y. Dickerson, M. Dillon Members Absent: D. Lach, L. Nesbitt, P. Peterson, B. Teeple Staff R. Schur, S. Lufkin Presiding Official: Y. Dickerson, Chair DECLARATION OF QUORUM The meeting was called to order at 7:07 p.m., there was not a quorum present. Il. AUDIO CONFERENCE Y. Dickerson welcomed everyone to the Housing Commission and explained that what they were about to hear was sponsored by the American Planning Association. The conference originally took place in October. Several staff members participated at that time and thought it would be beneficial to share with the community at large. Y. Dickerson informed people that the conference would last about one hour. Afterward, there would be a conversation regarding the issues presented in the conference. (The issues addressed during the conference were the following: 1. What is causing the cost of housing to rise: 2. Is there realty a shortage of affordable housing? And, what is causing the shortage of housing in a booming economy? 3. Are conxnunities really providing the mix of housing necessary to meet affordable housing needs? 4. What might be standing in the way of a community providing affordable housing? What is the responsibility of a community in providing housing; isn't this the private secWs responsibility? 5. Are land use regulations part of the affordable housing problem? What can be done to address these out -fated land -use regulations? B. What can be done to address the Issues of housing diversity? 7. What communities and states are leaders in affordable housing issues? What Innovative approaches have they tried to this problem? 8. What steps can communities start taking now to deal with this problem?) Aber the conference Y. Dickerson opened the floor up to general conversation. The following questions and comments were offered: r M. Vsely, Connections for the Homeless. asked if the city had a plan regarding affordable housing. Aside from the Consolidated Plan there is no affordable housing plan. Hollis Settles, Human Relations Commission: The biggest issue in Evanston, and regionally, is facing the issue of political will to address the affordable housing issue. Affordable housing is subsidized housing. Space (land) and density issued need to be solved. Need to address the issue of building housing where the jobs are. Jason Nehal asked if the city worked with the local not for profits to promote affordable housing development. The City has worked with three local not for profit developers to deveW affordable housing, both rental and homeownership opportunities have been provided. Y. Dickerson pointed out that there are several areas in Evanston that are very depressed. Don't know why foresight and planning hasn't turned them around. The City would like to see more applications and ideas for creating housing opportunities. M. Visely pointed out that the city doesn't have any developer requirements for creating affordable housing or impact fees to create a pool of funds. Ald. Steve Bernstein: The issue of impact fees has been raised before. However, one of the concerns is that it is difficult to attract developers to Evarston: an impact fee would make it harder, especially if surrounding communities did not have one. With political will it would be possible to assign more dollars to this issue. Troy Thiel: In Chicago there was an affordable housing design competition that will result in the rehabbing & development of single family homes being sold for $125,OOa-$175,000. This would combine two constituency basis mentioned in the conference, housing advocates & environmentalists. Need to look at aitematw affordable investment vehicles, tax abatements.... Richard Koenig, Interfaith Housing Development Corporation: The low income housing tax credit is an IRS -run program offered through the Illinois Housing Development Authority (IHDA). Sell the tax credit to investors. Provides equity money for the developer. Project specific tool. Troy Thiel: Timing is very important in development. There has been a decrease in project margins as the land costs have increased. Y. Dickerson: know several developers interested in doing senior housing. Unsure as to the number and sources of funding incentives and how to put the pieces together to make a project viable. As a Commission need to have a complete rist of the resources available and how they fit together. Leonard Stein, Human Relations Commission: There is no political will to carry out these ideas. Need to provide people the motivation to take cane of the 'region'. Also need to took at the minimum wage. A Jason Nehal: What's being done to maintain the quality of the current low income housing stock and its mere existence? Address the quality through property standards. Many programs to assist property owners do minor rehab on their property; programs targeted specifically to senior who need help maintaining their homes. Need to promote the programs that exist, Y. Dickerson raised the problem with absentee landlords. Since these owners do not live in the community, in many cases these individuals do not put the care and attention needed into their property, including maintenance and tenant screening. It was suggested that if a Landlord is not present in the community, stronger action be taken when there are problems with their properties. S. Bernstein pointed out that the Council is talking about increasing fines and being more aggressive in property standards. The city is getting ready to start using the administrative adjudication system for property maintenance code violations which will shorten the time period between the issuance of a citation and the resolution of that citation. Since it will be done in house, the person deciding the case will have more concern over what happens here in the community. S. Bernstein suggested that the city could monitor new construction and mandate that low/mod units be included. If the city is truthful in its desire to create affordable housing, this is something that must be taken seriously. However, need to consider where the displaced people are going to go when new for -sale housing units are created, either through new construction or condominium conversions. There is also a shortage of affordable rental housing. There is a need to create a methodology, codify the requirements In order to be able to present a package to a developer. It was suggested that the city participate more in state and county programs to bring more affordable housing options to Evanston. R. Koenig challenged those in attendance to think about what can be done to move forward. As an affordable housing developer, he and the other not for profits can only do a limited amount per year. In comparison the number of condominium conversions that occur each year, they cannot keep up. Evanston should consider using set asides, increase the housing stock through Incenfiv+es, Housing Commission to be proactive and to find out what other communities are doing. For example, Highland Park just passed an affordable housing plan. Also, there might be regional approaches to consider. A Sproul gave the example of Boulder, Colorado, that requires affordable housing as a part of new development over a certain threshold number of unfits. T. Thiel raised the issue of job retention and getting employees for the lower paid jobs is very difficult. Need to consider the commerce sector when looking at this Issue. The lower income housing that is available is in Chicago. With the gentrification of many of Chicago's neighborhoods, it's just as easy for workers to take the train to Chicago as it is to go to Evanston. J. Treadway asked if the affordable housing in Highland Park was going to be for families or seniors. It is necessary to be very specific about providing afford" housing for families. She gave the example of the federal government provi ft incentives for transit oriented developments in order to decrease the reliance on automobiles. There is currently a lot of development occurring along Chicago Avenue and condominium conversions in some of the most affordable areas of the afty that are not affordable to many families currently living in these areas. In order for employers to have the human resources necessary to staff their businesses, there needs to be a better correlation between the wages being provided and the housing available, especiallby rental units for families. Y. Dickerson mentioned that the Housing Commission has discussed creating a moratorium on condominium conversions. in order to do this, need a good inventory of housing units which the Commission has been working on. A Sproul questioned the driving forces for condominium conversions. S. Bernstein mentioned that part of It was taxes, but the main reason for converting is that people can make money. S. Semstein stressed the Importance of providing the Incentives and creating a package for developers to provide affordable units. Y. Dickerson thanked everyone to for joining the Commission for the taped conference and encouraged everyone to work together and find the resources to create a plan to move forward on this Issue. It was decided that the transcript of the conference would be distributed to the Commission members not present, along with the minutes with everyone's comments, and discuss how to move forward at the February meeting. III. ADJOURNMENT The meeting was adjourned at 8:62. Respectfully submitted, Roberta Schur Housing Planner 41" DRAFT EVANSTON HOUSING COMMISSION FEBRUARY 15, 2001 Members Present: R. Brooks, D. Browne, Y. Dickerson, M. Dillon, J. Hurwich, D. Lach, L. Nesbitt, P. Paterson Members Absent: B. Teeple Stall: P. Haynes, R. Schur, J. Wolinsld Guests: Neil Davidson, Mike Bebe, Marie McCauley Reverend Wade, Clarence Crooks Presiding Official: Y. Dickerson, Chair 1. DECLARATION OF QUORUM Y. Dickerson declared a quorum and called the meeting to order at 7:05 p.m. II. APPROVAL OF MINUTES D. Browne made a motion to approve the minutes of December 14, 2000, as writtem R. Brooks seconded the motion. Motion passed 7-0. L. Nesbitt made a motion to approve the minutes of January 18, 2001. M. Dillon seconded the motion. Motion passed 7-0. III. NEW BUSINESS A. Presentation for Single Family Housing Devekq meal Neil Davidson, development team coordinator, introduced the members of his planting team, Mike Bebe, architect, Mary McCauley, site planner, and himself, financial packager. N. Davidson explained that their concept was to provide moderately priced housing in Evanston. They would use some of the vacant property and boarded up houses to do in -fill development of either single family detached homes or townhouses. I DRAFT DRAFT EVANSTON HOUSING COMMISSION MINUTES January 18, 2001 Members Present: R. Brooks, D. Browne, Y. Dickerson, M. Dillon Members Absent: D. Lach, L. Nesbitt, P. Peterson, B. Teeple Staff: R. Schur, S. Lufkin Presiding Official: Y. Dickerson, Chair I. DECLARATION OF QUORUM The meeting was called to order at 7:07 p.m., there was not a quorum PMWnL It. AUDIO CONFERENCE Y. Dickerson welcomed everyone to the Housing Commission and explained that what they were about to hear was sponsored by the American Planning Association. The conference originally took place in October. Several staff members participated at that time and thought it would be beneficial to share with the community at large. Y. Dickerson informed people that the conference would last about one hour. Afterward, there would be a conversation regarding the issues presented in the conference. (The issues addressed during the conference were the following: 1. What is causing the cost of housing to rise: 2. Is there really a shortage of affordable housing? And, what Is causing the shortage of housing in a booming economy? 3. Are cornmunities realty providing the mix of housing necessary to meet affordable housing needs? a. What might be standing in the way of a community providing affordable housing? What is the responsibility of a community in providing housing; isn't this the private sector's responsibility? 5. Are land use regulations part of the affordable housing problem? What can be done to address these out -dated land -use regulations? B. What can be done to address the issues of housing diversity? 7. What communities and states are leaders In affordable housing issues? What innavatve approaches have they tried to this problem? 8. What steps can communities start taking now to deal with this problem?) After the conference Y. Dickenson opened the floor up to general conversation. The following questions and comments were offered: r M. Vesely, Connections for the Homeless, asked if the city had a plan regarding affordable housing. Aside from the Consolidated Plan there is no affordable housing plan. Hollis Settles, Human Relations Commission: The biggest issue in Evanston, and regionally, is facing the issue of political will to address the affordable housing issue. Affordable housing is subsidized housing. Space (land) and density issued need to be solved. Need to address the issue of building housing where the jobs are. Jason Nehal asked if the city worked with the local not for profits to promote affordable housing development. The City has worked with three local not for profit developers to develop affordable housing, both rental and homeownership. opportunities have been provided. Y. Dickerson pointed out that there are several areas in Evanston that are very depressed. Don't know why foresight and planning hasn't turned them around. The City would like to see more applications and ideas for creating housing opportunities. M. Vesely pointed out that the city doesn't have any developer requirements for creating affordable housing or impact fees to create a pool of funds. Ald. Steve Bernstein: The issue of impact fees has been raised before. However, one of the concerns is that it is difficult to attract developers to Evarston; an impact fee would make it harder, especially if surrounding communities did not have one. With political will it would be possible to assign more dollars to this Issue. Troy Thiel: In Chicago there was an affordable housing design competition that will result in the rehabbing & development of single family homes being sold for $125,000-$175,000. This would combine two constituency basis mentioned in the conference, housing advocates & environmentalists. Need to look at alternative affordable investment vehicles, tax abatements.... Richard Koenig, Interfaith Housing Development Corporation: The low income housing tax credit is an IRS -run program offered through the Illinois Housing Development Authority (IHDA). Sell the tax credit to investors. Provides equity money for the developer. Project specific tool. Troy Thiel: Timing is very important in development. 'there has been a decrease in project margins as the land costs have increased. Y. Dickerson: know several developers interested in doing senior housing. Unsure as to the number and sources of funding incentives and how to put the pieces together to make a project viable. As a Commission need to have a complete list of the resources available and how they fit together. Leonard Stein, Human Relations Commission: There is no political will to easy out these ideas. Need to provide people the motivation to take care of the 'region'. Also need to look at the minimum wage. Jason Nehal: What's being done to maintain the quality of the current low Income housing stock and its mere existence? Address the quality through property standards. Many programs to assist property owners do minor rehab on their property; programs targeted specrfcally to senior who need help maintaining their homes. Need to promote the programs that exist. Y. Dickerson raised the problem with absentee landlords. Since these owners do not five in the community, In many cases these individuals do not put the care and attention needed into their property, including maintenance and tenant screening. It was suggested that if a landlord is not present in the community, stronger action be taken when there are problems with their properties. S. Bernstein pointed out that the Council is talking about increasing fines and being more aggressive in property standards. The city is getting ready to start using tine administrative adjudication system for property maintenance code violations which will shorten the time period between the issuance of a cftation and the resolution of that citation. Since it will be done in house, the person deciding the case wiA have more concern over what happens here in the community. S. Bernstein suggested that the city could monitor new construction and mandate that low/mod units be included. If the city is truthful in its desire to create affordable housing, this is something that must be taken seriously. However, need to consider where the displaced people are going to go when new for -sale housing units are created, either through new construction or condominium conversions. There is also a shortage of affordable rental housing, There is a need to create a methodology, codify the requirements in order to be able to present a package to a developer. It was suggested that the city participate more In state and county programs to bring more affordable housing options to Evanston. R. Koenig challenged those in attendance to think about what can be done to move forward. As an affordable housing developer, he and the other not for profits can only do a limited amount per year. In comparison the number of condominium conversions that occur each year, they cannot keep up. Evanston should consider using set asides, increase the housing stock through incentives, Housing Commission to be proactive and to find out what other communities are doing. For example, Highland Park just passed an affordable housing plan. Also, there might be regional approaches to consider. A Sproul gave the example of Boulder, Colorado, that requires affordable housing as a part of new development over a certain threshold number of units. T. Thiel raised the issue of job retention and getting employees for the lower paid jobs is very difficult. Need to consider the commerce sector when looking at this Issue. The lower income housing that is available is in Chicago. With the gentrification of many of Chicago's neighborhoods, it's just as easy for workers to take the train to Chicago as it is to go to Evanston. J. Treadway asked if the affordable housing in Highland Park was going to be for families or seniors. It is necessary to be very specific about providing affordable housing for families. She gave the example of the federal government providing incentives for transit oriented developments in order to decrease the reliance on automobiles. There is currently a lot of development occurring along Chicago Avenue and condominium conversions in some of the most affordable areas of the city that are not affordable to many families currently living in these areas. In order for employers to have the human resources necessary to staff their businesses, there needs to be a better correlation between the wages being provided and the housing available, especially rental units for families. Y. Dickerson mentioned that the Housing Commission has discussed creating a moratorium on condominium conversions. In order to do this, need a good inventory of housing units which the Commission has been working on. A Sproul questioned the driving forces for condominium conversions. S. Bernstein mentioned that part of it was taxes, but the main reason for converting Is that people can make money. S. Bernstein stressed the importance of providing the irmntiives and creating a package for developers to provide affordable unfits. Y. Dickerson thanked everyone to for joining the Commission for the taped conference and encouraged everyone to work together and find the resources to create a plan to move forward on this issue. It was decided that the transcript of the conference would be distributed to the Commission members not present, along with the minutes with everyone's comments, and discuss how to move forward at the February meeting. III. ADJOURNMENT The meeting was adjourned at 8:52. Respectfully submitted, Roberta Schur Housing Planner Y DRAFT EVANSTON HOUSING COMMSSION FEBRUARY IS, 2001 DRAFT Members Present: R. Brooks, D. Browne, Y. Dickerson, M. Dillon, J. Hurwkh. D. Lach, L. Nesbitt, P. Peterson Members Absent_ B. Teeple Staff. P. Haynes, R. Schur, J. WoliwW Guests: Neil Davidson, Mike Bebe, Marie McCauley Reverend Wade, Clarence Crooks Presiding Official: Y. Dickerson, Chair 1. DECLARATION OF QUORUM Y. Dickerson declared a quorum and called the meeting to order at 7:05 pan. II. APPROVAL OF MINUTES D. Browne made a motion to approve the minutes of December 14, 2000, as wriu . R. Brooks seconded the motion. Motion passed 7-0. L. Nesbitt made a motion to approve the minutes of January 18, 2001. M. Dillon seconded the motion. Motion passel! 7-0. III. NEW BUSINESS A. Preseatation for Single Fatuity SouLng development. Neil Davidson, development team coordinator, introduced the members of his plsm2ing team, Mike Bebe, architect, Mary McCauley, site planner, and himself, fhmncial packager. N. Davidson explained that their concept was to provide modtataieely priced housing in Evanston. They would use some of the vacant property toed boarded rep houses to do in -fill development of either single family detached homes or townhouses. N. Davidson has been working on putting the financial component of the project together. He is planning on using private bank financing along with assistance from the federal government and the City of Evanston. The City's funds would be used for acquisition and as collateral for the construction loans. M. McCauley provided a map with the sites they were looking at to do this project. Most of the sites were located in the 5* ward. The in -fill lots could be used for single family homes and some of the smaller lots could be used for townhouses. She explained that many of the sites they looked at had problem properties on them currently. As a first step, they would like to work with the City to determine which sites make sense to start with and to acquire those first. M. Bebe, architect with Shayman Associates, described the type of housing they would put on the site. They have proposed a 3-bedroom house with approximately 1,800 square feet The townhouses would be about the same size. They might provide some smaller models (1,500 sq. ft.) as well. It would be a modest home for small to medium sized families. Y. Dickerson asked if they had the funds to purchase the land. N. Davidson said that they did. P. Peterson asked about the time frame. N. Davidson said that this is an on -going project. They are currently at the preliminary stage of fact finding and site selection. Then they will work on putting the detailed financing together. They will start with 4-5 units of housing. They estimate that the costs will run approximately $90 per square foot. M. Dillon asked if the federal money is not forthcoming, are the investor prepared to increase their capital investment. N. Davidson said that his partnership was one of the investors, and that investors would be willing to increase their investment. -" Y. Dickerson asked if one of their goals was to increase minority participation in the development process. N. Davidson replied that they would try to use minority contractors. M. McCauley explained that the participation of governmental entities is not yet in place. That can be put together once the program starts to "feed" itself. Their focus is to produce housing that is economical and provides a return to their investors. J. Wolinski added that the problem of boarded up properties is reaching a critical point. Currently, then: are 21 board -rips, 16 of them are in the 5d ward. He believes that it will take some sort of city subsidy for the issue to be addressed. It may be possible to get a subsidy that is not necessarily a cash subsidy. Y. Dickerson thanked N. Davidson and his development team for coming to the Housing Commission. The Commission is definitely in support of providing economical housing and addressing the issue of boarded and vacant properties. She encouraged them to come back to the Housing Commission once they had more details on the project. E. Request for HOME Funds: 5125,000 request by Ebenezer AME Chi for the Jacob Blake senior project. 2 Reverend Wade introduced himself as the pastor of the Ebenezer AME Church and Clarence Crooks, the consuhant to the project. Reverend Wade explained that they had been working on this proposal since 1994. The proposal is to construct a 76•unit building for low-income seniors. Originally, they had requested $250,000 plus a waiver of permit fees. They request was withdrawn because they did not think that they needed the assistance. Unfortunately, due to increases in costs over time and requirements place on the project by the City of Evanston, they are in the position of needing assistance from the city. Reverend Wade stated that HUD would provide the additional funds for the increases in construction costs. Y. Dickerson asked when construction would begin. Reverend Wade explained that they will close with HUD in March and commence construction April 1. M. Dillon inquired as to how much construction and related costs have increased over the years. Reverend Wade said that costs have increase 3040 percent. Y. Dickerson informed Reverend Wade that the HOME Loan Committee had recommended that in lieu of HOME fiords, the City waive the building permit fee (approx. $69,000) and supplement that with money from the Mayors Special Housing Fund. She asked if that would be acceptable and work into the project. Reverend Wade said that would be fore. P. Peterson asked if the project would go forward if they didn't get the needed funds. Reverend Wade said they would need to find the funds from another source, but that they would definitely try to go forward. In response to a question about the Developer's Fee, Reverend Wade explained that those funds can only be used for this particular project. Ebenezer will not be receiving those funds. They have been earmarked for many construction related costs. The balance must remain with the project M. Dillon asked about the $310,000 listed under Builders Profit. Rev. Wade explained that it was for the builder, not Ebenezer. R. Brooks asked how much money there was in the Mayors Fund and for how long. R. Schur responded that there is approximately $200,000 in the fund which will be there until it is used. M. Dillon asked if there was a waiting list for the project. Rev. Wade said that they have not yet marketed the project. At this point they are deciding whether or not to use the waiting list for Ebenezer Primm or market this project separately. C Crooks informed the Commission that Ebenezer Primm was in the process of being rehabilitated. J. Hurwich asked if this project was an assisted living or independent living facility. Rev. Wade responded that it is intended for seniors who can live independently. R. Brooks inquired as to whether or not funds from Ebenezer Primm could be used for the Jacob Blake Project. Rev. Wade explained that funds cannot be used for mare than one project. J. Wolinski explained that staff has been in support of the project because of the need for this type of housing. Due to the length of time it has taken to get the project off the ground, he would recommend putting a timeline restrictions on when the project must commence. For example, land cleared by May 1 and construction commence by June 1. M. Dillon made a motion to recommend to City Council that the city waive the building permit fees of approximately S69,000 and use the Mayor's Special Housing Fund to meet the unmet costs, not to exceed a total value of S 125,000. This commitment is subject to land clearance by May 1, 2001 and construction commencement by June 1, 2001„ D. Browne seconded the motion. Motion passed 8-0. C. Election of Officers for Year 2001 D Lach made a motion to nominate Y. Dickerson for chair of the Housing Commission. M. Dillon seconded the motion. Motion passed 7-0-1. Y. Dickerson made a motion to nominate D. Browne as the vice -chair of the Housing Commission. R. Brooks seconded. Motion passed 740-1. D. Discassion: Affordable Hoasing Development in Evanston Y. Dickerson posed the question of what would the Housing Commission like to do as a result of the audio conference at the January meeting. There was a lot of enthusiasm generated at that meeting. The Housing Commission should pull together resources and coordinate an effort to generate more affordable housing. J. Hurwich asked is the Commission had a working definition of affordable housing. D Browne responded that he thinks of working professionals who provide service to the community but ate not compensated adequately, for example child care providers. Often, there is a focus on certain areas of Evanston but he thinks there is a need to provide affordable housing city-wide. R. Brooks stated that there are existing parameters on what constitutes affordable housing that the Commission could use. A discussion ensued regarding %im constitutes affordable housing. Y. Dickerson said that the Housing Commission needs to accept the challenge from the audio conference and the attendees to put together a task force to work on these issues. Something that might result is a "kit" of affordable housing resources might be produced. Y. Dickerson believes that them are many developers who would like to provide affordable housing but the city needs to pull together the resources for development to occur. The issue of land acquisition needs to be looked at. J. Wolinski shared information regarding a new proposal for rental housing at the comer of Ridge and Emerson for 200 high end units. D. Browne posed the question of whether there was greater demand for high end rental or home ownership. J. Wolinski added that most of the boarded up houses could probably be rehabbed. R. Brooks asked if the fines would be increasing as a result of administrative adjudication 4 for boarded properties. He also asked if the fines take precedence over the mortgage to which the answer was yes. Y. Dickerson asked if it were possible to create a program whereby people would donate land in exchange for a tax break. P. Peterson responded that a donor would have to have an incredibly high level of income to make that pay for itself. D Browne recommended that these issues get divided up and that research be done on them individually. P. Haynes added that there needs to be a definition of affordable housing. One group that she is involved with has focused their affordable housing discussion around that of very low income venters. P. Haynes pointed out that it is important for the Housing Commission to include groups that have been working on these issues for the past few months as the Commission moves forward. For example, the North Shore Consortium for Housing, which is comprised of the interfaith Housing Center. HUD, Evanston Neighborhood Conference and the Housing Authority of Cook County, is one such group. D Lach made a motion to recommend that the housing Commission set-up an ad hoc committee to investigate these issues, including a working definition of affordable housing. R. Brooks seconded the motion. The question was asked if there was to be a focus on rental or owner -occupied housing. it was decided that both should be explored. Motion passed unanimously. D Browne said that he would head up that committee. Other members voicing interest were M. Dillon, J. Hurwieh and Y. Dickerson. P. Haynes announced that the week of March 4 was affordable housing week. Shenril Frost -Brown, interfaith Housing Center, added that Wilmette and Skokie have taken some steps regarding affordable housing. She volunteered to share that research. TV. ADJOURNMENT R. Brooks made a motion to adjourn the meeting. D. Lach seconded the roman. Motion passed unanimously. With no additional business before the Commission, the meeting adjourned at 8:52. Respectfully submitted, ct . Roberta Schur Housing Planner DRAFT EVANSTON HOUSING COMMISSION MARCH 15, 2001 DRAFT Members Present: D. Browne, Y. Dickerson, M. Dillon, J. Hunvich, D. Lach Members Absent: R. Brooks, L. Nesbitt, P. Peterson, B. Teeple Staff.. R. Schur Presiding Official: Y. Dickerson, Chair 1. DECLARATION OF QUORUM Y. Dickerson declared a quorum and called the meeting to order at 7:15 p.m. II. APPROVAL OF MINUTES f D. Lach made a motion to approve the minutes of February 15, 2001. Mark Dillon seconded the motion. Several typographical errors were identified and corrected.. Motion to approve the minutes as amended passed 5-0. M. NEW BUSINESS A. Sub -Committee Reoort. D. Browne outlined the goals of the subcommittee as identified in the memorandum distributed in the packet. Six tasks have been identified: 1. Develop a working definition of affordable housing; 2. Identify specific housing needs (it. rehab needs, development opportunities, etc); 3. Involvement in the ongoing Section 8 management issue; 4. Address the impact of condominium conversion on the supply of rental housing; 5. Complete housing stock inventory, 6. Provide resources to existing condominium associations. One question that was dealt with was whedw or not non -Commission members may join the subcommittee. It was decided that it was mot appropriate for non -Commission members to participate. The other issue is the difference between a sub -committee and an ad hoc committee. When would an ad hoc committee be formed and under what conditions? D Tacit asked if there was a uniform definition of affordable housing that is used. D. Browne said that the sub-cornmittee would identify a working definition specifically for the City of Evanston. J. Hurwich shared information she had obtained from the Interfaith Housing Center and other sources regarding how they define 'affordable'. There was some discussion regarding looking at property taxes and utility costs. However, it was decided that since the city has very little control over these costs, the Commission would have limited impact.. D. L.ach suggested that the Commission invite someone from the county assessor's office to speak to them again as it was very helpful the last time. The process of how the sub -committee will function was outlined. The sub -committee is a research and fact finding body of the Housing Commission. The sub -committee will report back to the Commission, who, in turn, will make recommendations to City Council. D. Browne reminded everyone that the subcommittee meeting will be Thursday, Match 29 at 7:00 p.m. B. HousinR Commission Goals & Ob' iv Y. Dickerson referred members to the memorandum distributed in the packets. 'mere arc E a number of education, programmatic and priority statements. One concept identified was the formation of a sub -committee which the Commission has done. Another idea was to put a package together to encourage affordable housing development and available financial resources. There was some discussion on what should come first: the requirement that moderately priced housing be developed or a package on how to finance it. It was also suggested that additional research be done on the tools other communities are using to generate more moderately priced units. D. LAch inquired as to the "health" of the Families in Transition program as this is one of her favorite programs. She believes that it is very important to assist families in transitional situations. There is concern among Commission members that the program is not used as often as perhaps is needed. The Commission identified the sponsorship requirement as one potential problem with the program. Oftentimes it is the lack of willing sponsor that prevents a family from participating. There was some concern regarding the Commission taking on too much at one time at the risk'of not allowing the sub -committee to be successful and effective on the items proposed for it to work on. One of the goals of the Commission should be the success of the sub -committee. After a lengthy discussion, the Commission focused in on several areas of educational programming they thought would be instrumental in helping them make good policy decisions and review proposals that came before the Commission. The members decided to focus on learning more about the Section 8 program and management concerns, predatory lending practices, the frequency and location of foreclosures, community land trusts and funding resources. In addition, the Commission discussed the possibilities of sending out a notice of fund availability (NOFA) for the HOME funds with specific parameters around the types of proposals the Commission would like to see. Another activity the Commission would like to do is conduct a neighborhood tour to help identify the housing needs. M. Dillon agreed to work with staff to develop a timeline and specific goals for the Commission. Y. Dickerson stressed the importance of everyone on the Commission participating in order to ensure success of the goals. N. ADJOURNMENT With no further business before the Commission, D. Lach made a motion to adjourn the meeting. Motion was seconded by J. Harwich. Mating was adjourned at 9:45. Respectfully submitted, Robem Schur Hawing Planter EVANSTON HOUSING COMMISSION MINUTES APRIL 19, 2001 In Attendance: R. Brooks, D. Browne, Y. Dickerson, M. Dillon, J. Hurwich, L. Nesbitt Absent: D. Lach, P. Peterson, B. Teeple Presiding Official: Y. Dickerson, Chair Staff: S. Janusz 1. DECLARATION OF QUORUM Y. Dickerson declared a quorum and called the meeting to order at 7:06 p.m. II. APPROVAL OF MINUTES L. Nesbitt made a motion to approve the March 15, 2001 minutes. M. Dillon seconded the motion. Motion passed. III. NEW BUSINESS A. Cede $1.6 million of the Bond Volume Cap to the Illinois Housing Development Authority for the purposes of a First Time Home Buyer Program. Y. Dickerson introduced Darren Collier, from the Illinois Housing Development Authority (IHDA). She explained that the Commission would need to act on this agenda item today and make a recommendation to City Council as this is a time sensitive item. D. Collier said that this is the same first time homebuyer program that the City participated in last year. This will be a below market interest rate at 5.75%. This year, participants will also have the opportunity to choose a floating rate. This means that if the interest rate continues to drop, the buyer's interest rate will drop. This program will only be for the residents of Evanston. M. Dillon asked which rate IHDA used as the benchmark rate. L. Nesbitt asked about the variable rate. D. Collier said that IHDA is offering this to protect both the buyer and IHDA. L. Nesbitt asked if the buyer had the option of switching to a fixed rate if the interest rate began to climb. D. Collier said that it was possible. L. Nesbitt also asked if the program was targeted to a particular area of Evanston or if the program was citywide. D. Collier explained that the program was citywide. R. Brooks commented that, this program does not take any funds out of the City's coffers. Rather, the funds used are the volume cap which the City would cede to IHDA for the program. IHDA sells the bonds which provides the cash for the program- Y. Dickerson asked if this program was first come. first served, even if one is pre - approved. D. Collier replied that it is first come, first served. However, if one is pre - approved, they have three months to find a home. There is an allowance for a one- time only extension. M. Dillon asked if there were any defaults or non -performing loans from previous bond issues. D. Collier said he couldn't answer that question for Evanston, but he did know that IHDA's default rate was less than I %. IHDA's loss department works very closely with the banks to ensure that any homebuyer that may be in trouble gets assistance before a foreclosure would need to take place. D. Collier asked if the program was to be for current Evanston residents. The Commission discussed this at length and the decision was made that current Evanston residents have the first priority. R. Brooks made a motion to recommend to City Council that $1.6 million of the bond volume cap be ceded to the Illinois Housing Development Authority for the purposes of a first time home buyer program. For the first eight months of the program, it will be for Evanston residents (live in Evanston for at least one year) only. After that period, if there are funds remaining, it may be opened up to people who are choosing to live in Evanston. D. Browne seconded the motion. Motion passed unanimously. B. Presetttation by Stan Janusz, Asst. Director for Property Standards & Rehab. Y. Dickerson referred people to the packet and the housing brochures that were included. Y. Dickerson commented that she thought the brochures needed to be more attractive. S. Janusz introduced himself and explained that he is responsible for three different aspects of the Community Development Department: property standards, rehabilitation and the Evanston Housing Corporation. S. Janusz briefly reviewed the following programs: ,ge f-Help Paint Program: established in 1974. Provides exterior paint for one & two family buildings. Provides materials (up to S400). Income limits do apply. A new twist on the program is the lead based paint regulations. HUD requires that any project funded with CDBG dollars address lead paint. This would have a major impact on this program. The city may choose to find another source of funds for this PnW=- A conversation ensued regarding the new lead paint regulations and how they impact the housing programs that the City administers. S. Janusz reviewed the income caps that apply to this program (80"/9 of area median income). One & Two Familv Rehab Pro% a=r , Program established in 1974. Designed for I do 2 unit owner occupied buildings. Max of S35,000 for 2 unit and $30,000 for 1 unit buildings. Funds are used to correct code violations, do system work, walls, doors, windows, bathrooms, kitchens, etc. D. Browne asked how often the program gets used. S. Janusz said that there are currently seven applications in for review. Owners must qualify based on household income based on family size. Income limit is 8016 of area median income. If the household income is between 51% and 80% of area median income, they could qualify for 0% 20-year amortizing loan. If the income is below 500A of median, they could qualify for 0% title transfer loan. The current balance in the revolving loan fund is approximately S400,000. The revolving loam fund gets approximately S100,000 per year in loan payments. There are approximately 120 loans in the portfolio. Approximately S200.000 is uncommitted. L. Nesbitt asked if a detailed scope of work is submitted by the applicant and if regular inspections are conducted to ensure they are working off of the scope of work. S. Janusz said that his department makes the list of what needs to be done (cock violations, things that would fail in the next 5 years).. nil Rehab Proagr m: Similar to the previous program. The main criterion of the program is that 5 1 % of units must be rented to households below 80%of area median income. The maximum per unit amount is S7,500. Priorities: code compliance, energy issues, and major systems. Mukifamily Code Loan Program: EHC Program since 1994-5, based in an effort to help revitalize the Clyde -Callan area and then was expanded citywide. This program is for major system work in particular. This program has had limited users. There is approximately $175,000 of city funding in the program. It will be proposed that the funds be pest back into the revolving loan fund program. The majority of tenants have to be below 80% of area median income. M- Dillon asked if the owner had to keep the building a rental property for a specified period of time to which the answer was no. Funds are repaid as follows: City funding (S6,000 per unit max) is a 0% grant for 10 years and 0'/. loan for 10 years. Bank portion ($3,000 per unit max) is 10 year loan at interest rate tied to l0-year treasury bond. L. Nesbitt asked how the program information was conveyed to owners. S. Janusz explained that the brochures are included in violation lettm and the Highlights magazine. Several Housing Commissioners believed that this program would be more successful with smaller building owners. First Time Homebuver Prouam: This program has existed since 1989. Sold portfolio throe times thus far. Done approximately 90 loans. C. Sub -Committee Report. Don Browne reported on the work of the sub -committee. He referred Commissioners to the March 29 meeting notes distributers in the packet. He outlined the definition of affordable housing, needs assessment, community tour and educational agenda that were discussed. The next meeting will be April 26 at 7:00 p.m. V. COMMENTS A lengthy discussion was had regarding the situation at 125 7 Callan. Three members of the community were present (Karen Chavers, Pamela Hickman dt Mary Lane) to voice concern and to learn from the Housing Commission what was done to to assist the residents of the building. VI. ADJOURNMENT With no further business before the Commission, the meeting adjourned at 9.00 p.m. Respectfully submitted, t Roberta Schur Housing planner 4 EVANSTON HOUSING COMMISSION MINUTES MAY 17, 2001 In Attendance: Y. Dickerson, M. Dillon, J. Hurwich, D. Loch, P. Peterson Absent: R. Brooks, D. Brkr ww. L Nesbitt Guests: Will Sunblad, Con. , :. . ,.,, for the Homeless Susan Kramer, Dorothy Lloyd -Still, Scott Morgan, Carolyn Coglianese, Housing Options Richard Koenig, Interfaith Housing Development Corporation Presiding Official: Y. Dickerson, Chair Staff: R. Schur I. DECLARATION OF QUORUM Y. Dickerson declared a quorum and Called the meeting to order at 7:15 p.m. ti. APPROVAL OF MINUTES M. Dillon made a motion to approve the April 19, 2001, minutes as written. J. Hurwich seconded the motion. Motion passed 6-0. III. NEW BUSINESS A. Request for Certification with the Consolidated Plan for SuperNOFA Funding Requests 1. Housing Options—Ganey & Claire Houses. Susan Kramer, executive director of Housing Opbor s, introduced the other representatives from Housing Options that were in attendance. S. Kramer explained that Housing Options was seeking renewal funding for Ganey House and Claire House. These two residences provide housing for ten (10) people with chronic mental illness. The HUD funding covers some of the expenses associated with the operation, supportive services and administrative costs. D. L.ach asked if each individual had their own unit or they shared space. S. Kramer explained that people share apartments but that each individual had his/her own bedroom. M. Dillon asked if the same people who moved into the units when the program was first established in 1998 are still in the program. S. Kramer replied that many of the people are the same but there has been some tum-over. S. Kramer stressed that there is no time limit for participating in the program. J Hurwich made a motion to approve the Housing Options proposal as complying with the Consolidated Plan. M. Dillon seconded the motion. Motion passed 5-0. 2. Connections for the Homeless. Will Sunblad, executive director of Connections for the Homeless explained that they were asking HUD for case management, psychological and follow-up services for Hilda's Place, the transitional and homeless shelter. W. Sunblad explained that Hilda's Place has a full time staff working with the people in the shelter on their issues and helping them to break the cycle of homelessness. D_ Lack asked how many people the shelter can serve at one time. W. Sunblad explained that there are 36 beds at the shelter and they are usually filled year round. There are 8 beds for women and 28 for men. Ail guests must be over 18 years of age. Many of the residents of the shelter come through Entry Point, Connections' 24hour street outreach program. P. Peterson asked if there was a limit to how long people could stay in the shelter. W. Sunblad explained that for people who are just passing through and do not want to enter their program, the maximum stay is 3 days. For those people who are willing to work on their issues and enter the program, the maximum stay is 6 months. D. l,.ach asked if they accepted children. W. Sunblad replied that the shelter was for individuals only but that Connections does have a program for families. In this program, it is mostly single women with children. P. Peterson asked if any type of job training or placement is done. W. Sunblad said that they work with the Evanston Ecumenical Action Council (EEAC) who provides job related services at the hospitality center. M. Dillon inquired as to the percentage of people in the shelter that had some sort of mental illness or substance abuse problem. W. Sunblad informed the Commissioners that the majority of the people at the shatter have some sort of substance abuse problem or mental health issue. The have a full-time mental health counselor, mental illness counselor and a nurse that provides clinical services. P. Peterson made a motion to certify the Connections for the Homeless proposal in compliance with the Consolidated Plan. D. t.ach seconded the motion. Motion passed 5-0. 3. Interfaith Housing Development Corporation (IHDC). Richard Koenig, executive director of IHDC explained that they were seeking funds for 319 Dempster. Last year they asked HUD for rehabilitation assistance; this year they are seeking funding for operating expenses associated with the seven units they are providing that will provide housing for disabled homeless individuals. IHDC will contract out for services to social service providers. M. Dillon asked about the income mix of the residents. R. Koenig explained that due to the funding in the project, all residents would be very low income. P. Peterson made a motion to certify Interfaith Housing Development Corporation's proposal for 319 Dempster in compliance with the Consolidated Plan. D. Lach seconded the motion. Motion passed 5-0. 4. Interfaith Housing Development Corporation and Connections for the Homeless. R. Koenig explained that IHDC and Connections were submitting a proposal to provide permanent housing to 3 homeless families. The proposal is for IHDC to purchase a 3-flat and rehabilitate it and Connections will provide the social services. The population they are looking to serve is homeless families with at least one disabled family member. Y. Dickerson wanted to know if this would be for Evanston families. The response was yes. W. Sunblad informed the Commission that his staff was already aware of several families in the community that were either homeless or at great risk of becoming homeless that would meet the criteria. M. Dillon asked if they had already located a site. R. Koenig explained that they had not yet begun to search for a building. Their intent was to purchase a 34at in the community that would serve the needs of the proposed population. P. Peterson asked if they anticipate expanding the program if it is successful. Both R. Koenig & W. Sunblad would be open that possibility. M. Dillon made a motion to certify the Rayna Miller Apartment proposal by Interfaith Housing Development Corporation and Connections for the Homeless to be in compliance with the Consolidated Plan. D. Lach seconded the motion. Motion passed 5-0. B. Request for $100,000 in HOME Funds for 319 Dempster. R. Koenig explained that once the project went out for bids, the bids came back higher than what had been budgeted. Part of this was due to the time that had passed since the original budget had been completed and the increasing cost of materials. R. Koenig also informed the Commission that all of the former tenants of the building had been relocated. All but a handful of the residents would be eligible to be moved back into the building once the project had been completed. M. Di fon asked about the increased Environmental expenses. R. Koenig explained that the Phase I Environmental Assessment found asbestos in the floor tiles and mercury in the light fixtures that needed to be removed. This was an expense that was not anticipated. R. Koenig explained that the lowest responsible bidder's contract had an additional $394,000 that IHDC had not budgeted for. IHDC has requested additional tax credits from the Illinois Housing Development Authority (IHDA), which they have received. IHDC has also gotten additional funding from the IHDA's Trust Fund. P. Peterson asked what happens to any unused contingency. R. Koenig explained that any contingency funds that are left over at the end of the project will be placed in the operating reserve. P. Peterson asked why the construction interest reserve budget line had increased. R. Koenig responded it was just the time it was taking to get the construction phase under ay. M. Dillon asked R. Koenig to clarify how the tax credit program works. R. Koenig explained that it was an IRS affordable housing program. Each state receives an allocation. The tax credits are sold to Investors to give developers the cash needed to develop a project. The credit is for ten years. Developers use equity syndicators to match developers with investors. D. Lach made a motion to recommend approval of Interfaith Housing Development Corporation's request for $100,000 in HOME funds for 319 Dempster. M. Dillon seconded the motion. Motion passed 5-0. M. Dillon asked when the project would be completed. R. Koenig hopes to be done with rehab in January 2002. C. Sub -Committee Report M. Dillon informed the Commission that the sub -committee looked at the possibility of condensing all of the affordable housing brochures into a single brochure that could also be used as a mailer. M. Dillon had someone do a mock-up of what a brochure would look like and distributed to the Commission for review. It was recommended that the mock-up be brought to the Evanston Housing Corporation board for their review. The sub -committee has been working on the housing inventory and has been planning a tour for Saturday, June 9 from 10:00 a.m. to noon. D. Building Receiverships • i T Y. Dickerson indicated that there were two items she would like the Housing Commission to explore. The first is adding the requirement that all lenders be informed when a building is in housing court and/or cited for building code violations in the administrative adjudication system. The second item is to explore how the building receivership process works. Y. Dickerson asked staff to do some research on these two topics. IV. OTHER P. Peterson announced that he would be resigning from the Housing Commission as he is moving out of Evanston. Y. Dickerson thanked him for his service on the Commission. V. ADJOURNMENT With no further business before the Commission, J. Hurwicih made a motion to adjourn the meeting. M. Dillon seconded the motion. Motion pasud. Meeting was adjourned at 8:40 p.m. Respectfully submitted: Roberta Schur Housing Planner DRAFT EVANSTON HOUSING COMMISSION .TUNE 21, 2001 MINUTES 7:00 P.M. DRAFT Members Present: B. Brooks, D. Browne, Y. Dickerson, M. Dillon, J. Hurwich, D. Lach, L. Nesbitt Members Absent: None Presiding Officials: D. Browne, Vice -Chair Staff: R. Schur I. DECLARATION OF QUORUM D. Browne declared a quorum and called the meeting to order at 7:05 p.m. II. APPROVAL OF MINUTES Y. Dickerson made a motion to approve the minutes of May 17, 2001, as written. L. Nesbitt seconded the motion. Motion passed 7-0. III. NEW BUSTNESS A. Community Tour. A brief synopsis of the Community Tour that the Commission undertook on Saturday, June 9 was given by D. Browne. The Commission spent two hours looking at new developments, board -ups and the HOME -funded projects. Both Y. Dickerson and J. Hurwich expressed their concern over the number and concentration of the boarded up properties due to their impact on the neighborhood. Y. Dickerson also voiced interest in the fact that there is undeveloped land that could be used for affordable housing. She believes that the Housing Commission should find out more information about the land and do what it can to encourage affordable housing development there. It was requested of staff to find out why properties were in foreclosure and who the lenders were of these properties. There was some concerts that there might be some predatory practices occurring that the Commission should know about. R. Brooks also discussed the impact of the Right of Redemption. R. Brooks had also heard that. in general. there are an increased number of foreclosures and delinquencies. According to Fannie Mae, l0% of their loans are 30 days (or more) late. This is attributed to the fact that people are able to purchase homes with very little down. A large number of households are one paycheck away from homelessness. Many foreclosures are the result of divorce or mental health issues. In many cases, there may be opportunities for intervention before a board -up occurs. Y. Dickerson expressed her interest in creating a prevention mechanism. R. Brooks concurred and said that unfortunately, the current system is reactionary, not proactive. Y. Dickerson stated that the projects in the Clyde -Callan area are very impressive because they enable families of moderate means to purchase a condominium. Y. Dickerson also mentioned an article in the Chica¢o Tribune that discussed the success of cooperatives for low-income households. M. Dillon mentioned that the Commission also drove by the site of the Jacob Blake Manor senior housing project. He stated that this project will have a very positive effect on the community. J. Hurwich added that she would like the Housing Commission to look at the rental housing inventory. She has heard that rents are increasing dramatically. Landlords are using the energy crisis to really raise rents. M. Dillon stated that in order to operate a well -managed building, landlords need to be able to cover costs. Sometimes this calls for significant rent increases. D. Each questioned what the new assessments were going to do to homeowners. Y. Dickerson mentioned that the township assessor came to speak at her office.' It is important for people to know that the information mailed indicated a 30% increase in taxes was incorrect. It is possible that people will see an 8% increase in assessed valuation. D. Lach stated that if tandiords arc using the incorrect figures to raise rents, this will have significant ramifications. J. Hurwich reported that 10% increases in rent are not uncommon for many Evanston tenants which she considers significant. It was suggested that the Commission do another tour later this summer. B. Sub -Committee Report. 1. Receiverships & Naming of Mortgage Holders. D. Browne and R. Schur on the information gathered regarding receiverships and naming of mortgage holders. D. Lach requested that sample motions and complaints filed be obtained for her to review as a part of the process. OA 2. Housing Inventory. R. Schur announced that there are summer interns working on updating the database. It is hoped that this %ill be completed by the end of the summer. 3. Marketing Material. It was suggested that the information be put in the Highlights newsletter that is sent to every resident. M. Dillon distributed updated copies of the brochure for the Commission's review. IV. OTHER BUSINESS R. Brooks suggested that an ordiaaac+e be drafted that would limit the amount of time a building can be boarded or that would fine the owner daily for having a boarded building. There needs to be an impetus for some people to take cane of their property. After some discussion it was decided that the August meeting of the Housing Commission will be canceled. V. ADJOURNMENT D Lach made a motion to adjow the meeting. M. Dillon seconded the motion. With no further business before the Commission, the meeting was adjourned at 8:30 p.m. Respectfully submitted, Roberta Schur Housing Planner 3 DRAFT EVANSTON HOUSING COMMISSION MINUTES JULY 19.2001 7:00 P.M. DRAFT Members Present: D. Browne, M. Dillon. J. Hurwich, D. Lach. L. Nesbitt Members Absent: Y. Dickerson Presiding Official: D. Browne, Vice Chair Staff R. Schur 1. DECLARATION OF QUORUM D. Browne declared a quorum and called the meeting to order at 7:06 pm. II. APPROVAL OF MINUTES L. Nesbitt made a motion to approve the minutes. M. Dillon seconded the motion. J. Hurwich made a correction to the minutes. The second to the last paragraph in section III -A should read -L Hurwich reported that she has experienced a 100/e increase in rent and has heard of similar experiences for other Evanston tenants.- D. Lach made a motion to approve the minutes as amended. M. Dillon seconded the motion. Motion passed 5-0. Ill. NEW BUSINESS A. Housing Inventory. R. Schur reported that housing inventory is almost finished. She distributed to Commission members a list of properties that the were problematic in the database and asked Commissioners to assist in determining the size and use of the buildings. Each Commissioner in attendance took two pages to do. R. Schur requested that they be completed in the next week. B. Neighborhood Planning Meeting. M. Dillon reported on the Neighborhood Committee meeting. M. Dillon thought it was a good forum for S's Ward residents to articulate their concerns. One item that was decided was the expansion of the boundaries south to Church Street. There were a range of issues raised including garbage, truck traffic, use of the sanitary canal for recreational purposes, public safety, law enforcement. public transit and churches. M. Dillon reported that the housing issues did not receive a lot of attention at this particular forum. The next meeting will be on Thursday, September 13. C. Housing Commission Goals. D. Browne repotted that the Commission has completed the Community Tour and that the housing inventory and marketing materials are well underway. In addition, work is being done on receiverships and naming of mortgage holders in the case of buildings in administrative adjudication. It was the feeling of several Commissioners that the Commission is moving in a very clear and positive dirwion. Staff was directed to start setting up speakers for the fall meetings. 1V. OLD BUSINESS R. Schur reported that Interfaith Housing Development Corporation would begin the final closing on the purchase of 319 Dempster and that the closing for the Jacob Blake project was almost completed. Both of these projects have received City assistance. V. ADJOURNMENT Donna Lach made a motion to adjourn. L. Nesbitt seconded the motion. With no further business before the Commissiom the meeting was adjourned at 8:10 p.m. Respectfully submitted. i Rabat Schur Housing Phnner DRAFT EVANSTON HOUSING COMMISSION MINUTES AUGUST 16, 2001 DRAFT Commissioners Present: R. Brooks, D. Browne, Y. Dickerson, M. Dillon, J. Htuwich Commissioners Absent: L. Nesbitt; D. Lach Guests: Neil Davidson Staff: R. Schur Presiding Official: Y. Dickerson, Chair 1. DECLARATION OF QUORUM ; 11. Y. Dickerson declared a quorum and called the meeting to order at 7:04 p.m. APPROVAL OF JULY 19, 2001 MINUTES J. Hurwich made a motion to approve the July 19, 2001 minutes as written. R. Brooks seconded the motion. Motion passed 5-0. NEW BUSINESS A. Request for HOME Funds for Single Family House at 1816 Darrow. Neil Davidson explained that since he had come before the Housing Commission several months ago, he had met with staff and Alderman Kent regarding the proposal. The HOME Loan Committee had recommended approval for the single family house concept- The home will have three bedrooms and two bathrooms. It will have a brick fagade, vinyl siccing, and an unfinished basement. Mr. Davidson plans on selling the home for S175,000. Mr. Davidson asked for the Commissions support of the $30,M request. The City would get paid at the time of the sale of the home. M. Dillon asked how the homebuyer would be found. N. Davidson said that they will try to locate the buyer before or during construction. According to Mr. Davidson, Alderman Kent is going to set up some seminars and Neil . ` ", tiL; Davidson will qualify- potential buyers. It is his hope that this home is the first of several projects they will enable moderate income families to purchase homes. Y. Dickerson stressed that she would like to see Evanston based families be selected. J. Hurwich agreed but thought that the buyer should work in Evanston as well. D. Browne suggested establishing a set of criteria that would result in a final score and use that score to pick the family. Y. Dickerson suggested that homebuyers be either a 2-year resident of Evanston or have worked in Evanston for 2-years. M. Dillon suggested that a lottery be established to pick the homebuyer. After much discussion over how the homebuyer should be selected and by which criteria the following was suggested: Family size between 3-6 members; Home ownership counseling required; and, Either a resident of or an employee in the Evanston for at least 2 years. D. Browne made a motion to recommend to City Council that approval of the $30,800 HOME funds request be granted with the following homebuyer criteria: Minimum family size of 3; Maximum family size of G; Homeownership counseling certificate must be produced at closing; Evanston,, resident for at least 2 years or employed in Evanston for at least 2 years.-M. Dillon seconded the motion. Motion passed 5-0. B. Discussion Regarding the Plan Commission Recommendation for Increased Parking for all New Construction Multi -family Residential. Y. Dickerson explained that at the July 23 meeting of the PIanning & Development Committee, they discussed the recommendations suggested by the Plan Commission. One of the concerns raised by aldermen was the impact the increase parking requirements may have on affordable housing development and referred the item to the Housing Commission for its input. M. Dillon suggested that minimum parking standards be set by square footage rather than number of bedrooms. Y. Dickerson stated that there was a lack of parking across the City, wherever there exists a large number of multifamily buildings. Parking is needed for all buildings whether the occupants are low-income or upper -income. J. Hurwich expressed concern over the impact inadequate parking was having on the City as a whole. In her opinion, inadequate parking was also having a negative impact on neighborhood shopping districts which led to a negative perception of the residential area it supported. D Browne added that he did not think the increased parking requirements would have a negative impact on the variety of housing types. Developers would continue to build larger units because they could get a higher price for them. Y. Dickerson believed that the Plan Commission's recommendation provided an opportunity to rectify something that has been neglected. The general feeling of the Commissioners was to allow the market at the time of development to dictate the types of housing needed. IV. ADJOURNMENT D Browne made a motion to adjourn the meeting. M. Dillon seconded the motion. With no further business before the Commion, the meeting was adjourned at 8:13 p.m. Respectfully submitted, L OW, � Roberta Schur Housing Planner DRAFT EVANSTON HOUSINNG COMMISSION MINUTES THURSDAY. SEPTEMBER 20.2001 DRAFT Members Present: R. Brooks. Y. Dickerson, M. Dilloa, R. Grossinger. J. Hurwich, D. Lach, L. Nesbitt Members Absent: Guests: Lou Gonzales, Joan Pasterczyk Presiding Official: Y. Dickerson, Chair Staff: R. Schur 1. DECLARAT70N OF QUORUM Y. Dickerson declared a quorum and called the meeurtg to order at 9.05 p.m. if. APPROVAL OF MINUTES W. R. Brooks made a motion to approve the August 16, 2001. minutes as written. D. Lach seconded the motion. Motion passed 6-0. Ill. NEW BUSINESS Reauest for Mavor's SDectal Housing Funds for 1817 Foster. Lou Gonzales, a private developer, is requesting S67,155 to assist in the rehabilitation of 1817 Foster. Mr. Gonzales explained that this building was built in the 1900s as a farmhouse. it is currently being rented out as a single-family f ve-bedroom house but it is supposed to be a two -unit structure. Mr. Gonzales intends to rent the two units after the rehabilitation is completed. The rehabilitation work includes repainting, installing new windows and doors, and repairing the roof and gutters and new appliances. The bathrooms and kitchens will be updated as well. M. Dillon voiced concern that the developer had put little equity into the project R. Grossinger asked a question regarding the amortization of the loan. In addition, he indicated that there were several line items on the expense side of the budget that have $0 budgeted where, in his opinion. there should be a more substantial amount budgeted. M. Dillon asked Mr. Gonzales if he had other rental properties. Mr. Gonzales explained that he had an 18-unit rental property at Custer and Austin for four years that he just converted to condominiums. R. Brooks questioned Mr. Gonzales about the rents projected for the building and the statement that both units would be rented to Section 8 tenants. Mr. Gonzales explained that the rents would actually be S 100 lower per month than the amount indicated in the application. The rents will be S 1000 for the 2-bedroom unit and $1250 for the 34mdrvom unit. Households who earn between 60%-8001D of the area median income are the target population for this building. One of the units will be rented out to a Section 8 tenant. This tenant is a current occupant ofthe building. The other unit will be rented to a non -Section 8 tenant. J. Huruich asked Mr. Gonzales why the rehabilitation money was needed from the City of Evanston. She asked if other resources were explored prior to coming to the City. Mr. Gonzales explained that he had a first mortgage from a bank to purchase the property. He has some money to do the rehabilitation but not enough to complete the project. Y. Dickerson asked if there were code violations in the building. Mr. Gonzales explained that in his opinion, there were a lot of violations but since there had not been a recent interior inspection., there wasn't a list of violations. There were a couple of exterior violations that had been cited R. Brooks asked how the funds would be disbursed. R. Schur explained that the City would reimburse the developer as the work was done. M. Dillon made a motion to recommend to City Council to use Mayor's Special Housing Funds in the amount of S67,155 for the rehabilitation of 1817 Foster. R. Brooks seconded the modom 11w motion passed 6-0-1. IV. OTHER BUSYNESS It was decided that the next meeting of the Housing Commission Sub -Committee will be'Tuesday, October 23 at 7:00 pm. Y. Dickerson explained that since this was L. Nesbitt's last meeting as a member of the Housing Commission, a new vice -chair was needed. M. Dillon was nominated as the vice chair. M. Dillon accepted the nomination. Motion passed 7-0. Y. Dickerson thanked L. Nesbitt for her six years of service on the Housing Commission. R. Schur announced lnterfaith Housing Center's Annual Meeting. The meeting will be on Sunday, October 14. The topic is "The Property Tax as Community Tax: How the System is Unfair and What Can be done to Change ir. r V. ADJOURNMENT 1. Nesbitt made a motion to adjourn the meeting. D. Lach seconded the motion. With no additional business before the Commission, dw meeting adjourned at 9:07 p.m. Respectfully submitted: Roberta Schur Housing Planner 2 DRAFT DRAFT HOUSING COMMISSION MINUTES WEDNESDAY, OCTOBER 24, 2001 8:50 P.M. POLICE OUTPOST, 633 HOWARD STREET In Attendance: R. Brooks, Y. Dickerson, M. Dillon, R. Grossinger. J. Hurwkb Absent D. Lach Staff- R. Schur Guests: P. Hickman Presiding Official: Y. Dirkersm Chair I. DECLARATION OF QUORUM Y. Dickerson declared a quorum and called the meeting to order at 9.50 pm Il. APPROVAL OF MINUTES R. Grossinger made a motion to approve the minutes of September 20, 200I as written. J. Hurwich seconded the motion. Motion passed 5-0. ' II. SUB -COMMITTEE REPORT M. Dillon provided the sub -committee report. M. Dillon reported that the Sub -Committee had rad Tuesday. October 23 and recommends the following: 1. Condominium Workshop. This will be held the last week of February, 2002. The workshop will address insurance, rrahganance. budgeting and legal issues of operating a Condominium - This is meant to be an informational and educational forum for condominium associations. In addition to announcing the meeting in the local newspapers, a mailing will be sent to the condominium buildings dww City is aware of. J. Hurwich asked if the speakers had been identified. M. Dillon informed her that was in progress. 2. Opportunities for Affordable Housing. M. Dillon explained that the developers of 1930 Ridge had remmed with a new proposaL The latest development calls for four buikling% four stories in height. The developer has stated that there is still room for affordabk runts in the development. The sub -committee had discussed advocating for the inclusion of affordable units at the Plan Commission meeting on Wednesday, November 14. Y. Dickerson explained that it was the sub -committee's hope that this would be the fist step in the process of requiring affordable housing in all development projects. M. Dillon added that the sutm*=lttee discussed creating a framework that would require developers to either provide the affordable units or contribute to an affordable housing fund. J. Hurwich asked for a clarification of what was meant by "affordable". After some discussion, R. Grossinger proposed using the phrase "attainable housing". Commissiotners requested another copy of the docurnem that was drafted by D. Browne which spoke to the mission of the Committee and provided a target audience for the Commission's efforts. R. Grossinger added chart without seeing the developer's budget it is difficult to determine if the development would support set -asides. M. Dillon acknowledged that he had agreed to draft a statement to be read at the November 14 Plan Commission meeting. The Commission agreed that the following issues should be addressed in the statement. disbursement of affordable units in the development; percentage of units; vent structure; term of affordability (40 years was recommended); tenant selection; and a provision for condominium conversion. It was also mentioned that the Dominick's site on South Boulevard presented another good opportunity for affordable units to be included in a larger development: R. Schur recommended that Jo Patton from BPI come to speak to the Commission. Ms. Patton has done consie'erable research on inclusionary zoning provisions around the country. This would provide good insight as the Commission moves towards establishing a tramework— for Evanston. M. Dillon also reported that the Sub -Committee had briefly discussed the need for the Commission to establish priorities for how HOME funds should be used in Evanston. This should be a part of future discussion of the Committee & Commission in order to be ready to issue a notice of fund availability (NOFA) in March when the City receives its 2002 allocation from HUD. IV. OTHER BUSINESS It was decided dw the November meeting of the Housing Commission would be held on Monday, Nowmber 19 at 7:00 p.m. The December meeting will be held on its normal date of Thursday. Dooerrtber 20. V. ADJOURNMENT R. Grossingsr made a motion to adjourn the meeting. J. Hurwich seconded the motion. With no further business before the Commission* the meeting was adjowned at 9:30 p.m. Respectfully submitted, R�rtaSchur Housing Planner EVANSTON HOUSING COMMISSION MONDAY. NOVEMBER 19, 2001 rt"�u MEETING NOTES' Members Present: Y. Dickerson, M. Dillon, R. Grossinger, J. Hurwich Members Absent: R. Brooks Guests: Sherrill Frost Brown, Interfaith Housing Center of the Northern Suburbs Presiding Official: Y. Dickerson„ Chair Staff: D. Marino I.. DELCARATION OF QUORUM Y. Dickerson called the meeting to order. She explained that since they did not have a quorum, no votes could be taken. II. APPROVAL OF MINUTES Minutes could not be approved since there was no quorum. 111. NEW BUSINESS A. Sherrill Frost Brown, from the Interfaith Housing Center of the Northern Suburbs, gave a presentation on predatory lending. She distributed a packet of information regarding predatory lending and the resources available for victims. B. Sub Committee Report. Mark Dillon updated the Commission on the presentation made at the November 14 Plan Commission meeting regarding the 1930 Ridge project. The developer discussed provided a 25% discount for ten (10) units. The Sub -Committee had asked for 20 units set aside for households earning no more than 80% of the area median income for a period of thirty (30) years. M. Dillon also informed the Commission that the marketing brochure was ready for printing. IV. ADJOURNMENT With no further business before the Commission, the meeting was adjourned. Respectfully Submitted, Roberta Schur Housing Planner • The tape recording of this meeting was misplaced. Therefore, minutes are not available. DRAFT DRAFT EVANSTON HOUSING COMMISSION DECEMBER 20, 2001 MINUTES 7:00 P.M. Members Present: K. Boes, R. Brucks, M. Dillon, K. Grossinger Members Absent; Y. Dickerson, J. Hurwich Guests: Jo Patton, Business & Professional People in the Public Interest Staff: R. Schur Presiding Official: M. Dilkxt, Vice Chair 1. DECLARATION OF QUORUM M. Dillon called the meeting to order at 7.09 p.m. without a quorum being present. II. APPROVAL OF October 24, 2001 MINUTES Without a quorum present, the minutes could not be approved. III. NEW BUSINESS M. Dillon introduced Jo Patton from Business & Professional People in the Public Interest (BPI) and explained that she would be talking about various models of inclusionary zoning from around the country. J. Patton informed the Commission that this Fall, BPI took several officials to Massachusetts to learn about the range of inclusionary zoning models. Of particular interest to Evanston, due to the similarities of the two communities, is Cambridge, Mass. Bohr communities have similar demographics and am impacted by the presence of university. J. Patton prefaced her remarks by stating that BPI does not see inclusionary zoning as a "magic bullet". In many cases the requirement has produced affordable units but the numbers have been very modest. BPI has found that inclusionary zoning works best when it is used in conjunction w ith other programs. J. Patton continued by stating some municipalities link the provision of a permit with affordable units and market raze units. Most programs also include some type of benefit to off -set the cost of providing the affordable unit. J. Patton stressed the importance of a municipality assessing its current need for affordable housing, anticipated job growth, and what the housing needs will be in the future given that job growth. The impact of neighboring property values is always a concern. Based on the research done in Montgomery County, there is no indication that the provision of affordable housing has a negative impact on property values. J. Patton referred to a table that she distributed. She pointed out that in Montgomery County, there is a provision that allows the heal housing authority to purchase a percentage of the new units of rental housing. So far, this has worked well. J. Patton acknowledged that most other municipalities do not go to that extent in their set aside requirements. In going through the table, J. Patton reviewed each category:: 1. Finding the right minimum set aside requirement is very difficult. Nationwide, 10-20% seems to be the norm. 2. The Control Period is the time period for which units must remain affordable. In Montgomery County, the original control period was very short. As a result, they are losing units very quickly. J. Patton recommends setting long enough control period to have a long term impact. 3. There are very strung viewpoints on the provision for in lieu payments. Whether or not to allow in lieu payments depends on the local conditions and the opportunity for new units. 4. Density Bonuses allow a developer to recoup the cost of the affordable units by being able to build extra market rate units. However, density —and the provision of adequate parking--- is a hot -button topic in many areas. J. Patton stated that she believed Cambridge Massachusetts was a very analogous city to Evanston and explained their program. The program in Cambridge was initiated in 1999. In 1995, rent control was lost in Massachusetts. They created an inclusionary zoning requirement and allowed for a 301/6 density bonus. They also have an in lieu payment option. M. Dillon commented on the range allowed. J. Patton concurred that it is quite broad ($6,000-$52,000 per units). This payment option is not designed to cover the cost of creating the affordable unit but the difference between the market and affordable units. There is also a requirement that condominium conversion projects set aside a set number of units. J. Patton asked the Commission what they see as the need for Affordable Housing. M. Dillon talked about the 1930 Ridge project and the possibility of having some units set aside for affordable housing. - •r,�A 9 ^-'%, J. Patton discussed the Massachusetts Anti -Snob Zoning Act (1969). This provided an incentive for communities to work toward 10°!a of the units being affordable. Ms. Patton also discuss the Mount Laurel (New Jersey) case %%hick struck down exclusionary zoning practices. R. Brooks asked if there were any municipalities in Illinois that had inclusionary zoning laws. J. Patton informed the Commission that she is currently working with Highland Park to implement an inclusionary ordinance as a part of their affordable housing plan. J. Patton also mentioned that there is a lot of organizing occurring in Chicago around this issue. In certain wards, Aldermen have agreed to require a certain percentage of affordable units in new developments. One problem that J. Patton has with some of these arrangements is the use of public money to offset the developers costs. Also, in the City of Chicago, there are rewriting the zoning ordinance. This may be used as a tool to encourage the development of affordable housing. R Grossinger commented that in the past thirty years, he would not have thought inclusionary zoning had any chance of passing. However, given that the real estate boom is probably coming to an abrupt halt, inclusionary zoning might work. M. Dillon asked if the success of these types of programs was tied to an economic boom. J. Patton did not think that was the case. IV. SUB -COMMITTEE REPORT M. Dillon reported that there was not a sub -committee meeting in December. The next sub -committee meeting will be January 15, 2002. It was suggested that the marketing brochure be sent out in the next Highlights. It is anticipated that the condominium workshop will be held on Thursday, March 7. R. Grossinger asked staff to create a list of the various policy items the Commission is discussing at the moment. V. ADJOURNMENT With no further business before the Commission, the meeting was adjourned at 8:20 p.m. Respectfully submitted, Roberta Schur Housing Planner EVANSTON HOUSING COMMISSION JANUARY 17, 2002 MINUTES FAIATI MEMBERS PRESENT: K. Boes, Y. Dickerson, M. Dillon, J. Hurwich, Robin Snyderman Pratt MEMBERS ABSENT R. Brucks, R. Camsinger STAFF: D. Marino PRESIDING OFFICIAL: Y. Dickerson. Chair I. DECLARATION OF QUORUM Y. Dickerson called the meeting to order at 7:10 p.m., without a quorum being present. IL APPROVAL OF DECEMBER 20, 2001 MINUTES Without a quorum present, the minutes could not be approved. III. NEW BUSINESS D. Marino summarized activities and actions covering 1930 Ridge and 126 Clyde. 1930 Ridge will be under consideration by the City Council next week. The project includes 10 affordable units. 124 Clyde will receive a loan from the Mayor's Special Housing Fund to help EHC transfer a unit to a new owner expeditiously. D. Marino reported that the Housing Planner position was frozen and that it would be reconsidered by March 1, 2002. The proposed condo workshop is on hold unless R. Schur agrees to coordinate it under contract. Otherwise, it will need to occur after a new Housing Planner is hired and trained. Some members of the Commission had volunteered to move forward on implementing the Condominium management workshop without a Housing Planner, but the Commission and staff present concluded that the workshop would be implemented after a new housing planner had been hired. D. Marino briefly summarized the recommended CDBG budget which had been approved. He added that HUD had reduced the FY 2002-03 amount by approximately S40,000 compared to FY 200I-02. There was a discussion ofJ. Patton's presentation on inclusionary zoning. The Commission decided to move forward with a process of investigating the possibilities for an inclusionary housing strategy in Evanston, beginning with a discussion about the recent Highland Park process for developing an affordable housing strategy. Members requested that Highland Paris be invited to discuss its new strategy. Members discussed the proposed townhouse project on the former Dominick's site on Chicago Avenue. Discussion centered on the possible inclusion of affordable units with members a6mming to monitor the development and consider this at a future meeting. The Housing program brochure was discussed next. D. Marino agreed to follow up' VAth Stan Janusz and Donna Stuckert concerning its progress and possible inclusion in Highlights. ADJOURNMENT The meeting was adjourned at 8:35 p.m. Respectfully submitted, Dennis Marino EVANSTON HOUSING COAiAiISSION February 21, 2002 MINUTES 7:00 P.M. MEMBERS PRESENT: K. Boes, R. Brucks Y. Dickerson, M. Dillon, R. Grossinger J. Hurwich, Robin Snyderman Pratt MEMBERS ABSENT None STAFF: D. Marino PRESIDING OFFICIAL: Y. Dickerson. Chair I. DECLARATION OF QUORUM Y. Dickerson called the meeting to order at 7:10 p.m., with a quorum being present. IL APPROVAL OF DECEMBER 20, 2001 MINUTES and January 17, 2002 Minutes The Minutes for both meetings were approved. The following additions were made to the draft minutes of January 17'h: (1) Some members of the Commission had volunteered to move forward on implementing the Condominium management workshop without a Housing Planner, but the Commission and staff present concluded that the workshop would be implemented after a new housing planner had been hired. (2) The Commission decided to move forward with a process of investigating possibilities for an inclusionary housing strategy in Evanston, beginning with a discussion about the recent Highland Park process for developing an affordable housing strategy. IIL NEW BUSINESS Highland Park Affordable Housing Strategy Lee Smith, the Housing Planner for Highland Park, summarized Highland Park's efforts to design and implement an affordable housing strategy. He explained that in January 2001, the Highland Paris City Council adopted an Affordable Housing Needs and Implementation Plan as an element of the City of Highland Park's Master Plan. The needs analysis and plan was prepared for Highland Park's Housing Commission by the Voorhees Center of the University of Illinois -Chicago. The report cited the following evidence of the growing need for affordable housing: decreasing income diversity in the community, the loss of 324 rental units, increasing housing costs and a growing gap between incomes and housing costs. Mr. Smith explained that five groups were identified as being in need of affordable housing: workers employed in the city who cannot afford to live there; seniors on fixed income; single parent households struggling with a loss of income; young native Highland Park households who arc unsuccessfully seeker starter homes and; and persons with disabilities. The affordable housing plan identifies three specific strategies which if implemented properly can help the city preserve and expand affordable housing options: (1) establish a land trust to preserve existing stock by taking it off the market and limiting appreciation; (2) create a trust fund to subsidize rehabilitation and new construction of affordable housing and to become a recipient of grant funds; and (3) stimulate employer assisted housing to improve recruitment and retention of workers in the city. The plan also identified special opportunities where affordable housing can be incorporated: as part of the Fort Sheridan redevelopment, through City zoning and regulatory actions (establishing set aside requirements, incentives and fee waivers) and through mixed income development of larger tracts of land. Mr. Smith cited several examples of how Highland Park has begun to implement the plan and commented that Evanston has historically produced many more units of affordable housing, but some progress on this issue is clearly being made in Highland Park. In response to questions from Commission members and staff, Mr. Smith mentioned that Highland Park has worked with the Lake County Housing Authority to achieve common affordable housing objectives. He also responded that the availability of large tracts of land and funding were obstacles to achieving more affordable housing production. Y. Dickerson thanked Mr. Smith for his presentation and hoped that the Commission could rely on him for information and advice in the future. Mr. Smith stated that as an Evanston resident he would be happy to help. Recent Development Report D. Marino summarized activities and recent actions covering 1930 Ridge, 126 Clyde, the former Dominicks site on Chicago Avenue, the vacant lot on Darrow and 319 Dempster. The Commission expressed an interest in touring 319 Dempster once construction was complete. There was discussion of the significance of the ten affordable units to be included in the new . rental development at 1930 Ridge. Members agreed to attend the Planned Development hearing for the proposed new townhouses on Chicago Avenue on the former Dominick site and to encourage the possibility of affordable units. Housing Planner Position D. Marino reported that the Housing Planner position had been advertised and projected that a new planner would possibly start by May 1, 2002. Condo Workshop D. Marino reported that R. Schur had declined an offer to coordinate the condo workshop under contract Marls Dillon stressed the value of conducting the workshop and his willingness to volunteer. Members agreed that this would be a priority once the new Housing Planner was hired. Housing Program Brochure Two members (Hurwich and Dillon) expressed their d6:.r that the Housing Program Brochure was not in Highlights Magazine. Dennis Marino responded that an excerpt from the brochure was included, but there was not funding to reprint the entire brochure as an insert to the Parks and Recreation Magazine. He added that the estimated cost to do this was in excess of $3,000 and that it could not be covered in the dire financial climate that currently exists. This would be explored again in the new fiscal year although there is not a line item budget for this activity. ADJOURNMENT The meeting was adjourned at 8:35 p.m. Respectfully submitted, Dennis Marina Assistant Director for Planning 11 it AV EVANSTON HOUSING COM►IISSION MEETING OF MARCH 21, 2002 Members Present: Francis Baumgart, Kevin Boes, Robert Brooks, Mark Dillon, Robin Synderman-Pratt Staff Present: Arthur Alterson, Stan Janusz, Dennis Marino Summary of Actions The Meeting was called to order at 7:05 p.m. and the Minutes were approved with minor changes. Arthur Alterson was introduced as Zoning Administrator of the City. He was invited to discuss the zoning ordinance, the process for considering zoning relief and the processing of planned development applications. The Commission invited Mr. Alterson as part of its ongoing review of the components of the City's development review process. This review is occurring to identify methods for advocating affordable housing interests when residential development is under consideration. Mr. Alterson began by describing the zoning ordinance and the procedures for considering zoning relief. He also reviewed the plan development process and the respective roles of the Plan Commission and the Zoning Board of Appeals. The Plan Commission is responsible for recommending actions to City Council concerning planned developments, zoning map amendments and zoning text amendments. The Zoning Board of Appeals makes recommendations concerning variations and special uses. Mr. Alterson explained that most development, including most new residential development, does not need zoning relief and that most construction occurs as of right since it is in compliance with the Zoning Ordinance. Given the Housing Commission's interest in affordable housing, he suggested that the Planned Development process might be of most interest since it is a process which is open to broader suggestions of including elements that will enhance the public good. H e added that the recent approval of the planned development application for 1930 Ridge included 10 affordable units of the total 195 units in the development. He stated that he was not advocating this approach, merely explaining what had occurred. Commission members asked several questions to clarify procedures and asked how they can be notified about new residential development applications. Mr. Alterson responded that he has mailing list for the ZBA and Plan Commission agendas and that he would be willing to add Housing Commissioners to the list if people provide him with an e-mail or address list. Evanston Housing Commission Minutes - March 21.2002 r-t V1 Page Two Commission members thanked Mr. Alterson for his presentation and hoped they could speak with him again. Stan Janusz, Assistant Director for Property Inspections and Housing Rehab, was introduced next. He was invited to provide an overview of City housing rehabilitation programs and the first time homebuyers program. The presentation was requested to acquaint new members with the programs and to discuss how the programs are marketed in the community. Mr. Janusz began by distributing brochures about each of the programs his division manages. These include: the multi -family rehabilitation program, the single family rehab program, the first time homebuyers program administered through the Evanston Mortgage Corporation and the police homcbuyers program. He explained that with the exception of the first time homebuyers program, CDBG and HOME funds are the primary capital sources for these programs. Marketing of these programs occur through brochure distribution, occasional advertisements in the Evanston Review and the Highlights magazine and direct marketing by inspectors when property violations are cited. Word of mouth is also a significant source of referrals. Mr. Janusz added that the new brochure describing housing programs will also be a useful source of information that should generate new applicants. The City also participates in the Illinois Housing Development Authority's first time homebuyers program which benefits Evanston residents. The City has ceded part of its bond volume cap to IHDA to make this participation possible. Dennis Marino described three housing programs operated by the Planning Division. These include the Multi Family Acquisition Program which uses HOME funds to finance the purchase of deteriorated multi family rental housing. These funds have been used to help Reba Place, Evanston Housing Coalition and Interfaith Housing acquire properties which were often troubled properties with absentee landlords. Successful rehabilitation of these properties have contributed to multi faceted neighborhood revitalization efforts. A second program is the Mayor's Housing Fund which has been used to provide acquisition and rehabilitation financing for affordable single family and multi family property. A third program operated by Planning is the Families in Transition Program which assists families in need of transitional housing and financial assistance to meet housing needs. The program requires an institutional sponsor which covers So% of the subsidy for a Evanston Housing Commission Minutes - March 21.2002 Page Three maximum of 24 months. The City will match the institutional subsidy. The funding is provided by the Mayor's Special Housing Fund. Commission members inquired about the status of the brochure which they had designed. Mr.. janusz responded that he had made some minor revisions to the brochure. Dennis Marino added that the brochure does not have an approved budget, but he would inquire of HUD about the ability to use HOME funds to finance the brochure. Members thanked Mr. Janusz for his presentation and asked Mr. Marino to report on the status of the Housing Planner. He commented that numerous applications had been received and that he is reviewing them and will select several for first round interviews. He anticipated that a new staff person would start in early May. Mark Dillon summarized an upcoming workshop on multi family property management training to be conducted by the Community Investment Corporation. He then began to discuss the importance of moving forward with the condominium management training workshop as soon as possible once the new housing planner starts. Members adjourned the meeting at 9:15 p.m. Dennis Marino Assistant Director for Planning Q%A DRAF*f Housing Commission Meeting of April 18.2002 Minutes Members Present: Francis Baumgart. Mark Dillon. Judith Hurwich. Robin Synderman Pratt Staff Present: Dennis Marino Summary of Actions The Meeting was called to order at 7:05 p.m. by Vice Chair Mark Dillon. He announced that the Chair Yvonne Dickerson had resigned from the Commission and he, along with other members present, expressed gratitude for her work over the past several years. Mr. Dillon acknowledged that the Commission lacked a quorum and looked forward to considering the March minutes at the May Meeting. Dennis Marino reported that there were not any new residential development applications of significance to report. He commented that Interfaith Development has completed its rehabilitation of 319 Dempster and tenants had begun to return to the building. Interfaith plans to announce an Open House some time in May. Other affordable developments under way include :1816 Darrow where a new affordable new single family house is under construction and 124 Clyde where one of the affordable condos is being prepared for resale. In response to a question, Mr. Marino commented that the redevelopment of the Domicks site on Chicago Avenue, which had been discussed previously, complies with Zoning without seeking relief from the Plan Commission or the zoning Board of Appeals. This was the result of changes in the proposal to eliminate aspects which did not comply with Zoning. Mark Dillon reported that the Commission's Affordable Housing Subcommittee continued to view this project and other larger scale residential developments as important opportunities for increasing the supply of affordable housing through inclusionary zoning or set asides. There was a brief discussion of the meaning of inclusionary zoning and set asides to achieve affordable housing goals. Members of the audience affiliated with the Interfaith Sustainability Group commented that they were supportive of the Commission's affordable housing efforts. Richard Tholin commented that the Methodist Pension Board had committed to help finance affordable housing nationwide and this was applicable to Evanston. Mark Dillon stated that he was interested in again participating in a housing tour of Evanston this summer and asked if other members would find this useful. Members responded affirmatively. The second or third Saturdays of July were suggested as possibilities. Dennis Slarino suggested the date not be set until more members were present and the new housing planner was on board. Mr. Marino announced that a new Housing Planner. Donna Spicuzza had been hired and that she would start on May 6.2002. Ms. Spicuzza previously worked for the Federal Home Loan Bank of Chicago, operating an affordable lending program. She also has work for Neighborhood Housing Services of Chicago. Ms. Spicuzza is both an urban planner and a joumalist. Members enthusiastically responded to the announcement and expressed interest in working with the new housing planner. Ms. Hurwith thanked Dennis Marino for staffing the Housing Commission meetings while the planner position has been vacant. DRAFT Robin Snyderman commented on the beginning of the Chicago Matters series on WTTW. She encouraged members to watch the week long program and also to participate in other events including the meeting in Wilmette focusing on the North Shore. Others members commented that the recent WBEZ programming about affordable housing had been informative and well done. Members next addressed the Planning and Development Committee reference concerning the City's regulatory requirements for setting the rate of interest to be paid for security deposits required of tenants by owners of rental apartments. The City currently requires a 5% interest payment on security deposit. A landlord has requested that this requirement be changed to a sliding scale approach based on market interest rates. Current investment yields for short term funds range from 1 to 1.7"/0. The Commission recommended that the Planning and Development Committee consider a regulatory change that would require an annual interest payment on security payments that would be determined by an index of average rates of return for instruments in which security deposit funds would likely be invested. The Meeting was adjourned at 9:05 p.m. Dennis Marino Assistant Director for Planning -1;¢A rT EVANSTON HOUSING COMMISSION MEETING OF MAY 16, 2002 Members Present: Francis Baumgart, Kevin Boes, Mark Dillon, Rob Grossinger, Judith Hurwich, Robin Snyderman Pratt Absent: Robert Brooks Guests: Claire McCarthy -Peterson, Homeless Task Force; Alexander Brown, Housing Options; Marie Vesely, Conrwions for the Homeless; Gail Schechter, Interfaith Housing Center, Dick Tholin; Betty Ester. Staff Present: Dennis Marino, Donna Spicuzza DECLARATION OF A QUORUM Vice Chair Mark Dillon declared a quorum and called the meeting to order at 7:OS p.m. Mr. Dillon introduced the new housing planner, Donna Spicuzza, who was welcomed by all the commission members. APPROVAL OF MINUTES The minutes of the March 21, 2002 and April 18, 2002 meetings were approved with minor changes. COMMUNICATIONS Development Update Dennis Marino updated members on the status of housing developments. I . Housing Opportunity Development Corporation held an Open House that day celebrating the rehabilitation of 319 Dempster. Mr. Marino hoped that commission members bad a chance to tour the project which converted an SRO in an upper income neighborhood into 48 affordable efficiency units. 2. The demolition permit has been issued for 1930 Ridge and the project has applied for foundation permits and should be underway by the end of summer. Ten of the 195 units will be affordable set -asides. 3. Development plans for 90 townhouses were modified to be in compliance with all zoning regulations. Since the development doesn't need any zoning relief, it can be built as of right without needing a planned development. 4. The vacant unit at the condo project at 124 Clyde should soon be sold, thanks to tie efforts of the Evanston Housing Coalition. They did sgmc rehab on the unit and found an income eligible buyer, who is now proceeding with income certification. S. The issue of Employer Assisted Housing will be on the agenda at the board meeting of the Evanston Mortgage Corporation next week. James Wolinski and Stan Janusz will recommend a program for city employees offering reduced interest rate financing through the Evanston Mortgage Corporation. It would be similar to the program available for Police, witlwut income restrictions. Response to an employee survey on housing programs had a high rate of return, with many respondents expressing interest in learning more about possible employer Evanston Housing Commission Minutes —May 16. 2002 Page 2 assisted programs. Members asked how the police program was doing, and Mr. Marino responded that it was slow, with no loans in the first two years but 2 or 3 in the third year. There was a general discussion on the masons, which include the fact that low interest rates are now generally available and the target population may not feel comfortable living in the community in which they work. Ms. Snyderman Pratt remarked that the Metropolitan Planning Development Council (MPDC) was offering a presentation next month on an Employer -Assisted housing program in partnership with IHDA and others. Mr. Marino said Mr. Janusz talked with MPDC regarding that program. It was asked whether the Mayor's Special Housing Fund could be a sauce of downpayment assistance, but Mr. Marino noted other with only about $l 50,000 in the fund, other projects may need these funds to fill critical financing gaps. It was decided to discuss Evanston Mortgage Corporation's programs at next month's meeting. HUD SuperNOFA Request Donna Spicuzza referred Commission members to three applications for HUD SuperNOFA funding so they could certify that the programs described in the applications are in compliance with the City's Consolidated Plan. Two projects sought funding from the Continuum of Care Homeless Assistance Programs and were reviewed by the Evanston Task Force on Homelessness. The projects were the Pathways Supportive Housing Program through Housing Options For the Mentally I11, and New Beginnings through Connections for the Homeless. Claire McCarthy Peterson, chair of the tzsk force, said the applications were for renewal of funding for programs that had performed well. She said these two applications, the only ones submitted for Contiunuum of Care funding, would use up all the funds available. When asked why other organizations hadn't applied, she said while the Task Force did not discourage other applications, most area organizations are part of the Task Force and were aware that these two projects were seeking renewal of funding. Time agencies realize both the difficulty of the funding process and the importance of renewing funding for programs. Marie Vesely from Connections for the Homeless, also in the audience, commented that the matching funds requirement could also deter agencies from applying. Commission members discussed a few points of the programs requesting finding, but noted that since their only role was to certify compliance with the Plan, any review was unnecessary. Marls Dillon moved to certify that the two applications for Supportive Housing Program funds were consistent with the City's Consolidated Plan and Kevin Boos seconded the motion. The motion carried 5 — 0. Rob Grossinger questioned why the commission received copies of the proposals if their only role was to certify compliance and not provide input or comments on the applications. He expressed regret that other agencies didn't apply for Homeless Assistance funds. He added that after reading the applications, he felt the New Beginnings program should generate stronger performance. Commission members suggested that perhaps the Homeless Task Force or Continuum of Care could encourage public comments when they review funding requests. The commission briefly discussed the proposed application from Interfaith Housing Center for funding through the Fair Housing Initiatives Program. Gail Schechter from Interfaith Housing addressed questions about their proposal for fair housing testing and education. It was noted that fair housing is part of the City's agenda- Rob Grossinger moved to certify that the project was consistent with the Consolidated Plan, seconded by Robin Snyderman Pratt. The motion carried carried 5-0. Dennis Marino encouraged Ms. Schechter to share her proposal with the City's Human Relations Commission, which is the primary advisory body addressing fair housing Evanston Housing Commission Minutes —May 16.2002 Page 3 Boarded, Vacant, Foreclosed Properties List Members reviewed and discussed the Vacant, Board -up List containing approximately 60 properties and agreed there were more boarded -up properties than the city would like to have. Most are concentrated in the 5ie Ward. Marie Dillon noted that the Foster Park Neighborhood Association is interested in addressing problem this on a systematic basis, and this infortnation is a helpful starting point. Mr. Marino said that group is prominent in the Neighborhood Planning process going on there, and board -ups are a priority issue. He said all three of the City's CHDO's were encouraged to work in the ward to address these properties. ELECTION OF OFFICERS The Commission elected its officers. Mark Dillon was nominated as Chair by Robin Snyderman Pratt, seconded by Judith Hurwieh. Robin Snyderman Pratt was nominated as Vice Chair by Rob Grossinger, seconded by Fran Baumgart. Both motions carried 5-0. Mr. Baumgart suggested that the Housing Commission web page be updated with new staff and officers. SUBCOMM=E REPORT Marie Dillon reported on the May 15 meeting of the Commission's subcommittee on Affordable Housing. The group discussed the idea of forming a community oriented, city-wide Task Force on housing initiatives which would present legislative or voluntary proposals to the City Council. The task force could look systematically at issues like affordable housing set -aside ordinances or other initiatives and get input from elected officials, the private sector and community groups. Mr. Marino asked if they wanted to create a separate task force with a different status and role or an expanded version of the subcommittee to bring in other people. Mr. Baumgart suggested a third possibility, a grass -roots based phenomena. Mr. Dillon said they were more inclined to expand the subcommittee to bring together interested people. He said they wanted the perspoctive of community groups, government and the private sector, essentially a working group with the blessing of City Council. Ms. Snyderman Pratt said that rather than working as a commission and coming up with a proposal that City Council would not be prepared for or informed about, they wanted to develop concensus along the way. Mr. Marino suggested that instead of creating a separate entity they could expand the subcommittee to include other players, inform them of the scope of the work, focus on specific strategies, and get consideration of the process from the City Council. He said the sub -committee could make recommendations to the Housing Commission for recommendation to Council. During the discussion Fran Baumgart introduced Betty Sue Ester and Dick Tholin from the audience. They were at a community group meeting Mr. Baumgart attended where they discussed a proposal for a mandatory set -aside program for affordable housing. Mr. Baumgart said people who attended were interested in putting together some initiatives, and the subcommittee's proposal would be up their alley. Ms. Ester and Mr. Tholin both expressed interest in a committee that could develop affordable housing initiatives. Ms. Snyderman Pratt hoped the group world include grass roots organizations who are doing the homework, and added that they should recognize that the issue of mandatory inclusionary zoning is volatile. `2, Evanston Housing Commission Minutes —May 16, 2002 Page A The working group would also involve some staffing and the group wondered how much staff support was available. Mr. Marino said staff would be available but the time to do significant research would be limited because of workload constraints. For example, staff could help with technical and research issum within mason. The possibility of funding for research was discussed, and Ms. Ester noted that a recent disparities study was completed using CDBG administrative funds. Commission members mentioned the study for Highland Park which was done by the Voorhees Center at UICC. Mr. Dillon said the sub committee's goal was not to come up with a report. Donna Spicuzza said she would look into the funding possibilities for a housing needs study and try to determine the extent of her involvement with the group. It was also suggested that the housing planner provide information on Chicago's voluntary incusionary zoning Ordinance, which resulted in 100 affordable units among 13 developments in the East year. Ms. Spicuzza agreed to get information on Chicago's program and would try to compile a list of developers active in the city. Members agreed the structure should be focused, looking at specific strategies, and that committee members could do research. They observed that any inciusionary zoning discussion would require thinking about what incentives the City could provide developers. The subcommittee will more clearly define their idea at their next meeting on Tuesday tune 18. CONDOMMMM ASSOCIATION WORKSHOP Members discussed the condominium association workshop which had been postponed firm the spring. The workshop will consist of a two or three hour session on a weeknight evening, am focus on condo associations and management issues. The second or third weeks in September were recommended, with the exact date dependent on the availability of guest speakers. OTHER BUSINESS Judith Hurwith said that the idea of having a closer working relationship with the Plan commission also came up in the subcommittee meeting. Both commissions report to the Planning and Development committee and often deal with common issues. She asked if the housing planner could see about having a joint meeting. Ms. Spicuzza said she will talk to the staff person about it and also provide the names of the members of the Plan Commission. The Housing Tour for Commission members will be on a Saturday morning in July. The first choice is Saturday, July 13, with July 20's as the contingency date. Ms. Hurwith commented that before the meeting she went to the open house at 319 Dempster, She said the rehabilitation was wonderful but she was struck by the small size of the units even though the income cap for renters was $29,900. She wondered if these were typical of affordable housing units. Robin Snyderman Pratt said the income caps are established by HUD, based on median income figures. She said renters for the single room efficiencies probably had much lower incomes and that people earning more than S 10,000 have other housing choices. Rob Grossinger motioned to adjourn the meeting, seconded by Robin Snydernan Pratt. The meeting was adjourned at 8:35 p.m. EVANSTON HOUSING COMMISSION MEETING OF JUNE 20, 2002 Members Present: Francis Baumgart, Kevin Boes. Robert Brooks, Mark Dillon, Judith Hurwich, Robin Snyderman Pratt Absent: Rob Grossinger Guests: Richard Girard, Gordon DuCharrne, St. Vincent de Paul Society;Ben Hussnrann. Karen Chavers, Evanston Neighborhood Conference; Dick Tholin; Betty Ester, John Tyrone. Family Focus; Martha Burris; Flank Miles, CEDA; Eve Bonner Connie Goddard, Intemligious Sustainabilir Project. Staff Present: Donna Spicuaa DECLARATION OF A QUORUM Vice Chair Mark Dillon declared a quorum and called the meeting to order at 7:00 p.m. APPROVAL OF MINUTES The minutes of the May 16, 2002 meetings were approved with minor corrections and one additional comment regarding a question to staff about availability to work on a draft inclusionary zoning ordinance. Communications: Donna Spicu"a gave an update on housing developments, noting that demolition will begin soon at 1930 Ridge and that construction was progressing on the affordable single family house on Darrow. in response to a question about bow the buyer would be selected, Ms. Spicuaa said the developer would advertise in the local papers, possibly put up a sign with a number for more information, and provide information sheets to churches for their newsletters or bulletin boards. Commission members would like all houses of worship to be provided with the information. A commission member commented about seeing a sign indicating a business on Maple between Davis and Grove is leaving the site and asked what was proposed. Ms. Spicuaa said she would get that information for the nen meeting. 2000 census data Ms. Spicuva went over some of the 2000 census data for Evanston that was included in commissioner's packets and provided some comparisons with 1990 data. She noted that the percent of owner -occupied housing units was up 9A% with 52.7% of housing units occupied by owners and 473% of the units occupied by renters, which was a flip from the 1990 percentages of 49% owner -occupied and and 51% reenter occupied. Data showed that almost 20% of homeowners in Evanston paid more than 30% of their income for housing, and 35% of renters paid 35% or more in 2000. m Ms. Snyderman Pratt noted that not everybody wants mandatory inclusionary housing and doubted there would be a concensus because people are looking at economic development. She favored being strategic, considering whether to propose mandatory inclusion city wide or perhaps only in specified neighborhoods where property values are escalating, and considering a few different models to see what's going to be the most popular thing. She cautioned against entering the process thinking it's going to be an easy win. Francis Baumgart said he understood that and his earlier comment about everyone supporting it miscommunicated what he meant. As a participant in a *Tnposium on various points of view, he talked with developers and rental property owners and understands they don't have the interest in inclusionary zoning which commission members and community groups do, and he doesn't doubt such an ordinance would be voted down in Council. But he said the Commission should put it together and present it and then people will know who went for it and who didn't. Robin Snyderman Pratt said the commission was at a critical juncture where they could race to the finish line, and maybe fail, or figure out a process that's more likely to lead to success. She said her sense is not to come up with something quick and go to City Council but to pick a few people on the Council to be part of a working group and figure out a strategy for winning support. She proposed the working group should involve people from beginning to end, with everyone getting educated together and making decisions together. Mark Dillon said that informal City Council feedback he's received is that there is support for an inclusionary zoning effort but people would need to be convinced that developers would accept that this is a necessary cost of doing business in Evanston. Mr. Dillon suggested a two fold approach of building an ordinance but at the same time meet informally with people to talk about including affordable units as specific development projects come up. Members discussed whether many more parcels are available for development and felt there weren't many. Kevin Boes wondered if it would be more advisable to have a study that backs up the need, similar to Highland Park's, before recommending a policy change. Judith Hurwich suggested that without much open space left for development, another part of the equation could be dealing with private sel lees. She said they should be convinced that they are as much a part of the affordable housing issue as developers. Ms. Hurwich said she mentioned it because a private seller approached her, saying she'd be willing to put aside 1% of sales price into some kind of affordable housing program fund. It was suggested that a voluntary program to involve private sellers might work. Bob Brooks suggested their doing it in steps and addressing developers fast. Robin Snyderman Pratt made a motion that the Housing Commission form a working group with representatives from staff, other commissions, the private sector and the real estate community, with the goal of coming up with a recommendation for City Council by the end of the year of an inclusionary housing strategy for Evanston. Judith Hurwich seconded the notion. lNe motion passed anaaimously. During the ensuing discussion, varying viewpoints arose concerning the role and structure of the working group and how much time and consensus -building should be involved. The following is a summary of issues and comments: The commission discussed how many people should be in the group and suggested it include developers, representatives from Planning and Developrnen Commute, and the Plan Commission. They discussed limiting the membership to 10 people. They noted that elected officials don't have the time to sit on a working group and discussed the possibility of having Evanston Housing Commission Minutes — May 16. 20o2 Page 3 Boarded, Vacant, Foreclosed Properties List Members reviewed and discussed the Vacant, Board -up List containing approximately 60 properties and agreed there were more boarded -up properties than the city would like to have. Most are concentrated in the 5`s Ward. Mark Dillon noted that the Foster Park Neighborhood Association is interested in addressing problem this on a systematic basis, and this information is a helpful starting point. Mr. Marino said that group is prominent in the Neighborhood Planning process going on there, and board -ups are a priority issue. He said all three of the City's CHDO's were encouraged to work in the ward to address these properties. ELECTION OF OFFICERS The Commission elected its officers. Mark Dillon was nominated as Chair by Robin Snyderman Pratt, seconded by Judith Hurwich. Robin Snyderman Pratt was nominated as Vice Chair by Rob Grossinger, seconded by Fran Baumgart. Both motions carried 5-0. Mr. Baumgart suggested that the Housing Commission web page be updated with new staff and officers. SUBCObEWnTEE REPORT Mark Dillon reported on the May IS meeting of the Commission's subcommittee on Affordable Housing. The group discussed the idea of forming a community oriented, city-wide Task Force on housing initiatives which would present legislative or voluntary proposals to the City Council. The task force could look systematically at issues like affordable housing set -aside ordinances or other initiatives and get input from elected officials, the private sector and community groups. Mr. Marino asked if they wanted to create a separate task force with a different status and role or an expanded version of the subcommittee to bring in other people. Mr. Baumgart suggested a third possibility, a grass -roots based phenomena. Mr. Dillon said they were more inclined to expand the subcommittee to bring together interested people. He said they wanted the perspective of community groups, government and the private sector, essentially a working group with the blessing of City Council. Ms. Snyderman Pratt said that rather than working as a commission and coming up with a proposal that City Council would not be prepared for or informed about, they wanted to develop cone cnsus along the way. Mr. Marino suggested that instead of creating a separate entity they could expand the subcommittee to include other players, inform them of the scope of the work, focus on specific strategies, and get consideration of the process from the City Council. He said the sub -committee could make recommendations to the Housing Commission for recommendation to Council. During the discussion Fran Baumgart introduced Betty Sue Ester and Dick Tholin from the audience. They were at a community group meeting Mr. Baumgart attended where they discussed a proposal for a mandatory set -aside program for affordable housing. Mr. Baumgart said people who attended were interested in putting together some initiatives, and the subcommittee's proposal would be up their alley. Ms. Ester and Mr. Tholin both expressed interest in a committee that could develop affordable housing initiatives. Ms. Snyderman Pratt hoped the group would include grass roots organizations who are doing the homework, and added that they should recognize that the issue of mandatory inclusionary zoning is volatile. Evanston Housing Commission Minutes —May 16.2002 Page 4 The working group would also involve some staffing and the group wondered how much staff support was available. &fr. Marino said staff would be available but the time to do significant research would be limited because of workload constraints. For example, staff could help with technical and research issues, within reason. The possibility of funding for research was discussed, and Ms. Ester noted that a recent disparities study was completed using CDBG administrative funds. Commission members mentioned the study for Highland Park which was done by the Voorhees Center at UICC. Mr. Dillon said the sub committee's goal was not to come up with a report. Donna Spicuzza said she would look into the funding possibilities for a housing needs study and try to determine the extent of her involvement with the group. It was also suggested that the housing planner provide information on Chicago's voluntary incusionary zoning Ordinance, which resulted in 100 affordable units among 13 developments in the last year. Ms. Spicumn agreed to get information on Chicago's program and would try to compile a list of developers active in the city. Members agreed the structure should be focused, looking at specific strategies, and that committee members could do research. They observed that any inclusionary zoning discussion would require thinking about what incentives the City could provide developers. The subcommittee will more clearly define their idea at their next meeting on Tuesday June 18. CONDOMINIUM ASSOCIATION WORKSHOP Members discussed the condominium association workshop which had been postponed from the spring. The workshop will consist of a two or three hour session on a weeknight evening, and focus on condo associations and management issues. The second or third weeks in September were recommended, with the exact date dependent on the availability of guest speakers. OTHER BUSINESS Judith Hurwith said that the idea of having a closer working relationship with the Plan commission also came up in the subcommittee meeting. Both commissions report to the Planning and Development committee and often deal with common issues. She asked if the housing planner could see about having a joint meeting. Ms. Spicuzza said she will talk to the staff person about it and also provide the names of the members of the Plan Commission. The Housing Tour for Commission members will be on a Saturday morning in July. The first choice is Saturday, July 13, with July 20* as the contingency date. Ms. Hurwith commented that before the meeting she went to the open house at 319 Dempster. She said the rehabilitation was wonderful but she was struck by the small size of the units even though the income cap for renters was $29,9W. She wondered if these were typical of affordable housing units. Robin Snyderman Pratt said the income caps are established by HUD, based on median income figures. She said renters for the single room efficiencies probably had much lower incomes and that people earning more than $10,000 have other housing choices. Rob Grossinger motioned to adjourn the meeting, seconded by Robin Snyderman Pratt. The meeting was adjourned at 9.35 p.m. i EVANSTON HOUSING COMMISSION MEETING OF JUNE 20, 2002 Members Present: Francis Baumgart, Kevin Boes, Robert Brooks, Marie Dillon, Judith Hurwich, Robin Snyderman Pratt Absent: Rob Grossinger Guests: Richard Girard, Gordon DuCharme, St. Vincent de Paul Society;Ben Hussmann, Karen Chavers, Evanston Neighborhood Conference; Dick Tholin; Betty Ester; John Tyrone, Family Focus; Martha Burris; Frank Miles, CEDA; Eve Bonnet; Connie Goddard, Interreligious Sustainability Project. Staff Present: Donna Spicuzza DECLARATION OF A QUORUM Vice Chair Mark Dillon declared a quorum and called the meeting to order at 7:00 p.m. APPROVAL OF MINUTES The minutes of the May 16, 2002 meetings were approved with minor connections and one additional comment regarding a question to staff about availability to work on a draft inclusionary zoning ordinance. Communications: Donna Spicurra gave an update on housing developments, noting that demolition will begin soon at 1930 Ridge and that construction was progressing on the affordable single family house on Darrow. In response to a question about how the buyer would be selected, Ms. Spicum said the developer would advertise in the local papers, possibly put up a sign with a number for more information, and provide information sheets to churches for their newsletters or bulletin boards. Commission members would like all houses of worship to be provided with the information. A commission member commented about seeing a sign indicating a business on Maple between Davis and Grove is leaving the site and asked what was proposed. Ms. Spicuzza said she would get that information for the next meeting. 2000 census data Ms. Spicuaa went over some of the 2000 census data for Evanston that was included in commissioner's packets and provided some comparisons with 1990 data. She noted that the percent of owner -occupied housing units was up 9.4% with 52.7% of housing units occupied by owners and 47.3% of the units occupied by renters, which was a flip from the 1990 percentages of 490/6 owneroccupied and and 51 % renter occupied. Data showed that almost 20% of homeowners in Evanston paid more than 30% of their income for housing, and 35% of renters paid 35% or more in 2000. I After hearing the census statistics, Francis Baumgart wondered what the Commission could do with this understanding of housing and population characteristics and what the goals of the commission were. Other Commission members said the data helps them understand the needs of community and provides evidence that an increasing number of families are paying more for their housing than what is considered affordable. The data supports the commission's desire to address these needs by promoting affordable housing initiatives. Members them discussed the Housing Matters forum in April sponsored attended by morn than 100 people, including Evanston Housing Commission members. They noted that the Humsn Relations Committee is a member of the forum sponsors, North Suburban Housing Partners, and discussed the possibility of the Housing Commission becoming a partner member. Judith Hurwich moved that the Housing Commission seek membership in North Suburban Housing Partners and it was seconded by Robin Snyderman Pratt. The motion passed Vannimosndy. Subcommittee rewrl Mark Dillon reported that the Commission's Affordable Housing subcommittee met the previous Tuesday, and representatives from a number of community groups also attended. The committee discussed structural issues about how they could address the desire for a mandatory process ' where new residential development in Evanston can have an affordable housing component or where developers can contribute to a mechanism that helps refurbish boarded -up property into affordable housing. The result of the committee's discussion was a suggestion to gather ordinances from various communities that have inclusionary zoning components, with assistance from staff and interested parties in the community. It was suggested that Jo Patton and Lee Smith, who previously presented such information to the Housing Commission, could provide examples of model ordinances. The committee looked as setting a time frame of perhaps the end of the year to develop the stricture. They said data is there to lend factual support for a mandatory compommL Mr. Dillon noted that options for Affordable Housing development could include developers setting aside a number of units in a project, donating property, adopting a boarded -up property or making an in -kind contribution to the Mayor's Special Housing Fund or other vehicle. A member of the audience, John Turner, asked to speak because he was unable to stay. Mr. Turner said he represented Delores Holmes, executive director of Family Focus, and the organization wanted to go on record in support of full mandatory inclusion. Francis Baumgart observed that it appeared it was not an issue of who supports mandatory inclusionary zoning but how to get it done. Mr. Dillon suggested developing a time line for drafting an ordinance and seeing it through the process but wondered what a realistic time frame was in terms of drafting an ordinance, going through the various committees and presenting it to the City Council. Robin Snyderman Pratt said she thinks it would be more time efficient to start to work with such committees before they developed a imal ordinance. She favors involving representatives from other governmental bodies to talk about housing issues, to facilitate the long process such a proposal would involve. Commission members discussed joint meetings with the plan commission or forming an intergovernmental working group brat would be open to the community as well. d Ms. Snyderman Pratt noted that not everybody wants mandatory inclusionary housing and doubted there would be a consensus because people are looking at economic development. She favored being strategic, considering whether to propose mandatory inclusion city wide or perhaps only in specified neighborhoods where property values are escalating, and considering a few different models to see what's going to be the most popular thing. She cautioned against entering the process thinking it's going to be an ease w in. Francis Baumgart said he understood that and his earlier comment about everyone supporting it miscommunicated what he meant. As a participant in a symposium on various points of view, he talked with developers and rental property owners and understands they don't have the interest in inclusionary zoning which commission members and community groups do, and he doesn't doubt such an ordinance would be voted down in Council. But he said the Commission should put it together and present it and then people will know who went for it and who didn't. Robin Snyderman Pratt said the commission was at a critical juncture where they could race to the finish line, and maybe fail, or figure out a process that's more likely to lead to success. She said her sense is not to come up with something quick and go to City Council but to pick a few people on the Council to be part of a worsting group and figure out a strategy for winning support. She proposed the working group should involve people from beginning to end, with everyone getting educated together and making decisions together. Mark Dillon said that informal City Council feedback he's received is that there is support for an inclusionary zoning effort but people would need to be convinced that developers would accept that this is a necessary cost of doing business in Evanston. Mr. Dillon suggested a two fold approach of building an ordinance but at the same time meet informally with people to talk about including affordable units as specific development projects come up. Members discussed whether many more parcels are available for development and felt there we. many. Kevin Boes wondered if it would be more advisable to have a study that backs up the need, similar to Highland Park's, before recommending a policy change. Judith Hurwich suggested that without much open space left for development, another part of the equation could be dealing with private sellers. She said they should be convinced that they arc as much a part of the affordable housing issue as developers. Ms. Hurwich said she mentioned it because a private seller approached her, saying she'd be willing to put aside 1 % of sales price into some kind of affordable housing program fund. It was suggested that a voluntary program to involve private sellers might work. Bob Brooks suggested their doing it in steps and addressing developers first. Robin Snyderrnan Pratt made a motion that the Housing Commission form a working group with representatives from staff, other commissions, the private sector and the real estate community, with the goal of coming up with a recommendation for City Council by the end of the year of an inclusionary housing strategy for Evanston. Judith Hurwich seconded the motion. The motion paced ttrtanirnottsly. During the ensuing discussion, varying viewpoints arose concerning the role and structure of the working group and how much time and consensus -building should be involved. The following is a summary of issues and comments: The commission discussed how many people should be in the group and suggested it include developers, representatives from Planning and Development Committm and the Plant Commission. They discussed limiting the membership to 10 people. They noted that elected officials don't have the time to sit on a working group and discussed the possibility of having aldermen in name only to support the idea, and give and take input without making a time commitment. Some said City input was crucial. They noted that Highland Park's effort included a study and public meetings and wondered if they would want that. They discussed the idea of holding forums and community meetings to get ideas. Some felt the ideas were already there and needed to get on paper. Some people did not want a long, drawn -out process such as Highland Park's which took more than 18 months. The question of staff capacity and the possibility of using a consultant was discussed. Donna Spicuzza noted that the planning department can get information and provide resources and word crafting but admitted staff time is limited and it was hard to forecast availability before knowing the scope of the working group. People agreed that using a consultant would add time and money to the effort, and they discussed the idea of using a consultant simply to craft a feasible policy. The group thought the decision to him a consultant should wait until another meeting and asked staff can look into possible resources such as BPI and Highland Park staff. Karen Chavtirs in the audience observed that the working group provided an opportunity to work collectively and suggested identifying the support available, including other proponents and txchnical assistance providers, but cautioned against expecting community groups to give slave labor. Dick Tholin in the audience noted the possibility of using CDBG funds for a study, observing that funds are available for affordable housing. Commission members said they did not want to create another bureaucracy. Members said the effort would be a Housing Commission sponsored working group that would author the final product. Other ideas included interviewing people and putting together a report for City Council about the need, what people think and the consequences of not acting, rather than arguing with people with different viewpoints. It was noted that developers do not have an incentive to support an inclusionary policy so they would argue against it. Discussion focused on when the best time would be for such arguments. Bob Brooks felt offering a well reasoned plan rather than shooting something duough quickly would be more likely to be brought up again and worked on even if it failed. Otherswise it could remain dead for two or three years. Members discussed the advisability of seeking broad input and establishing consensus or bringing the issue to the Council as soon as possible. Mr. Baumgart reiterated that perhaps the proposal needs to fail before anything's going to happen, and then they would know who needs to be dealt with. Ms. Snyderman Pratt said she didn't want the Commission to set themselves up for that, but would rather educate the decision makers about the importance of affordable housing and engge them early to ensure more support for the final vote. She reiterated the need for staff and commission members at the table to facilitate the process of approving an ordinance. Betty Sue Ester from the audience spoke about the lack of CDBG funds being used for affordable housing. She said the funds go to social service organizations and city infrastructure. Robin Snyderman Pratt said that reinforces the need for someone from the CDBG committee and City Council in the working group, even if it slows down the process. It was pointed out that the Housing Commission meets two times a year with the CDBG committee to discuss needs and specific affordable housing proposals. The Highland Paris ordinance was suggested as a model ordinance but it was mentioned that the two municipalities are different. Highland Park is not a CDBG entitlement area and does riot have the number of low inconse residents who need affordable housing. This raises the concern that people think Evanston should focus on economic development because it has more affordable • housing compared to other north shore communities. Members pointed out that Evanston has different incentives to offer developers. with a greater inventory of tools to work with. Motion: Robin Snyderman Pratt made a motion to amend the earlier motion that passed, moving that the Housing Commission will form a working group of no more than 14 people with representatives from City Council or City, the Plan Commission, 3 Community based organizations, the Human Relations Commission, CDBG Committee and the Housing Commission, to advise a report to the City Council from the Housing Committee on an inclusionary housing strategy, and they will wait for staff input on whether commissioners or staff should represent the City. Mark Dillon seconded the motion and the motion passed unanimously. The commission then discussed ground rules for audience participation at Commission meetings and it was agreed that the policy is to allow people in the audience to speak after being recognized by the chair. It was also recommended that a Public Comment item be added to the agenda after Other Business. Other public comment at the meeting came from an audience member recommended that the commission become familiar with the politics and procedures for achieving their proposals and from Karen Chavers who said she was shocked that the housing commission doesn't have a person of color on it. Mark Dillon agreed the make up of the Commission does not reflect the make up of the community and noted there are two openings on the commission and they are seeking applications. Other business A workshop for condominium association members is planned for the fall. Donna Spicuzza has spoken with an attorney specializing in condominiums who has done similar workshops in Oak Park and who would be available anytime in September. The second week of September was recommended, but not September 11. The housing tour for commission members is scheduled for July 13 at 9 a.m. Bob Brooks said he will be out of town but other members said they were available. Commission members asked for background information for new commission members and staff will try to get some material together. The housing commission's suggestion of a joint meeting with the plan commission was mentioned at the plan commission's June meeting and they willing to participate in a joint meeting. Members discussed presenting information about the waking group to the plan commission, but were not yet sure what form a joint meeting should take. Mark Dillon reported that he attended the Evanston Housing Corporation's meeting in May. City staff presented a proposal to extend the Corporation's low interest mortgage program to City employees. Unders on the board expressed some concern that if the program were extended to all income levels their investments would not qualify for CRA credit. This issue requires further discussion. Robin Snyderman Pratt said this proposal was independent of the Housing Commission's proposal for an employer assisted downpayment program for which households at < Wle of area median income qualify for matching grants through IHDA, and those under 120Yo of area median income qualify for employer tax credits. She hopes that next month there will be more to report on a City employer assisted housing strategy that's consistent with Housing Commission objectives. Ms. Snyderman Pratt requested that the agenda for the newt meeting include an item on the Metropolitan Mayor's Caucus Housing Task Fforce. She noted the mayors in Wilmette and Highland Paris are involved and are taking documents back to Housing Commissions. Since Evanston's mayor is part of the Caucus, she would like the Housing Commission to look at the documents to see what tools are being used around tine region right now. An audience member's recommended that the Commission to share these documents with the Mayor. Mark Dillon closed the meeting with a request to let people in the community know that they are seeking applications from anyone who is interested in serving on the Housing Commission, and the meeting was adjourned. M �wRA""kzl- EVANSTOXHOUSING COMMISSION MEETLNG OF JULY 18, 2002 Members Present: Kevin Boes. Robert Brooks.Mark Dillon, Rob Grossinger. Judith Hurwich (arrived late), Robin Snyderman Pratt Absent: Fran Baumgart Otbers: Richard Girard. Sue Carlson Stab Donna Spicuzza DECLARATION OF A QUORUM Chair Mark Dillon declared a quorum and called the meeting to order at 7:05 p.m. APPROVAL OF MINUTES The minutes of the June 20, 2D02 meetings were approved with minor amendments. COMMUNICATIONS In her development update, Donna Spicuzza presented information on a proposed new construction at 1572 Maple which will offer 28 condominium units, office space and packing in a seven story building. The building, which is being developed by Tom Roszak. received maing approval and will go before the Site Plan and Appearance Review Committee on July 24. Responding to a question last month about 1800 Sherman, Ms. Spicuzza said their had been no activity since last year so it appears the proposed development has been poszponed or cancelled. Ms. Spcizuzza discussed the request for City Council appproval of a S168,000 HOME fund for three Community Housing Development Organizations (CHDO's). Housing Opportunity Development Corporation, the Evanston Housing Coalition and Reba Place Development Corporation would each get a S56,000 reservation for affordable housing projects, subject to City Council approval of the specific use of funds. The reservation fulfills the HUD requirement to commit available funds within a specific timeframe, and would ensure that a current slwrtfall of $166,418 in committed funds will remain available to the City. A motion to reo mm"d Council approval of a S168,000 HOME fund reservation for three CHDO's passed unanimously. AFFORDABLE HOUSING WORKING GROUP Mark Dillon asked Donna Spicuaa for feedback from city officials regarding their participation in the Working Group. Ms. Spicuzza said she discussed the process and the role of staff with others in the Planning Department and the feeling is that at this point staff involvement should be from the Planning Department. Staff can help with data gathering and work with BPI wbieh is willing to do pro bono work with cities who are interested in looking at affordable housing strategies. In addition, the staff can look at tools that City can provide and if other needs emerge, involvement can be considered later. In terms of working with elected officials or commission or committee members, she said the recommendation is for the working group to get on the agenda of these groups and present information, statement of need, desired action, and request their comments or input. Right now, the feeling is that individuals would not be interested in getting in another meeting group that was not specific yet about the needs and what was to be accomplished. However, the working group could informally involve them and initiate discussions with them through presentation at their meetings. Critical groups include the Plan July 1& 2002 Minutes. Evanston Housing Commission Page 2of4 Commission. Human Relations Commission, and possibly the Community Development Act Committee. Mark Dillon said that at the last meeting they set a parameter of 10 members for a working group and he asked if they could perhaps send a letter to leaders of CHDOs and other committees inviting them to nominate a person to participate in the working group. It was clarified among the commission that the working group would focus on inclusionary housing, which might or might not involve zoning, rather than the broader topic of affordable housing. Ms. Snyderman Pratt said she discussed the working group with Jo Patton of Business and Professionals in the Public Interest (BPI) who feels they could facilitate a process like this and can assist on a pro bona basis. She suggested they could have BPI start to work with staff to move the commission in a direction, as opposed to farming another group to meet to talk about what we might do in the future. She suggested they ask BPI to help draft a letter for Commission's review outlining what the group and staff could do independently, and what would involve other parties. Rob Grossinger proposed a process, noting that when a developer says he wants to develop in Evanston, there are multiple points of entry such as plans and permits. There is a point at which someone can say to this developer, how would you like to include some affordable housing? He suggested that what the group is looking for is someone who works for the City of Evanston to bring up the idea of voluntarily including affordable housing in new developments. He said the first thing we have to understand is where those multiple points are and who the people are, and the second thing is what would we like them to say. Commission members discussed this idea, noting that in the past there has not been initiative from the city for that kind of discussion. The Commission wants to encourage developers to economically integrate some of those projects. Other comments reiterated that initially it would be voluntary but they are eventually looking for a mandatory mechanism. They suggested that BPI could help develop the selling points regarding what things staff can say to developers. Commission members suggested identifying the contact points within the City such as zoning, permits, and site plan approval, and asking those staff to participate in this effort by providing examples of things to say and negotiation tools. Donna Spicuaa suggested developing a statement explaining the need to look at the process and proposing questions to ask developers. Mr. Dillon said the need was that there should be a proactive effort by the City to include an Affordable Housing component in new development. Mr. Grossinger pointed out that everyone can see upscale housing is being built in this community almost exclusively and almost no affordable housing, and the people who work for the City should understand that. Judith Hurwich asked whether development of existing property would be included, noting that in addition to new construction there are many developers who buy property with the intention of converting to condo or rehabbing. She proposed adding preservation to the discussion in addition to new projects and others agreed that preservation was critical. Ms. Hurwich noted that her apartment building, which is over IOU years old and one of the more affordable rental buldings in the city, changed ownership twice in one year. She said the owners have not declared their intention to convert to condos but did not renew leases and have given notice to all tenants to get out in two months. She said that not renewing leases is perfectly within their rights if they are not declaring that they are converting to condominium ownership. Commission members agreed that renovation and how it affects the existing housing stock was a component of inclusionary housing. July Ilk 2002 Minutes, Evanston Housing Commission Page3af4 Robin Snyderman Pratt made a motion that the Commission recommend that BPI assist in these efforts, with the first two charges being: 1.) Develop a one page document summarizing need. based on census data, development patterns and the value of bringing an interdisciplinary group of people together to explore in what form Inclusionan• Housing would work best in Evanston. 2. Start to map the development process Kevin Boes asked for clarification on whether they were separating voluntary inclusionary zoning from a potential policy change and it was confirmed. noting that the latter would have to be legislative. As a first step, the commission would like to see if staff can talk to developers to see if they want to voluntarily create some affordable units. The motion passed unanimously. OTHER BUSINESS Metropolitan Mayor's Caucus mateHah Robin Snyder -man Pratt presented information on the Metropolitan Mayor's Caucus' 2002 Housing Action Agenda and Endorsement Criteria She said the documents could provide a framework for the Commissions efforts. As background, she mentioned the 1999 regional rental market analysis released by the Metropolitan Planning Council, for whom she works. The report showed throughout the region gaps throughout the metropolitan region between what people earn and what they can afford for housing. The study identified about 40,000 apartments in the private market that were affordable for approximately 200,000 households earning less than $25,000. The study indicated that the market was not responding to the demand. and that zoning policies and ordinances were interfering with the ability to meet the demand. Because Illinois doesn't have a state housing policy or a mandate to meet the demand, she said the Metropolitan Mayor's Caucus, composed of mayors from the 274 municipalities in the region, formed the Housing Task Force. For one year, the Task Force looked at successful examples and policies and worked on drafts of the Action Agenda and Endorsement Criteria. Their premise was that they know what people don't want, so to get away from community resistance, they decided to try to get agreement on what people do want. They came up with the Endorsement Criteria which states that if the housing is affordable to the local workforce, near transit, near jobs, well managed, and well designed, we need it and we will get behind any such proposals. Ms. Snyderman Pratt said the Action Agenda was even more important because it offers suggestions for Mayors to think of possible incentives to offer developers, what incentives they'd like from the state, how to preserve affordable rentals, how to produce more housing, how to work with the private sector, and how to make sure Housing Choice Vouchers are recognized as a valuable subsidy. The Housing Task Force passed these two documents in November, 2001. When they took the documents to the full caucus, it passed unanimously. The Caucus suggested that the documents be brough back to individual municipalities for discussion and for endorsement by housing commissions. Ms. Snyderman Pratt proposed that the Housing Commission endorse the documents and encourage the City Council and the Mayor to support them. Rob Grossinger made a motion that the Evanston Housing Commission adopt both the Action Agenda and the Endorsement Criteria, July 18, 2002 Minutes, Evanston Housing Commission Page 4 of 4 and also recommend that City Council and all its subsidiaries adopt them. After a brief comments on one of the action items, the motion passed uoranimously. Ms. Snyderman Pratt offered to draft a letter from the Chairman to the City Council. introducing the Criteria as a toot they want people to start thinking about. In discussing the letter, it was clarified that Mayor Morton is a member of the Mayor's Caucus but not of the Housing Task Force, which includes representatives from Wilmette, Highland Park and Chicago. It was suggested that they send a separate letter to the Mayor asking for her support. The Commission will put this item on the City Council agenda in September or October and be available to answer questions. Mark Dillon encouraged all Housing Commission members to attend when the presentations are made. Housine Tour The Housing Tour scheduled for July was cancelled because only three commissioners could attend. It will be rescheduled for the fall. Marketing Mark Dillon asked about the marketing materials the commission developed for the Evanston Housing Corporation. Donna Spicuzza said she just received a copy from Stan Janusz and will look it over. Mr. Dillon commented that he is applying for a grant from his employer that offers voluntary assistance to non profit organizations for marketing efforts for affordable housing. He will discuss the grant proposal at the next board meeting of the Evanston Housing Corporatim which is a non profit organization. Condominium Workshop An attorney from Knuckles Associates in Naperville has agreed to present information at the Condominium Workshop, scheduled for Tuesday. September 10. Someone is needed to talk about property management issues. Mark Dillon said he would draft a press release about the worlahop. Membership Mr. Dillon noted that the commission still has two vacancies, and two people were absent at this meeting. He said the commission nesds to be more diverse and he encouraged members to reach out to encourage. Judith Hurwich suggested they could perhaps reach interested citizens at the open budget meeting, and others wondered if the City was going to place another ad regarding vacancies on commissions. Since the Housing Commission voted at its June meeting to join the North Suburban Housing Partners, they should appoint a m7reseottative. It was suggested tgat Donna Spicuzza might represent the Commission and she should discuss it with Paula Haynes, who is the representative of the City's Human Relations Commission. Public Comment Sue Carlson from the audience noted that the Housing Committee of the state legislature would be holding housing hearings throughout the state, and the rust hearing is Thursday, September 5, from 10 to 2 in Chicago. The meeting was adjourned at 8:25 p.m. Respectfully submitted Donna Spicuzza EVANSTOti HOUSING COMMISSION MEETING OF AUGUST 15, 2002 Members Present: Francis Baurngart. Kevin Boes, Mark Dillon. Robin Snyderman Pratt Absent: Robert Brooks. Rob Grossinger, Judith Hurwich Otbers: Doug Anderson, Sue Carlson Staff. Donna Spicuzza, Housing Planner, James Wolinski, Director of Community Development NO DECLARATION OF A QUORUM The meeting was called to order at 7:05. Without a quorum present, approval of the July, 2002 minutes was deferred. COMMUNICATIONS Development Update Staff updated the commission on the status of new residential developments. At 821 Foster. two houses will be demolished in order to construct a 3-story, 14 unit condominium property-, and two 2-flats at 1916-18 Maple will be rehabbed and converted to condominiums. At 1573 Maple, 28 condo units will be part of a new construction, mixed -use development. The single family house under construction on land donated by the City at 1816 Darrow is under roof and will be sold for $175,000 to buyers meeting income and eligibility requirements. Donna Spicuzza informed commission members that applications are being taken for CDBG funds and that the Housing Commission would be invited to the review of housing applications on Tuesday, October 29. James Wolinski, director of Community Development, discussed the delays with the mixed -use, condo development of 603 Main, where the shell of the former bank building has been left standing for months. He also noted that the Onington Hotel, a major landmark in downtown Evanston is for sale. and the City would prefer that it not be demolished, but maintained as an hotel. He said there is interest in developing in Evanston, and knows the Housing Commission is concerned with affordable housing. He felt there may be opportunity in the near term to push for some type of affordable setaside on projects that need some type of zoning relief. Neighborhood Plannine Reoort Mark Dillon reported on the July meeting of the Neighborhood Planning Group for the fifth ward. The housing sub -group discussed the Planting Department's survey of the R4 and R-5 areas, which showed that most buildings were only 2 or 3 stories tall and characteristic of lower density areas typically zoned R4 or lower. Some in the group felt it made sense to downzone the R-5 area to R4 in keeping with the physical character of the neighborhood, and to ensure that any future higher density development would not be as of right and without citizen comment. Some residents expressed concern about large projects coming in to the neighborhood. The group analyzed a map showing boarded up buildings and Felt it should be a priority to get developers interested in saving deteriorating properties. Mr. Dillon said at the next Neighborhood Planning is September 12, and the housing group will meet at 6:15 p.m. to walk the R-5 area. Fair Housina Ordinances Changes The Commission discussed a proposed amendment to Fair Housing Ordinance, recently presented to Human Services Committee, which would add source of income as a protected class. Currently many landlords can choose not to take applications from potential tenants if their rent is paid with August 15, 2002 Minutes. Evanston Housing Commission Page 2 of Housing Choice Vouchers. As a result" the majority of voucher holders are concentrated in southeast Evanston. The amendment could help alle% iate discrimination against tenants with Housing Choice Vouchers and provide more housing opportunities. There will be a public meeting on the amendment, as yet unscheduled. Members discussed the,. oucher program. Robin Sn%derman Pratt said this topic was mentioned by Mayor Morton when she met recently with her and the Mayor or %%'ilmette to discuss Evanston's participation in the Metropolitan Mayor's Caucus. Ms. Snyderman Pratt said the amendment faces difficulties because the administrators of the Housing Choice Vouchers do not have a strong reputation for providing services for voucher holders. She also thought it would be helpful if Mayor Morton worked with south suburban mayors in the Metropolitan Mayor's Caucus who are also concerned about the administration of the program. Marie Dillon expressed some concerns with ordinance as drafted, especially regarding the sale of property, as it could preclude a seller from making an economic determination. He noted that there are efforts to use Housing Choice Vouchers as a financing vehicle for homeownership and perhaps Evanston could explore this program as a constructive way to help people break out of the cycle of poverty. Ms. Snyderman Pratt thought Mr. Dillon's recommendation was good but would not reach large numbers of people. She said there's only so much the City can do without the cooperation of the Housing Authority, and remarked that the Mayor indicated there were overtures in the past to have better coordination, but they weren't fruitful. Mr. Wolinski said that some years ago the Mayor asked the City Manager to investigate creation of an Evanston Housing Authority so that the City could ensure quality administration of the program. He said staff researched it but found that the problem was that the present vouchers would stay with County Control and Evanston would only get new ones. If they wanted to administer all the current vouchers, they would have to buy out the county, because they get a percentage for administering them. In response to Francis Baumgart's questions about how the Housing Choice Voucher system worked, Ms. Snyderman Pratt explained the vouchers are administered by the Cook County Housing Authority (CCHA) and that Evanston has no official control. They only know there are some 900 people in Evanston with vouchers, and their census tracts. She said the need to maintain tenant confidentiality makes it more difficult to ensure that tenants have access to social services, but the ideal would be to develop a protocol to introduce the households and landlords to services so the CCHA is not operating in a segregated fashion. She suggested the Commission send a letter to Sandra Sharp at the CCHA, saying what the City needs from them and recommendations. Mark Dillon volunteered to draft a letter to the CCHA for members review. James Wolinski pointed out that the City Council would probably ask the Commission for an opinion on the proposed amendment, possibly after the Public Hearing. so they may want to start thinking about it. Some members did not feel they understood the Housing Choice Voucher program very well and Ms. Snyderman Pratt said she could provide generic fact sheets before the next meeting for future discussion. AFFORDABLE HOUSING WORKING GROUP A work plan and Memo of Understanding prepared by BPI were distributed to commission members. The work plan outlines BPI's pro bond assistance with facilitating an Inclusionary Housing Task Force and mapping the development review process in order to encourage hM August 15, 2002 Minutes, Evaaston Housing Commission Page 3of3 voluntary set -asides in current projects. BPI also provided a sample process outlining the development process in Libertyville development to see if that is what the commission would like. The Commission decided to digest the materials handed out and discuss them at the next meeting. The members talked about getting City's endorsement for the Housing Action Agenda and Endorsement Criteria which they approved at the last meeting. James Wolinski said he is enthused that the commission is taking an active role and wants to get things done. He noted that the Plan Commission has a representative who attends the Planning and Development Committee meetings so that the Commission is aware of what's going on and gets their points across. Mr. Wolinski suggested they consider having a member attend the committee meetings periodically. He said inclusionary housing will cause a lot of discussion and a representative form the Commission could improve communication. He recommended that the Commission attend the P&D committee to tell them what they're looking into. Donna Spicuzza discussed the draft document she prepared which outlined the Commission's ideas for an Inclusionary Housing Task Force. She said the handout could be included as part of the meeting packet sent to the Planning and Development Committee when the Commission gets on their agenda. Members also suggested including the Housing Action Agenda and Endorsement Criteria. Commission members made some suggestions for the outline and agreed that the goal is to develop an inclusionary housing policy for the City's consideration. They agreed to get any other comments to Ms. Spicuzza before Labor Day so the document would be ready for either the September 9 or September 23 Planning and Development Committee meeting. Mark Dillon and Robin Snyderman Pratt agreed to appear before the Committee in September to talk about the Commission's ideas and ask for their input in order to move ahead with a task force. Other commission members were encouraged to attend the meeting if possible. OTHER BUSINESS Dates for a Housing Tour for Commission members were discussed and Ms. Spicuaa said she would poll members in the next month to try to get concensus on a date in September or October. Condominium Workshop Ms. Spicuna updated the Commission on plans for a Condominium workshop scheduled for September 10. She said three speakers have agreed to make presentations, an attorney, a property manager and a developer. There will be 20 to 30 minutes for a questions and answer session and participants will be asked to complete a questionnaire to find out what issues are important to them and if they would like similar workshops in the future. The workshop will be publicized in Highlights, the City newsletter that will be mailed to all Evanston residents at end of August. In addition, news releases will be sent to the media and a letter will be mailed to association presidents of recent condo conversions or constrictions. Respectfully submitted Donna Spicuzza EVANSTON HOUSING COMMISSION MEETING OF SEPTEMBER 19, 2002 Members Present: Mark Dillon. Robin Snyderman Pratt Rob Grossinger. Judith Hurwich Members Absent: Francis Baumgart, Kevin Boes, Robert Brooks, Staff: Donna Spicuzza, Housing Planner, James Wolinski. Director of Community Development, Paula Haynes, Executive Director Human Relations Commission Others: Mary Anderson of BPI, Katherine Him. Richard Gerrard, Betty Ester NO DECLARATION OF A QUORUM The meeting was called to order at 7:05. Without a quorum present, approval of the August 15 minutes was deferred. . _Me Hoare O nershio Center Lisa Tapper, Executive Director of the DuPage Home Ownership Center in Wheaton, spoke to Commission members about the agency's experience with the Housing Choice Vouchers being used for homeownership. She noted that the program was modeled on their Homestead Program, which is a reduced interest financing program that has assisted 270 low income families purchase homes. Ms. Tapper said that in addition to the financial assistance, both programs include Education, Counseling, and Financial Literacy Training components, which are crucial to their success. Her agency administers and operates home ownership Housing Choice Voucher program for the DuPage Housing Authority. Ms. Tapper said that since the program started a year ago, they have completed five home purchases, and she doubts that the Housing Authority expects to do more than 20 a year. Ms. Tapper provided details on the financing structure and administration of the program. Commission members asked questions and thanked Ms. Tapper her for her informative presentation. COMMUNICATIONS Donna Spicuzza noted that Community Development staff has been working on an employer assisted housing program using matching funds from IHDA for downpayment and closing cost assistance. The program would be for City of Evanston employees with household incomes of 80% or less of median. Information on the program will be brought to the Housing Commission when more details are worked out. INCLUSIONARY HOUSING TASK FORCE Mark Dillon and Robin Synderman Pratt reported on the September 9 Planning and Development Committee meeting which they and Judith Hurwich attended. At that meeting, Ms. Snyderman Pratt spoke about the Endorsement Criteria and Action Agenda of the Metropolitan Mayor's Task Force, and Mr. Dillon explained the Commission's interest in creating an Inclusionary Housing Task Force. The Committee members in attendance, Aldermen Bernstein, Engleman, Kent, Newman and Wynn were interested in the idea and happy that pro bono assistance was offered. They asked for more information on the type of assistance and what the task force would look like. Two people in the audience made comments on Housing Commission's presentation. One person observed that the housing endorsement criteria didn't go far enough, but both citizens supported the idea of a task force to develop an inclusionary housing policy. September 19, 2002 Minutes. Evanston Housing Commission Page 2 of Commission members felt it should be possible to appear again at the October 14 Planning and Development Committee meeting and discussed the information and the Memorandum of Understanding (MOLT) needed for that meeting. They asked Mary Anderson of BPI to discuss the work plan that had been distributed at the last commission meeting. Ms. Anderson said the tasks would remain essentially the same but dates would be moved back a month, with completion expected in April, 2003. Mr. Grossinger noted that the work plan should be consistent with the MOU and should be for services to the Housing Commission rather than to an as yet non-existent task force. Memberi discussed the task force composition and decided that the Housing Commission would identi6 specific constituencies and invite them to send someone. They will invite developers active in Evanston from a list of developers put together by staff. After much discussion, it was agreed to propose an I I member task force composed of • 2 Housing Commissioners • I Human Relations Commissioner • I Planning Commissioner • 2 Planning and Development Committee members • 2 appointees from North Suburban Housing Partners, one of whom is a not -for -profit housing developer • 2 for -profit developers who have worked in Evanston • I person from Evanston Housing Corporation or a real estate organization A number of other points were agreed on, including: - a member of the housing commission should chair the task force because it is the commission's initiative; - initially, meetings would be once a month. - the meetings will be public; - staff will not be a voting part of the task force but will be available for support the task force will be an advisory entity to the Housing Commission with no decision making power, - there could be a majority and a minority report. Housing Tour The Housing Tour was postponed again because no more than three people could ever be available on the same date. Ms. Spicuzza noted that since the Commission's membership is changing, with Kevin Boes resigning due to a scheduling conflict with classes and a new person recently appointed, it would make sense to wait awhile. Committee members want to make it known that the Commission needs new members and various suggestions were offered Condo rn90agemeat Workshop. Mark Dillon reported first the 90 person attendance at the September 10 workshop exceeded expectations. He said the workshop was both informative and well received. Ms. Spicum said the Housing Commission obviously recognized a need in the community when they proposed the workshop, and noted that many of the 55 people who completed surveys indicated they'd like to see more. She said she is thinking about having another workshop in the spring. Respectfully submitted, Donna Spicuz--n ►'s . �>'k I 1J Qo T- A -?PAW 49 EVANSiON HOUSING COM.WSSION MEETING OF OCTOBER 17, 2002 Members Present: Mark Dillon, Robin Snyderrttan Pratt, Rob Grossinger, Judith Hurwich Members Absent: Robert Brooks, State Donna Spicuzza, Housing Planner Others: Jo Patton of BPI, Betty Ester, Dick not in. Sue Carlson, Richard Girard, Karen Chavers, Dino Robinson. CALIF. TO ORDER 'Me meeting was called to order at 7:10. Because there was no quorum, approval of the September 19 minutes was deferred. The newly appointed Housing Commission Member, Sara Ashmore Diggs, was welcomed by the Chair and asked to introduce herself. Ms. Ashmore Diggs noted that she is a long term, fourth generation Evanston resident and interested in doing some good for the community. COMMUNICATIONS The Housing category CDBG applications were distributed to members and Donna Spicuzza noted that the Community Development Committee invited Housing Commission members to take part in the hearings on Tuesday, October 29 when applicants will discuss their housing proposals. She said there were seven housing category applications totaling $995,000. The City received applications requesting S5.3 million in funds, and the City's allocation was currently estimated to be about S2.73 million. The Committee will determine its funding recommendations on November 13. When asked how many CDBG funding rounds there were Ms. Spicuzza responded there are two, with another one in the spring. (This is incorrect, there is only one round. Funding begins in the spring for approved applications submitted in September.) Members were updated on the proposed development at Chicago and Main. The developer appeared recently before the Planning and Development Committee to discuss the delays and address concerns related to building shell and scaffolding that have stood on the site for many months. The developer said they are considering new options in light of the fact that the underlying building was not what they had expected. Everyone agreed that the current situation is an eyesore on the community. The developer will work with the Community Development department to analyze the potential danger during winter freezing and thawing, and wilt come back to the Committee with plans in four weeks. Judith Hurwich asked if the purview of commission or Task Force included condominium conversions. Robin Snyderman Pratt noted that the Planning and Development Committee asked if the Task Force would also consider rehab or conversions in addition to new construction. She said that is a big issue in Evanston so the Task Force would also look at that. Ms. Hurwich noted her concern with the property at 551-55 Elmwood1832-34 Seward where the new owners did not renew tenant leases and are proceeding to rehab the building although they haven't said what they're doing with the building.. She said some units are being gutted and that individual heating units are being added. Ms. Spicuzza said the community development staff is aware of the situation and explained that the condominium ordinance requires declarants to give 210 days notice to tenants of notice to convert. However, it is within the owners' rights not to renew leases. Ms. Hurwich said there are two remaining tenants in the building and that it has never �Ji i.! J BepMrrr6ert4. 2002 Minutes. Evanston Housing Commiuion Page 3 of 5 Ms. Patton told the Commission that one of the foremost national experts in Inclusionary Housing will be in town in November as part of her work with City of Highland Park, for which BPI is also providing technical assistance. She said that the speaker could provide a similar educational opportunity morning after her presentation in Highland Paris on November 13. The trip is being paid for by the Urban Land Institute. She suggested that groups being invited to the task force could send representatives to the discussion to help them decide who they want to nominate., The Commission decided that the invitation letters should go out in the next week to reach commissions and boards before their next meetings. They will also include a timeframe so people will know the task force will only involve three or four monthly meetings, with an understanding that at the end of the process they will deliver a list of options to the Housing Commission for their consideration. The meetings would begin in January with a goal of having a recommendation by April. Ms. Snyderman Pratt asked Ms. Patton if she know yet whether the Task Force would trigger the sunshine ordinance regarding open meetings. Ms. Patton responded that Mr. Woiinski was going to get a legal opinion on that. Other Business Mark Dillon said they would defer the Part II discussion on the housing endorsement criteria. He asked Ms. Spicuzza if there was an update on the Employer Assisted Housing Program and she responded that information would be presented at the nva meeting. The program would provide downpayment and closing cost assistance to City of Evanston employees earning less than 90% of median income. City funding would be combined with grants from the Illinois Housing Development Authority. Public Comment Richard Girard noted that he is involved in community outreach through the St. Vincent depaul Society of St. Nicholas Church, which assists people in mead as do other faith communities. He said he has observed households doubled up with other families or paying 40 to 500/6 of their income for housing. He said that affordable housing plans should target very low income people who live in Evanston and he hopes the inclusionary housing process will consider targeting the neediest people. Sue Carlson said she represents the interreligious susWnability circle. She said that she feels that people who work in Evanston should also be targeted for affordable housing assistance, not just those who live here. She thought that Alderman Newman made a strong statement about assisting Evanston residents and she wants to make sure task force thinks it is important to also reach Evanston employees. Betty Ester spoke and said she hoped the task force would have open meetings, noting Alderman Kent's question during the Planning and Development discussion of the Task Force about how people who are not members of the North Suburban Housing Partnership can be involved. When Mr. Dillon said they could join the Housing Commission, Ms. Ester wondered why they would want to because it hasn't produced anything or told anything to the general public. She observed that HOME funds and CDBG funds are designed to help low income people. She said there were 37,861 low and middle income residents in Evanston and the population that Alderman Newman was tacking about was last year's CDBG numbers, leaving 22,485 low income and below poverty level residents. She said Alderman Nc%%T= wanted this committee to see what other communities on the north shore have done for their population which she said begs a response from this committee. She said that while you're waiting for numbers to come in, you lose the crowd of people that was there pushing for something. EVANSTON HOUSING COMMISSION MEETING OF SEPTEMBER 19, 2002 Members Present: Mark Dillon. Robin Snyderman Pratt. Rob Grossinger. Judith Hurwich Members Absent: Francis Baumgart. Kevin Boes, Robert Brooks, Staff: Donna Spicuna. Housing Planner, James Wolinski, Director of Community Development, Paula Haynes, Executive Director Human Relations Commission Others: Mary Anderson of BPI, Katherine Hine. Richard Gerrard, Betty Ester NO DECLARATION OF A QUORUM The meeting was called to order at 7:05. Without a quorum present, approval of the August 15 minutes was deferred. Du Home Ow nershio Center Lisa Tapper, Executive Director of the DuPage Home Ownership Center in Wheaton, spoke to Commission members about the agency's experience with the Housing Choice Vouchers being used for homeownership. She noted that the program was modeled on their Homestead Program, which is a reduced interest financing program that has assisted 270 low income families purchase homes. Ms. Tapper said that in addition to the financial assistance, both programs include Education, Counseling, and Financial Literacy Training components, which are crucial to their success. Her agency administers and operates home ownership Housing Choice Voucher program for the DuPage Housing Authority. Ms. Tapper said that since the program started a year ago, they have completed five home purchases, and she doubts that the Housing Authority expects to do more than 20 a year. Ms. Tapper provided details on the financing structure and administration of the program. Commission members asked questions and thanked Ms. Tapper her for her informative presentation. COMMUNICATIONS Donna Spicurza noted that Community Development staff has been working on an employer assisted housing program using matching funds from IHDA for downpayment and closing cost assistance. The program would be for City of Evanston employees with household incomes of 80'/6 or less of median. Information on the program will be brought to the Housing Commission when more details are worked out. INCLUSIONARY HOUSING TASK FORCE Mark Dillon and Robin Synderman Pratt reported on the September 9 Planning and Development Committee meeting which they and Judith Hurwich attended. At that meeting, Ms. Snydernan Pratt spoke about the Endorsement Criteria and Action Agenda of the Metropolitan Mayor's Task Force, and Mr. Dillon explained the Commission's interest in creating an Inclusionary Housing Task Force. The Committee members in attendance, Aldermen Bernstein, Engleman, Kent, Newman and Wynn were interested in the idea and happy that pro bono assistance was offered. They asked for more information on the type of assistance and what the task force would look like. Two people in the audience made comments on Housing Commission's presentation. One person observed that the housing endorsement criteria didn't go far enough, but both citizens supported the idea of a task force to develop an inclusionary housing policy. September 19, 2002 Minutes, Evanston Housing Commission Page 2 of 2 Commission members felt it should be possible to appear again at the October 14 Planning and Development Committee meeting and discussed the information and the Memorandum of Understanding (MOU) needed for that meeting. They asked Mary Anderson of BPI to discuss the work plan that had been distributed at the last commission meeting. Ms. Anderson said the tasks would remain essentially the same but dates would be moved back a month, with completion expected in April, 2003. Mr. Grossinger noted that the work plan should be consistent with the MOU and should be for services to the Housing Commission rather than to an as yet non-existent task force. Members discussed the task force composition and decided that the Housing Commission would identify specific constituencies and invite them to send someone. They will invite developers active in Evanston from a list of developers put together by staff. After much discussion, it was agreed to propose an l 1 member task force composed of 2 Housing Commissioners • 1 Human Relations Commissioner * 1 Planning Commissioner • 2 Planning and Development Committee members • 2 appointees from North Suburban Housing Partners, one of whom is a not-for-pmfit housing developer • 2 for -profit developers who have worked in Evanston • 1 person from Evanston Housing Corporation or a real estate organization A number of other points were agreed on, including- - a member of the housing commission should chair the task force because it is the commission's initiative; - initially, meetings would be once a month. the meetings will be public; - staff will not be a voting part of the task force but will be available for support the task force will be an advisory entity to the Housing Commission with no decision making power, - there could be a majority and a minority report. Housing Tour The Housing Tour was postponed again because no more than three people could ever be available on the same date. Ms. Spicuzza noted that since the Commission's membership is changing, with Kevin Boes resigning due to a scheduling conflict with classes and a new person recently appointed, it would make sense to wait awhile. Committee members want to make it known that the Commission needs new members and various suggestions were offered Condo management Workshop. Mark Dillon reported that the 80 person attendance at the September 10 workshop exceeded expectations. He said the workshop was both informative and well received. Ms. Spict, said the Housing Commission obviously recognized a need in the community when they proposed the workshop, and noted that many of the 55 people who completed surveys indicated they'd like to see more. She said she is thinking about having another workshop in the spring. Respectfully submitted, Donna Spicuzza A-F! Qo T- A-?PRod&P EVANSTON HOUSING COMMISSION MEETING OF OCTOBER 17, 2002 Members Parent: Mark Dillon, Robin Snyderman Pratt, Rob Grossinger, Judith Hurwich Members Absent: Robert Brooks, Staffi. Donna Spicuzza, Housing Planner Others: Jo Patton of API, Betty Ester, Dick Tholin, Sue Carlson, Richard Girard, Karen Chavers, Dino Robinson. CALL TO ORDER The meeting was called to order at 7:10. Because there was no quorum, approval of the September 19 minutes was deferred. The newly appointed Housing Commission Member, Sara Ashmore Diggs, was welcomed by the Chair and asked to introduce herself. Ms. Ashmore Diggs noted that she is a long terra, fourth' generation Evanston resident and interested in doing some good for the community. COMMUNICATIONS The Housing category CDBG applications were distributed to members and Donna Spicuzza noted that the Community Development Committee invited Housing Commission members to take part in the hearings on Tuesday, October 29 when applicants will discuss their housing proposals. She said there were seven housing category applications totaling S995,000. The City received applications requesting $5.3 million in funds, and the City's allocation was currently estimated to be about $2.73 million. The Committee will determine its funding recommendations on November 13. When asked how many CDBG funding rounds there were Ms. Spicuzzs responded there are two, with another one in the spring. (This is incorrect, there is only one round. Funding begins in the spring for approved applications submitted in September.) Members were updated on theproposed development at Chicago and Main. The developer appeared recently before the Planning and Development Committee to discuss the delays and address concerns related to building shell and scaffolding that have stood on the site for many months. The developer said they are considering new options in light of the fact that the underlying building was not what they had expected. Everyone agreed that the current situation is an eyesore on the community. The developer will work with the Community Development department to analyze the potential danger during winter freezing and thawing, and will come back to the Committee with plans in four weeks. Judith Hurwich asked if the purview of commission or Task Force included condominium conversions. Robin Snyderman Pratt noted that the Planning and Development Committee asked if the Task Force would also consider rehab or conversions in addition to new construction. She said that is a big issue in Evanston so the Task Force would also took at that. Ms. Hurwich noted her concern with the property at 551-55 Elmwood/832-34 Seward where the new owners did not renew tenant leases and are proceeding to rehab the building although they haven't said what they're doing with the building.. She said some units arc being gutted and that individual heating units are being added. Ms. Spicuzza said the community development staff is aware of the situation and explained that the condominium ordinance requires declarants to give 210 days notice to tenants of notice to convert. However, it is within the owners' rights not to renew leases. Ms. Hurwich said there are two remaining tenants in the building and that it has never ear. 91 "f- k, 2002 Minates, Evasstas Housing Commission Page 2 of S been disclosed to tenants who o%&ns the building. Sara Ashmore Diggs said that some landlords put in individual tenant -controlled heating in an effort to avoid rising energy costs. WCLUSfONARY HOLSUiG TASK FORCE Mark Dillon reported that he and Robin Synderman Pratt gave an update on the Commission's proposal for an Inclusionar.-. Housing Task Force at the Oct 14 Planning and Development meeting. The proposal met with a favorable response from committee members and Alderman Bernstein and Alderman Kent expressed a willingness to serve on the Task Force. Alderman Newman suggested adding landlords to task force, and said the Task Force should specify that the goal is to serve current Evanston residents. Alderman Kent said he didn't think North Suburban Partners, one of the groups identified for Task Force participation, would have representatives from the neighborhood groups. Robin Snyder man Pratt provided a brief description of the Task Force for the new commission member, explaining that an lnclusionary Housing policy would ensure that housing activity includes a consideration for affordable housing. The Commission's next sup is to draft a letter to each of the groups and ask them to nominate representatives. Mr. Dillon said he spoke to Paul Peterson, president of the Evanston Housing Corporation, and that they will get a nomination from that group. Ms. Spicuzza distributed a list of active developers compiled by herself and James Woliaski for the Commission to approach as task force participants. Ms. Snydcrman Pratt said they would also like an owner representative not just a builder. Jo Patton from BPI updated the Commission on their work so far. Their first task was to provide an overall view of the residential development review process, in order to identify opportunities for flexibility so that developers could set aside affordable units. She said they have a draft that lays out the standard route as well as the marry deviations that can occur, but they want staff to review it before presenting it to the Commission. She noted that the Commission did not want to spend a lot of time on an extended needs assessment, but they will prepare a five to seven page repot of where needs might exist. She observed that 2000 census data showed that residents who own their own homes are carrying a bigger housing burden than in 1990, which they defined as being more than 300A of income for housing expense. The difference wasn't as significant for renters. She observed this is not a trend they see in other communities. She said they can only speculate at the reasons, but given that median housing values have gone up higher than inflation, they suspect that mortgage increases account for part of the higher housing burden. Census data also showed a drop in rental vacancy rates. Sara Ashmore Diggs suggested that the larger housing burden could reflect refinancing with debt consolidation. Ms. Patton agreed they can't determine the cause from the census data, but the data indicates that more people are carrying a greater burden and that home values are going up. She said maybe the market is moving faster than household income and more people are stretching their budgets. She said you could argue that there is an unmet need for people who would love to buy in the community without having to stretch their housing budget above 300/6. She also noted that more households in Evanston were paying more than 30% of income than compared to the region as a whole. Mark Dillon referred back to the development at Main and Chicago and asked what type of housing could be built there? Ms. Spicuaa responded that she didn't know off hand how many units the zoning allowed_ Mr. Dillon wondered if there was a potential there for voluntary affordable housing, especially if the developers were looking to the city for some relief: It was noted that the site presented a problem for parking as well. The Commission discussed the naa step for the Task Force, that of sending letters to identified groups asking for participants. They agreed the Task Force meetings should begin in early January. :�f 1.1 ta�b gepe M 2002 Minutes. Evanston Housing Commission Page 3 or s Ms. Patton told the Commission that one of the foremost national experts in Inclusionary Housing will be in town in November as part of her work with City of Highland Park, for which BPI is also providing technical assistance. She said that the speaker could provide a similar educational opportunity morning after her presentation in Highland Park on November 13. The trip is being paid for by the Urban Land Institute. She suggested that groups being invited to the task force could send representatives to the discussion to help them decide who they want to nominate., The Commission decided that the invitation letters should go out in the next week to reach commissions and boards before their next meetings. They will also include a timeframe so people will know the task force will only involve three or four monthly meetings, with an understanding that at the end of the process they will deliver a list of options to the Housing Commission for their consideration. The meetings would begin in January with a goal of having a recommendation by April. Ms. Snyderman Pratt asked Ms. Patton if she know yet whether the Task Force would trigger the sunshine ordinance regarding open meetings. Ms. Patton responded that Mr. Wolinski was going to get a legal opinion on that. Other Business Mark Dillon said they would defer the Part II discussion on the housing endorsement criteria. He asked Ms. Spicuzza if there was an update on the Employer Assisted Housing Program and she responded that information would be presented at the next meeting_ The program would provide downpayment and closing cost assistance to City of Evanston employees earning less them 80% of median income. City funding would be combined with grants from the Illinois Housing Development Authority. Public Comment Richard Girard noted that he is involved in community outreach through the St. Vincent dePaul Society of St. Nicholas Church, which assists people in need as do other faith communities. He said he has observed households doubled up with other families or paying 40 to 50% of their income for housing. He said that affordable housing plans should target very low income people who live in Evanston and he hopes the inclusionary housing process will consider targeting the neediest people. Sue Carlson said she represents the interreligious sustainability circle_ She said that she feels that people who work in Evanston should also be targeted for affordable housing assistance, not just those who live here. She thought that Alderman Newman made a strong statement about assisting Evanston residents and she wants to make sure task force thinks it is important to also reach Evanston employees. Betty Ester spoke and said she hoped the task force would have open meetings, noting Alderman Kent's question during the Planning and Development discussion of the Task Force about how people who are not members of the North Suburban Housing Partnership can be involved. When Mr. Dillon said they could join the Housing Commission, Ms. Ester wondered why they would want to because it hasn't produced anything or told anything to the general public. She observed that HOME funds and CDBG funds are designed to help low income people. She said there were 37,861 low and middle income residents in Evanston and the population that Alderman Newman was talking about was last year's CDBG numbers, leaving 22,485 low income and below poverty level residents. She said Alderman Newman wanted this commium to see what other communities on the north shore have done for their population which she said begs a response from this committee. She said that while you're waiting for numbers to come in, you lose the crowd of people that was there pushing for something. -Wr. 17 9, ....' :9; 2002 Minutes, Evonsto■ Housing Commission Pate 4 of 5 0, Ms. Ester said they're not getting information, and they asked for minutes from the committee. Evanston allows anyone to get on a mailing list for any committee. She said if the Task Force can be closed per law, then how do we get that information, where does that leave us? She urged the Commission to keep control of the Task Force but comments from the Planning and Development Committee needed response and she would hate to see this committee disband because it was not clear who's in charge. She said Alderman Newman wanted only Evanstonians on the Committee and he wanted two landlords. That would mean the North Shore Housing Partnership would lose one of its developer participants, because Housing Opportunity Development Corporation is not housed in Evanston. She noted that George Gauthier is a developer with the not -for -profit Evanston Housing Coalition but he is also a landlord. Ms. Ester said she has looked at a plan from San Antonio, Texas which was very comprehensive. She thought Evanston's plan should be comprehensive and mandatory, not voluntary, because Evanston wouldn't be able to get the same results as Chicago from a voluntary program. She also felt that getting 10 affordable units at the 204-unit 1930 Ridge project was not a win but a giveaway since the zoning only allowed 194 units. She suggested that before they look at boarded up property and vacant land in the 5'' ward they should talk to the alderman regarding his and the community's push to downzone from R5 to R4 or R3 because it is important that developers talk to neighbors about their proposals. Mr. Dillon said since Alderman Kent expressed an interest in the Task Force, these views will be expressed. Ms. Ester said that these arc her concerns and her views and said the information the commission gets should be shared if they want the community behind them. Ms. Sara Ashmore Diggs asked if there was a way for citizen input to the Task Force. She said it might be hard to get a lot of work done if there are a million people but noted that they need a way for input and updating. She asked if there was a commitment to that and members responded afflrntatively. She also noted that sometimes you have to look beyond your community for information. She asked for a definition of affordable housing. Responses included spending less than 30% of income for housing and being affordable to persons earning 80% or less of median income. Karen Chavers thanked the Commission for moving along in this process of looking at our community and creating dialogue and having the desire to maintain and preserve housing. She said we have to look at innovative ways to increase opportunities for shelter for all income levels. She said the downpayment and closing cost assistance program for city employees is a need and Ws good to see it move forward. She asked for a policy on handouts such as the task force workplan and developer list and appreciated being able to speak. Noting the earlier discussion on condominium conversions, she said it would be good to have an update from the last indepth report prepared by Roberta Schur. She said they should also look at the predatory lending map and the documented needs assessment by United Way and CEDA. She would like a mechanism to get community input. She observed that she learned at a meeting that day that CEDA will no longer have dollars to assist low income families with security deposits and this can be a big burden. While the landlord tenant ordinance allows for something like 1/3 of the security deposit to be paid over time, she doubted that many landlords and tenants were aware of that. Dick Tholin of Interfaith asked for clarification of the composition of the task force regarding developers and landlords. The response was that the Housing Commission recommended two developers and that the Planning and Development Committee said one should be an owner and recommended adding landlords. Mr. Tholin urged that the two developers should understand the need for affordable housing and be committed to finding ways to meet the need. He said if both the not -far -profit and private developers had experience in providing Affordable Housing, that 0 ., r ,..,,,', ., . !, 2002 Miantes, Evaassm Horsing Commission Page 5 of 5 would be helpful. The group with the longest experience is Reba Place Development Corporation but they did not fit into the categories. Mr. Dillon said if anyone had ideas for developers they should submit them to Ms. Spicuaa. He thanked everyone for their comments. The netting was adjourned. Respectfully submitted, Donna Spicusza EVANSTON HOUSING COMMISSION MEETLNG OF NOVEMBER 21, 2002 Members Present: Mark Dillon, Robin Snyderman Pratt, Judith Hurwich, Sara Ashmore Diggs Members Absent: Robert Brooks, Rob Grossinger Staff: Donna Spicuzza, James Wolinski Others: Jo Patton, Mary Anderson, Marie Vesely, Amber Luhtala, Richard Girard, Neil Davidson. CALL TO ORDER The meeting was called to order at 7:05. Because there was no quorum, approval of the October 17 minutes was deferred. New Business Families in Transition anoIication 02-1 Connections for the Homeless requested funds through the Families in Transition Program (F.I.T.) for rental assistance for up to two years for one family whom they will sponsor. Connections for the Homeless is an Evanston based ton profit organization that provides shelter housing for homeless persons and transitional housing for people in need. Donna Spicuzza explained that F.I.T. started in 1989 in order to provide a rental subsidy in conjunction with support and resources of a sponsoring organization. The goal is that over a two year period, the family can transition into self sufficiency. Since 1989, F.I.T. funds have been awarded to 23 families through 1 l sponsors, although the City hasn't approved an application since 1998. The sponsor develops a transition plan with the family for the subsidy period. The F.I.T. subsidy provides up to 50°la of fair market rent based on household size and a utility allowance subsidy. The family pays up to 30% of their income for housing. The sponsor signs the lease and is responsible for making rent payments and providing updates to the City every six months. The program is funded through the Mayor's Special Housing Fund, which makes monthly payments to the sponsor. James Wolinski said the City has helped a number of families through the program and found that the strength of the sponsor is critical to the programs success, particularly the sponsor's vigilance and the attention to the families. Some families don't need the full two year subsidy. The program was explained in more detail in response to questions. Mr. Wolinski noted that there is no formal criteria for sponsorship but they are approved case by case, looking at the transition plan and ensuring they have adequate funds to cover rent payments if the family falls through. It was also explained that the assisted family must consist of a nuclear family, related by blood or adoption, and not just an individual. The program is included in the Consolidated Plan but not actively advertised although most non profits arc aware of it. In early 1990's there were five or six families in the program. There is no specific budget for the program. Marie Vesely and Amber Luhtala from Connections for the Homeless were introduced. They described the transition plan and their belief that this family is sufficiently motivated to get the support needed to become self-sufficient. Commission members asked questions about their ` PT - November 21, 2002 Minutes, Evanston Housing Commission Page 2 of 4 agency and the programs they offer. Mark Dillon made a motion that the Commissioner$ recommend that the City provide up to 24 months of support through F.I.T. for the family sponsored by Connections for the Homeless. It was unanimously approved. Donna Spicuzza said the funding request w ould go to the Planning and Development Committee and then to City Council on December 16. HOME Loan apolication for 1813 Lyons. Neil Davidson of Econ Housing Group submitted an application for HOME funds for a new project. Donna Spicuzza explained that the for -profit developer, whose goal is to provide affordable new construction for home purchase, is completing construction on 1816 Darrow, a single family home that was assisted with City funds. Econ Housing has purchased a vacant lot around the corner, and plans to build a duplex unit consisting of two single family attached homes, for purchase. Each unit would cost the purchaser S175,000, the same as the new house on Darrow. In order to offer that price the project requires a subsidy to lower construction costs and make the house affordable. Econ Housing is requesting S 100.000 in HOME funds, which would be repaid with 3% interest -only payments during construction. Upon sale, the subsidy would transfer to the buyer along with a retention vehicle to ensure the house remains an affordable unit. The purchase price of each house would be $225,000 but the subsidy would reduce the cost to the buyer to S 175,000. Mr. Davidson is working with the Community Development staff on the design, with some items still under discussion. It will be constructed in the same manner as the Darrow home, using Insulated Concrete Form covered with siding. Mr. Davidson spoke to the Commission about the construction and noted that the project would be energy efficient and maintenance free. It is an all concrete house with siding called hardy plank, which is a semiticious board. Each unit will have a 90°!o energy efficient furnace and Air Conditioning, three bedrooms, three baths, and close to 2000 square feet of living space on the first and second floors. Judith Hurwich commented that when she drove past the two projects she noticed a boarded up house across the alley from the Lyons site and wondered about its impact on the new development. Mr. Davidson said he would like to purchase it although it is priced high. When asked about a buyer for the Darrow property, Mr. Davidson said he didn't want to market it until drywall and steps were in. Now he plans to aggressively market it, and will pass out flyers in the area and do another home purchase seminar at the Civic Center. Mr. Davidson said they will put in sidewalks and landscaping for both projects. He said the project is maintenance free due to the type of construction. Commissioners said it was encouraging to see this type of new development. Sara Ashmore Diggs had a question about the affordability of the unit as illustrated on the financing scenario and was concerned a family might not be able to afford the ongoing costs of maintaining a home. She wondered if there was anything else to help the family. Mr. Davidson said the energy efficient construction would result in low heating costs and there would be little maintenance costs with new construction. Ms. Spicuzza added that there would be a homeowner education component to the project, where potential buyers would leant about preparing to buy a home and the ongoing responsibilities and costs of homeownership. The home will remain affordable for 15 years, which is the minimum required by HOME regulations for that amount of subsidy. The longest affordability period the City has done is 20 years. Robin Snyderman Pratt made a motion that the City provide S100,000 in HOME fending for 1816 Lyons, subject to negotiations regarding the construction. The motion was November 21, 2002 Minutes, Fvaasum Housing Comminion Page 3 of 4 anaminously approved. The recommendation will go to the Planning and Development Committee on December 16. INCLUSIONARY HOUSr%G TASK FORCE Mark Dillion said they received responses regarding participation in the Inclusionary Housing Task force and that Jo Patton and Mary Anderson from BPI were present to update the commission on the pro bono technical assistance BPI is providing. Jo Patton presented a draft outline of development review process in Evanston, which would give the Task Force a framework for identifying opportunities for raising the set -aside issue with the developer in return for some flexibility. The draft included two examples, one for a multi -family development and one for a planned development which allows more flexibility for the designer in return for some public benefit. Ms. Patton asked the commission if this is the type of outline that would be most useful and if there are pieces of info that should be included to guide the Task Force. Members suggested adding a flow chart to help visualize the process, a timeline for the examples, and an example of a condominium conversion. There followed a discussion about previous planned developments and the review process which includes public meetings. The condominium conversion process was also discussed, and Mr. Wolinski said conversions don't fall under zoning review, which is silent about ownership. They might need a building permit and appear before site plan if there is major rehab and /or exterior change. Donna Spicuzza noted that there should be coordination with the building department to ensure the developer filed the condominium disclosure and gave notice to tenants. Ms. Ashmore Diggs asked if that took away the owner's right not to renew leases if the owner later converted to condominium ownership. Ms. Spicuzza said she was investigating whether there is an allowable time period. In other discussion about the task force, Ms. Patton was asked if she got enough input from people at all levels of decision making about what questions to ask developers. Ms. Patton said she did not ask staff how they think an Inclusionary Housing program should be structured because this is not the point for that. Mr. Dillon asked if it would be helpful to bring in a focus group of developers to bounce around ideas. Ms. Patton said the Task Force should hear the interests and concerns from developers. She also said the Task Force should stay in close communication with front line staff, so they could learn early on if any ideas they are considering might be difficult to administer. Mark Dillon said that so far five people were committed to participating in the Task Force: Alderman Kent, Alderman Bernstein, Sharon Bowie of the Plan Commission, Victoria Higgins of the Human Relations Commission, and Patricia Vance from CEDA Neighbors at Work. He said he talked to someone from North Shore Housing Partners inquiring whether the non-profit developer representative had to have an Evanston address. Donna Spicuzza said the sense she got from the Commission members was that they should have developed projects in Evanston. Mark Dillon said they would talk to North Shore Housing Partnership and also follow up with for -profit developers since none had yet responded. The Commission decided to table the decision of the Housing Commission representatives until the December meeting. It was agreed that the first Task 6 1 November 21, 2002 Minutes, Evaastoa Hoasirt Como idoe Page 4 of 4 Force meeting should be scheduled for January. Commissioners briefly discussed the November 14 presentation by Edith Netter, a land use attorney and inclusionary housing expert. The Commission had meted staff, aldermen and Task Force invitees to the presentation, which was attended by about 20 people. COMMUNICATIONS James Wolinski informed the Commission about two items on the upcoming Planning and Development Committee agenda The first pertained to a vacant building ordinance to eliminate the problem of vacant and boarded up houses which can blight neighborhoods. Staff will present information on an aggressive program in Minneapolis for the Committee to consider. Commission members briefly discussed some solutions to the problem of vacant buildings in the City. Mr. Wolinski also said the Committee would hear about the tear down issue. Alderman Moran of the a Ward said his ward has seen a number of small houses tom down and replaced with large houses don't fit in with the character of the neighboring houses or the block. Donna Spicuzza presented a calendar with meeting dates for 2003 and noted that there were no major holiday conflicts with the third Thursday of the month. She noted that the April meeting fell during Passover and on Holy Thursday but they could consider whether it needed to be rescheduled closer to the date. No one had any objections to the dates presented. The meeting dates for 2003 are attached. Public Comment Richard Girard thanked the Commission for making the materials and minutes available. Judith Hurwich moved to adjourn, and the motion was seconded and approved. RespectfaW submitted, Donna Spicuzza +F Evamton Housing Commission Minates of December 19, 2002 Present: Robert Brooks, Sarah Ashmore Diggs, Mark Dillon, Judith Harwich, Robin Snyderman Pratt. Maria Shorten (appointed, not yet confirmed) Absent: Robert Grossinger Stair: Stan Janusz, Donna Spicuzza Others: Mary Anderson, Sue Carlson, Betty Ester, Richard Girard Onorum and Minutes. The meeting was milled to order at 7.05. After the We arrival of a fifth confirmed commissioner, an official quorum was declared. At that time Judith Hurwich made a motion, seconded by Robin Snyderman Pratt, to approve the minutes for the meetings ofluly, August, September, October and November with minor corrections as noted at previous meetings. The motion carried. Grclasionary Housing Task Force Uadatr, Mark Dillon welcomed Mary Anderson of Business and Professional People for the Public Intarrst (BPI) and invited her to update the Commission on BPI's efforts relating to their pro bono technical assistance with the Commission's Incluskmary Housing Task Force. Ms. Anderson distributed an outline of the City's development process and discussed the steps a new construction dn-elopment would go through for building permits, site plan and appearance review approval, and zoning analysis. She said that at the Commission's suggestion, they included information on condominium conversions, noting that in addition to following the aforementioned stages, this *pc of development was required to follow the Residential Condominium Regulations. Requirements include filing a condominium disclosure statement with the planning division and submitting a copy of Notice of Intent to convert which must be given to tenants 210 days before requiring them to vacant their rental units, and explaining options for purchasing their unit. Mark Dillon asked if any developments in the past had paid relocation costs to tenants in relation to conversion. Donna Spicuzu said she was not aware of any situations although she didn't know for sure. Commissioners asked how the regulations would apply if a developer did not give notice because they did not renew leases before the conversion. Ms. Anderson said she felt if the conversion occurred within 210 days the ordinance required the developer to provide notice and offer tenants the right of first refusal regarding the purchase of their unit. Ms. Spicuzm said she felt it was unclear about the time limit between non -renewal and conversion. Commissioners commented that it looked like conversions could be viewed as other developments as far as inclusionary housing goals, and that sometime within the 120 days after notice was given, the City could negotiate with the developer about offering a subsidy on a percentage of units. Ms. Anderson said other cities have set -aside requirements that apply to condominium conversions, which could be studied. Members asked about current condominium filings and Ms. Spicuzza said she would pro%ide a report for the nerd Housing Commission meetings. Commission member discussed the status of Task Force participation, the first meeting and next steps. No new members had been nominated since the November meeting. The remaining slots include the housing commission designees, a for-proCt developer, someone from the Evanston Housing Corporation and a landlord or non-profit developer. Only one representative from North Suburban Housing Partners had formally agreed to participate. Ms. Spicuzza suggested that after nailing down the participants, they send them a list of possible first meeting dates and provide C�_Iqfi information on what will occur at the first meeting. She suggested January 23 and 29 as available dates and Commissioners clarified that the meetings would be held in the evening. They noted that they would firm up the agendas at the Januan• Housing Commission meeting. Before then, they would firm up participation and comment via e-mail or conference call on BPI's draft of Task Force meeting agendas. Robin Snyderman Pratt made a motion, seconded by Robert Brooks, that the Housing Commission be represented by Mark Dillon as Task Force Chair, Rob Grossinger as delegate and herself as alternate. The motion passed unanimously. Commissioners discussed the Task Force materials and wondered if some information could be mailed before the first meeting to participants and Housing Commissioners, Ms. Anderson said BPI could provide an Inclusionary Housing fact sheet, brief introduction of the Task Force, definitions for inclusionary housing and affordable housing, examples of other municipalities' policies, an outline of a needs assessment, and agenda topics for the January meeting. Mr. Dillon thanked Ms. Anderson for her efforts and said the Commission appreciated BPI's assistance. Communications: Ms. Spicurza welcomed Maria Shorten as a newly appointed Commissioner and noted that Philip Levis was also appointed at the December 16 Council meeting. This brings Commission membership up to eight, with two tenants. She told the Commission that she had sent a thank you letter on behalf of the Commission to Edith Netter for her presentation in November on Inclusionary Housing. Ms. Spicuzza updated the Commission on the status of two proposed planned developments. A proposal by Optima for 248 condominiums in a mixed use high rise at 800 Elgin/l 800 Sherman is scheduler) for a Plan Commission hearing on January 8 with possible introduction to City Council on January 27. The hearing will provide the opportunity for public comment on the proposal. Another planned development is proposed for 1100 Clark, with 344 condominium units in six buildings. Ms. Spicuzza said Roczak Development is proposing a mix of 1, 2 and 3 bedrooms, with prices ranging from S175,000 to $700,000 at that site. The Commissioners discussed various aspects of the proposed planned developments. Judith Hurwich observed that there have been many condominium developments recently and wondered what the occupancy rate was for new development. Sarah Ashmore Diggs commented that one market was retired people, who could sell their single family homes to scale down in size and afford higher priced condominium units. Ms. Spicuzza said she didn't know if developers would want to share information on buyer demographics but it was worth having a discussion. Ms. Snyderman Pratt asked about the Commission's idea of testing a voluntary inclusionary housing program for the proposed developments. Ibis. Spicuzza said that the topic of affordability had been discussed informally with developers in some meetings, noting that the 1100 Clark developer may consider making 5 — 101/6 of the units affordable. However, she said there is not a set City policy and the Site Plan and Appearance Review Committee meetings address design and zoning issues. Ms. Snyderman Pratt said she was concerned before that the Commission had missed their window of opportunity to talk about affordable set asides but clearly the development trends are continuing. She said even without a protocol, there is a process underway, a policy, a plan of promoting affordable housing, and a demonstrated need. She said they've got that kind of language on the books and the endorsement of City Council, and there must be a way if we did it at 1930 Ridge, beyond trying to catch people at community meetings and public hearings. She said maybe an invitation to the developer to participate in the Task Force would be a start. 2 or li,bg AN, The discussion turned to affordable housing issues and Ms. Ashmore Diggs asked if there were any proposals for low income housing. It was noted there is currently nothing formally proposed other than the duplex unit at 1813 Lyons. Maria Shorten asked how affordable housing was defined and was told there are various definitions depending on programs. Ms. Hurwich said that the Commission often discussed that issue the previous year and adopted a HUD guideline of housing costs of no more than 300/6 of income of households at 80°/a or less of median. Ms. Ashmore Diggs said there were many older, very low income persons in Evanston whose houses are paid for but who have difficulty affording tax payments. Marie Dillon said he wanted to inform Commissioners about the recent board meeting of the Evanston Housing Corporation which provides low interest financing for first time buyers. Loan balances have increased, and the available loan pool is dwindling. He said the Corporaiton is interested in increasing their marketing and ensuring that developers know about programs that are available. Ms. Spicu77a informed the Commission of the status of two of their recommendations to the Planning and Development Committee. The Committee approved the Families in Transition program for Connections for the Homeless. The request passed City Council by a vote of 8 to 1. Alderman Rainey voiced concerns about whether the program is the best use of limited City funds because of its deep subsidy and limited impact. Staff v`iIl prepare an analysis of the program before other applications are considered. The request for HOME funds for 1813 Lyons was held in Planning and Development Committee. While the committee was supportive of the project and the use of funds, aldermen wanted more information on affordability provisions. The proposal is that the developer make interest -only payments during construction, and that the buyers receive a purchase price reduction that is secured with a second mortgage and forgiven over 15 years. If sold before the affordability period, the buyers pay the balance. Some committee members discussed having all the funds returning to the City when the property was sold. This will be on the agenda again on January 13. Employer Assisted Housing Proposal Stan Janusz, Assistant Director Property Rehab Standards, spoke to the Commission about a proposal for an Employer Assisted Housing program to help City employees purchase homes in Evanston. He said staff worked on a program model developed by Metropolitan Planning Council that provides homeo%mcrship education, City grants and matching grants. The City would offer a forgivable grant for purchase price reduction or closing costs to income eligible employees, which would be matched by the Illinois Housing Development Authority (1HDA) based on income. The City would provide homebuyer education and grants of $5,000 to eligible employees with household incomes under 80°/a of area median. IHDA will match the City grants with $5,000 for borrowers under 50% of area median income, and S3,000 for borrowers between 5 1 % and 80% of median. Mr. Janusz said staff wanted the City grants to be the same for all eligible borrowers because households at 809/6 of median income still can find it hard to buy a house at that income level. The program would use S31,500 from the Mayor's Special Housing Fund for an 18 month period, with $25,000 for five grants, S6,000 for Housing Opportunity Development Corporation (HODC), and $500 for Metropolitan Planning Council {MPC). HODC would administer the program, offer homebuyer education and counseling, help empoyees prepare for homeownership, qualify grant applicants, help them find mortgage financing and prepare documents. Borrowers receiving a grant must contribute 2.5% of the purchase price towards the transaction. Commission members asked about various program components. Sarah Ashmore Diggs requested information to see how the program would work based on Evanston housing prices and the program income requirements and wandered if the program would help employees identify affordable properties. Robin Snyderman Pratt pointed out she v►nrks for MPC and that employer assisted housing programs am becoming more of a trend. She said a City program would not only benefit its employees but could also encourage other area employers to offer similar programs. Judith Hurwich asked whether the program could be used with financing through Evanston Housing Corporation, because she understood that that financing wasn't available in conjunction with a Nehemiah grant, which is similar. Other questions included payback provisions if the borrower left City employment, the likelihood of finding affordable properties, purchase and financing examples, haw it would be marketed to employees and how borrowers would be selected. It was explained that the City would widely promote the program to employees and that homeownership counseling would be available to all eligible employees even though only five grants could be funded in the initial 18 month pilot program. Mr. Janusz said some aspects, such as tax liability if borrower left City employment and combination with EHC financing, required more research, but they were looking for input from the Housing Commission. If the Commission later endorsed the program it would go to the Planning and Development Committee and then City Council. Robert Brooks wondered if the Council should consider endorsing it at this meeting since there was a quorum. Commissioners felt it would be beneficial to have more information and waiting to vote until January was feasible due to the appointment of two new members. Commission members thanked Mr. Janusz for the presentation and also thanked Ms. Spicuzza for thorough meeting minutes. Mr. Dillon asked if any citizens in attendance wanted to speak to the Commission. '[here were no public comments, everyone was invited to stay for cookies, sod the nweeting was adjourned at approximately 8:25 p.m. Respectfully submitted, Donna Spicuzza ��Fr N or A-F?p a L7.0 EVANSTON HOUSING COMIMSSION MEETING OF JANUARY 16, 2003 Members Present: Mark Dillon, Rob Grossinger, Judith Hurwich. Philip Levis Members Absent: Robin Snyderman Pratt, Robert Brooks, Sarah Ashmore Diggs Staff: Donna Spicuzza, Housing Planner, Stan Janusz, Assistant Director of Community Development Others: Mary Anderson ,BPI, Samantha DeKoven, Metropolitan Planning Council, Richard Girard, Betty Ester, Frances Seidman, Dick Tholin, Stu Carlson CALL TO ORDER The meeting was called to order at 7:05. Without a quorum present, approval of the December 19, 2002, minutes was deferred. INCLUSIONARY HOUSING TASK FORCE Mary Anderson of BPI was present to give an update of preparations for the Inclusionary Housing Task Force meetings. The Commission reviewed the proposed rust meeting agenda, four other agendas for subsequent meetings, and an outline for the Needs Assessment. Ms. Anderson suggested that at the first meeting BPI would present an overview of the present picture in Evanston, based on their Needs Assessment which would show housing, income trends, and job trends as well as existing housing programs. This would show where gaps are and what areas the Task Force would want to address. She said they would also look at inclusionary zoning ordinances, and other tools such as housing trust funds or land trusts. She suggested that the last two meetings would focus on the nuts and bolts of crafting a program for Evanston. It was agreed that she would present the information, with the meeting chaired by a representative of the Housing Commission. Commission members were pleased with the suggestions and thanked BPI for their efforts to date. They asked that they also receive information that would be presented to the Task Force. The Commission then discussed dates for the first meeting, looking at participants' availability. Marie Dillon asked whether a telephone hook up could be available for participants who couldn't attend, but this was uncertain. They decided that the chair and staff should try to contact the two aldermen to firm up their availability before determining whether the first meeting would be February 4 or February 5. EMPLOYER ASSISTED HOUSING PROPOSAL Commission members had asked for more information on the proposed Employer Assisted Housing program that was presented at the Derxmber meeting. The program would use approximately S30,000 for downpayment and closing cost assistance to help City of Evanston employees purchase a home in Evanston. Employees must be first time homebuyers with household incomes of 8016 or less of area median income and they would also be eligible for a matching grant from the Illinois Housing Development Authority (HiDA). Stan Janusz, Assistant Director of Community Development, and Samantha DeKoven of Metropolitan Planning Council answered Commissioners' questions. Mr. Janusz presented financing scenarios that demonstrated who could benefit from the program and explained that the January 16. 2003, Evanston Housing Commission Minutes rage2of3 >RtF-T non-profit partner, Housing Opportunities Development Corporation would administer the program and offer homeownership workshops and counseling. Rob Grossinger asked whether the program would take advantage of the tax credit component of the initiative developed by MPC. Although the City has no state tax liability, it can still receive tax credits for 50% of the loans made and sell the credits. Ms. DeKoven explained that the tax credits are funded separately from the matching grant funds. She thought that figuring transaction costs the City could get back about $10 to S12,000 by selling the tax credits. The application would have to be submitted by HODC and the funds allocated to them even thought the tax credit donation comes from the City. As each downpayment assistance grant is made the non-profit partner certifies that the money was spent. Entities with tax liability typically pay about 80 rents on the dollar for tax credits. Ms. Spicuzza said that HODC had indicated they wemt't planning on applying for the credit and selling the credits because of the small dollar amount for the City's pilot program, but it could be discussed again at a later time. Some Commission members asked whether the first -come, first -served feature of the program would give all employees a fair chance at the limited number of grants available. Mr. Janusz assured the Commission that everyone would hear about it at the same time. He said they wanted to make the program work for the first people who were ready to use it rather than reserving funds based on seniority or other criteria. Ms. DeKoven said that the experience of programs around the country was that only 5% of eligible employees come in to participate. She said that more employees can get referred for housing counseling, and usually programs counsel four or rive times the number of employees who use the grants for home purchase. Commissioners noted that the pool might not be too big because of the gap between housing that's affordable to households at the program's qualifying income levels and the high cost of housing in the Evanston market. The Commission members discussed whether the forgiveable loan would have to be repaid if an employee was no longer working for the City. Ms. DeKoven said that since employers use the program as a retention tool, the recapture provision is important, but it can be structured in different ways. She said the borrower could pay it back immediately, perhaps by taking out a loan, or could make payments over time. She said the IRS acknowledges that a special relationship exists between employer and employee, but if the person receiving the grant is no longer an employee, the employer must charge interest on the loan. Mr. Janusz said they were looking at options. He said if an employee leaves, the grant would stop reducing, and perhaps would be due upon sale of the house. The ERDA repayment requirement is only concerned with ownership, not employment, so the matching grant would not have to be repaid. Commission members were concerned that requiring payment upon leaving could present a hardship or cause the borrower to refinance with a predatory lender. They suggested having different requirements if an employee was terminated for cause, laid off, or left voluntarily. Mr. Janusz said they needed to investigate this further, consider how to write the different requirements, and find out what rate of interest needed to be charged. Ms. DeKoven said she could get more information from the accountant she consulted. Rob Grossinger moved that the Commission send a statement of support in favor of the program to the Planning and Development Committee, with the addition of the repayment requirements for various situations. The motion was seconded although it was noted there was not a quorum present. Mr. Levis asked if the program would be funded from the General Fund. Mr. Janusz said no, it would be through the Mayor's Special Housing Fund. All commissioners present approved the recommendation. Mr. Janusz said the proposal would go to the Planning and Development Committee in February and the Commission members would receive a copy of the finalized Jaamary Ib, 2003, Evansto■ Hoasiag Commbske Minsto Page 3 of 3 T proposal. Ms. DeKoven noted that no other Evanston companies offer an employer assisted housing program, and the City's leadership was an opportunity to encourage private investment from other area employers in such a program. COMMUNICATIONS Donna Spicuzza distn-bused letters she received from citizens about the Task Force and noted the report in Commissioner's packets that detailed rrtcent condominium disclosures. Ms. Hurwish asked if she had similar information on new single family constnrction and whether they involved tear downs. Ms. Spicuzza said the d..r." ...—t prepares permit reports that indicate new single family construction, and the few that she was aware of involved tear -downs. PUBLIC COMMENT, Mr. Dillon asked if anyone in the audience had any comments. Betty Ester asked if the Task Force meetings, which would be open to the public, would involve any interaction with the community. Mr. Dillon replied that the length of public comment would be up to the Task Force to decide. It was moved and seconded to adjourn the mating at approximately 8:2S p.m. Respectfully submitted, Donna Spicuzza J)R4-F iJCT A-PITCtiL EVANSTON HOUSING COMMISSION MEETING OF FEBRUARY 20, 2003 Members Present: Sarah Ashmore Diggs, Judith Hurwich, Philip Levis, Robin Snydaaman. Pratt Members Absent: Robert Brooks, Robert Grossinger Stam- Donna Spicuzm Housing Planner, Others: Claire McCarthy Peterson, Sue Carlson, Betty Ester, Richard Girard, Marilyn Justman, Jessie Macdonald CALL TO ORDER Without a quorum prescnt, approval of the January 19, 2002, minutes was deferred. COMMUNICATIONS Staff provided a housing development update. Donna Spicumn reported that Optima Development presented information on a proposed a 36 story planned development at 800 Elgin Road. Another public meeting was scheduled but the developer postponed the meeting And decided not to go for the planned development as originally presented. Instead they are planning a 16 story mixed -use project that will not be a planned development. Ms. Spicu"a also noted that staff has been talking to a private developer who is considering including some affordable units in a new construction attached single family project. She also said that the Employer Assisted Housing proposal wasn't on February 24 Planning and Development Agenda, but staff hoped it would be presented at the next meeting,, March 10. In response to a question about whether the aldermen who attended the Inclusionary Housing Task Force were planning to discuss it at City Council, Ms. Spicuzza said she would follow up with them. Also, when asked about the process of renting affordable units at the new rental development at 1930 Ridge, she responded she's been talking to Richard Koenig who volunteered to coordinate rental of affordable units, and will meet with him in March regarding marketing and selection. Robin Snyderman-Pratt formally announced that Mark Dillon resigned from the Commission because he moved out of state. She received a copy of his resignation letter addressed to the Mayor in which he said he optimistic about the direction of the Housing Commission. Ms. Snyderman-Pratt said his resignation was a loss to the Commission, which was echoed by other commissioners. She noted that again they are looking for more members to fill two vacancies. HOMELESS NEEDS ASSESSMENT PROJECT Claire McCarthy Peterson, the Chair of Evanston's Task Force on Homelessness, presented information to the Commission about a recent local study on homelessness. Commission members received the Regional Roundtable on Homelessness' Report "Facing Homelessness, A Study of Homelessness in Chicago and the Suburbs. " The speaker first explained that in the late 90's HUD mandated that jurisdictions wanting to access federal funds for homelessness develop a Continuum of Care, that addressed all services, including emergency shelter, transitional housing, permanent, preventive and transitional services for homeless persons or those at risk of homelessness. The Task Force is responsible for the plan and its coordination, and prepares the document for HUD and applications for funding. The Febrrury 20, 2003, E%vnaton Housing Commission ,Minutes Page 2 on applications come to the Housing Commission to determine their compliance with the City's Comprehensive Plan. The Evanston Task Force is also part of a regional group that also includes Cook County, Kane, McHenry and Will County. Ms. McCarthy Peterson said that regional round table commissioned the study, a summary of which was given to Commission members. The study was the most comprehensive one done for the region she said, providing demographics, unmet needs, characteristics of homeless, and more information than had ever been done before. She also said they recognized its shortcomings, first in trying to get an exact count of the homeless, noting the difficulty in counting people on the street and avoiding double counting of people accessing multiple services on the given day. She also said that the interviews used to ascertain homeless peoples' needs were limited to those who could give informed consent, so thus did not encompass anyone under 18 or with a serious mental illness. Ms. McCarthy Peterson said the Report did present some significant findings for Evanston and the region. It indicated the causes for homelessness are a balance between societal and individual issues. Individual issues include loss of job, domestic violence, substance abuse and mental illness and agencies must be aware of the interplay of these issues. The societal issues are straight forward, she said, and affordable housing is an overwhelming issue, because of the enormous disparity for some between rents and wages. She said HUD's Fair Market Rents (FMRs) for the Chicago area a few years ago was S623 for a studio, while HUD's calculations for someone with a full-time, minimum wage job show they couldn't afford more than 268 a month. This would be even more difficult for someone trying to support a family, with the FMR for a 1 bedroom apartment at $757. She said people getting SS are not to supposed to spend more than $155.00 for rent, so that would equate to needing four people together to afford a studio apartment. One of the surprises was the educational level of the homeless population as a whole. About 1/3 have less than a high school education, more than 1/3 have a high school diploma or GED and another 300/6 have mono than a high school education. Also the study showed 40% of homeless are employed, so that having an education and a job no longer guarantees being able to afford housing. The percentage of those working and educated was a surprise, she said. The other surprise in Evanston, she said, was the amount of time most people have lived in the jurisdiction where they are homeless. While they know some people come on the el into Evanston, or travel to other jurisdictions, such as O'Hare Airport, most people stay in the community where they've been living, because they know people and may have some kind of support system. She said the assumption that everybody who is homeless in Evanston comes from Chicago isn't true. She said the hopeful aspect of the study was for agencies to think about structuring responses by understanding the three types of homelessness: crisis, episodic and chronic, because they represent different demographics and reasons for being homeless. The study said about 30% of the homeless are in the crisis category, where they are homeless for the first time, for a few months. Many are families with young children, or one -parent families. They may have suffered a medical problem, but mentally ill or substance abusers are not a large percentage of this category. Therefore the structures needed to help them regain stability are a certain set of services, such as offering help in budgeting, shopping, cooking nutritious meals, and other basic skills. If they get that, and some transitional housing, they may return to a stable situation where they may never again be homeless. The largest category, at 40% is episodic. They are persons on the edge, moving from homelessness into temporary housing with relatives or friends. They are often doubled up, than 7 t. "• % I 5 February 20, 2003, Evanston Housing Comminim Mingles Page 3of4 homeless again. They may get a part time job but they have unstable job histories. These include people with serious mental illnesses and substance abuse problems, who tend to use the system a lot. The last category are chronically homeless, who have been homeless for a year or longer. The largest number of these persons are seriously mentally ill, substance abusers, or formerly institutionalized. They may be extremely needy but distrustful of the system and resistant to treatment so they are the hardest to serve. The kinds of intervention for this group are very different from other types. Ms. McCarthy Peterson said the study was helpful in trying recognize the three different patterns of homelessness and addressing three different needs. Commissioners asked questions, one of which was about the differences in the Report in the needs identified by service providers and by the homeless. Ms McCarthy Peterson said deaf most people, when asked what they need, will say an affordable place to live and a job, while the Report suggests there is a greater need for substance abuse treatment. In response to a question about whether there was an assessment of how services were meeting the need, she said that emergency funds for prevention for those at risk, such as security deposits, are quickly used up. She said the at -risk population is a concern, noting that over 50% of population at soup kitchens are not homeless but go there because they can't afford food. She said the Task Force did provider survc}•s, interviews, and focus groups to help develop priorities for Evanston. There is no emergency shelter available for families, with the result that marry families choose not to go to a shelter in Chicago, but split up children with friends and relatives. Another problem she noted is the homeless youth contingent- She sn.id both Y.O.U. and Family Focus know 20-25 kids in that situation, so there may be about 40 — 50 children between 13 and 17 in Evanston who are nomadic and transient. Y.O.U. offers emergency placement with families but there is no group home in Evanston. There are fewer proposals for transitional housing for families, partly because it is difficult for agencies to match HUD funding with other funding sources, as required. When asked about institutions that work with the homeless mentally ill, Ms. McCarthy Peterson explained that Housing Options for the Mentally Ill has two buildings totaling 20 units that provide permanent housing with support services. Its Pathways Program has 8 scammW site units for chronically homeless, who are willing to accept services and ha,,e been identified through Connections for the Homeless' outreach program. The program is about two years old, and hasn't had any problems, although some might have been expected. Housing Commission members expressed interest in keeping on top of any recommendations the Task Force may have regarding housing policy, and thanked Ms. McCarthy Peterson for her excellent presentation. Request for HOME Overatin F� unds Donna Spicuzza presented information on a request for HOME Operating fonds for two of Evanston's designated Commuity Housing Development Organizations (CHDO's). Reba Place Development Corporation and Housing Opportunity Development Corporation each requested $15,000 in operating assistance. She said the HOME program allows up to 5% of each year's allocation to be used for operating funds for CHDO's. The City hasn't disbursed a tot in the past for operating assistance, although the CHDO's have done programs, and HUD encourages the participating jurisdictions to use funding to do so. She noted the CHDO's were still managing the buildings they developed and funding assistance would support their efforts and encourage them to come up with more projects. It was moved and seconded to recommend this request. Some NM February 20, 2003, Evanston Horsing Commission Minutes Page 4of4 members discussed problems on the block of one of the HOME funded projects. and encouraged the CHDO to pump up their support service strategy. The motion passed by a vote of 4 — 0. INCLUSIONARY HOUSING TASK FORCE UPDATE Robin Snyderman Pratt reported on the first Task Force meeting of February 4, where Business and Professional People for the Public Interest (BPI) explained lnclusionary Housing concepts and other programs, while malting it clear that they would help Evanston tailor its own program. The March meeting will consider needs and opportunities in Evanston, after which the getup will start working on the nuts and bolts of its own program. She noted two comments that were made by participants that spoke to the reason for having diverse viewpoints part of the Task Force. One person wondered if it was too late to capture the development boom, and another wondered, while it sounds good, does it make sense that the public good be carried on the shoulders of the private sector. Ms. Snyderman Pratt also noted that Alderman Jean -Baptiste attended in the audience and commented that it was exciting and he was interested in updating the City Council on the information presented. She said it would be good if someone from the Housing Commission was at the City Council meting to help frame the discussion, noting that they talked about the March 10 meeting. Ms. Snyderman Pratt mentioned the Regional Housing Initiatives program for developers who set -aside apartments for very low income renters. The program offers project -based rent subsidies and helps make tax credit applications with 1HDA more competitive. The developments must meet housing endorsement criteria. It is a pilot program targeting Cook County, Lake County and Chicago. Judith Hurwich commented on the report of condo sales which was distributed to Commissioners. Ms. Spicuzza said is was done to try to get some sense of whether new condo units were being sold to owner -occupants or investors for resale or lease. She said it was a small sampling of new developments, and many owners didn't have definitive information but provided some estimates. At Church St. Station, with 105 units, the owners estimated eight went to investment buyers. Optima Towers, which is occupied, currently has eight units rented, and three are currently advertised in the paper for sale, although it's possible more had been advertised earlier. At 515 Main, the managing agent said of the 62 units, five are currently renter occupied and two are vacant. Ms. Spicuzza said property transfer data I I units had been resold. The informal phone survey was done to see if condo sales in Evanston were similar to some new developments in Chicago where units were bought by investors who did not intend to occupy them. Judith Hurwich wondered about conversion projects. Ms. Spicuzza said she could perhaps try a phone survey to learn if new associations have policy on rentals. She reported them was no update on the status of whether particular apartment undergoing rehab would be rental or condo. PUBLIC COMMENT Richard Girard made a comment. Some representatives from Beth Emet who were in the audience said they were attending because they were interested in learning about affordable housing issues. The meeting was adjourned at 9:15 p.m. Respectfully submitted, Donna Spicuzza N p —�- r4 ? r �' o v Gr p EVA.tiSTON HOUSING CO..MMISSION MEETING OF MARCH 20, 2003 Members Present: Sara Ashmore Diggs, Judith Hurwich, Philip Levis, Robin Snyderman- Pratt Members Absent: Robert Brooks, Robert Grossinger Staff: Donna Spicuzza, Housing Planner Otbers: (signed in or identified themselves) Richard Girard, Sue Carlson, Frances Seidman, Betty Ester, Joe Kent, Tina Galbreath CALL TO ORDER Without a quorum present, approval of the February 20, 2002, minutes was deferred although minor corrections were noted. Robin Snydenman Pratt said she appreciated the detailed section on the Task Force update. COMMUNICATIONS Donna Spicuzza said the Employer Assisted Housing program proposal did not get on the March 10 Agenda for the Planning and Development Committee, but will be on April agenda. She said that the aldermen who attended the first Inclusionary Housing Task Force meeting had not yet mentioned the efforts of the Task Force at City Council, but were interested in doing so, and she would follow up with them. Ms. Spicuzza reminded Commission members that because the next meeting scheduled for April 17 meeting falls on Passover and Holy Thursday, Commissioners said last December that they would discuss rescheduling it. It was agreed to reschedule the meeting to Thursday, April 24. In response to a question, Ms. Spicuzza confirmed that a quorum is a majority of the seats available rather than the number of actual members, so a quorum consists of five persons. Ms. Spicuzza discussed the 2003 HUD Income limits and 2003 Fair Market Rents that were distributed and noted that exclusion rents for high market areas, including Evanston, are not yet available. She pointed out that the 2003 median income for a household of four decreased to $68,700 from $75,400 because it was based on 2000 census data while previous calculations were based on assumptions made about 1990 census data. However, she noted that HUD slightly increased the 50% (very low income), 60% and 80°/a limits, so people who previously qualified at those limits would still be eligible for programs that capped eligibility at those levels. Commission members were updated on planned developments. A proposal for a luxury condominium project at 1100 Clark St., off Ridge, Clark, and Oak, has been submitted by Tom Rozak of T R Ridge, Partners. It will include residential parking and a garage to replace the parking lot for the office across the street. The phased development will have six different buildings with a mix of one, two and three bedrooms totaling 348 dwelling units. The developer will ask for some zoning variations, and is proposing an affordable housing component of about 10% of the units. These would be funded with a developer subsidy and priced at 2/3 of the cost of the base market price. The affordable units would be scattered throughout the project and about 2/3 of them would be one -bedroom units, similar to the market rate mix. Commission members received a copy of the planned development statement that outlined the affordable housing proposal. It is scheduled for Plan Commission on April 9. with a proposed continuance date of April 30. The planned development at Chicago and Main, for 77 condominiums, is also scheduled March 20. 2003. Evanston Housing Comrain Ion Minates 'D&MC 1- Page 2 or 8 for April 9. The developers recently held a neighborhood meeting to get comments from residents on the proposal. West Side Residents Association The Commission welcomed representatives from the West Side Residents Association who came to discuss the formation of a Community Land Trust. Bem, Ester distributed and read a letter to the Housing Commission from the Westside Residents Association (W.R.A.), signed by Loretha Henry. She noted that attached to the letter were stxtcn nm of support for affordable housing from the community. The letter read: "The Westside Residents Association (WRA) is made up of individual homeowners and renters as well as members from neighborhood block clubs. We have formed the WRA to better service our community and represent the true interest of the residents of the 5"i Ward and other low-income families and individuals throughout the City of Evanston seeking affordable housing. We are not influenced by outside 'developers and speculators' that have come to the S's Ward or the City for the purpose of land banking' properties and abusing our homes for a quick dollar. The reasons we formed the WRA are to gain control of our community and to implement a community vision in the troubling areas of housing and economic development. Today we are taking another step to provide our community some badly needed affordable housing. We have attached some of the community's views on the subject of affordable housing. The WRA intends to create a Land Trust. The Community Land Trust would complement the citywide comprehensive goal on housing. We feel that a Land Trust would enable our camrtnmity to create affordable housing for low-income and moderate -income families for the long term. In addition, we feel this is an opportunity in which we can begin to create an opposm pity for community employment for many of our individuals that find themselves standing on the corners, without an education and no legal form of employment. We have chosen the name Citizen Lighthouse Community Land Trust, (CLCLT) for this new organization. We are seeking funds to cover the fees of the consultant that will be providing technical assistance in the formulation of the Community Land Trust. The costs of the consultant, however, may be waved if their organization, institute for Community Economics, receive their anticipated funding fmm the US Housing and Urban Development Department. We will also be seeking funds from the City as wrll as other organizations and institutions both for operations and funds to purchase property. We expect to have a proposal ready in the next few weeks. We appreciate your assistance in helping solve some of the housing needs here in Evanston.". Ms. Ester said she would talk more after comments from Tina Galbreath and Alderman Joe Kent. Tina Galbreath spoke as a member of W.R.A., saying she has participated in neighborhood planning group meetings for a past few years. She said efforts were revealing and confirmed the group's concerns and convictions for improvements for 5s' ward. Not all people attending the March 20, 2003, Evanston Housing Commission Minutes 3NL+4f r Page 3 of 8 planning meetings were residents. but represented a broad mix of participants. They outlined threats, opportunities, and concerns including housing. She said she knows concern for affordable housing is discussed throughout Evanston. She cited the example of her son-in-law who works in Evanston, but commutes to Schaumburg because it is more affordable and is an active community participant there. She said that we want youth to consider Evanston and promote the diversity that can be one of our primary assets. Young professionals should be encouraged by a sense of community. We want and need to have residents who are vested in the future of Evanston and protect that element of diversity that we said we want. She asked the Commission to please consider their proposal to go forth in developing this plan for affordable housing. She said that today we're at war and will spend billions for requirements outside of our country. We know our need for homeland efforts for security. She said providing ample shelter for Americans should be a piece of cake, but unless we build a better mousetrap it will never happen. Collectively we denounce dictators and they need to be trapped, but dictators come in many forms, and are positioned to pounce and take as pure greed. Either we should be honest and own up to false lip service for nodding at affordable housing but doing nothing, or put our heads together, collaborate and plan. She said the young men and women soldiers overseas belong to all of us. We should be ashamed if they can't afford to live in Evanston. Let's show compassion for our own as a high priority. A Community Land Trust can be a plus, a positive statement of our intent for inclusion and rebuilding. Mistakes of the past should be just that, and not all programs are for all people or offer the best for helping people to be independent and capable of contributing to their future and Evanston's. We hear of successful land trusts in other cities, why not Evanston? Joe Kent, 5's ward alderman spoke and said he was pleased to be at the meeting with members of the Westside Residents Association. He said it is a community of people, some who belong to block cubs or not, some involved or not in politics, but aware our community has the potential to change and is changing. They came up with the land trust idea and could work with the Housing Commission on collaborative ideas if necessary. He said that from an aidermanic standpoint, the 5a' ward is practically the only inclusionary housing the City has. He expressed concern about continuing to build one bedroom condos for $300,000 and bringing people in for small condos. Later, he said, you'd be talking about looking at certain affordable sections, like the 5d ward , that will become starter homes for those individuals. If those homes are good enough to become starter homes for those people coming to Evanston, which we want to see, then they're also good enough to keep affordable. We think a land trust will be able to do this. We in the 5`s ward, in taking this stand, want to encourage affordable housing ideas that get to low, low income, which we never talk about. For example, he questioned how affordable the new construction at 1916 Darrow is at S 175,000, although for new construction it is unique. He said they have a list of people with good work history and know this can be done if we create this opportunity. In the past we've been successful getting young men involved in the sewer project, where they got training, learned a skill, and could then get a union card. He said the majority of the W.R.A. that are part of land trust actually live within the community. So they're not planning something for the community, they know what they need in the community, and it's easier to sell to the residents who are there. So for many reasons he said he supports W.R.A. and the land trust. He noted there are 28 buildings vacant and boarded up right now. He said we would be happy to look to take on some of those buildings and work our way through them to make them into affordable housing. March 20, 2003, Evanston Housing Commission Minutes Page 4 of 8 Robin Snyderman Pratt asked for more information on how the community land trust would work and how they would use it on boarded up buildings. The goals and ideas are what we want to hear, she said, we're just curious how it would work. Alderman Kent said he is still learning about the finite items of the land trust and others who have been in the process longer would speak to that. He said a land trust stops the community from being under Beige from developers who have no good intentions, purchasing our homes, not making them affordable, putting in maybe $25,000 worth of work, then renting them to residents on section 8 for S1,000 to $1,200 a month. This isn't affordable housing. It doesn't allow us to help our seniors who are losing their homes due to predator, lending or passing away and their children are not able to fix them up. A community land trust creates a protective shield that protects the diversity of the community, protects the character of the community and at the same time moves forward and makes available affordable housing. Judith Hurwich asked why they chose a land trust as an option, and how will it work in acquiring the property. Will the land become pan of a trust and people rent from the trust? Mr. Kent said he sees houses becoming part of the land trust and being acquired by the W.R.A. to be a part of land trust. There are also opportunities acquiring these houses yr-ill present. For example, with a single family house, you put people in the community back to work to use a skill, and that house can be a lease -to -own, or provided to a single parent family within downpayment or security deposit. He said there can be ways to cut corners, such as with two flat homes for families, who would be eligible to purchase but have credit glitches. A 2-flat can provide the structure and support for that new family moving into the house because homeownership is a big step. With the rental unit, you can begin to pick up some of the low income persons. A lot of the problems that we have in our community usually result from a credit glitch that will prevent people from getting a loan from the bank, or not having the downpayment. He said the only thing now that addresses low income residents is section 8. Ms. Snyderman Pratt asked if they are at the point now where they've asked I.C.E. to come in OW map out and plan. Mr. Kent responded yes and that is where technical assistance comes in. Sari Ashmore Diggs said she's been tooting this horn, and earlier questioned the developer of 1916 Darrow how poor people could afford that new construction. But, she said, those are the terms and we've concurred we have a need to do something, and talked about maybe even the City purchasing some board ups and trying to do something about them. She said she would like to be involved and come to the land trust meetings. She said she is a 5's ward resident and is vested in the community. She didn't have any idea they would be doing all this and would like to know more details on what you're talking about, and how the acquisition works. A member of the W.R.A. said they would like to see her and as far as the land trust and acquisition of property you could look at the land trust as an octopus. Acquisition of property is the hub, from which the tentacles reach out. She said they talked about the asset based resources of the community. When you look at make-up of the community, the community residents have assets which can be developed, she said. You use the acquisition of property and rehab as a springboard to becoming productive citizens and having the quality of life that we all seek. It can produce jobs, get people involved in the school district and make changes there, and can also auract other dollars for different things. It's not just rehabbing houses. We're talking about life changing things, to improve the quality of life of residents in low income neighborhoods. She said right now people come in and don't care about the character of neighborhood and what's important to the residents who have been there forever. They move them out, charge $200,000 to $300,000 and call it affordable, and no one can afford that. March 20, 2003, E%anston Housing Commission Minates 'LgL*P f Page 5 of 8 Tina Galbreath of the W.R.A. said that at one meeting they discussed a candidate, a teacher in Evanston who grew up in Evanston. a single parent with four children, who can go to Chicago and receive considerable assistance in certain areas to purchase a home. It seemed ridiculous that she would have to leave Evanston. There was one house. It seems we aren't considering sufficiently all that it affects. She said there are many, many people who our decisions could change how they view how to continue living in Evanston. Ms. Snyderman Pratt said the discussion was convincing and the Commission was interested in next step proposals, how much land, how- much money, how many different sources can they help leverage. Alderman Kent commented that it looks to him that because houses in the 56' ward are affordable, there is property flipping. He cited a house on Asbury that was for sale for $145,000, was bought, had a little more work, sold for 5200,000, had a little more work in it, and then it was going for $300,000. He said the person never lived in it, he just owned for a year or two then flipped it over. He said the same thing occurred on Emerson and they did a story about it in the Evanston Express, where a local developer did a beautiful job of rehabbing what was a 2-flat, but it it's 5320,000 on the market. He said we have decent families right in the community that can't be a part of that wonderful structure. Ms. Ester pointed out their letter had an attachment with information information from Gail Schecter of Interfaith Housing, who is a mentor and noted that their efforts were not done in a vacuum. Ms. Snydemtan Pratt asked that rather than have her read the letter, because they are sold on the idea, they were interested in hearing the proposal. Ms. Ester said they are here to ask for S 1,120 to pay for technical assistance from I.C.E. because the HUD grata money isn't available yet. A consultant is meeting with them on May 28 at 3 p.m. The consultant for I.C.E., Mike Brown, also worked with Highland Park, and he goes around the country to work with communities to help set up community land trusts. Commissioners asked about the organization and the meeting, and Ms. Ester said the organization has been around for 30 years, and Mr. Brown would address a set a questions the group sent him. She said the $1, I20 would cover his preparation and transportation. They received a letter froth I.C.E. saying HUD money would be available for technical assistance, but since it wasn't available yet, they were asking community groups to pay for the trip. She said if the money came through, they wouldn't be here asking for it but would be coming back next time with a full proposal. Ms. Ester said they are working with other organizations who are mentoring diem. She said they are not just interested in the 5`s ward, but a city wide effort, and the South East Parents Association is also interested but could not attend tonight because of another commitment. The geographic area of the land trust would be the City of Evanston. She said they are looking to develop the Board and using information about requirements for HOME designated CHDOs. She said if there is space in the allotted governmental slots they would be glad to have the Housing Commission work with them. I.C.E. will be working with the W.R.A. to formulate a community land trust witha the City of Evanston as the geographic area. Alderman Kent said the immediate focus is the 5's ward and said with the 28 boarded up houses he mentioned earlier, he thinks they can have a significant focus to begin right there in the 5`s ward. If it comes out and works like they expect, he said, it will be worthwhile going city wide. Commission members asked when the money was needed. Ms. Ester said it wouldn't be needed probably until 30 days after the consultant comes. Ms. Snyderman-Pratt asked if their request was March 20. 2003, Evanston Housing Commission Minutes :3-# Page 6 of 8 that the Housing Commission support their proposal for S i 100 if needed because HUD money is not available on time. Ms. Ester said the group is coming to the Housing Commission, which holds the HOME funds, asking for S 1.120 from HOME funds to pay for technical assistance from I.C.E. Ms. Snyderman-Pratt recommended that they get a motion to support the proposal, and work with staff and the group after the meeting to figure out where it comes from. There was further discussion about the timing and what would occur if the HUD money was released in time to pay the consultant. Ms. Ester said if I.C.E. doesn't have funding at that time, the group has to pay it. If the consultant comes and HUD funding is released. I.C.E. won't bill the group and they would hold the money aside along with a second proposal for more funding. She said it's possible HUD would release grant funds in April. Ms. Snyderman Pratt said it was a slightly awkward position for a commission to vote on a reques# without a proposal or without having anything to review in advance. She said the Commission is supportive of the idea of looking at community land trusts, securing the services of I.C.E., and being on the cutting edge of this concept in the region. She said she was not sure what they could do tonight except vote in support of moving forward. She didn't think they were in a position to say yes to S 1100 without a proposal. A member of the W.R.A. said it was a request for payment for a consultant to come out for technical assistance, not a proposal. Ms. Snydennan Pratt asked staff about the mechanics about contemplating a proposal like this. Ms. Spicuzza said she thought the funds would have to come from the Mayor's Special Housing Fund, through a recommendation from the Housing Commission to the Planning and Development Committee and then get approved by the City Council. Ms. Ester said HOME dollars could be given to organizations for technical assistance. There was discussion about the approval process. Ms. Spicuzza said she also didn't think HOME funds would be eligible for this kind of technical assistance without being tied to a specific project. She said organizations have to go through a process to get designation as a CHDO before they can get operating funds. Ms. Ester said they are asking them for assistance to get to that process and the Mayor's Fund would take dollars Fran another program that is supposed to help low income persons. Judith Hurwich moved that the Housing Commission fully support this new development and seek funding for the consultant. She said they don't know at this point where they would get the money to help them. Ms. Ester said they don't need the check next week, they won't get a bill until 30 days out. Alderman Kent said it was his understanding that by the time that 30 days rolls around, they will have a proposal for the Commission and we can make it however they want to make it. With S150,000 he said they could pick up two houses and use whatever is left over to pay for the consultant fees. He said one of the reasons they are going for technical assistance is because every one in the group works. Ms. Hurwich said they are behind them, but they don't know wh c the money is going to come from. The motion on the table was seconded, and Ms. Snyderman Pratt said that what they're hearing is they'll come back with a more fully baked proposal and it will still be within their timeline. Ms. Ester said they would come back with a proposal with houses identified, how much they would need and the working mechanism of the community land trust. Ms. Ashmore Diggs said she wanted it to be clear that they am giving full support and commitment to try to find the money but are not saying it's a go. Ms. Spicuzza reread the motion, which was that the Housing Commission fully supports development of the organization and it will help them seek funding for a consultant and find out where to get the money for the consultant. Alderman Kent said their first step was letting the Commission know about their goals, and Commissioners said they like where the group is going. Along with doing that, he said, the other step was asking for money for technical assistance, and we understand what you just said, and we ,4' , - , March 20, 2003, Evanston Housing Commission Minutes '314-W Page 7 of 8 will be back with a proposal. But we didn't feel like we should come and slap on the table a proposal for a few hundred thousand dollars and we haven't even property introduced nor shown where we intend to go. The Commission voted 4 — 0 to approve the motion and thanked the presenters. Election of Officers Ms. Snyderman Pratt said they needed to fill the vacant position of Housing Commission Chair. There are currently six people on the commission. In response to a question, Robin Snyderman Pratt, the current vice chair, said she would be honored to be chair, but noted that she would not be able to commit to attending other important meetings s Mark Dillon, the previous chair, was able to do. She said it is probably good for the Commission to have some formal liason relationships to City Council, Plan Commission, and community groups as need arises, partly because she can't do it but it also keeps us all informed and engaged. Ms. Hurwich nominated Robin Snyderman Pratt as chair and it was seconded. The motion carried unanimously. Robin Snyderman Pratt then nominated Judith HunAich to be vice chair which was seconded. The motion carried unamiously. Ms. Snyderman Pratt suggested they do formal liason work, noting it would be good to stay in touch with the group who appeared tonight. Ms. Ashmore Diggs said she is a west side resident and had no idea of any of this and said she would be happy to be the liason to the West Side Residents Association, and their work specifically for the Community Land Trust. Ms. Hurwich said she will try to attend Planning and Development Committee meetings and would like a back- up. Staff will keep them informed of agenda 'stems of interest. ,age tonal Housing initiative Uadate Ms. Snyderman Pratt described this program which was mentioned at the last Commission meeting. She said the program's goal is to give a competitive edge to developers applying for the state's Low Income Housing Tax Credits who set aside some apartments for very low income people. By doing so, they'll earn extra points in the competitive tax credit process and also receive project based rental subsidies. So the projects are guaranteed Fair Market Rents and the very low income tenants only pay 30% of their income for rent. She said four such proposals will get funded from the most recent round. She said developers seemed interested because the proposal was downloaded 500 times, but there were not many applications. In the entire state of Illinois, only 30 multi -family proposals were received. She said projects are scarce because there is not a state housing policy and it is expensh a to develop in communities like Evanston. For the next round of proposals, they want to reach out to DuPage and McHenry Counties and also go to individual municipalities to see if they can offer similar to extra points in their competitive packages and then have control over tenant based rental subsidies. Municipalities could provide subsidies to encourage developers of multi family rental projects. Ms. Hurwich said Evanston has not had many rental developments, with the most recent being 1930 Ridge. Ms. Snyderman Pratt said it could also be used in rehab projects. She said she would like to nose this idea at the Task Force meeting. Sue Carlson, speaking from the audience, said she felt a problem with set -asides such as the proposed Rozak development on Clark is the 15 year affordability period, which is too short. She doesn't think that's in the best interest of Evanston. She asked what the affordability period term was on this program and Ms. Snyderman Pratt said it is ten years and can be renewed. Ms. Ashmore -Diggs said you have to be careful not to interfere with the covenants, conditions and restrictions on property, and you don't know what will happen 10 years from now. Ms. Carlson March 20. 2003, Evanston Hooag Cowainion Minsta Page S of s said she thought the beauty of a program like a community land trust is that it makes affordable housing in perpetuity, and why should a community not desire that. Ms. Ashmore Diggs said it becomes an issue of who runs it down the road, when people more on and times change. There was no new business or other public comments. The meeting adjourned at 8:30 Respectfally submitted, Donna Spicum FINAL APPROVED EVANSTON HOUSING COISI ISSION MEETING OF APRIL 24. 2003 Members Present: Rob Grossinger, Judith Hunti ich, Robin Snyderman- Pratt, Chair Members Absent: Robert Brooks, Phil Levis Staff: Donna Spicuzza. Housing Planner, James Wolinski, Community Development Director Others: David Price, Community Investment Corporation: Betty Ester, Richard Girard, Frances Seidman CALL TO ORDER Without a quorum present, approval of the March, 2003, minutes was deferred. Community Invettment Corporation and Board -up Discussion Before hearing from David Price of CIC and his experiences turning around boarded up buildings, Robin Snyderman Pratt asked James Wolinski, Director of Community Development, to update the Commission on the board up issue in Evanston. Mr. Wolinski said board ups occur in all municipalities and Evanston is no exception. but board -ups seem to be increasing. He said there are many buildings are boarded, such as due to a fire or the building is unsafe. He said in the last few years more houses were boarded because the property was in foreclosure and no one was living there. Staff is concerned that criminal, anti -social behavior will occur in vacant properties and the City will board the entrance ways and First floor. He said they are making some progress, but not enough. Last year at this time there were about 25 boarded buildings, the majority on the west side, and no%v there are 15 or 16, still mainly on the west side. Mr. Wolinski said the problem is finding who owns the building because many are held in trust. or owned by absentee landlords or willed to children who don't live around here. He said boarded buildings, even if they are in good shape. make the neighborhood look blighted. The City moves quickly to board, especially if there are complaints. so that gang activity and drug sales don't take take place in the buildings. He said several aldermen have talked about it for years and have different ideas, but they have not come to any conclusions on how to solve the problem. Mr. Wolinski said they are considering an ordinance that would allow the City to demolish vacant buildings after a pepriod of time, but a court case in Lake Villa in Lake County has called into question the municipality's power to condemn in those situations, and it hasn't been sorted out yet. Staff has proposed requiring building registration so that the Cin can do an inspection. The City has also looked at alternatives to plywood boarding. but they still give the appearance of a derelict building. He said the City has been successful in getting some rehabbed properties back on the tax rolls, and is also working %%ith Econ Housing Group, which recently knocked down a boarded up house on Lyons to build a duplex with each unit selling for S175.000. He said the City doesn't have enough staff to go after owners and do intensive searches. Rob Grossinger asked if he knew what banks were involved. noting that in Chicago's Gage Park neighborhood where there are numerous vacant houses, most are controlled by out of state banks that are virtually uncontactable. Mr. Wolinski said that is the case. Judith Hurwich said the Commission discussed this issue two years ago and tried to come up with some program, but had the same problem in contacting the banks. She said at least it is a plus that the number is down April 24, 20 3. Evanston Housing Commission Stieotts Pnee 2 of S from last year. Mr. Wolinski said the concentration on certain blocks from Iasi year has been eliminated. but there are other vacant buildings that take their place. He said the longest time a property was boarded was a couple of )ears and the City has not used eminent domain to take properties but that may be an option down the road. The Cit% prefers to provide financing for someone else to rehab. rather than doing the rehab themselves but sometimes it is a problem if people buy them. do minimal work and dump them. %lr. Wolinski said staff is proposing requiring vacant buildings to be registered so that the Cite %%ill know who owns them, and this model has been used in a number of communities. Robin Snyderman Pratt then introduced David Price from Community Investment Corporation (CIC). Mr. Price said Evanston is doing a great job regarding board ups compared to some other areas. He gave some background on CIC, a not for profit organization started 25 years ago by savings and loans and banks. CIC provides financing for multi -family rehab in lower income neighborhoods, and is not regulated like banks. Many of the problem buildings they attack are boarded up or vacant. They are now working on ones that had been boarded up 15 years. The City of Chicago provided grant money to CIC to help with the challenging buildings that require substantial rehab. Although the buildings in Chicago may be 80-90 years old, they are structurail), in good shape, unlike some vacant properties in some suburbs. built in the 60's or 70's, that are not as structurally sound. He said grant programs allow them to lend as much as 100% of the value. He said owners of apartment buildings are easier to find that that of indiv idual homes, and they can start negotiating price. Mr. Price suggested the City might have some success identifying single family owners when a property is in foreclosure by attending foreclosure meetings, seeing the attorney representing the institution. and then following the track. He said that takes time and efforts, and wondered if students at Northwestem Law Department might be able to help track down owners on a volunteer basis. He also said they could explore the back tares, but noted that many buildings with delinquent taxes are redeemed before the), go to deed. CIC secures vacant buildings by boarding them up even though it doesn't look nice, because of the concerns about vandalism, criminal activity, and breaking in. He said some of the developers they've worked with do artistic board ups. He doesn't like to see property tarn down from an affordable housing point of view. because it costs so much more to build new, although it may harder to do with single family homes. If the buildings require a lot of rehab the City may have to back up the loan with HOME funds because the developers are in the business to make a profit. He noted that with fewer community banks, decision makers may not be in the local community, but people in branch banks help with developer contacts. Mr. Price said security is also an issue on vacant lots where buildings were torn down, and noted that developers also like to have a decent size lot to build Five or six homes at a time CIC is involved in a pilot program in Chicago, where they provide rehab loans for large apartment buildings on the corners and `neighborhood Housing Services provides loans for the one -to -four units properties in the middle of the block. The City provides matching grants for exterior improvements such as windows, roof, security, and porches. CIC requires developers to address code issues as well. With the grant program, they can get developers $30,000 in grant money for $60,000 worth of rehab. The grants are for five years to discourage flipping. They used up all the grant funds in Woodlawn, have not been as successful in Bronzville, and another pilot program was approved for East Garfield Park. April 24, 2003. Evanston Housing Commission Minutes Page 3 of S Mr. Price said to make rehab projects feasible you ha►e to lo►►er the acquisition costs. perhaps by getting the mortgage holder to accept less or buying back taxes. Some of the sub prime lending going on in recent years contributed to the foreclosure problems. and he has seen situations where the homeowners build up equit}. but sub prime lenders call and talk them into new loan to pay off credit cards or help out a son or daughter, and the owners get into debt and it's all fees. He suggested working with the foreclosure lawyer. finding the bank. then sit do►►n with them and try to punch holes in the loan documentation to negotiate price. He said Household Financial just turned over 125 homes acquired through foreclosure to NHS as a result of pressure from ACORN. Out of state lenders don't know Evanston. he said. and it's hard to handle that situation, except to try to get hold of them and negotiate. Mr. Price also mentioned that CIC does landlord training program for two -flat owners, and one scheduled at Loyola. CIC would be pleased to do one in Evanston for a group. Robin Snyderman Pratt thanked him for his presentation. Mr. Wolinski commented that it would probably be a good idea to present the vacant building ordinance proposal to the Housing Commission for their review and comments. Inclusionary Housing Task Force update Robin Snyderman Pratt said there have been two Task Force meetings since the last commission meeting. Two more are planned, with the next one scheduled for May 22. At that time they will be brainstorming on what ideas might work and what features people would like to see. She said at the last meeting the)- asked what makes more sense. to have a program based solely on government resources or private sector resources, and the answer was in middle. Rob Grossinger said he thought that conversation got fuzzy because it's hard to say exactly what are government resources. For example, he said, if a developer has to pay a tax for every five market rate condos they build, that will go into a fund, and that fund is a government resource that is extracted from private resources. He said that's different that saying for every five market rate condos you put up. every sixth one has to be affordable. Except from an economies of scale standpoint, he said that's better for Evanston because you can get more units than taking the tax and trying to build affordable units. It's two sides of the same coin. He said he hopes at the next meeting they don't talk about the Affordable Housing Tool Kit that was distributed, because that described government funded resources. He said that's a whole different discussion then asking what is the City Council's appetite for getting the private development community to build affordable housing as a component of market rate housing. Robin Snyderman Pratt said the City Council would also want to see what was the development community's willingness to go with that program. Why would a private developer willingly go along with that, Mr. Grossman asked. Ms. Snyderman Pratt said there's a demand out there. The developers don't want to shoulder the responsibility. The main affordable housing programs the City has are off to the side for the non profit groups and there's not an opportunity for developers to even negotiatate, w ith 1930 Ridge being the exception. Mr. Grossinger asked if a developer was doing a for sale condo deal and asked for HOME funds to write down the cost of some units for a sales price S150.000. isn't that an eligible applicant? Donna Spicuzza said it was. Mr. Grossinger said our goal is to be precise about what we're talking about. He said even in the spectrum of what you make a private developer do, there's a whole range of what are the carrots you'd want to throw in to make him do it. The extreme is "you'll never build another thing in this town unless 3% of everything you build is affordable." Moving along that continuum, there's "if you build, you can have 10 more units from a density standpoint and other sorts of incentives." But, he said, if we spend time focusing on what funds can be pulled together to develop April 24. 2003. Evanston Housing Commission Minutes Page 4 of 5 affordable housing separate from that develop activity. then we're going to get all mashed up. because that's a separate discussion. We should start with the idea that if the City Council would take a position that in eery market rate development opportunity, there needs to be an affordability component. then ho.% much will ..e ha.e to pay for that in terms of density bonus. cash payments. etc. He said the requirement could e.en apply to development as of right, we could change the rules. He feels the group has enough sophistication to keep it focused on that, but the tool kit through us off. Once you start talking about ways to raise money for affordable housing, he said, it takes away from the discussion of do we or don't ue .want something to take advantage of the private development that's going on. Betty Ester commented from the audience that while that was true, even with giving private developers density bonus or HOME funds, they are still for profit and you'll always have an underlying group that might desire a home but their income is too low to get there in that market. She said the community land trust consultant who spoke to their group talked about how to finance it, what to do for the land. where to find the money and provide a mortgage so that a low income person can buy it. She said it works both ways, while inclusionary zoning is good for moderate income but it doesn't do anything for low income. She said the only thing for that which she found in her research was a land trust. Ms. Snyderman Pratt said that Betty reminded them why they did the tool kit, in recognition that inclusionary zoning doesn't serve low income persons. But she agreed with Mr. Grossinger that this is a separate component. There was further discussion about the purpose of the Task Force and whether it would look only at inclusionary zoning or the broader issue of affordable housing, and how far they wanted to stretch the discussions. It was agreed that the next step was a conference call .with Housing Commissioners and aldermen on the Task Force to plan how to structure the next meeting. Other Business Westside Residents Association Group for Community Land Trust Betty Ester from the audience said the west side community group met with Michael Brown, the consultant for I.C.E. fir. Brown is with Burlington Development which implemented a community land trust in Vermont. She said he gave them a letter for the City to send back to ICE so they can provide technical assistance. She said the group will review its bylaws, and they have an Evanston resident who is a lawyer working with them on that. She also said they talked to George Gauthier of Evantson Housing Coalition about their project and he said he would like to work with them. She said that he brings expertise and experience in getting funding. She also said they are talking with Reba PIace Development Corporation and hope they can also work together. Emplover Assisted Housing Program proposal Judith Hurwich reported that she attended the Planning and Development Committee meeting on April 21 in which they approved the proposal for an Employer Assisted Housing program. Committee members thought it .was a good idea, although someone mentioned that $10,000 would not save much in monthly savings over the life of the loan. It was explained that borrowers can often support a mortgage but need money for downpayment. Alderman Wynn asked for updates on the program's progress and Richard Koenig from Housing Opportunity Development Corporation said he would provide reports. Alderman Newman was interested in getting police and Firemen interested to use the program to purchase in Evanston. James Wolinski told the Commission that while they are among the employees living the farthest away, travel is not a big issue, or they may prefer not to live in the community they're working in. Ms. Snyderman Pratt said the next step for the program is how to roll it out and get other employers interested. Next discussion, how to roll out the program, get others interested. April 24, 2003, Evanston Housing Commission Minutes Pate 5 of 5 Communications Commissioners were updated on proposed planned developments. Donna Spicuzza said the Plan Commission approved the proposal for Chicago and Main. The phased development proposal of six buildings for Ridge and Oak will be presented at a special meeting of the Plan Commission on April 30. She noted that it has an affordable component for 10% of the units. Ms. Hurwich asked about the sale of condo units and wondered if anyone expressed concern about overbuilding. Ms. Spicuzza said that issue isn't addressed at Site Plan and Appearance Review Committee but can be brought up at public meetings. Commissioners briefly discussed the sale of condo projects. Donna Spicuzza also noted that Commissioners received a draft of Neighborhood Planning Report for the west side planning area to keep them updated. Two Home buyers seminars for 1813 Lyons are scheduled for Tuesday, May 6 and Saturday, May 10. Different lenders will present information, along with the developer. Information will be presented specifically about the Lyons development and generally about the home buying process. The Commission briefly discussed whether it would be desirable if the efforts of the Housing Commission received more press. Ms. Hurwich mentioned that the Employer Assisted Housing program was not mentioned in the Round Table. One idea suggested was to interest a reporter in a specific project for a feature story. Public Comment Richard Girard from the audience pointed out that Task Force's latest version of the Needs Assessment which showed a table housing choice vouchers by census tract didn't include census tract 8102, which probably has the most. Ms. Spicuzza said she had just received the table the day of the meeting and staff was checking with the Housing Authority of Cook County to get corrected information. Betty Ester announced that they are trying to get people from Evanston to lobby in Springfield on May 6 as part of Housing Justice Lobby Day. They can get a bus from Evanston rather than leaving from Chicago if enough people can attend. The meeting was adjourned at 8:30. Respectfully submitted, Donna Spicuzza, Housing Planner 5RAFT EVANSTON HOUSING COMMISSION MEETV(G OF May 15. 2003 Members Present: Robin Snyderman Pratt, Chair, Judith Hurwich, Sara Ashmore Diggs Members Absent: Robert Brooks, Rob Grossinger, Philip Levis Staff: Donna Spicuzza, Housing Planner, Stan Janusz, Assistant Director Community Development Others: Richard Koenig, Tom Roszak Quorum: There; was no quorum was present, so approval of minutes was deferred. Affordable Housing Set -side Proposal for 1100 Clark Tom Roszak of Roszak ADC and TR Ridge Partners spoke about a planned development, the Sienna, proposed for 1100 Clark on 2.75 acres at Ridge, Claris and Oak. He is proposing to construct six buildings of varying heights of 6. 9 12 and 20 stories, with 348 condominium units. Mr. Roszak said the buildings would have landscaping, terraces, and parking below grade. and on the first floor. They will offer over 30 different floor plans of one, two or three bedrooms using a modular approach, from 650 square feet to 2700 square feet with price points from S175,000 to about S700,000. The development will be built in phases over four years. Judith Hurwich asked why one building was going to be 20 stories and Mr. Roszak replied that in order to provide parking and landscaping, they need a certain density to pay for that. The proposal includes an affordable housing component, with a goal of creating a pool of affordable units for a certain period of time without permanently restricting units so as not to deprive buyers of the fruits of homeownership. He said they borrowed the element of a 15 year program time frame so that the benefits eventually fully vest with the homeowner but there are disincentives to selling outside the pool of income eligible buyers before the time period is up. The developer would offer a mortgage subsidy for 10% of the project or 34 units, in the form of a 15 year mortgage equal to 1/3 of market price of the unit. No interest or principal payments are due during 15 years for the original owner or subsequent income qualified buyer, under 8094 of median. Any time between 10 — IS years, if the owner sells to a non -qualified buyer, the owner receives 2/3 of net appreciation, but the second loan is repaid. Between years 10 and 15, the owner can stay or sell to qualified buyer and second mortgage runs until year 15. The owner is fully vested by year 10. Whenever the loan matures, the principal will be paid with interest, which will be the higher of 3% per year, or 113 of the net appreciation. If the owner sells to a non -qualified buyer before 10 years, the second mortgage loan is due and payable but the owner receives less than 2/3 of net appreciation, based on a sliding scale. The remainder will go to the City to fund other housing programs. Mr. Roszak said the developer is providing a mortgage pool of $2.6 million for buyers, and the deferral of interest is another source of private subsidy. In response to a question, he said the 34 units will be split throughout the project, roughly 101% in each building. He said they are proud of the program they came up with, and asked Richard Koenig to speak to an example of how it would work. Richard Koenig of Housing Opportunity Development Corporation said his organization is advising the developer, and he distributed examples of the cost to a buyer and the net appreciation. Using an average one bedroom unit that costs $210,000, the income -eligible buyer will have a S70,000 second mortgage, so the effective purchase price is S 140,000. If they provide a 5% downpayment, their first mortgage would be S129,500. At 60/6 interest, the monthly Housing Commission Minutes May 15, 2003 Page 2 principal and interest would be S776. The two bedroom example selling for $279,000, would have a second mortgage of S93,000 for an efTective selling price of S186,000. With a 5% downpayment, the first mortgage of $172,000 at 6% interest would have principal and interest payments of S 1000. Owners would also of course have to pay tax and insurance in their housing casts, but these examples would be affordable to people at 80% of median based on paying 30°/a of income for housing. Mr. Koenig also went through examples of the sham appreciation on the handout. If sold after the fast year, the owner would get 6.66% of the net appreciation, the developer would get 333%, and the City would get 601/6. He said the developer would pay the funds to the City. He was asked about situations where the owner sold for a lower price than the example or if there wasn't any net appreciation. In those cases, neither the owner nor the City would receive a share. They would have a method to appraise the units to see if it's selling at market rate. Historically over time, he said, values have gone up. The net appreciation schedule showed a yearly 3% increase. There will be a deed restriction on the title and a second mortgage. In response to a question, Mr. Koenig said the net appreciation model does work. He said HODC's re -cent project in Highland Park, uses limited appreciation which limits how much the owner gets back. This proposal is a unique model in that the developer is putting in the money. Mr. Janusz said that the Evanston Housing Corporation First Time Homebuyer Program has used the appreciation model since 1989 and it does work When asked what HODC's role will be, Mr. Koenig replied that it is ongoing and right now they are consultants. They may help with qualifying people or if people want to refinance. The developer will fund the affordable component and provide administration. Robin Snyderman Pratt asked Mr. Roszak where they were in the approval process, how they got interested in the affordable component, and if he had any advice or comments for the City about working with developers on such programs, noting that the Housing Commission's Inclusionary Housing Task Force is looking at this issue. Mr. Roszak replied they have had two meetings before the Plan Commission, and arc asking for a planned development and remapp'tng. Their next meeting with the Plan Commission is May 26. He said that he didn't have experience with affordable housing, but after comments about it from Alderman Jean Baptiste and from Rev. Norwood, he did some research and brainstorming. He said that the City must understand that for a developer to do this, thcre has to be a certain mass to be able to afford it because it is cutting some of the profit incentive. He said if they're doing 348 units, they can do 10%. If density is reduced, he said, it's not a linear relationship, but exponential. There has to be a certain mass to the project For smaller projects, 5% would be more reasonable. Judith Hurwich said she thought it was great program and applauded them for doing it and asked what would happen to the af3'ordability component if they weren't approved for the full number of requested units. Mr. Roszak said he couldn't do the project, because of the many hurdles the development presented, such as the need to provide 300 parking spaces for the office parking, putting the parking underground, the affordable housing and the landscaping. It would be a completely different project if the density were decreased., he said. Ms. Hurwich also asked if they got input from church congregation about the effect on the neighborhood. Mr. Roszak said they met with the pastor and said their concerns about parking would be met by the proposal Housing Commission Minutes May 15. 2003 Page 3 Mr. Koenig Richard said they wanted to show the Commission what was possible and asked the members that if they were in support of the project as something the City should back, that they talk about it and let the aldermen and Plan Commissioners know they think it is a good program. Ms. Snyderman Pratt said she wouldn't ask for a motion because there was no quorum. From the audience. Betty Ester asked if the City came into play with the first mortgage. She said since the first mortgage was for 30 years and the second mortgage was 15, what happens at year 15 if the owner doesn't sell. Mr. Koenig said the City was not involved in the first mortgage. He said the $70,000 loan is due at the end of 15 years, and theoretically there would be enough appreciation there so it can be repaid. Ms. Snyderman Pratt thanked them for presenting the information and thought that the proposal could be discussed at the next task force meeting. Vint Buildings Ordinance Information Stan Janusz, Assistant Director of Community Development, spoke to the Commission about a proposed ordinance regarding vacant buildings, noting that the Commission has previously discussed the issue of boarded buildings. He said there are proposals dealing with boarded buildings for review by the Planning and Development Committee, including an ordinance requiring the registration of vacant buildings. Mr. Janusz said Evanston has probably around l5 boarded buildings. In 2002, 29 foreclosures were scheduled for sale. Notice of foreclosure is public information, he said, but the proms can . take a long time and tracking it is difficult and requires a lot of follow-up. Often the owner leaves during the process, he said, and it can drag on for a Iong time while the building is vacant. Registration of vacant buildings tries to address that difficulty. Attorneys would have to contact the City when it goes into foreclosure, register the building as vacant, and update the process. The second part would expand the proposed ordinance to allow for inspection and condemnation of buildings that have been boarded or vacant for 30 days or more, and is patterned after a program in St. Paul, Minnesota. Mr. Janusz said the City boards a vacant building if an inspector reports that it is an attractive nuisance. They try to board in less obvious fashion, by putting boards on inside on the front of the building. They can get in to inspect buildings they board. Mr. Janusz said the proposal would allow the City to post an Intent to Condemn Notice on a vacant building if after 30 days no one fixing it. Then it becomes subject to inspection with violations cited that need to be fixed before it can be sold. Mr. Janusz said the Planning and Development Committee discussed the proposals briefly in April and it is on the agenda for May 19 but they might not hear it. He said he welcomed Commission members suggestions, advice or support for what they are trying to do. Ms. Hurwich asked what the downside was. Sara Ashmore Diggs said she thought the only issue was that it was more disclosure of private matters, but that vacant buildings do affect neighborhoods. Ms. Spice, said since the Housing Commission has been talking about solutions to vacant buildings, perhaps they can urge the Planning and Development Committee to look at this proposal as an item for consideration. The consensus of the group was that it should move forward. It was suggested that the summary description make note that it has been presented to the Housing Commission and meets with their goals and desires. Ms. Spictuza said she would let Ms. Hurwich know when it would come before the committee so that she can attend. Employer Assisted Housing Update Ms. Spicuzza reported that she has met with the staff from Housing Opportunity Development Corporation and are making progress on working out the program details, but there is nothing Housing Commission Minutes Stay 15.2003 Page d definite yet about when the program will start. Ms. SmAcrtnan Pratt asked about the City's role in reaching out to other employers. There was a question about whether outreach should be a separate letter from the City to other employers or in conjunction with other efforts. Ms. Ashmore Diggs suggested the discussion be tabled until there were more Commission members present. Request from Westside Residents Association for payment for ICE consultative services Ms. Spicuzza said this was a request to pay a bill for S1,170.92 submitted by the Westside Residents Association to the Community Development Department for technical assistance from the Institute for Community Economics regarding forming a community land tout_ Because there's no money for that in the City budget, Mr. Wolinski agreed it would have to be recommended by the Housing Commission to comic from the Mayor's Special Housing Fund. Commission members said that they previously voiced support of WRA's desire to look into a community land trust and get technical assistance, although it wasn't known at that time if fiords would be needed for the first visit. Ms. Snyderman Pratt asked if the Commission would recontumd that funds be taken from the Mayor's Special Housing Fund. She asked if we've soon the product because the City also wants to benefit from it. Ms. Ashmore Diggs said she was at the March 28 meeting and the consultant presented inforaudion. She said the land trust is not an easy process, but seems worthwhile, and will take a lot of dedic ation and work. Ms. Ester said that the consultant showed then how a land trust would work, how one would purchase a home. She said he will be coming back to provide hands on assistance and that the City sent a letter to ICE to support their request for technical assistance. The consultant will help the group start the process, with board training and laying out the strategy. She said future meetings will be paid through a grant from ICE. Ms. Snydennan Pratt said the product we're paying for was the consultant's time, not a document. She said at the end of the process if there's a set of recommendations that relate to the group which the City can learn from, then it's worth same City investment, especially since we're leveraging a lot more than we're putting in. Ms. Ashmore Diggs and Ms. Hurwich agreed. Ms. Spicumt reported that there was about S250,000 remaining in the Mayor's Special Housing Fund. The meeting ended at 8:20 p.m. Respectfully submitted, Donna Spicuax DRAFT — Not Approved EVANSTON HOUSU G COMINHSSION MEETING OF June 19, 2003 Members Present: Robin Snyderman Pratt, Chair, Philip Levis .Members Absent: Robert Brooks, Rob Grossinger, Judith Hurw•ich, Sara Ashmore Diggs Staff.. Donna Spicuzza, Housing Planner Others: Christie Dailey, YWCS, Kevin Foss, Connections for the Homeless, Betty Ester, Frances R. Seidman, Richard Girard Quoram: There was no quorum was present, so approval of minutes wmas deferred. HUD SuperNOFA Applications - Certirxation of Consistency Robin Snyderman Pratt said one of the jobs of Commission was to consider the submitted proposals to assess the needs being addressed against those identified in the Consolidated Plan, not to assess the proposals. The Continuum of Care reviews and ranks the four proposals submitted this year by two agencies. Christie Dailey of the YWCA said their application for S147,000 is to fund two additional apartments over two years in their existing program which provides transitional housing for victims of domestic violence. The proposal also would add a part-time children's counselor. She said the number of children served varies, but currently there are I I in the program. Mr. Levis asked at what point would there be enough units to fill the need. Ms. Dailey said she didn't know the answer to that question. Their program is the only emergency residential domestic violence program between Lincoln Park and Waukegan, and one of 2 between the lake and Elgin. She said they were only adding two more units, because that was the most they could handle with current full time stalling, given the funding available through the Continuum's SuperNOFA. She said this is their first application for supportive housing finds. Ms. Snyderman Pratt said the Commission heard a presentation on the regional homeless needs assessment, and this project was clearly something they should support. Staff gave an overview of the three proposals from Connections for the Homeless since their representative hadn't arrived yet. A proposal for $336,922 is a three year renewal of their Entry Point program, which is an outreach effort to chronically homeless who traditionally don't seek services, to try to bring them into the system. The next proposal for S 137,294 would help fend a Homeless Management Information System over three years. This is a new HUD requirement for homeless services receiving HUD funding in order to determine the number of homeless being serviced. Connections volunteered to be the Lead agency for the system but it is really a collective proposal, for both hardware and software, and 5% administration costs totaling S7,000. The Homeless Task Force has been looking for over a year to determine what type of system to use. After looking at the number of systems, the Task Force chose Service Point, which is also used by Chicago. Agencies have expressed concerns about client confidentiality with any system. Ms. Spicuzzs said the proposal would meet goals in the Consolidated Plan to work on regional approaches and to help agencies be more effective. The system would help identify when people access more than one service. Commission Housing Commission Minutes June 19, 2003 Page 2 members hoped the system could provide help in performing gaps analysis in agencies' planning process. Connection's third proposal was for 5315.596 over three years for four leased units of permanent housing for people with disabilities who need support services and access to case management. Ms. Spicuzza said the Task Force Committee reviewed and ranked all the proposals and the Homeless Task Force will meet on June 24 with agencies to finalize the ranking. After the proposals am submitted, HUD requires a technical submission. Kevin Foss, Program Manager with Connections for the Homeless, apologized for being late and talked briefly about the proposals. He said that Enty Point provided an 800 number that people in need of housing or services can call, and staff actively go out in the struts. He said they also work with agencies and businesses that encounter homeless people in need so they would know how to direct them to services. For the H.MIS proposal, he said they have contacted service agencies to try to determine their equipment needs for a management system. There was some discussion about whether the system would be helpful in tracking access to services to assess how programs are working together to promote individual self sufficiency, and the need to anonymously capture information. Ms. Snyderman Pratt said it was clear the proposals were consistent with the City's Consolidated Plan. Ms. Spict, said she would submit the certifications to the Task Force. Employer Assisted Housing Program Staff reported that Housing Opportunity Development Corporation, the Metropolitan Planning Council (MPC) and the City met to work on program details and they are making progress on the Employer Assisted Housing Program. They hope to get the program off the ground in July or August. Ms. Snyderman Pratt said after a Tribune article about employer assisted housing programs ran, which mentioned the City of Evanston, MPC sent letters to universities and hospitals in the region. Someone from Northwestern University contacted MPC for more information and said they knew Evanston was involved so they wanted to learn more about it. Ms. Snyderman Pratt said the Housing Commission had hoped that by starting a program, even though it would only serve five employecs, it could set an example to other employers, and that strategy is working. Inclusionary Housing Task Force Ms. Snyderman Pratt said she missed the last Task Force meeting, but Housing Commissioner Rob Grossinger chaired the meeting. Participants were asked for the first time what they imagined would work in Evanston. The spectrum presented went from government requiring all private development to provide affordable housing, to no private involvement and the City providing all the affordable housing. She said the Task Force members thought the situation should be in the middle, with incentives for developers. They were asked to think about what Evanston has to offer for the next meeting. Thursday, June 26. The Commission had hoped to have something to hand over to City Council in August, which may be difficult. She said they encouraged staff to brainstorm on incentives. They might also think about the use of HOME dollars. She said she was surprised the City rarely used all its HOME fiords and they may want to rethink how it's targeted. Betty Ester commented about a voluntary rather than mandatory set aside still being considered, and expressed concern that a voluntary program wouldn't reach very low income. She said for example it's difficult to sell the HOME funded single family house for 5175,000, because while a a housheold of four making $56,600 could qualify on paper, in actuality they are not taking home Housing Commission Minutes June 19, 2003 Page 3 that kind of money. Ms. Ester said if you're going to issue HOME dollars for development, then inclusionary zoning has to br mandatory. Ms. Snyderman Pratt said she was not opposed to mandatory inclusionary zoning, but wasn't sure she agreed with what Ms. Ester was saying. She said the main thing is that it's mandatory for a developer using HOME dollars to create affordable units. She didn't think a mandatory ordinance is needed to get developers to do more affordable housing using HOME dollars. She said the question was whether they can provide incentives, or do they need mandates? There are examples where voluntary set -asides can work, she said. She said when the Task Force comes up with recommendations, the Housing Commission needs to listen and decide which aspects they can carry forward and build on them. She was very impressed with the dedication of participants in the Task Force. Frances Seidman commented that she was troubled by looking at lower -cost units in high end project which she felt was a drop in the bucket. She said it would make morn sense to address the possibility of building a whole development focused on providing affordable housing for lower income people. Ms. Snydcrman Pratt said that's historically what Evanston has done, by supporting the community based non -profits, and even that is a drop in the bucket. She cautioned about expecting too much from the task Force, because Evanston supports other resources, such as the Continuum of Care and overnight and transitional shelters and supportive housing. The focus of the Task Force is to look at private development and how the City can piggy back on it to create more affordable housing. Ms. Ester asked what Northwestern University would do with a tax credit for employer assisted housing if they had a program. Ms. Snyderman Pratt said they could sell it like the University of Chicago did. Other Business Ms. Snyderman Pratt provided an update on state legislation related to affordable housing which has passed the senate and house and awaits the governor's signature and she encouraged people to e-mail the governor about them. Bill 2345 — states there should be a state housing policy that prioritizes needs of low income households, especially the homeless or those at risk of homelessness, seniors, disabled, and those who can't afford to live near jobs. In addition, all departments who are putting money into housing and human serivees, would work together for joint Requests for Proposals. Bill 2246 — provides a tax incentive to property owners in opportunity areas, which are low poverty and high tax base areas, if they rent to people with housing choice vouchers. Bill 625 — requires municipalities with less than 100/a affordable housing stock to have a plan to improve it. After five years, if developers come and are denied affordable housing proposals, they can complain to state. Staff provided an update on proposed planned developments, noting that the Plan Commission approved 1100 Clark, the six building phased development and it will next go to Planning and Development Committee. The developers for 605 Main held more neighborhood meetings and the project will probably appear before the Plan Commission in July. It does not include an Housing Commission Minutes June 19. 2DO3 Page 4 affordable component. Ms. Spicuaa said the City Council passed a moratorium on tear downs in the a ward in order to look at zoning issues regarding tear downs and new construction of large houses. One issue to be looked at is how the zoning code determines building height. Also, then; will be a discussion at the next Planning and Development Committee regarding a proposed moratorium on development other than single family housing in the 5* Wand. The next Housing Commission meeting is scheduled for July 17. The meeting ended at 8:00 p.m. Respectfully su b mitted, Donna Spicnzz2 l ..4 . �.:. � .irs � yr ��• .. tr �r � •r, � .=Yi Gry of Evanston July 11.2003 EVANSTON HOUSING COMMISSION NOTICE OF MEETING CANCELLATION The July 17, 2003 meeting of the Evanston Housing Commission has been cancelled. The next meeting will be Thursday, August 21 at 7:00 p.m. in Room 2402 at the Evanston Civic Center. If you have any questions about the Evanston Housing Commission, please call the Planning Division at 847-866-2928. Inclusionary Housing Task Force Notes from Meeting #b Thursday, July 24, 2003 Task Force Members: Robin Snyderman Pratt, Chair, Rob Grossinger, Patricia Vance, Thaddeus Lennick, Sharon Bowie, Phil Nyden, Steve Bernstein, John Heimbaugh StafDTochnical Assistance: James Wolinski, Community Development Director, Donna Spieuzza, Housing Planner, Nick Brunick, BPI Robin Snyderman Pratt called the meeting to order and gave a brief recap of the last meeting, noting that the group agreed that there should be a mandatory yet -aside requirement for projects seeking major zoning relief for Planned Developments. John Heimbaugh referred to the notes from the last meeting and asked for more information relating to Mr. Grossinger's comments on land trusts. Mr. Grossinger said a land trust separates the improvement on land from the land itself, which is owned by a Land Trust whose mission is to keep the improvements affordable. He said the land trust continually enters into leases on the improvements and is in effect a deed restriction. Ms. Snyderman Pratt said Alderman Kent is working with a group on a Land Trust. Mr. Nyden mentioned a land trust instituted by the City of Albuquerque which he recently visited and said most land trusts are administered by non-profit entities although they can be public/private, and that they are done in places where prices will continue to spiral out of affordability. Alderman Bernstein said that Alderman Kent is trying to preserve property in his ward for people to say in their homes. He asked if, without a subsidy, it is already too Iate, because the residents can't afford market prices, especially if they are living in rental properties. He noted that a land trust would have to pay fair value and asked where the money comes from, and he doesn't think there's anything affordable left in this town for the people we're trying to serve. He then cited a set -aside example where a developer proposed 10% affordable housing but it would require a $50,000 downpayment. People at 80% of median couldn't afford that, he said. He thinks the goal should be to have a fund for subsidies and mentioned another example where the developer was required to pay a percentage to the school district, based on the value of the building permit. He felt that could work for Evanston because the costs are known up front, although he doesn't want to put it all on the developers. He also repeated his concern that there might be a stigma attached to set -aside units. Ms. Snyderman Pratt said that a mix of 80% market to Z0°/v affordable is common and has a long history, and can be a positive thing for the households in the affordable units. Mr. Grossinger said he didn't think it has a negative psychological effect, but there's only so much new developments can do with set -asides to serve low income populations. He said if their goal is to benefit people below 50% of median, they won't be able to afford set -aside units. He said the fairest way to take advantage of property appreciation is to have a transfer tax on sale and an impact fee on building that go into a subsidy pool. Mr. Heimbaugh said the benefit of a land trust was that it created hard assets in perpetuity, whereas money allocated just for subsidies would continually require more money to maintain the subsidy. He said trust funds should focus on both the hard assets and the subsidy side. Mr. Nyden- said there's morn than one tool that can be used. You can establish a set -aside or payments in July 24, 2003 Task Force. Page 2 lieu, but you won't have the money right away. That's -A hen you start to think about a land trust or doing multi -family in a trust fund area, he said. Mr. Heimbaugh said He're talking creating a comprehensive plan for affordable housing in Evanston, with a physical component identifying where you might want to target or preserve. It could be two or three flats, or vacant railroad land. Then a financial plan is needed, he said, such as set -asides in large PU©'s, which would need an administrative component, and you would need subsidies, perhaps funded by a community trust fund. He said as a developer he pays impact fees all the time and has no objection to that as long as they're not exorbitant. Impact fees could go to the trust fund. Ms. Snyderman Pratt commented that they were talking about both a community land trust and a housing trust fund, and then suggested they tn- to come up with some inctusionary strategy. Mr. Brunick distributed a draft program for discussion purposes based on ideas from the last meeting. It included a first draft of policy statement to encompass major goals for an overarching policy statement about an affordable housing program. Members discussed the draft, made suggestions and came up with this revised policy staten at; The City of Evanston has a stated commitment to promote, produce, and preserve the full range of housing options for the diversity of people who live and work in the community. To maximize this objective, it is critical to be responsive to market activity by ensuring that private development also contributes to the City's goals of constructing or renovating a sufficient supply of housing affordable to the diversity of people who live, work and raise families in Evanston. The City expects far -profit and non-profit developers to participate with the City in efforts to meet the community's needs and will provide creative incentives and subsidy programs to support such efforts. The City will target these efforts to households at or below 50% of the Area Median Income for rental housing and to households at or below 80% of the Area Median income for owner -occupied housing. Members then discussed the Summary of Program Characteristics that was distributcd, with eight program characteristics listed as starting points. 1. Percentage of Affordable Units Set -aside 2. IneomC Targeting 3. Threshold Number of Units subject to ordinance 4. Affordability Control period 5. Resale Considerations Under the Affordability Control Period 6. Options In -lieu -of Building Affordable Units On -site 7. Affordable Housing Provider 8. Scope of Ordinance's Application Mr. Grossinger asked how set -aside programs in other jurisdictions work if, for example, a 2 bedroom unit with a market rate of around S300,000 would need to have an affordable price of S175,000. He wondered if the developer has to take a large hit and didn't think the developer Julp 24, 2003 Task Force. Page 3 would take a six figure sale loss. Mr. Brunick said he'd look into some examples. Mr. Grossinger wondered if the Cite would get a bigger bang for the buck by having payment -in -lieu requirement and going on a fairly aggressive preservation project outside the downtown, unless as public policy they want to see more diversity in downtown buildings. Ms. Snyderman Pratt pointed out that the draft program gave the pa►ment-in-lieu option to the developer. Mr. Brunick said it could be decided by the municipality on a case by case basis. Mr. Grossinger said that weighing density bonuses as an incentive gets complicated because it's not so much an economic issue as an aesthetic, quality of life question. People agreed, mentioning things such as police, roads and traffic lights that are needed along with increased density. People briefly discussed whether a formula could calculate the set -aside required based on density, but Mr. Nyden pointed out formulas are debatable and it might be better to provide options. Members then discussed the affordability control period, suggested as 40 years on the draft program. Mr. Brunick said there is case law that supports a 40 year period. He said that for -sale developments, where affordability runs with the land, require City administration. Some cities make the affordability period shorter on for -sale projects than rental projects, and mentioned alternatives such as limited equity at resale. Mr. Heimbaugh said he learned from sonic reading that in California the affordability period has been shrinking on for -sale for -sale units because administrative costs are a burden on communities and they've been attacked in coups. Mr. Brunick said in Massachusetts they've actually extended them and Montgomery County has gone from 10 to 20 years, with some options on how to handle re -sale, but he said there's no question that it takes local administration. Mr. Nyden said if the City is investing its resources, it should get back substantial resources to invest back, but you don't want it to be another way of speculating. The City should preserve its resources, he said, although there won't be millions in it right away. Mr. Brunick said the community land trust model is good for handling for -sale and long periods of affordability and can free the City from administering it. Mr. Grossinger wondered what the ratio of for -sale to rental developments is likely to be in the next five years. It was noted that there have only been perhaps two rental developments in the last ten years, although that may change as interest rataes go back up. Alderman Bernstein wondered if there's enough land for development and mentioned boarded -up houses. James Wolinski, Director of Community Development, said there have been 69 foreclosures in Yh and 2 d wards in past 12 months, mostly among long-standing mortgagees. He said fees in Evanston are high and property taxes, water, sewer, and utility bills add to homeowner's costs. He also noted that in making set -aside units affordable up -front, you also have to consider whether the targeted group can afford the monthly homeowner assessment costs Participants discussed income targeting of 50% for renters and 801/4 for owners. They talked about the percentage set -aside and threshold number of units. Mr. Hcimbaugh was concerned about the low threshold of 5 or 1 Or a threshold. As a developer, he's not going to build 10 units. Those may be smaller townhouse projects in neighborhood, he said and are inherently less expensive projects, not like projects Optima builds. They don't have heavy condo assessments so can be more affordable. He said if people doing those kinds of projects would have to take a SI00,000 hit on 2 out of 10 units, what was a 15% profit margin becomes 101/6 profit margin and no one wants to take that kind of risk. Jule 24, 2003 Task Force. Page 4 Mr. L.enick wondered if those smaller projects w ere inherently more affordable, compared to what they're displacing or for their neighborhoods. Patricia Vance said that they are talking about development city wide and thought the downtown was almost totally saturated so people will ha►e to look elsewhere. She said the scope should be city-wide, not just specific geographic areas. Sharon Bowie asked about the impact of affordable housing placed in neighborhoods, wondering what happens if they become rental units with tenants who don't have the same vested interest in the neighborhood as owners. Participants wondered if they should consider a tiered approach for different number of set -asides based on number of units. They looked at the proposed set -asides of 10% for 10 — 50 units, 15% set -aside for 50 — 100 units and 20% set -aside for more than 100 units. Bcfore determining that, participants wanted to discuss possible incentives because it was hard to say what set -aside would be acceptable without knowing the trade-offs. Mr. Brunick asked the group to discuss some policy choices about suggestions for the control period, in -lieu -of options, and an affordable housing provider, an agency which would have the a right of first refusal on resale of set -aside units and could manage them as affordable rentals. Mr. L,enick said as a general rule, most homeowners associations have issues with rental, and often amend the by-laws to address that" The discussion on this issue touched on the manpower for administration, whether a targeted buyer could afford on -going costs without subsidy, and the desirability of mixing owner -occupied and rental units in one development, but they did not come to any consensus on Item 7. Mr. Wolinski asked the developers how developers would pay for set -asides, would they raise the price of other units or reduce their profit. He noted that if prices were raised to offset an impact fee, it could affect Evanstonians in a different income bracket. They responded that they prefer not to raise prices or reduce profit and it depends on the incentive package, such as density, but that typically impact fees may be $2,500 - $3,000 a unit, not $50,000 a unit. Mr. Heimbaugh said that you could raise a price from S349,000 to 355,000 in the same general market price and sell it, and pay the impact fee. Mr. L.enick said increased prices are the first place you go, but it's incremental. He also said many things drive up housing prices, such as regulatory, accessbility and sprinkler requirements. Mr. Wolinski said Evanston land costs also contribute to high prices and cited interest in Shur Brothers property and the land costs for the Dominick's site of S5.5 million for 2.5 acres. Mr. Heimbaugh agreed, saying that land costs in Evanston are about twice what he would pay in another good market, but that because Evanston is so uniquely located, its land costs will continue to escalate. He said people will continue to want to live here and continue to pay the price. Ms. Snyderman Pratt moved the discussion to possible incentives. Mr. Wolinski referred to a memo that was distributed and included a review of current tools for affordable housing, the biggest of which is the use of HOME funds. He said the City receives about half a million from HUD each year, which has been used primarily to purchase existing housing and provide gap financing, and also on an apartment building that was converted to affordable condominiums. He said it is the most effective tool, but the City merely supports a CHDO or developer with funds and does not do the management or the rehab. He also cited the First Time Homebuyer's program and various rehab programs which help homeowners stay in the community and fix up their pr'oply. July 24, 2003 Task Force, Page 5 Mr. Wolinski described a parking requirement incentive. which was raised last time. Requirements were recently raised so that developments must provide I/1'4 spaces for each new 1 bedroom unit- 1 '/2 spaces for each 2 bedroom unit and 2 spaces for each 3 bedroom unit. He suggested a reduction where only I space would have to be provided for each affordable 1 or 2 bedroom unit. This could possibly save $15,000 - S20.000 a unit, although he said they'd have to be careful about where it was allowed and also that the assumption that persons in that income bracket would only have one car could be explored. Ms. Bowie asked how developers could use HOME funds and if they can be used to set up a land or housing mist. Donna Spicuzza said HOME money could o to a community land trust for the purchase of an existing building or land but there would be time limits on when it had to be developed or sold as an affordable unit, so it couldn't be land banked. She said the funds can be provided either to the developer during construction or put in at the end to reduce the cost to the purchaser. Mr. Heimbaugh said he used HOME funds to subsidize the mortgage from IHDA on a rental project in Chicago, along with tax credits and TIF financing. The funds helped reduce the debt service so rents could be affordable. Ms. Vance asked for more information at the next meeting on what HOME funds can be used for and how allocations are done. Ms. Snyderman Pratt asked if them was sufficient HOME funds or other funds to commit to every deal. Mr. Wolinski said possibly, and also said that he didn't include TIF financing because the City Council and the school board are somewhat hesitant about more TIF's. Mr. Wolinski said HOME funds haven't been used recently because no CHDO's have come in with specific projects. He said the City also uses the Mayor's Special Housing Fund. which is down to about S250,000, but its only restrictions are those imposed on it by the City Council. He said that would be a place in which to deposit funds from payments -in- lieu. Ms. Snydetman Pratt said her concern was not so much with the available money the City already has, but other incentives. Mr. Nyden said he had been concerned about what would happen to payments -in -lieu and could see a connection to the Mayor's Special Housing Fund. Mr. Wolinski said another option was capital bond financing, which the City used in 1979 for affordable housing, but Mr. Grossinger said in today's market that source is of little value. Mr. Lennick asked if density bonuses were off the table because they were not mentioned. Alderman Bernstein said the City has provided density bonuses in Planned Developments and he would say nothing is off the table. He said, however that it's a function of specific areas and he would be reticent to create a schedule saying you could add density, rather it would be on a case by case basis. He said the Planned Development ordinance gives you the tools and the question is the give and take. Participants confirmed they were in agreement to allow either payment -in -lieu or construction of affordable units. Mr. Grossinger said they also established that some set -aside would be mandatory for planned developments. Ms. Snyderman Pratt suggested the proposed schedule of 100/9 and 15% sct-asides based on the number of units. Alderman Bernstein said he would prefer an impact fee that would apply to developments, whether or not they go through the planned development process Mr. Lennick said that a zoning ordinance is a statement of public policy, it tells developers what the City wants, and as -of -right development doesn't mean developers "beat anybody" in the language used at last month's meeting. Alderman Bernstein said the only difference is that the July 24. 2003 Task Force. Page 6 zoning ordinance is a dynamic, changing document. %%'}rays good today may not be good tomorrow because the character of the City changes, so you have to revisit it, he said, and commented on the difficulty of revisiting any ordinance. He said he is not chastising anyone uho comes in as of right and while the zoning ordinance is a tool, it is not static. There was discussion about negotiating incentives in a Planned Development and the uncertainty of the process. Ms. Snyderman Pratt said she would like to hear from the City about things they could offer consistently, like other municipalities that offer a menu even though all the menu items are not available for every deal. She said she understands that density is a hard issue but can't imagine it's never possible. She asked is them am other incentives that could be pursued deal by deal in addition to the potential constants. Alderman Bernstein said that every conceivable variation could be put on the table, but in exchange for what? He said historically the City has viewed development proposals from a zoning standpoint or their impact on neighborhood, rather than the financial impact on the City, other than expanding the tax base. Participants agree to have one more meeting. Ms. Sayderman Pratt hoped the City could beef -up the menu of incentives. She urged participants to focus on ideas that resemble inelusionary zoning, but didn't want to lose the concept of a preservation fund of some kind. Alderman Bernstein suggested the Housing Commission could work on a needs study for programs to use Community Development Block Grant funds, since people always say we noed more affor+dabk housing. The nerd meeting will be a joint meeting with the Housing Commission at their regularly schoduled meeting on Thursday, August 21. Respectfully submitted tlI u...► Jfl...i t,. �. 6 i J Cary of Evanston August 19, 2003 NOTICE OF MEETING CANCELLATION Joint Meeting EVANSTON HOUSING COMMISSION INCLUSIONARY HOUSING TASK FORCE The August 21, 2003 meeting of the Evanston Housing Commission, which was to be a joint meeting with the Housing Commission's Inclusionary Housing Task Force, has been postponed. The new date will be posted as soon as it is rescheduled. If you have any questions about the Evanston Housing Commission, please call the Planning Division at 847-866-2928. MINUTES Joint Meeting of the Evanston Housing Commission and the Inclusionary Housing Task Force Thursday, September it, 2003 Housing Commission Members: Sara Ashmore Diggs, Rob Grossinger. (also on Task Force), Judith Hurwich. Robin Snyderman Pratt. Chair (also on Task Force) Task Force Members: Patricia Vance. Thaddeus Lennick, Sharon Bowie, Phil Nyden, Steve Bernstein, John Heimbaugh Staff/Technical Assistance: James Wolinski, Community Development Director, Donna Spictzza, Housing Planner, Nick Brunick. BPI Call to Order Robin Snyderman Pratt welcomed everyone to the meeting and asked for a moment of silence in recognition of the anniversary of September I I, 2001 and in appreciation for being able to attend a public meeting. Ouroum and Communications There was not a quorum of Housing Commission members present so minutes were not approved. Donna Spicuzza informed the Housing Commission that the CDBG application deadline is Sept 12 and Housing Commission members will be invited to attend Community Development Act Committee meeting on November 4 when they review CDBG applications for housing programs. Sustainable Evanston Forum Suzanne Carlson. representing Evanston's Affordable Housing Future, asked the Housing Commission to co-sponsor the Sustainable Evanston forum on Affordable Housing on Thursday, October 23. She said they have been planning the meeting for six months and hope to be able to announce there's an inclusionary zoning policy in process. The intent of the meeting is to educate the public on the complex issues of inclusionary zoning, community land trust and housing trust funds which the Task Force has been studying as well. She welcomed everyone to attend and noted there would be a follow up meeting on November 13. to see if there is a link between property taxes and affordable housing policies. The four commissioners present felt co-sponsorship was appropriate and Ms. Smderman Pratt said she would call the other commission members to confirm and would let Ms. Carlson know of the Commission's decision. Incluslonary Housing Task Force Discussion. Everyone introduced themselves and then began to look at the Draft materials dated 9.15r03. Proposed Palm- Statement: Robin Snyderman Pratt reminded everyone the charge of the Task Force was to look at ways the Ciq could be responsive to market activity by insuring that private development also contributes to affordable housing; it is not meant to revamp the City's whole affordable housing policy. The group didn't have any comments on the Statement. Nick Brunick led the group through the proposed Inclusionary Housing Program Characteristics, which were written out to help the group focus on them and react to them. Set -aside: Proposed a minimum 15% set aside applicable to new construction, condo conversions and substantial rehabs of 10 or more units. It would apply to Planned Developments, developments needing zoning relief and as of right developments. The number could be rounded up or round down. 4 Income targttin , rental: at or below 04o ASH. for -sale: at or below 80°e. Owner occupied housing units should be affordable with no more than a I0° a downpayment. There were comments about the purchase price not taking into account an% homeos►ner assessments which increase monthh. housing costs. also that assessments aren't a fixed number and are not in the developer's control. ideas presented were to possibiy think about disersif} ing target population. e.g. some could be affordable to 80 - 100aa: or have a deed restriction keeping affordable unit assessments at a percentage of normal assessments. Nick Brunick said they could research that topic. These aspects of income targeting need fine tuning: assessments. and whether units in a for -salt development that were sold to City or non-profit could be operated as rentals housing affordable to s tr% low income. Cost offsets. lames Wolinski explained the menu of options for a developer to be able to include affordable units in the development: More units (e.g. affordable units not counting toward the density of the site.); Bulk bonuses such as increased height; Increased Floor Area Ration (FAR); increase in minimum lot area requirements; Fee waivers for building permit fees (some reduction in fees, not waiving the entire fee); No variances required to build affordable units; Reduced parking requirements. This array is for the 'task Force to discuss. Someone asked if it would be a matter of negotiation. Others said they hope it can be more definitive: it's critical for the developer to have certainty rather than go back into negotiation. In-lieu-cif-nrovisions. Developer can ask to pay a fee in lieu of building on site, fee determined by formula Per unit amount reflects cost of providing an affordable unit, could be written so it's able to be modified. Fees would go to affordable housing trust fund for units and create a revenue stream. Alternatively, they could request to build them off site or ask to donate land. Fees could be structured to create units in an equal or greater way than set -asides. Possibly the developer could automatically use fee -in -lieu if it's built in the downtown core. Control Period._ Rental and owner occupied remain affordable 40 years. Comments were that if the progtam's goal is equity building, revitalizing neighborhoods, or building wealth among groups that haven't had that opportunity, you may want to go less time on ownership. Rieht of first refusal. This gives the City or a designated not -tor -profit organization the option to purchase up to 1,3 of for -sale units at the affordable sales price, for example to operate as rental units. Discussion Set -aside Prooesal. John Heimbaugh suggested a sliding scale, noting the inherent advantage to building relatively small projects as affordable units and thinks it's important to encourage that kind of development. He thought the proposal discouraged it. One suggestion was for 100/a set -aside on 10-20 units; 15% set -aside on 21 -100 units 20a/o set -aside on more than 100 units. Mr. Ltnnick thought 20116 was a huge number and wondered if a developer would get the 20 units back in density. Members commented that the set -aside would be subject to other considerations, wondered if the cost offsets would open the door for non -affordable projects. The group discussed advisor or mandatory set -aside. At the last meeting there was concensus for requiting marWatoty for PD's and zoningg relief but now they were also considering as -of -right. Then was a suggestion that the language have a provision to ensure the intent was met and a developer didn't split parcels with 9 units each to avoid iL Mr. l.ennick questioned covering developments as of right. The group considered lower set -asides for as of right development. The Highland Park ordinance was cited as an example, which offers a I: I density bonus; for every affordable unit, the development gets an additional market rate unit. There was discussion how that works and whether a variance created by density bonus would be waived for as of right development. it was clarified that for example on a 100 unit building w ith 30 affordable units. the bonus would bring it to 120 units. not an additional 20 affordable and 20 market rate for 1.10 units total. Mr. Wolinski pointed out that an as-of-nz :t 1e%elop-nent in an R-� area could be 50 feet tall. but if it got a height bonus it wouldn't have to get approval from the Zoning Board of Appeals for a b story building. He said that takes the public comment out of the process for something that's going to be built larger. Alderman Bernstein said perhaps the% should do it so the net is the same. otherwise t+e're knocking out our 1993 zoning ordinance. Mr. Heimbaugh agreed this is the problem with as -of -right. you hate to deal with these other issues. The group considered a fee in lieu for as -of -right developments. Mr. N}den said if the City is going to work with private developers and encourage them to do affordable units, it has resources to give. He thinks as -of -right developments should be included and the impacts discussed. Mr. Heimbaugh said as a developer and architect he's aware of the architectural character of Evanston, and there's a public purpose in the physical character of the City. He said an extra story on typical walk ups would dramatically change the character of those neighborhoods and would gel tremendous local resistance, resulting in two public purpose goals in conflict. Mr. Grossinger pointed out they had not resolved whether the underlying policy was to diversify downtown development, or create more affordable units. !Nr. Heimbaugh said another inherent public policy goal was mixing market rate and affordable units, although he didn't know whether that was an explicit goal. He thinks it's a noble goal to create an affordable component and decrease the erosion of affordable units but he doesn't know if the units have to be in the mix. 41s. Bowie said she had concerns about creating an upper class ghetto in the downtown. The group discussed requiring payments -in- lieu for downtown development to create more units elsewhere, and discussed how land costs compared. They discussed providing options for lower income seniors who may be ready to sell their homes but don't have affordable options. Their housing could provide affordable opportunities for younger buyers. The group discussed who would benefit. wondering if these affordable units could meet the needs of people on a fixed income who want to stay in Evanston. Mr. tivdcn said that aging in place has been a long term issue and there should be different options for retired people to stay in Evanston. It was pointed out that many older residents Iive in the area surrounding downtown. Members observed that new development might push out from downtown. Mr. Grossinger wondered if affordable units would go to college graduates only temporarily in the lower income category. They discussed fees -in -lieu to support affordable units in other areas. They don't want the only affordable property to be in the 5� ward, segregating low income people. The group considered a suggestion to include as -of -right developments of certain size, say 100 units or more, because the cost of the affordable units could be amortized over more units. Mr. Koenig suggested using fee -in -lieu revenues to get at smaller projects. Mr. I-ennick questioned the rationale for the size delineation and said if you have development rights to a piece of land. you should be able to use them, without having a trade off. The group discussed impact fees or fees in lieu. There was a comment that if it applied to as -of -right the City just changed what the right is. Property owners will be hurt, because their propcny value will be impacted on parcels that are big enough to support the set -aside. They talked about exploring the option of fee -in -lieu for as of right development of a certain size. and above that level. require set -aside or fee. Mr. Srunick said there was a legal concern in Illinois about impact fm. You must show a specific and attributable impact from the development in order to have an impact fee. It's one thing to show new development brings in new kids and justifies the need for schools, but it's tougher to say because a developer builds a new building, we nerd more affordable units. Mr. Bntnnick said if you're giving the option, that's okay, but just requiring a cash pay meat is harder. He said if you structure it as a tax and not a fee, you don't need to make the connection between the effect and the fee. Mr. Lennick thought if anyone wanted to spend the time and the move% they could challence most impact fees. He said if you want the cash. the fee options should be attractive and more palatable than doing the units. Mr. Heimbaugh said the problem w ith as of right is creating additional density in areas that can't take additional density. He said zoning altot%s 50 unit projects in some neighborhoods such as on Chicago Avenue or Central Street. but additional density may still impact the neighborhood. Mr. Nyden said he was not convinced as of right development should be separate, and favored uniform requirements. Mr. Brunick noted it is always better legally if you apply it across the board. Trying to get a sense how people felt after the discussion. NIs. Snyderman Pratt asked for a vote on how many favored the proposal with changes: 10% set -aside on 10-20 units (PD's or require zoning relief): 15% set -aside on 21 —100 units 1PD's or require zoning relief); 20"u • set -aside with fee -in -lieu option on more than 100 units (including as -of -right) • may be 15 % - not sure. D. S. Seven people voted in favor, two voted no and one abstained. Commenting on references to the Highland Paris inclusionary zoning ordinance, Mr. Bnmick noted that it was 30 month planning process which also resulted in the formation of a community land trust and an affordable housing fund. He said while some felt these tools might be a way to slow down development, a large part of the community was serious about creating affordable housing. The group again said the set -aside requirements depend on what the city is providing, and noted that increasing density can be unpopular. Ms. Vance said the one -for -one unit is just an example, and doesn't have to be the incentive. They considered what other information could help in their discussion. Mr. Nyden wondered about what fees -in -lieu would have produced if they had been in place in recent )ears and what average fees were. Mr. Bnmick said $100,000 per unit was the high end, others were S 15,000 unit. which were usually found to be too low. Highland Park and Chicago for TIF or City -owned land use S100,000. He said they should try to figure out what it costs to produce an affordable unit to get a sense of where to set fee -in -lieu. They may be able to took at Evanston's permit data to do some scenarios of cost offsets. Mr. Wolinski told the Task Force there is room on the September 22 Planning and Development Committee agenda if they wanted to give an update as a discussion item and hear comments from comminee members. Ultimately the policy has to be the will of the Council. People commented that many citizens have concerns about creating more density. Frances Seidman in the audience asked if they needed data on who this affordable housing is planned for. Ms. Snyderman Pratt said there was information in the Needs Assessment and suggested Task Force members read it again before the next meeting. A study by the Metropolitan Chicago Information Center that looked at senior citizens in the future. indicating a strong market and high demand, was also mentioned. The group decided to meet again. Members will be polled on possible meeting dates after the Housing Commission presents its update to the Planning and Development Committee. MLNUTES EVANSTON HOUSUiG COMMISSION Thursday-, October 16, 2003 Members Present: Judith Hurwich, vice chair, Philip Levis Members Absent: Sara Ashmore Diggs, Robert Brooks, Rob Grossinger, Robin Snyderman Pratt Stale Donna Spicuzza, Housing Planner Call to Order. Vice Chair Judith Hurwich noted there was no quorum. Communications and Residential Development Update Donna Spicuzza presented a brief development update. She also informed the Commission that Community Development staff has been meeting with a newly incorporated non-prorn organzation that hopes to help eliminate the number of vacant and boarded up buildings on the City's west side. She distributed the Statement of Purpose and Commitment for The Evanston Community Development Association. She said that Reba Place Development Corporation, one of Evanston's CHDO's, is a participant and is bringing their considerable housing development experience to the group. The group hopes to start by purchasing a vacant building, getting low cost funding to do the necessary rehab, and then selling it to a low income purchaser. Ms. Hurwich expressed some concerns related to their slogan of "Christians Working Together for Affordable Housing and Neighborhood Renewal." Ms. Spicuzza said that faith -based initiatives are recognized by the government as a valued provider of supportive services and affordable housing development. She said just recently HUD regulations were finalized to ensure faith based initiatives can apply for HOME funds and maintain their religious identity. She said while religious beliefs brings members together in the ECDA to do the work, it would not play a part in their service delivery, and they would be required like any other organization rcmiving funds to be non discriminatory on the basis of religion and all the protected classes. Mr. Levis concurred. Ms. Hurwich said they wished the organization luck in their efforts. Ms. Hurwich then asked Betty Ester in the audience for an update on the Evanston Lighthouse Community Land Trust. Ms. Ester said that HUD accepted their technical assistance plan so they will be getting technical assistance through ICE. They are getting legal assistance from a non- profit organization to help then with their incorporation papers and business plan. She said information on community land trusts will be presented at the October 23 Affordable Housing Forum. Discussion of the inclusionary Housing Task Force Ms. Hurwich said she was at the Planning and Development Committee meeting on September 22 when Robin Snyderman Pratt and Rob Grossinger updated the committee on the progress of the Inclusionary Housing Task Force. She said they did a thorough job brining the Committee up to speed. Ms. Ester said the latest Task Force document did not include as -of -right development. Alderman Wynn asked whether an inclusionsary zoning policy would apply to developments as of right. Ms. Ester pointed out that the City is considering creating a TIF district on Howard Street and she �11 Housing Commission Slinutes May 15. 2003 Page 2 hoped the Housing Commission would recommend that affordable housing be part of it because it is in the CDBG target area. Ms. Hurwich said that was a good point. Ms. Spicuzza said she thought the Task Force was still discussing whether the proposed ordinance would apply to as of right development and said that Alderman Wynn also requested more information on whether other policies applied to as of right development, and if it works in cases other than when the developer comes in for a planned development. Ms. Spicuzza said she sent the Committee a copy of the Highland Park ordinance and inforntation on other policies around the country. Most of them include as of right. She noted that Alderman Wynn commented on density bonuses in the list of possible cost offsets and said she would have concerns about too much density in certain neighbohoods, and its impact. Ms. Spicuzza said this is still an issue the Task Force has to think about and how bonuses would play out in different zoning districts. She confirmed that the next Task Force meeting will be a joint meeting with the Housing Commission on November 20. The Housing Commission members did not have any questions on the Task Force's proposed inclusionary housing characteristics. They discussed the goals of the Task Force and noted that they wanted to produce something concrete. Ms. Ester commented that two areas are being targeted for residential development, the Howard arcs and the area behind Home Depot, when the developers might request an extension of the nearby TIF district. She asked how that would play with an Inclusionary Housing ordinance if it only applies to Planned Development and said the TIF already gives developers a bonus. She also said no one is asking developers the hard question of would they be willing to give up some profit to include affordable housing for the community. Ms. Spicuzza said the Task Force talked about whether affordable set -asides would be result in an increase in market rate units, and the response was that it would probably be spread out among them. Sue Carlson suggested the Commission look at the idea of an Affordable Housing Trust Fund, which was discussed at the Task Force, and look at how it all ties together as in Highland Park's ordinance. If Evanston does propose an inclusionary zoning ordinance, she hopes they think about how tiro Trust Fund could be part of it. The meeting ended at 7:45. Respectfully submitted, Donna SpicuzTa 3iL'ti UTES Joint Meeting of the Evanston Housing Commission and the Inclusionary Housing Task Force Thnrsdkr, November 20, 2003 Housing Commission Members: Sara Ashmore Diggs, Judith Hurwich, Robin Snyderman Pratt, Housing Commission and Task Force Chair Task Force Members: Steve Bernstein, Sharon Bowie, Richard Koenig, Thaddeus Lennick, StaMechnical Assistance: Donna Spicuzza, Housing Planner, Nick Brunick, BPI Call to Order Robin Snyderman Pratt opened the meeting noting it was a joint meeting of the Housing Commission and the Commission's Musionary Housing Task Force, and would be the last meeting of the Task Force. There was not a quorum of Housing Commission members present 2004 Calendar Donna Spicuzza referred to the 2004 Calenadar of Meeting Dates and important Holidays and noted there were no conflicts with the proposed Housing Commission meeting schedule. No commission members present had any objection to the proposed dates, so W. Spict, said she would provide the schedule to the City Clerk. She said that three new Commission members were appointed by the Mayor and confirmed by the City Council in November, and would hopefully attend the December 18 Commission meeting. Incnhionary Housing Program Discussion Proposed Policy Statement Robin Snyderman Pratt stressed once again that the Task Force was created to address one area of need, to try to capture private sector activity to help create affordable housing. She presented the Task Force with a small revision to the proposed policy statement, adding a statement that the City has a number of programs to promote, produce and preserve the full range of housing options for the diversity of people who live and work in the community. There were no objections. Proposed Program Characteristics: Ms. Snyderman Pratt and Nick Bnmick led the members through a discussion of the various characteristics of the Draft Document dated 11-20-03. Application It is proposed that the City require a minimum percentage of housing units in certain kinds of developments to be sold or rented as affordable housing. Percentage Set Aside The consensus from the last meeting was that the percentage set aside would be determined according to a sliding scale: 10-20 units 10% affordable set aside 21-99 units 15% affordable set aside >100 units 20% affordable set aside November 20, 2003: Page 2 of 6 Nis. Snyderman Pratt said the group had already said the set aside should apply to Planned Developments or developments in need of zoning relief. After discussion, a majority of the group but not everyone felt it should include as -of --right development. Judith Hurwich wondered if the proposal should apply to as low as five units, noting they had previously discussed that option. Members talked about how many units would be set aside on developments with 5 — 9 units, since 100/6 would be less than one unit. One idea was either make it one unit or a fee in lieu representing the percentage. Members discussed how cost offsets would work for smaller developments and Mr. Lmmick noted that increasing density might be impractical as it could be more difficult to add another unit based on land, zoning on small developments. They discussed whether all the affordable units had to be comparable. Mr. Brunick said other policies allow the unit to be smaller as long as it meets the City's building code, and others say the affordable mix of sizes should reflect the market mix. After a later discussion of the fee in lieu option, the members revisited the set -aside issue and , agreed to lower the threshold from 10 to 5 units: 5 — 20 units 10% affordable set -aside If the set -aside pcwAmmge comes to less than one whole unit, the developer would automatically. pay a percentage of the established fee -in -lieu of a set aside. Income Targefirg: The income targeting section was the same with the addition of a definition of what is affordable. Rental costs arc affordable if no more than 30% of gross annual household income is spent for rent and utilities, and homeownership costs arc affordable if no more than 35% of gross income is spent on mortgage, taxes, insurance and any association fees. Mr. Brunick said the 35% ftgum is in line with mortgage lenders' upper limits. In a later discussion, it was observed that if a rental building was converted to condominiums, the development would have to have the same number of affordable units for sale. Cost Offsets Ms. Snyderrnan Pratt said the Planning and Development Committee commented on offsets when the Housing Commission members updated them on the Task Force's efforts. She said the Committee members indicated they are ready to get a proposal and like the direction the policy is going but wanted more detail about in -lieu -of provisions. She said this seemed to arise from wanting to weigh the volume of funds in a Trust Fund against the desire to create diversity in downtown developments. Committee members also expressed concern with offsets that allow greater density or reduced parking requirements. Alderman Wynn recommended to Ms. Pratt that the Planning and Development Committee invite all Council members to a presentation using, BPI's power point presentation that was shown at the first Task Force meeting. The proposed Cost Offsets were revised from allowing developer to choose from all the menu options to allowing them a choice of two of the nine suggestions. Mr. Brunick said it lays out choices but provides a level of certainty for as -of -right developments, so they know what the outcome will be. He went through the options: 1. Density Bonus — for example one more unit allowed for each affordable unit 2. Increased height allowances - revised to limit this to developments in the downtown core -- allay concerns about too much height in the neighborhoods. 3. Increased FAR 4, Decrease in minimum lot area requirements 5. Reduced zoning setbacks 6. Fee waivers November 20, 2003: Page 3 of 6 7. No variance required to build the affordable units 8. Reduced parking requirements on the affordable units: there is data to support that people who lihe in more affordably priced units dri►e fewer cars. 9. Cash subsidy. Thaddeus Lennick thought some choices were not appropriate options, noting for example that the option of No Variance Required is really a component of the Density Bonus. He said if the density bonus is permitted, there may be cases where other options, such as increased FAR, height, or lot area, need to be included to take advantage of the density bonus. Sharon Bowie said she discussed the offsets with Plan Commission and they were opposed to outright density bonuses. Mr. Brunick said he wasn't sure yet how all the options inter -related, but he listed them separately and it is possible someone might not want a density bonus but want increased height. Members discussed tttc definition of the downtown core and said it would need to be defined. The discussion pointed up many unresolved issues. They discussed the zoning areas that would be affected by the set -aside and thought that it would not impact the R1 through R-3 residential arras. They felt while the group was just going to make these general recommendations, it was hard to agree without knowing the detail. They considered the Optima Horizons development, which will be 16 stories as -of -right and originally sought 36 stories as a Planned Development. At 248 units, a 20R/a set -aside with a density bonus could add another 48 units. Mr. Lenniek said with about 21 units per Moor, that would add another 2 or 3 floors, depending on how much more parking was required. He said that would bring it to 18 or 19 stories. Ms. Snyderman Pratt said the final version will have to answer these questions and work out the details, such as how many additional units the density bonus would allow. She said many of the cost offsets will be hard to swallow, but they create affordable housing units without the City having to spend public dollars. She pointed out that many Task Force members wanted the policy to apply to as -of -right development, but that requires predictability as to the offsets and what they could build. Some communities don't offer them. Ms. Snyderman Pratt said they have to nest the City Council, which says they support affordable housing, to figure out the intricacies. Richard Koenig suggested that along with the recommendations, the proposal include foot notes or explanations about the issues that were discussed. He said the offsets could be presented as a menu of possibilities which they agree to in principal but know that details have to be worked out. The members agreed with that suggestion. In Lieu of Provisions Mr. Brunnick discussed ways to calculate the fee -in -lieu. The proposal said the per unit amount shall reflect an estimate of the cost of providing an affordable housing unit and shall be reviewed and modified periodically by the City's Department of Community Development with the approval of the City Council. In essence, he said, it should reflect writing down the cost of a market rate unit to make it affordable. There are three approaches to calculating that amount. 1. Set a price per unit based on an average figure. This takes the difference between the average market rate unit sales price, and the affordable sales pace for a four person household. For example, if the median is S400,000, then you subtract affordable sale price of $175,000, for a fee per unit of S225,000 per unit. 2. Sliding scale, where the fee -in -lieu is determined based on each individual development. Take the average market rate sales price of each development then subtract the affordable sales price. November 20.2003: Page 4 of For example. a high end development with average sales price of S600,000, would subtract S175,000 fora fee of S425,000. More modest units would pay a lower fee. Sara Ashmore Diggs asked why the calculation on market price includes profit margin and not the cost to build. Mr. Brunnick said it's easier to make the determination and the ordinance isn't concerned with what the profit is, but the net difference to get the affordable unit- Members discussed the impact on smaller dn•elopments and noted that with a sliding scale, a more moderately priced development would pay a lower fee. They discussed how the money collected would be used. 3. The third option is a fiat fee. Mr. Brunnick said for example that Highland Park requires S100,000 per unit on for -sate units of less than 20 units. When they did a calculation like #1, they came up with S275,000 and thought that was too high. So they redid the calculation and came up with S100,000. Instead of median sales price, they took the most expensive home in the bottom 1/6 of all homes sold in a year. They subtracted the affordable price of $l 80,000 to arrive at $100,000. The amount would be adjusted each year based on that formula. The group then discussed the options for using fee -in -lieu: I . Developer's choice to do set aside affordable aunts, or build off site, donate land or pay a fee. 2. Developer needs permission from City first to do in -lieu and show why. They would need to conic up with a standard. 3. Mixture: Permission required to build off site or donate land, or maybe allow fee option in downtown core without getting permission. That came from the group's thinking that it might make more sense to get a chunk of money from downtown development than to build affordable units downtown. Ms. Ashmore Diggs said she thought all developers should have the right to use in -lieu fees. Mr. Brunnick said the positive side to requiring permission is that with that process, the City can make we the goals and policies of inclusionary housing policy are met and the units get built. He said the negative side is that it involves more process and administration and less certainty for developers. Ms. Spicurla suggested that the land donation option should require some review to make sure the land supports the same number of units. The group discussed various pros and cons of not having the housing is not in hand, but getting the resources in a Housing Trust Fund from fees to serve the lowest income. They considered the amount of subsidy a household earning S15,000 a year would need. Mr. Koenig said they could afford S400 a month, and estimating a market rent around S900, they would need a $500 monthly subsidy, or S6,000 a year. They considered the average time someone stays in a home, which is generally 5 — 7 years, and the high percentage of people in Evanston paying a high percentage of their income on mortgage payments.. They agreed there was no guaranty with the options that housing would be created, and Ms. Snyderman said that it was not the charge of this group to determine how the Trust Fund would be used. They thought they could make a recommendation that a Trust Fund be created for fees in lieu, with clear recommendations how the funds would be used. There was a mix of opinions on whether developers should have a choice or should get permission but Ms. Snyderman Pratt said it seemed like the majority felt the City should make the decision. There were similar mixed feelings about how to determine fee, with a slight majority for a sliding scale over a flat fee. Everyone agreed that a Trust Fund should be created. November 20, 2003: Page 5 of 6 Control period: The proposed affordable control period is 40 years for rental, and in perpetuity or as long as permissible by law for owner occupied units. Ms. Bowie expressed concern that 40 years might be difficult because of Evanston's high Azw costs. Mr. Lennick thought 40 years was long and they should think about what happens if the developer sells the property. They discussed what happens to rentals that are converted to for -sale in the control period. Members discussed the owner -occupied control period. Ms. Ashmore Diggs was bothered by owners losing the benefit of their equity in the property. Mr. Brunnick said many programs provide modest amount of appreciation value to buyer. That way they don't get the whole amount, but some, and the house has to be resold to another eligible affordable family. He said some programs want shorter affordability periods to help people build equity. Others keep it longer so they don't lose the houses to the market and end up where they started, with a scarcity of affordable houses. He said generally communities that need revitalization will have shorter periods, and stable communities with rising property values will have longer ones. Ms. Ester from the audience said she thought that Illinois law indicates a property can have only a 30 year deed restriction. Mr. Brunick said the research on case law shows it is okay to have rental restriction for 40 years, but there is no clear case law in Illinois on length of deed restrictions on homeownership. He didn't think it was clear cut that you can't go beyond 30 years. He said it might be possible to have a 30 year deed restriction that renews every time it's sold. Members discussed what would happen in situations involving inherited property or property sold or given to family members. It was suggested that the new owner of inherited property would have to prove they met the income criteria, but they wondered how that would come to the attention of the City. They discussed the sentimental issue of a family home. As an alternative to selling it, an over incc me family member could buy it out, with the difference between the nuuket rate and the affordable rate going to the Trust Fund. They discussed whether the tax assessor acknowledges affordable units in calculating market value. Mr. Koenig said the Assessor may be willing to take an income based approach if them is a restriction on how much rent you can charge. Two people were opposed to the proposed language on the control period. Some felt that smaller developments should have a shorter time period. It was agreed to add language to the owner - occupied control period about a buy-out provision. City's right of first refusal This proposal is for the City or a designated not -for -profit entity to have the right of first refusal to purchase up to 1/3 of the set -aside units at an affordable price, and then rent the units to extremely low income households, less than 301/6 of median. It specified qualifications for qualified non profits. It gives flexibility to ensure that some units serve the working poor. It was suggested that criteria two and three be combined. The non-profit would manage the units. If the units were rented in a condominium, the condo documents would have to specify that these rental units are allowed. It was suggested the entity could also buy units to sell to income -eligible households. They discussed how many non -profits November 20, 2003: Page 6 of 6 met the criteria of managing 50 units, and felt that probably all three of Evanston's currently certificd CHDO's would qualify. Conslasion Robin Snyderman Pratt congratulated the gimp on getting through all the program characteristics! She said the Housing Commission would consider the recommendations of the Task Force, and thanked everyone for their participation and their hard work over the last 10 months. Members thanked Nick Brtmick of BPI for preparing and presenting so much information and for guiding the group through the process. City staff was also thanked for their assistance and everyone was given a round of applause. DRAFT - NOT APPROVED MPiTTES EVANSTOti HOUSING CO.MMSSION Thursday, December 18, 2003 Members Present: Robin Snyderman Pratt. Chair, Rob Grossinger, Susan Munro Members Absent: Sara Ashmore Diggs, Judith Hurwich, Philip Levis, Thomas Marxsen Staff Donna Spicuzza, Housing Planner Call to Order. Chair Robin Snyderman Pratt noted there was no quorum, and welcomed new member Susan Munro. Communications and Development Update Donna Spicuzza informed members that Econ Housing Group was finishing construction on an affordable duplex at 1813 Lyons, subsidized wink HOME funds. The first unit was sold in December and the second one will close in January. The Plan Commission approved a new proposal from Thomas Roszak for a Planned Development at 1100 Clark, for 237 units. It includes the same type of affordable financing as his earlier proposal, but for 5% of the units rather than the 100/6 suggested in the previous, larger proposal that was withdrawn. Ms. Spicuzza didn't know what plan commissioners said about thEaffordabie aspect. The proposal will go to Planning and Development in January. Ms. Spicuzxa said she has a handout on the financing proposal which she can distribute to commissioners, if they are interested in commenting at the upcoming meetings. She said that when it was presented at Site Plan and Appearance Review, staff asked about affordable units and Mr. Roszak mentioned his plan to provide secondary financing and Ms. Spicum, offered to discuss the proposal before he went to Plan Commsssion. He didn't discuss it with staff nor did she think Mr. Roszak had worked with Housing Opportunity Development Council on the new proposal. Mr. Grossinger said that as proposed, they are not really affordable units. The buyers will get a break when they buy them, but the developer gets al l his money back when they sell. Commissioners thought it would be nice if people understood the Task Force's recommendation for affordable set -asides when they're reviewing this proposal. Ms. Spicuzza said the rental project at 1930 Ridge is leasing up, and they did a lottery for the 10 affordable units. She said they didn't do a lot of marketing of the set -asides. The rents are High HOME rents, which she thought was a 1 bedroom around $786 and 3 bedroom around $1,000. Mr. Grossinger expressed concern that all the units would go to students. Ms. Spicuzza said she didn't think that would occur because of conditions in the Planned Development ordinance, but the concern was that the ordinance didn't restrict the units to people who live or work in Evanston. Ms. Spicuzra said the managers had initially talked to Housing Opportunity Development Corporation about working with them to manage the rent- up of affordable units, but then came back with their own plan. Ms. Snyderman Pratt observed that the process for getting set -aside units at 1930 Ridge triggered the formation of the Task Force, so there would be some formal guidelines and process. HOME Funds Proposal Ms. Spicuzza said the proposal from Evanston Housing Coalition (EHQ would actually use Mayor's Special Housing Funds rather than HOME funds, for reasons she would explain. She said the executive director, George Gauthier, apologized that he couldn't be there because he was 11d Housing Commission Minutes December 18.2003 Page 2 unable to reschedule a previous engagement, so she would go over the proposal. EHC is requesting funds to do minor repairs on a single family house in the Fifth Ward at 1721 Brown that was part of a rental deal EHC put together in 1993. The project used a variety of financing sources including HOME funds through IHDA. before E%anston was a HOME Participating Jurisdiction, to purchase scattered site single family houses for rental. The 10 year affordability period is ending and their intention is to sell them at an affordable price to income eligible households. This house was recently vacated, and needs to be fixed up for sale. Plans arc to make repairs, paint, install flooring or carpets, install new appliances, furnace. air conditioner and water heater, so the new buyers will not need to incur immediate maintenance and upgrade costs. EHC will sell the house for S 135,000, which would be affordable to people in the 60-80% of median range. Commissioners indicated this was a good price for affordable homeownership. Ms. Spicuzza said that because the project previously used HOME funds, they cannot be used again on the same property. The funding will come from the Mayor's Special Housing Fund, but because it is a bridge loan, the Fund will be repaid after the house is sold. The sale proceeds will also pay off the pro-mta portion of the conventional financing and an earlier City rehab loan. Mr. Grossinger asked about the $3,000 developer fee included in the proposal, given that after paying off the outstanding indebtedness, EHC will realize net proceeds from the sale. Ms. Spicuzza said the developer's fee was for managing the rehab and although Mr. Gauther could better speak to the issue, she knew that in the years they operated the houses as rental units, the rents and operating costs didn't always allow for management costs. Commissioners discussed it further and ultimately had no problem with it. Ms. Munro asked if the housing would be kept affordable when sold. Ms. Spicuzza said she is looking to the Commission for suggestions on affordability restrictions, noting that it would require a deed restriction, because the City would not have a mortgage on it. She said she started doing some research on how to determine affordable price on resale, including how much appreciation the purchasers could receive. She thought Highland Park's inclusionary housing ordinance has a structured affordable formula, that also takes into account interest rates and amount of downpayment. Mr. Grossinger suggested that they use a HUD formula which doesn't get into the amount of downpayment. Members agreed it should have an affordable restriction so that it would have to be resold at a price affordable to a low income household. Ms. Spicuzza said before it goes to Planning and Development she would send out a proposal on affordability restrictions to Commissioners for their comments. Ms. Snyderman Pratt asked about the status Mayor's Special Housing Fund, wondering if the other houses owned by EHC would be in the same situation of needing funding. Ms. Spicuzza said all of them used HOME funds, so any rehab funds would come from the Mayor's Special Housing Fund, but it would get the money back right away after sale. Review Recommendations of Inclusionary Housing Task Force Ms. Snyderman Pratt said the Task Force wrapped up its work into a three page document on policy and program characteristics. She thought the next steps would be to send it to Planning and Development with a cover note and longer attachment, explaining some of the complexities, where there was 10U%+concensus, and where there was majority and minority ideas. Some P&D Committee members recommended scheduling a special meeting, where they could invite other aldermen and have a real presentation of the overall issues, not just the three page document. Ms. Snyderman Pratt distributed the revised document and four page memo from herself and Nick Brunick describing the characteristics agreed to at the Iasi Task Force meeting, considerations that lead up to them, and some minority recommendations. She referred to the Housing Commission Minutes December 18, 2003 Page 3 sections on fee -in -lieu and offsets, noting that even one felt these sections would require the most work in the final product. There was a discussion about the policy applying to developments with 5 or more units instead of 10 or more, and whether there were strong feelings about how to determine the fee in lieu, as well as how offsets would work - Commissioners thought the document did not provide enough detail for the City Council to take a position, especially with the menu of cost offsets. They were hoping for some direction from Council members, yet they felt it might be best ifthey first offered more specific recommendations that aldermen could take positions on. They noted that some offsets listed aren't applicable depending on the zoning or the type of project. Mr. Grossinger noted for example that a set -back allowance is meaningless on Central Street ufiere Zoning actually requires buildings to be built to the lot line, and a decrease in minimum lot area requirements has no value on a high rise. Commissioners noted that many people favored increased height offsets only for buildings in the downtown core. They suggested requesting BPI to work on it, showing different examples of how cost offsets would work in different scenarios such as downtown core, business districts, and neighborhoods. That would be presented to the Housing Commission one more time in January, and then the Commission might bring it to Planning and Development in February at a special meeting. Ms. Spicuzza suggested the presentation include something beyond the policy statement to explain the basis for a set -aside policy. Mr. Grossinger said the presentation should include a series of questions about what people want to sm, such as whether they want to use downtown development to build affordable housing outside the downtown, or include affordable units there. After getting City Council direction, the Housing Commission and BPI would be willing to work on it further, Ms. Snyderman Pratt said. Ms. Spicuzza said she would check with James Wolinski about a special P&D meeting. Ms. Snyderman Pratt mentioned the Affordable Housing Tool Kit which also carne out of the Task Force. She thought it could be a starting point for the Commission's agenda for 2004 to help them determine priorities. Ms. Munro asked whether there is a community land trust in Evanston, one of the tools mentioned, and asked about available land. Mr. Grossinger said developed land can be part of a land trust and Ms. Spicuzza said there is a group that is receiving technical assistance on setting up a community land trust through the Institute for Community Economics (ICE) with funding from HUD. She said the group is seeking to work in partnership with other nonprofits to form a community land trust, and planned to meet again in January. Ms. Snyderman Pratt said it would be good to get an update from them. Public Comment Sue Carlson asked about the time frame for presenting the Task Force recommendations, and noted that in February the Council will be dealing with budget issues. Ms. Snyderman Pratt said they are eager to wrap it up, but said one lesson they learned was that it doesn't always take an ordinance to pull it off, but that staff could set a tone. Mr. Grossinger said that the Clark Street proposal is a classic example, saying at this point the affordable housing proposal is weak, but if the Commission can make a statement and encourage the developer to change it to an actual 10% set -aside rather than deferred financing, that would be a huge difference. The meeting ended at 8 p.m. Respectfully submitted, Donna Spict, DRAFT -- NOT APPROVED MINUTES EVANSTON HOUSING COWNEISSION Thursday, December 18, 2003 Members Present: Robin Snyderman Pratt, Chair, Rob Grossinger, Susan Munro Members Absent: Sara Ashmore Diggs, Judith Hurwich, Philip Levis, Thomas Marxsen Stag Donna Spicuzza, Housing Planner Call to Order: Chair Robin Snydcm an Pratt noted there was no quorum, and welcomed new member Susan Munro. Communications mW Develkpweat Update Donna Spicuzza informed members that Econ Housing Group was finishing construction on an affordable duplex at 1813 Lyons, subsidized with HOME funds. The first unit was sold in December and the second one will close in January. The Plan Commission approved a new proposal from Thomas Roszak for a Planned Development at 1100 Clark, for 237 units. It includes the same type of affordable financing as his earlier proposal, but for 5% of the units rattier than the 10% suggested in the previous, larger proposal that was withdrawn. Ms. Spkvzza didn't know what plan commissioners said about thEaffordable aspect. The proposal will go to Planning and Development in January. Ms. Spicuzza said she has a handout on the financing proposal which she can distribute to commissioners, if they am interested in commenting at the upcoming meetings. She said that when it was presented at Site Plan and Appearance Review, staff asked about affordable units and Mr. Roszak mentioned his plan to provide secondary financing and Ms. Spicuua offered to discuss the proposal before he went to Plan Commsss ion. He didn't discuss it with staff nor did she think Mr. Roszak had worked with Housing Opportunity Development Council on the new proposal. Mr. Grossinger said that as proposed, they are not really affordable units. The buyers will get a break when they buy them, but the developer gets all his money back when they sell. Commissioners thought it would be nice if people understood the Task Force's recommendation for affordable set -asides when they're reviewing this proposal. Ms. Spicuzza said the rental project at 1930 Ridge is leasing up, and they did a lottery for the 10 affordable units. She said they didn't do a lot of marketing of the set -asides. The rents arc High HOME rents, which she thought was a 1 bedroom around $786 and 3 bedroom around $1,000. Mr. Grossinger expressed concern that all the units would go to students. Ms. Spicuzza said she didn't think that would occur because of conditions in the Planned Development ordinance, but the concern was that the ordinance didn't restrict the units to people who live or work in Evanston. Ms. Spicuun said the managers had initially talked to Housing Opportunity Development Corporation about working with them to manage the rent- up of affordable units, but then came back with their own plan. Ms. Snyderman Pratt observed that the process for getting set -aside units at 1930 Ridge triggered the formation of the Task Force, so there would be some formal guidelines and process. HOME Funds Proposal Ms. Spicuaa said the proposal from Evanston Housing Coalition (EHC) would actually use Mayor's Special Housing Funds rather than HOME funds, for reasons she would explain. She said the executive director, George Gauthier, apologized that he couldn't be there because be was Housing Commission Minutes December 19, 2003 Page 2 unable to reschedule a previous engagement, so she would go over the proposal. EHC is requesting funds to do minor repairs on a single family house in the Fifth Ward at 1721 Brown that was part of a rental deal EHC put together in 1993. The project used a variety of financing sources including HOME funds through IHDA, before Evanston was a HOME Participating Jurisdiction, to purchase scattered site single family houses for rental. The 10 year affordability period is ending and their intention is to seII them at an affordable price to income eligible households. This house was recently vacated, and needs to be fixed up for We. Plans arse to nudw repairs, paint, install flooring or carpets, install new appliances, furnace, air conditioner and water heater, so the new buyers will not need to incur immediate maintenance and upgrade costs. EHC will sell the house for S135,000, which would be affordable to people in the 60-80% of median range. Commissioners indicated this was a good price for affordable homeownership. Ms. Spicuzza said that because the project previously used HOME funds, they cannot be used again on the same property. The funding will come from the Mayor's Special Housing Fund, but because it is a bridge loan, the Fund will be repaid after the house is sold. The sale proceeds will also pay off the pro -rate portion of the conventional financing and an earlier City rehab loan. Mr. Grossinger asked about the S3,000 developer fee included in the proposal, given that after paying off the outstanding indebtedness, EHC will realize net proceeds from the sale. Ms. Spicuzza said the developer's fee was for managing the rehab and although Mr. Gauther could better speak to the issue, she knew that in the years they operated the houses as rental units. the rents and operating costs didn't always allow for management costs. Commissioners discussed it further and ultimately had no problem with it. Ms. Munro asked if the housing would be kept affordable when sold. Ms. Spicuzza said she is looking to the Commission for suggestions on affordability restrictions, noting that it would require a deed restriction, because the City would not have a mortgage on it. She said she started doing some research on how to determine affordable price on resale, including how much appreciation the purchasers could receive. She thought Highland Park's inclusionary housing ordinance has a structured affordable formula, that also takes into account interest rates and amount of downpayment. Mr. Grossinger suggested that they use a HUD formula which doesn't get into the amount ofdownpayment. Members agreed it should have an affordable restriction so that it would have to be resold at a price affordable to a low income household. Ms. Spicuzza said before it goes t6 Planning and Development she would send out a proposal on affordability restrictions to Commissioners for their comments. Ms. Snyderman Pratt asked about the status Mayor's Special Housing Fund, wondering if the other houses owned by EHC would be in the same situation of needing funding. Ms. Spicuzza said all of them used HOME funds, so any rehab funds would come from the Mayor's Special Housing Fund, but it would get the money back right away after sale. Review Recommendations of Inclusiorlary Horsing Truk Force Ms. Snyderman Pratt said the Task Force wrapped up its work into a three page document on policy and program characteristics. She thought the next steps would be to send it to Planning and Development with a cover note and longer attachment, explaining some of the complexities, where there was 1001/6 concensus, and where then: was majority and minority ideas. Some P&D Committee members recommended scheduling a special meeting, where they could invite other aldermen and have a real presentation of the overall issues, not just the three page document. Ms. Snyderman Pratt distributed the revised document and four page memo from herself and Nick Brunick describing the characteristics agreed to at the last Task Force meeting, considerations that lead up to them, and some minority recommendations. She referred to the Housing Commission Minutes December 19. 2003 Page 3 sections on fee -in -lieu and offsets, noting that everyone felt these sections would require the most work in the final product. There ryas a discussion about the policy applying to developments with 5 or more units instead of 10 or more, and whether there were strong feelings about how to determine the fee in lieu. as well as how offsets would work. Commissioners thought the document did not provide enough detail for the City Council to take a position, especially with the menu of cost offsets. They were hoping for some direction from Council members, yet they felt it might be best if they first offered more specific recommendations that aldermen could take positions on. They noted that some offsets listed aren't applicable depending on the zoning or the type of project. Mr. Grossinger noted for example that a set -back allowance is meaningless on Central Street where zoning actually requires buildings to be built to the lot line, and a decrease in minimum lot area requirements has no value on a high rise. Commissioners noted that many people favored increased height offsets only for buildings in the downtown core. They suggested requesting BPI to work on it, showing different examples of how cost offsets would work in different scenarios such as downtown core, business districts, and neighborhoods. That would be presented to the Housing Commission one more time in January, and then the Commission might bring it to Planning and Development in February at a special meeting. Ms. Spicuzze suggested the presentation include something beyond the policy statement to explain the basis for a set -aside policy. Mr. Grossinger said the presentation should include a series of questions about what people want to see, such as whether they want to use downtown development to build affordable housing outside the downtown, or include affordable units there. After getting City Council direction, the Housing Commission and BPI would be willing to work on it further, Ms. Snyderman Pratt said. Ms. Spicuzza said she would check with James Wolinski about a special P&D meeting. Ms. Snyderman Pratt mentioned the Affordable Housing Tool Kit which also came out of the Task Force. She thought it could be a starting point for the Commission's agenda for 2004 to help them determine priorities. Ms. Munro asked whether there is a community land trust in Evanstort, one of the tools mentioned, and asked about available land. Mr. Grossinger said developed land can be part of a land trust and Ms. Spicuzza said there is a group that is receiving technical assistance on seeing up a community land trust through the Institute for Community Economics (ICE) with funding from HUD. She said the group is seeking to work in partnership with other nonprofits to form a community land trust, and planned to meet again in January. Ms. Snydenman Pratt said it would be good to get an update from them. Public Comment Sue Carlson asked about the time frame for presenting the Task Force recommendations, and noted that in February the Council will be dealing with budget issues. Ms. Snydemtart Pratt said they are eager to wrap it up, but said one lesson they learned was that it doesn't always take an ordinance to pull it off, but that staff could set a tone. Mr. Grossinger said that the Clark Street proposal is a classic example, saying at this point the affordable housing proposal is weak, but if the Commission can make a statement and encourage the developer to change it to an actual 10*/. set -aside rather thorn deferred financing, that would be a huge difference. The meeting ended at 8 p.m. Respectfully submitted, Donna Spict, MINUTES EVANSTO1 HOUSING COMMISSION Thursday, February 19, 2004 Members Present: Robin Sn}derman Pratt. Chair, Sara Ashmore Diggs, Rob Grossinger. Judith Hur« ich Members Absent: Philip Levis. Susan Munro, Thomas Marxsen Staff: Donna Spicuxza. Housing Planner Call to Order. There was not a quorum present. Communications Commissioners received an update from Donna Spicuzza on planned developments and HUD funding. She referred to the new HUD income limits for 2004. The median income for Evanston is included in the Chicago Primary Metropolitan Statistical Area (PMSA) composed of 6 counties: Cook DuPage, Kane, Lake, McHenry, and Will. The median income rose slightly to S69,600. The 50°.0 or very low income caps remained unchanged but the 80% levels increased slightly. Ms. Spicuaa distributed a communication from North Suburban Housing Partners regarding Affordable Housing Week 2004 in Illinois. They asked municipalities to pass proclamations in support of affordable housing efforts. Robin Snyderman Pratt noted it was good timing, considering the matters they are recommending to City Council, and asked if there were any objections. Judith Hurwich reported on the Januan 26 and February 9 Planning and Development Committee meetings. She said she expressed to the Committee the Housing Commission's concerns about the affordable housing plan at 1 100 Clark for 12 set -aside units or 5% of the total. She pointed out that the number is far short of the 20% set -aside the Housing Commission will be recommending as a city policy, that the plan provided only a short term option rather than permanent of ordabiiiq-. and that the developer was no longer working with the affordable housing consultant. Ms. Hurwich asked the Committee if the plan could be revisited over the course of the project's three year construction period. Planning and Development Committee members felt since there is not a formal City policy that the voluntan affordable proposal was adequate. Robin Snydenman Pratt suggested that they circulate the Housing Commission's comments to the Commission members. Proposal to amend Housing Commission Ordinance to Require Evanston Landlords as Members Commissioners discussed the proposed amendment to Section 5-6-2 of the Evanston Housing Commission Ordinance presented at Planning and Development calling for three of the nine members to be Evanston landlords. The current requirement is that three of the nine be Evanston tenants and currently there are two members on the Commission who am landlords.. Alderman Newman proposed the amendment in response to comments about landlord representation on the Commission made during a December, 2003 meeting regarding a proposal for apartment licensing. Ms. Hurwich said that Alderman Newman said that landlord tenant issues were part of the Housing Commission years ago and he would like to seem brought back there. Mr. Grossinger said it is putting the cart before the horse to say that these issues should be part of the Commission and therefore the make up should be changed. He questioned why they are Housing Commission Minutes February 19. 2004 Page 2 making membership more prescriptive. Ms. Hurwich said told Planning and Development Committee members that it was difficult to fill vacancies and achieve a quorum with the current requirement for 3 tenants. Commission members agreed that the► favor having landlords on the Housing Commission and the Commission can benefit from their perspecti►e, but it's not necessary to be so prescriptive about the number. It was agreed to put this recommendation in writing to the Planning and Development Committee. HOME Program Application The Commission discussed a HOME fund proposal from Econ Housing Group for 3 newly constructed townhouses at 1834 Darrow. Ms. Spicuzza said the project had received a zoning variation for the plans and that staff is continuing to work With the developer on the development budget and other issues. They are presenting the concept to the Housing Commission for general suggestions on the general project in order to keep proposal on a timely track for consideration by the Planning and Development Committee. The developer is requesting a subsidy of S360,000 for three units. She introduced Neil Davidson of Econ Housing. noting he has done two previous projects that created three new affordable ownership units. Mr. Davidson said he was originally trying to get 4 affordable units on the site and received zoning approval for 3 units. He needs HOME funds to keep it in an affordable price range although he is still working on the proforma. The units will have 3 bedrooms, 2.5 bath units, a basement and garage. When asked if this project was using the same materials as the others, Mr. Davidson said these will be stick built rather than using insulated concrete form construction as before. Ms. Hurwich said the construction of the previous units resulted in very low maintenance and asked how these compared. Mr. Davidson said these would be energy efficient and low maintenance, with hardy plank siding and some brick. In response to a question by Mr. Grossinger. Mr. Davidson said the square foot construction cost was SI 10. with about I200 square feet on first and second floors of the units. Mr. Grossinger raised a policy issue regarding the amount of subsidy. He said usually homeowner subsidies which are gradually forgiven and/or paid back usually amount to less than $10,000. He favors some form of resale restriction on the units because the subsidy requested is $120,000 per unit. He said that from a policy standpoint, with that much subsidy the unit should be permanently affordable, which means it can't be forgivable. Without a resale restriction, subsequent sales would no longer be affordable. Ms. Spicuzza said they are looking at having a deed restriction regarding resale, with a stipulated formula. She said HUD requires that the owner receive a fair rate of return, and they are considering how to address a resale price structure that would ensure the owner recovered their initial investment, some appreciation and possibly capital improvements. Mr. Davidson said he agreed there should be restrictions on the amount of equity the owner can take out so that it is kept affordable. Sara Ashmore Diggs asked about limiting equity share which is a benefit of home ownership. She said she doesn't have a problem putting caps on things and noted that the area is changing with people wanting to buy and improve, and these units will be worth a lot more. She wondered what is fair to the people who move in and improve the property and if it is fair to limit their equity. Housing Commission Minutes February i 9, 2004 Page 3 Mr. Davidson said the buyers know from the beginning they couldn't afford the units .►ithout assistance and he thinks the. w ill plan to stay there a long time. The,. will understand that even though the unit w ill increase in value and they are growing equity, their share is limited. Mr. Grossinger said the policy question is whether it is government's role to subsidize investment. or housing. He said it is a great 3 bedroom house that someone who couldn't afford it can live in and get some return. But when talking about the normal acceleration of value because of the market. he is not sure it is government's role to subsidize that. Ms. Ashmore Diggs wondered how to figure where to cap the owner's investment and how you know what affordable will be. Ms. Snyderman Pratt said it would be in the deed restriction formula. At the next meeting they can consider some sample formulas. Members asked whether the total development cost is $305,000 a unit, based on a S185,000 selling price plus subsidy of 5120,000. Mr. Davidson said they are looking at different selling prices and working on the development budget and said he was okay with whatever the City wants to do. Mr. Grossinger noted this project has a subsidy of more than S 100,000 per unit while the previous ones were at 550,000 a unit. He asked that the City take a look at costs broken down by area because this is more expensive. Mr. Davidson said acquisition costs were higher on this project. Mr. Grossinger said the Lyons project has costs of $203,000 a unit and this one is much higher at $305,000 a unit. Members expressed concern about setting a precedent of $120,000 per unit and Ms. Snyderman Pratt agreed the proposal needed more work. She said staff must do its work to be comfortable with the numbers and also asked for an update on the status of the City's HOME and housing funds. Ms. Hurwich said the units should be affordable to maintain and not deteriorate and Mr. Davidson said he is using quality materials. The Commission members recommended the project use resale restrictions rather than recapture agreements and hoped the numbers in the development budget could look better. Community Land Trusts Ms. Snyderman Pratt said the Commission had asked for an update regarding a neighborhood proposal for a Community Land Trust and how it relates to the whole City. Betty Ester, the president of the Citizen's Lighthouse Community Land Trust (CLCLT) said they have been working on trying to create a community land trust. She noted it is a model that addresses maintaining long term affordability without a need for a deed restriction. She introduced Michael Brown, the group's technical advisor through the institute on Community Economics (ICE). and she noted that the housing commission helped them get initial technical assistance. Michael Brown said that they received approval for a HUD technical assistance grant and had been talking about community land trusts over the last 6 — 8 months. He said it was good to follow the discussion of investing public dollars and trying to balance the competing goals of keeping an affordable housing pool against providing homeowners the opportunity to realize the benefits of homeownership, include a fair return on their housing investment. He said these are dollar for dollar trade-offs. He said this dynamic prompted a substantial rise in interest in community land trusts, driven primarily by the funders who've seen the escalating price of housing outpacing the ability of many people in the community to be able to afford housing. He said there is a need to bridge the gap between what it costs and what people can afford, and that community land trusts have proven to be effective. He said a deed restriction is time limited by law and relies on a title Housing Commission Minutes Februan- 19. 2004 Page d company and someone else to monitor and enforce it. but land trusts take a different approach. Because land dries market appreciation. they write down the price of the acquisition of a home by paying for the land and removing that from the deal. The subsid} removes the land cost from the transaction so the purchasers own the home. but not the land. They have a 99 year lease with exclusive. possessory interest in the land. which is recorded and allows access and use of the land. He said the ground lease is the legal instrument that conveys the ownership interest in the land. and a vehicle to define the relationship with the community land trust and the goals of the community balanced against homeowner's particular interest. He showed examples comparing community land trust deals with market rate deals to show how the land trust home is permanently affordable. The land trust can control the price at which it's resold in the future, by a formula known upfront. Mr. Brown said the most common formula is appraisal based, where the value is established when they buy and then when they sell. The owner gets some percentage of the rise in value, but not all. As an example. he assumed a property that is sold in 7 years, with value increasing 9.5% a year from its initial 5275,000 value to $502,000. Wages were assumed to increase 2.5% a year. If unrestricted property, the owners would get 100% of the 5222,7I I increase. if in a community land trust. the owner should get a share of that, which is a policy decision. Most allow 25 to 30•/0. So at 25% share, and cash equity, and equity earned from monthly payments, the owner would walk away with 575,584. In addition, they had the opportunity to live in the community, not rent, and deduct mortgage interest on their taxes. Commission members discussed whether land value can be taken out of the appraisal and whether community land trust property of%cis other property values. Mr. Brown said with a small number, there would not be an effect. Ms. Ashmore Diggs was concerned whether owners would feel invested in the property and if ownership interest can be passed to an owner's heirs. Mr. Brown said the land trust has to define appropriate heirs, but they don't need to meet income qualifications. The heirs would still be limited to an equity share, even if the mortgage was paid off. In response to a question from the audience about taxes. Mr. Brown said that the owner is responsible to pay taxes on the land and the house. Ms. Hunvich asked where the funds come from to acquire the land and Mr. Brown said the land trust could partner with other development organizations. HOME funds could be used to buy the lot with the ownership put into the land trust. When the development entity builds the house, and the buyer owns the home and receives a ground lease. A member of the audience mentioned World War 11 veterans who bought housing in Evanston for $5 - $10.000 which is now worth 5200,000 as an example of how a low income person could accumulate wealth by owning real estate. He wondered if this model penalizes the low 'income person. Mr. Brown said each community has to decide for themselves what is fair and what their goals are. He noted a study in Burlington, Vermont by a 20 year old land trust which had 750 units and 97 resales. They found there was no effect on the value of property. They tested if the homes were still affordable, if the sellers were satisfied, where they went, and if there was a pool of interested buyers. They found that people would have liked to have gotten more, but appreciated the opportunity. The average tenure was 6.5 years, the units were affordable when resold, and 74% of the sellers used their equity to buy another house in the market place. Ms. Snyderman Pratt asked about the status of the neighborhood proposal. Mr. Brown said the local group is still trying to build support for this idea to see if it's a sensible way to go about Housing Commission Minutes February 19. 2004 Page S doing it. He said usuall% by his fourth consultation. the group is further alone and he is not sure there is a commitment in Evanston to sec a land trust happen even though the board is very committed. He said that without the ability of at least one existing non-profit organization to partner with them, it wouldn't be successful. However, he said they met that moming with other organizations and the City, with the result that three organizations said they would sit down and explore the possibility of a joint collaboration or partnership. tits. Ester said that HODC. Evanston Housing Coalition. Housing Options. Connections for the Homeless. Reba Place Development Corporation and Evanston Community Development Association all expressed interest. Ms. Snyderman Pratt asked what Mr. Brown meant that the City did not seem committed because she thought they would come to the Housing Commission. Betty Ester said they should ask the Housing Commission if they think it's a good idea to keep moving forward. Ms. Snyderman Pratt said that she wondered, if the Commission decided to promote a community land trust, how would it work in the neighborhoods, and would there be more than one. Mr. Brown said it could be done in a number of ways, one of which is to create an umbrella land trust to serve all the neighborhoods with many organizations developing housing. Ms. Snyderman Pratt said the Commission has been focusing on the inclusionary housing issue the past year but she thinks it's too early to say there's no interest in a community land trust. She also asked about efforts for a regional land trust. Mr. Brown said Chicago requested assistance from ICE to see if they can support a regional effort, possibly around transit oriented development. Mr. Brown said they would invite the Housing Commission to be part of the conversation. He said another indication of support was it would be nice to know if the City thinks a community land trust is an appropriate use for HO.L1E funds. Mr. Grossinger said there is not enough competition for HOME dollars to only fund one model over another, but Mr. Brown thought it would be hard for a land trust to compete for homebuyers if other subsidized projects used forgiveable grants and the owner got 100% of the equity. It was agreed that Sara Ashmore Diggs will be invited to future land ELCLT meetings as a liaison with the Housing Commission. When they have another partner, ELCLT can speak to the Housing Commission about what role the Commission can play. Ms. Ester said that the Chicago Community Economic Law Project will have a workshop on April 7 on Community Land Trusts, for which she will provide details. V. Inclusionary Housing Program Recommendations Ms. Snyderman Pratt reminded the Commission that they will present their inclusionary housing program recommendations to the Planning and Development Committee at a special meeting on March 29. She will work with Nick Brunick of BPI and bring a draft agenda to the next Housing Commission meeting so they can plan for their presentation. They can do a background presentation on power point and then present the proposal and discuss the pros and cons. Tice second hour would be for questions and discussion. The meeting adjourned at 8:55 p.m. Respectfully submitted, Donna Spicuzza DRAFT -- NOT APPROVED MINUTES EVANSTON HOUSING COMMISSION Thursday, March 18, 2004 Members Present: Robin Snyderman Pratt. Chair, Andre Carvalho, Judith Hurwich, Susan Munro Members Absent: Sara Ashmore Diggs, Rob Grossinger, Thomas Marxsen Staff Donna Spicuzza, Housing Planner Call to Order There was not a quorum present. Communications Donna Spicuzza told Members that the planned development at 413 Howard, a rental project with ground floor retail, was approved. Ms. Snyderman Pratt said that while people were concerned that it was going ahead without any consideration of their inclusionary housing proposal regarding affordable units, she wanted people to know that she and Nick Brunick of B.P.I. met with Alderman Rainey and discussed inclusionary housing, and she feels she understands it. Judith Hurwich said she attended the Planning and Development Committee meeting when it was approved. She said Alderman Rainey noted that her ward has a high percentage of properties with affordable units and the most housing choice voucher holders in the City, and she wants this project to help bring in a diverse population. Ms. Snyderman Pratt said one reason they need to put the inclusionary housing policy forward is to ensure the playing field is level and developers understand it from the beginning. She said that the lack of consideration for affordable units in this recent planned development doesn't mean there isn't support for the concept. Ms. Spicuzza updated Commission Members on the HOME funds proposal from Econ Housing, which the Commission discussed in February. The proposal will be presented to Planning and Development Committee on March 22. Since February, staff has been working with the developer on the proposal and the total funding request will be S292,500 rather than S360,000, or S97,500 instead of S120,000 per unit. Commissioners received information on a planned Earth Month celebration sponsored by the Network for Evanston's Future, with an April 22 lecture by John Norquist and a participatory design process on April 29. Ms. Spicuzza said they are asking a number of organizations to co- sponsor the events and if possible offer financial support or help publicizing the event. Sue Carlson in the audience provided some details of the event. Members concurred that the Housing Commission should be a co-sponsor and help with distrubrtuing flyers and promoting the event. HOME Fund Report, CHDO Reservation Request Before discussing a request to reserve HOME funds, Ms. Spicuzza noted that she had been analyzing HOME reports through HUD's Information System and will put together a report for the Housing Commission showing how all the HOME funds have been used and what is available. She said that the program requires participating jurisdictions to commit and spend a specific amount of funds within a certain time frame or their allocation can be reduced. The City is on track for disbursing HOME funds, but must commit $62,822 by May 31. She said that funds reserved for designated CHDOs can count as a commitment even if a specific project is not identified. She recommended committing S63,000 to the three CHDO's, Evanston Housing Coalition, Housing Opportunity Development Corporation, and Reba Place Development Corporation. Housing Commission Minutes March 18. 2004 Page 2 Members supponed this action. noting they did the same thing last year and asked if any of those funds were used. Ms. Spicuzza said none of the CHDOs used HOME funds in the last year, although all three have been discussing projects. She said plans for Reba Place Development Corporation's condo conversion project are moving forward. She said high acquisition costs have made it more difficult for the organizations to find suitable properties. One building a CHDO had been considering currently had moderately affordable rents and would have involved displacing moderate income tenants in order to serve tenants under 50° o of median. Ms. Snyderman Pratt wondered if there were enough opportunities for non -profits to do business in Evanston and obsmed they were aware that the current Inclusionary Housing proposal wouldn't reach lower income households. She wondered if they should ask the CHDOs how those resources could be used for deeper subsidies or operating support. Resale Restrictions for HOME funded homeownership projects Donna Specia" noted that at the March meeting, members briefly discussed how the HOME project at 1834 Darrow would use resale rather than recapture provisions. That meant if the original owner sells before the end of the minimum 15 year affordability period, they would have to sell it to a low income buyer at an affordable price, rather than selling it to anybody at market price and repaying a pro-rata portion of the subsidy. She said with resale provisions, the subsidy stays with the unit, rather than with the purchaser. The original purchaser should get back their original investment and some return on equity, but the unit should remain affordable. Ms. Spicurza said she w^as looking at formulas from across the country and distributed a sample scenario from a spreadsheet developed by LISC in San Francisco which allowed the user to plug in the variables of interest rates, downpayments, level of appreciation, transaction costs and changes in income. She discussed a proposed formula that allowed appreciation equal to the lesser of 3% or the increase in the Consumer Price Index. While many scenarios resulted in the need for an additional subsidy to keep them affordable, this example, using 3% appreciation, appeared workable with the variables indicated. However, she suggested that the HOME Loan Committee meet to review it and provide input. Commission members discussed how it was different from the formula used by many land trusts, ~which Michael Brown discussed. That method allowed buyers a certain percentage of the property appreciation, based on appraisals. They also discussed the length of affordability, noting that the inclusionary housing recommendation was for 40 years. Susan Munro observed that a 30 year affordability period worked out to the small cost of approximately $3,000 a year to keep it affordable. The HOME requirements call for a minimum of 15 years based on the amount of subsidy per unit. Members wondered how one of the absent Commissioners felt about this scenario as she had expressed concerns about limiting homeowner's return. Ms. Spicuz`a said the example was in the packets, and she could discuss it with her. It was also noted that Econ Development had agreed to a resale restriction on the townhomes. Inclusionary Housing Program Recommendations for 3/29 Meeting Members discussed the proposed agenda and background materials for the Special March 29 Planning and Development Committee at which the Commission will present their Inclusionary Housing program recommendations. Robin Snyderman Pratt and Rob Grossinger will present for the Housing Commission, and Nick Brunick from B.P.I. will use a power point presentation that describes inelusionary housing and shows examples from around the country. Members would encourage their aldermen to attend. They briefly talked about possible next steps, and how much to promote attendance at the meeting. Housing Commission Minutes March 18. 2004 Page 3 Priority Incentives for 2004 In order to help them determine where they'd like to put their energy in the next year, Robin Snyderman Pratt directed Commission members to the Affordable Housing Tool Kit that had been prepared for the Task Force. They discussed the comment that technical assistance provider Michael Brown made last month that there didn't seem to be support from the City for the Citizen's Lighthouse Community Land Trust (CLCLT), and what action they could take to demonstrate that it is an area of interest to the Housing Commission. Members identified six issues that seemed important and decided that indi%iduals should look into them and report at the next meeting what steps the Commission could take. The issues are: 1. Vacant and abandonded building efforts - Susan Munro 2. Employer Assisted Housing — Andre Car%alho 3. Community Land Trusts — Sara Ashmore Diggs would be asked to take this as she has attended some meetings of the CLCLT. a. Regional Housing Initiative and 5. Affordable Housing Trust Funds — Robin Snydeiman Pratt. She said she could see if Mary Ellen Tamasy could talk about Trust Funds, as she works with ow in Highland Park 5. New Revenue Sources — Tear Doom Fees — Judith Hurwich Public Comment Betty Ester informed Commission members that the Community Economic Development Law Project will have a workshop on community land trusts on April 7. She said she told Michael Brown of ICF that the Housing Commission was supportive of the efforts of the CLCLT and in fact helped them get initial technical support from ICF before the HUD grant was approved. She said that time was running out on their current grant and they will request additional technical assistance. Ms. Ester said if they don't get the HUD grant, they will come back to the Housing Commission with a request for funds for technical assistance with the critical parts of the formation of their land trust. Ms. Ester said they had met with three non -profits housing agencies to discuss partnerships and working in collaboration: Evanston Community Development Association, Reba Place Development Corporation, and Housing Options. She said next month they are meeting with the Evanston Housing Coalition. She said all of the organizations were excited about the possibilities. Sue Carlson said she had information on a bill that would provide a tax rebate to landlords who rent apartments in certain neighborhoods to Section 8 tenants. She complimented the Housing Commission on their efforts and their progress and said she felt they have taken some huge steps. There were no other comments, so the meeting was adjourned. Respectfully submitted, Donna Spicuzza DRAFT - NOT APPROVED MINUTES EVANSTO� HOUSING COMMISSION Thursday. April 15. 2004 Members Present: Robin Snyden im Pratt. Chair. Susan Aiunro Members Absent: Sara Ashmore Diggs. Andre Carvalho. Rob Grossinger, Judith Hurwich, Thomas Marxsen Stag Donna Spicuzza. Housing Planner Others Present: Richard Koenig. Michacl Roane. Housing Opportunity Development Corporation: 'Mary Ellen Tamasy, Highland Park Illinois Community Land Trust. Sue Carlson. Betty Ester Call to Order There was not a quorum present. Communications Commissioners were told about the Evanston NAACP's upcoming breakfast meeting on how homeowners can avoid predatory lending on April 24 and two other housing events sponsored by Evanston's Housing Future on April 22 and April 29. HOME Fund Request from Housing Opportunity Development Corporation Richard Koenig and Michael Roane of Housing Opportunity Development Corporation (HODC) appeared before the Commission to discuss their application for HOME funds for the rehab of a three unit property at 1930 Jackson. Donna Spicuzza explained the property is being donated below cost to HODC by the investor-o%vner. who is receiving a state income tax credit for the difference between the appraised value and the outstanding mortgage. which HODC will assume. She said the rehab costs are estimated at this time between 545,000 and S68.000, depending on costs to mitigate or abate lead -based paint hazards after risks are assessed. Since HODC is an experienced CHDO, it is being presented now to the Housing Commission in order to expedite the application so that when the construction budget is finalized it can be presented to the Planning and Development Committee and the City Council. Commissioners asked whether any tenants in the two occupied units would have to be relocated Mr. Roane said they didn't think it would be necessary but they weren't sure at the time, as it depended on the extent of any lead mitigation work. Susan Munro asked for clarification whether lead -based paint issues would be addressed. Mr. Roane said full abatement is not required when using federal funds if the rehab is below 525.000 per unit. but any identified hazards must at least be mitigated. Ms. Munro stressed the importance of addressing hazards to prevent lead poisoning in children. Ms. Snyderman Pratt asked about the acquisition costs on the Sources and Uses, which used the full appraised value even though it's not really part of the development costs. Mr. Koenig said that is the price they would have had to pay if buying on the open market. He said it is used in the Sources to show the value of the donation and to balance the donation tax credit which is shown in the Uses. He said that is how they'll show it on the tax credit application to 1HDA for the value of the donation, and the development budgets should be the same. Hawing Conunission Minutes April 15. 2004 Page 2 Ccnimissioners asked about filling the vacant unit and were told it would be from HODC's long waiting list. which has at least 50 names. hit. Koenig said they have a building across the street and another property in the neighborhood. so the concentration provides a good scale for managing the properties. The other two donated bu,Tdin¢s did not need as much rehab so they didn't ask for HOME funds. The% did some clean up and are working with the police department about a problem tenant. Commissioners asked about publicizing the donated houses, perhaps to encourage more donations. Mr. Koenig said it is on Eheir web site and was in their nc%vsletter. Both Commissioners thought it %pas a good proposal. and although there was no quorum they recommnended it for funding. Affordable Housing Tool Kit Analysis Inclusionary Housing — Rieht of First Refusal on set -aside units for CHDO's Since representatives from one of Evanston's CHDO's were present, Ms. Snyderman Pratt referred to the March minutes which discussed getting input from CHDO's on other resources in the Commission's Inclusionary Housing recommendation. She said the recommendation proposes that 1/3 of the set -aside units be trade available to CHDOs or the City with right of first refusal. Since at the March meeting it was noted that HOME dollars are not being fully utilized, she wondered if this would be one place to use them, if more properties were sold at an affordable price and CHDO's could do more work. She asked fir. Koenig if he could comment on that. Mr. Koenig said there were two separate issues. Retarding the first, about spending HOME dollars, he noted that HODC and other CHDOs plan to use HOME funds for some projects that are in the pipeline. He said the other issue deals with capacity of CHDO's, such as management and whether they are interested in taking over set -aside units. Ms. Snyderrnan Pratt referred to a comment by lames Wolmski that HOME funds were underutilized because of market prices. She thought the set -asides would lower the ceiling for new units coming on line, to a certain market Ievel. and hopefully there would be some scale with these. So she feels it is a capacity issue. Mr. Koenig said it would depend on the type of units. He said with rental, unless there was a concentration of units within a location, it would be hard to manage. There would be a certain number where it iwould make sense. He said HODC is probably not interested in getting the units and them selling them as condos. He thought they could see if Evanston Housing Coalition would be interested in considering doing scattered site management. Ms. Spicuzza said that the high acquisition costs due of large multi family buildings made it harder to create affordable deals, if, for example, acquisition costs were around S 100,0000 per unit for existing units. Addressine Vacant and Foreclosed Buildings Susan Munroe said she looked into strategies for dealing with vacant and foreclosed buildings ow and distributed an outline of a process to consider. She referred to the vacant building ordinance passed in January, which requires the City to perform an inventory and create a Iist. She said that's a start but you need to identify who does the research. She said the City doesn't have Rcallnfo software, which gives a snapshot of the history of the building. She asked if non -profits Housing Co„urussion Minutes April 1 S, 2004 Page 3 in the audience used it and representatives from HODC and interfaith Housing Center said they did. Ms. Munro described the other steps in the process. The City %could map the inventory and share it with CHDO's who might be interested in targeting the properties to get them back in the housing sto:k. They would consider what could most easily be acquired. She said acquisition is easier if voa can locate the owner, or if the loan is v zth a local bank rather than sold off to out of state bank. She considered the City's role and thought perhaps the City could provide a Revolving Loan Fund or work with banks to provide one for community development organizations to use for acquisition. If a property is in foreclosure and suddenly becomes available..ou need cash to purchase it. She suggested that the Evanston Community Foundation might be interested in getting involved. There vvas a discussion about the difficulties of acquiring foreclosed properties, noting it is time consuming and unpredictable. Ms. Munro said often a realtor can be helpful. Mr. Koenig said he submitted a CDBG application last year to fund a full time staff person to work on getting the information but was not funded. He said the Community Development Committee said they already know who the owners are but the owners just don't want to sell it at that price. He noted that some other non profits are working on acquiring vacant / foreclosed properties. Ms. Spicuzza said it might be worth revisiting to try to get funding if the Committee was presented with more detail on the issues, process. problems and delays even if a contact person is known. Commonit- Land Trusts Robin Snyderman Pratt said another issue in the Affordable Housing Tool Kit they wanted to explore was Community Land Trusts. She recalled the comment from Michael Brown, who provided techniccal assistance to the Citizen's Lighthouse Community Land Trust (CLCLT) and spoke to the Housing Commission, He said he didn't have a sense from the City that it was committed to the concept. tits. Snyderman Pratt said the Housing Commission hasn't figured out how to convey that and take oumcrship and what recommendations they should be making. She thought it would help to hear how the community land trust in Highland Park was created. She introduced Mary Ellen Tamasy. Executive Director of Highland Park Illinois Community Land Trust. Ms. Tamasy talked about the background of the community land trust. She said the City of Highland Park began updating its Master Plan in early the 1990's and the City Council directed the Housing Commission to create an Affordable Housing plan for the community. In January, 2001, the Council a.!. p%:J its Implementation Plan and they began working on recommendations. The Plan was update l in February. 2003. The key recommendatums were to create a Housing Trust Fund. Inclusionary Zoning, a Community Land Trust and an Employer Assisted Housing program. The first step was the Housing Trust Fund. es!- blished in May, 2002. They felt it was important to have the money to acquire and develop land. it was capitalized with $ i million from the refinancing of a building owned by the Hou0vr 'ommission. They expect to initially add around S400,000 to S700,000 a year using the S lOf"10 tear dowri fee for homes torn down in the City. Also any proceeds from sale of their bond cap goes to Housing Trust Fund. She said it has no permanent guaranteed sources of funds so must continue to look at those. Ms. Tamasy said the I b ••ping Commission worked on these issues for a long time and the City Planner, Lee Smith. ar , a hired consultant, Betsy Lazar, did the necessary background work to put these together. '-i ' ' ,rch, 2001. the City Council directed the Housing Commission to Housing Conunassion Minutes Apr.[ 15. 2004 Page 4 prepare recommendations for Land Trust. addressing who to serve and what to do, before working on ground lease rssue�- Members discussed differences in organizational struct..wes between Evanston and Highland Park when Ms. Snvderman Pratt observed that the impetus came from the City itself. Ms. Tamasy said the Hou,ing Commission encouraged the Council. and that there was also Council representation on the Housing Commission, unlike in Evanston. She said the Housing Commission also owns propem•. She noted also there were no non -profits working specifically in Highland Park, as in Evanston. although the Affordable Housing Corp of Lake County was looking to do some things, and Interfaith Housing Development Corporation was developing Sunset Woods. Thc Housing Commission adopted the community land trust recommendations in Oct 2001, and put together a task force. After receiving applications and interviewing candidates, the City Council formed a Task Force in May. 2002 which included builders, lenders, social service agencies and community residents. The Task Force met from May, 2002 to February, 2003 and discussed land trust details such as the ground lease, targeted incomes, priorities. The recommendations were prepared by staff and consultant. With the staff person working full time on this at some points. In February, 2003, the Housing Commission approved comprehensive recommendations for the formation of the Community Land Trust and it incorporated in March, 2003. Ms. Tamasy started as Executive Director in July. 2003, and the land trust started a project with a private developer for 6 townhouses. They had to raise money for the subsidy for the project. The CLT is developing 6 units at Temple Avenue, and recently held a lottery among the 20 applications they received. They expect to do orientations every other month and add to the waiting list. Ms. Tamasy said CLTs all have different levels of sophistication and staff levels, depending on the availability of funding, land and how the organization wants to pursue development. She said their board is working toward having 13 appointed by the City Council, 1/3 community residents, and 1/3 leasehold residents. They are a 501c3 non-profit organization but have a close link to the City. The City's Housing Trust Fund provided start up funds and S100,000 for operating this year. They anticipate that will decrease as they will raise fund themselves. The land trust raised over S565,000 in subsidy for the Temple Avenue project in a short time. although they started the project before they had all the funding. The builder arranged all the financing for the construcuon and the land trust will buy it in the end. They agreed on a final purchase price and have a contract with the builder, although Ms. Tamasy said not all builders would do that. After the land trust buys the units they hope to sell two to households between 80 and 100`.0 of median, two to households between 60 and 80% of median, and two to households less than 60',0 of median. She said the latter sales «•ill be more difficult and will need over S135,000 subsidy per unit. Ms. Tamasy said they are looking at doing three more units scattered site existing units before the end of the year but the problem is there arc few if any single family detached houses in Highland Park for less than S300,000. IHDA initially thought the costs for the first project were too high, and it used four levels of financing, including Lake County Affordable. The City's Trust Fund also raised concerns about the subsidy per unit. She said the land trust is acquiring property in the market place and it is tough to find vacant pieces of property and people value their property very high. She said the developer is not making a lot on the deal, taking a 6 - 7% developer fee, although he started with 20% as he was not an affordable housing builder and was used to the open market. She said, however, that he can take less on this project because he has built profitable, high -end single family homes. Housing Cornnussion Minutes April 15, 2004 Page 5 Nis. Tamasy slid they are considering doing buyer initiated programs. where the buyer gets the house and the land trust subsidizes the purchase and puts it in the community land trust. She said by getting that much subsidy, the buyer must commit to putting the property in the ground lease. «'rapping up. Ms. Tamasy said that community land trusts across the country have a good network, Every other year they have a conference, they have an e-mail network on Yahoo, and monthly conference calls with pre -submitted questions. CLT's can take many forms, she said, such as non-profit or municipality. Highland Park decided not to become a membership land trust organization because they have good governmental support. She said thinks this makes sense, given her experience as director of the Lake County Affordable Housing Committee. They helped over 800 families buy homes with downpayment assistance grants. but when the o%%mers sold the properties they were sold at market rate and no longer affordable to another low income fmaily. She said while some people think that a deed restriction is better than a ground lease for retaining affordability. unfortunately title companies sometimes miss the deed restriction and you can lose them. She said the land trust has a close relationship with homeowners, as they pay a monthly ground lease, and can be aware of problems, or when they are selling. In Highland Park, they also anticipate providing post -purchase counseling with families on topics of their choosing. They also hope to do some rental property as that is always in great need in Highland Park. That would be held in perpetuity with ground lease and otherwise is similar to doing a rental project with a non-profit organization. She provided sample information on Highland Park's Trust Fund and Inclusionary Zoning program. Ms. Snyder -tan Pratt thanked Ms. Tamasy for the presentation and asked if there were any comments or questions. Betty Ester said the newly formed Citizen's Lighthouse Community Land Trust set the population they want to serve at 80% and below and for people not to exceed 120% of median income. She said that is their target area. They are currently working on a business plan and getting help. Ms. Snydennan Pratt asked where they were getting help, noting the extent of professional staff commitment required in Highland Park, and how the pro-bono commitment from BPI helped Evanston's Inlcusionary Housing Task Force. Ms. Ester said Phylip Nyden from Loyola University is helping, and one of their board members also works for Loyola University and is helping with a financial plan. She said initially they looked into land trusts through the Statewide Housing Action Coalition and got help from Betsy Lazar who worked with Highland Park. She said as for the Housing Commission, one of the things they would like. besides funding, would be for some kind of support. verbally. She said they met with non profit organizations and have chosen Evanston Housing Coalition as their developer partner. Ms. Snyderman Pratt asked what they'd need funding for. Ms. Ester said it would be when they get to the point of hiring a staff person. She said funds for Evanston Housing Coalition would come when there is a project. She added that in June the CLCLT will look at language and the housing planner will attend, and she thanked the City for letting them use space. Ms. Snyderman Pratt said when they present Inclusionary Housing recommendations to the Planning and Development Committee, they will note it is just a piece of the puzzle and there are other tools to use. Ms. Tamasy suggested that if it is important to show support for the community land trust, perhaps the Housing Commission should pass a resolution, if this is the organization it wants in the community. She said Highland Park's Housing Trust Fund set aside a portion annually just for the development of community land trust properties, even though they have to apply every year with specific projects, because the City thinks creating permanent affordable housing is so important.. just for the development for community land trust properties. She noted that it is Housing Commission Minutes April 15, 2004 Page 6 difficult to raise funds and many fenders wonder why they are creating another organization for them to fund. Ms. Snyderman Pratt offered some advice for funding sources for Evanston and Highland Park, noting that the State of Illinois is spending money through DCEO Opportunity Returns. She said it is divided among S regions and northeastern Illinois region is last to be announced and she thinks there is opportunity to submit proposals although there is not a public process. They will unveil it in May, so not is the time to ask for funding, she said. She also said she thinks we should keep the community land trust issuic alive. This was the beginning of some brainstorming. She told Ms. Ester that the nwre concrete a proposal and written material they give the Commission, the more likely they will know what we can do. She said the Commission needs to know what the vision is. The meeting ended at Respectfully submitted, Donna Spicumm DRA FT not a ppro vedl EVANSTON HOUSING COMMISSION MEETING OF APRIL 24, 2003 Members Present: Rob Grossinger, Judith Huruich. Robin Snydenman- Pratt, Chair Members Absent: Robert Brooks, Phil Levis Staff: Donna Spicuzua, Housing Planner, James Wolinski, Community Development Director Others: David Price, Community Investment Corporation: Betty Ester, Richard Girard, Frances Seidman CALL TO ORDER Without a quorum present, approval of the March, 2003, minutes was deferred Commoulty Investment Corporation and Board -up Discussion Before hearing from David Price of CIC and his experiences turning around boarded up buildings, Robin Snyderman Pratt asked James Wolinski, Director of Community Development, to update the Commission on the board up issue in Evanston. Mr. Wolinski said board ups occur in all municipalities and Evanston is no exception, but board -ups seem to be increasing. He said there are many buildings are boarded, such as due to a fire or the building is unsafe. He said in the last few years more houses were boarded because the property was in foreclosure and no one was living there. Staff is concerned that criminal, anti -social behavior will occur in vacant properties and the City will board the entrance ways and first floor. He said they are making some progress, but not enough. Last year at this time there were about 25 boarded buildings, the majority on the west side, and now them are 15 or 16, still mainly on the west side. Mr. Wolinski said the problem is finding who owns the building because many are held in trust, or owned by absentee landlords or willed to children who don't live around here. He said boarded buildings, even if On are in good shape, make the neighborhood look blighted. The City moves quickly to board, especially if there are complaints, so that gang activity and drug sales don't take take place in the buildings. He said several aldermen have talked about it for years and have different ideas, but they have not come to any conclusions on how to solve the problem. Mr. Wolinski said they are considering an ordinance that would a11ow the City to demolish vacant buildings after a pepriod of time, but a court case in Lake Villa in Lake County has called into question the municipality's power to condemn in those situations, and it hasn't been sorted out yet. Staff has proposed requiring building registration so that the City can do an inspection. The City has also looked at alternatives to plywood boarding, but they still give the appearance of derelict building. He said the City has been successful in getting some rehabbed properties back on the tax rolls, and is also working with Econ Housing Group, which recently knocked down a boarded up house on Lyons to build a duplex with each unit selling for S 175,000. He said the City doesn't have enough staff to go after owners and do intensive searches. Rob Grossinger asked if he knew what banks were involved, noting that in Chicago's Gage Park neighborhood where there are numerous vacant houses, most are controlled by out of state banks that are virtually uncontactable. Mr. Wolinski said that is the case. Judith Hurwich said the Commission discussed this issue two }'cars ago and tried to come up with some program, but had the same problem in contacting the banks. She said at least it is a plus that the number is down April 24, 200. Evammoo Hoosing Commission Minutes Page 2 of S from last veer. Mr. Wolinski said the concentration on certain blocks from last year has been eliminated, but there are other vacant buildings that take their place. He said the longest time a property was boarded Nas a couple of %ears and the City has not used eminent domain to take properties but that ma% be an option down the road. The City prefers to provide financing for someone else to rehab. rather than doing the rehab themselves but sometimes it is a problem if people buy them. do minimal work and dump them. Mr. Wolinski said staff is proposing requiring vacant buildings to be registered so that the City will know who owns them. and this model has been used in a number of communities. Robin Snyderman Pratt then introduced David Price from Community Investment Corporation (CIC). Mr. Price said Evanston is doing a great job regarding board ups compared to some other areas. He gave some background on CIC, a not for profit organization started 25 years ago by savings and loans and banks. CIC provides financing for multi -family rehab in lower income neighborhoods, and is not regulated like banks. Many of the problem buildings they attack are boarded up or vacant. They are now working on ones that had been boarded up 15 years. The City of Chicago provided grant money to CIC to help with the challenging buildings that require substantial rehab. Although the buildings in Chicago may be M90 years old, they are structurally in good shape, unlike some vacant properties in Borne suburbs, built in the 60's or 70's, that are not as structurally sound. He said grant programs allow them to lend as much as 100% of the value. He said owners of apartment buildings are easier to find that that of individual homes, and they can start negotiating price. Mr. Price suggested the City might have some success identifying single family owners when a property is in foreclosure by attending foreclosure meetings, seeing the attorney representing the institution, and then following the track. He said that takes time and cfforts, and wondered if students at Northwestern Law Department might be able to help track down owners on a volunteer basis. He also said they could explore the back taxes, but noted that many buildings with delinquent taxes are redeemed before they go to deed. CIC secures vacant buildings by boarding them up even though it doesn't look nice, because of the concerns about vandalism, criminal activity, and breaking in. He said some of the developers they've worked with do artistic board ups. He doesn't like to see property torn down from an affordable housing point of view, because it costs so much more to build new, although it may harder to do with single family homes. If the buildings require a lot of rehab the City may have to back up the loan with HOME funds because the developers are in the business to make a profit. He noted that with fewer community banks, decision makers may not be in the local community, but people in branch banks help with developer contacts. Mr. Price said security is also an issue on vacant lots where buildings were torn down, and noted that developers also like to have a decent size lot to build five or six homes at a time CIC is involved in a pilot program in Chicago, where they provide rehab loans for large apartment buildings on the corners and Neighborhood Housing Services provides loans for the one -to -four units properties in the middle of the block. The City provides matching grants for exterior improvements such as windows, roof, security, and porches. CIC requires developers to address code issues as well. With the grant program, they can get developers $30,000 in grant money for 560,000 worth of rehab. The grants are for five years to discourage flipping. They used up all the grant funds in Woodlawn, have not been as successful in Sronzville, and another pilot program was approved for East Garfield Park. April 24, 2003. Etaeston Housing Commission Woutes Page 3 of S Mr. Price said to make rehab projects feasible you have to lower the acquisition costs, perhaps by getting the mortgage holder to accept less or buying back taxes. Some of the sub prime lending going on in recent %ears contributed to the foreclosure problems, and he has seen situations where the homeowners build up equity. but sub prime lenders call and talk them into new loan to pay off credit cards or help out a son or daughter. and the owners get into debt and it's all fees. He suggested working with the foreclosure lawyer. finding the bank them sit down with them and try to punch holes in the loan documentation to negotiate price. He said Household Financial just turned over 125 homes acquired through foreclosure to NHS as a result of pressure from ACORN. Out of state lenders don't know Evanston, he said, and it's hard to handle that situation, except to ty to get hold of them and negotiate. Mr. Price also mentioned that CIC does landlord training program for two -fiat owners, and one scheduled at Loyola. CIC would be pleased to do one in Evanston for a group. Robin Snyderman Pratt thanked him for his presentation. Mr. Wolinski commented that it would probably be a good idea to present the vacant building ordinance proposal to the Housing Commission for their review and comments. lnelusionsry Housing Tzsk Force uodAte Robin Snyderman Pratt said there have been two Task Force meetings since the last commission meeting. Two more are planned, with the next one scheduled for May 22. At that time they will be brainstorming on what ideas might work and what features people would like to see. She said at the last meeting they asked what makes more sense, to have a program based solely on government tzsotrrces or private sector resources, and the answer was in middle. Rob Grossinger said he thought that conversation got fuzzy because it's hard to say exactly what are government resources. For example, he said. if a developer has to pay a tax for every five market rate condos they build, that will go into a fund, and that fund is a government resource that is extracted from private resources. He said that's different that saying for every five market rate condos you put up, every sixth one has to be affordable. Except from an economics of scale standpoint, he said that's better for Evanston because you can get more units than taking the tax and trying to build affordable units. It's two sides of the same coin. He said he hopes at the next meeting they don't talk about the Affordable Housing Tool Kit that was distributed, because that described government fended resources. He said that's a whole different discussion then asking what is the City Council's appetite for getting the private development community to build affordable housing as a component of market rate housing. Robin Snyderman Pratt said the City Council would also want to see what was the development community's willingness to go with that program. Why would a private developer willingly go along with that, Mr. Grossman asked. Ms. Snyderman Pratt said there's a demand out there. The developers don't want to shoulder the responsibility. The main affordable housing programs the City has are off to the side for the non profit groups and there's not an opportunity for developers to even negotiatate, with 1930 Ridge being the exception. Mr. Grossinger asked if a developer was doing a for sale condo deal and asked for HOME funds to write down the cost of some units for a sales price $150.000, isn't that an eligible applicant? Donna Spicuzza said it was. Mr. Grossinger said our goal is to be precise about what we're talking about. He said even in the spectrum of what you make a private developer do, there's a whole range of what are the carrots you'd want to throw in to make him do it. The extrerne is "you'll never build another thing in this town unless 3% of everything you build is affordable." Moving along that continuum. there's "if you build, you can have 10 more units from a density standpoint and other sorts of incentives." But, he said, if we spend time focusing on what funds can be pulled together to develop April 24. 2003, Evasmon Housing Connisstoa Minutes Pape 4 of S affordable housing separate from that develop activity. then we're going to get all mushed up, because that's a separate discussion. We should start with the idea that if the City Council would take a position that in every market rate development opportunity, there needs to be an affordability component. then how much v+ill we have to pay for that in terms of density bonus. cash payments, etc. He said the requirement could even apply to development as of right, we could change the rules. He feels the group has enough sophistication to keep it focused on that, but the tool kit through us off. Once you start talking about ways to raise money for affordable housing, he said, it takes away from the discussion of do we or don't we want something to take advantage of the private development that's going on. Betty Ester commented from the audience that while that was true, even with giving private developers density bonus or HOME funds, they are still for profit and you'll always have an underlying group that might desire a home but their income is too low to get there in that market. She said the community land trust consultant who spoke to their group talked about how to finance it, what to do for the land, where to find the money and provide a mortgage so that a low income person can buy it. She said it works both ways, while inclusionary zoning is good for moderate income but it doesn't do anything for low income. She said the only thing for that which she found in her research was a land trust. Ms. Snyderman Pratt said that Betty reminded them wiry they did the tool kit, in recognition that inclusionary zoning doesn't serve low income persons. But she aged with Mr. Grossingerthat this is a separate component. There was further discussion about the purpose of the Task Farce and whether it would look only at inclusionary zoning or the broader issue of affordable housing, and how far they wanted to stretch the discussions. It was agreed that the next step was a conference call with Housing Commissioners and aldermen on the Task Force to plan how to structure the next meeting. Other Business Westside Residents Association Group for Communitv Land Trust Betty Ester from the audience said the west side community group met with Michael Brown, the consultant for I.C.E. Mr. Brown is with Burlington Development which implemented a community land trust in Vermont. She said he gave them a letter for the City to send back to ICE so they can provide technical assistance. She said the group will review its bylaws, and they have an Evanston resident who is a lawyer working with them on that. She also said they talked to George Gauthier of Evansson Housing Coalition about their project and he said he would like to work with them. She said that he brings expertise and experience in getting funding. She also said they are talking with Reba Place Development Corporation and hope they can also work together. Emolover Assisted Housing Pro;itram arovosal Judith Hurwich reported that she attended the Planning and Development Committee meeting on April 21 in which they approved the proposal for an Employer Assisted Housing program. Committee members thought it was a good idea, although someone mentioned that $10,000 would not save much in monthly savings over the life of the loan. It was explained that borrowers can often support a mortgage but need money for downpayment. Alderman Wynn asked for updates on the program's progress and Richard Koenig from Housing Opportunity Development Corporation said he would provide reports. Alderman Newman was interested in getting police and freemen interested to use the program to purchase in Evanston. James Wolinski told the Commission that while they are among the employees living the farthest away, travel is not a big issue, or they may prefer not to live in the community they're working in. Ms. Snyderman Pratt said the next sup for the program is how to roll it out and get other employers interested. Next discussion, how to roll out the program, get others interested. n April 24, 2003. Evanston Homing Commission Minutes Page s ors COMMUMC860113 Commissioners were updated on proposed planned developments. Donna Spicuzza said the Plan Commission approved the proposal for Chicago and Main. The phased development proposal of six buildings for Ridge and Oak will be presented at a special meeting of the Plan Commission on April 30. She noted that it has an affordable component for 10°/e of the units. Ms. Hurwich asked about the sale of condo units and wondered if anyone expressed concern about overbuilding. Ms. Spicuzza said that issue isn't addressed at Site Plan and Appearance Review Committee but can be brought up at public meetings. Commissioners briefly discussed the sale of condo projects. Donna Spicuzza also noted that Commissioners received a draft of Neighborhood Planning Report for the west side planning area to keep them updated. Two Home buyers seminars for 1813 Lyons are scheduled for Tuesday, May 6 and Saturdry. May 10. Different lenders will present information, along with the developer. Information will be presented specifically about the Lyons development and generally about the home buying process. The Commission briefly discussed whether it would be desirable if the efforts of the Housing Commission received more press. Ms. Hurwich mentioned that the Employer Assisted Housing program was not mentioned in the Round Table. One idea suggested was to interest a reporter in a specific project for a feature story. Public Comment Richard Girard from the audience pointed out that Task Force's latest version of the Needs Assessment which showed a table housing choice vouchers by census tract didn't include census tract 8102, which probably has the most. Ms. Spicuzza said she had just received the table the day of the meeting and staff was checking with the Housing Authority of Cook County to get corrected information. Betty Ester announced that they are trying to get people from Evanston to lobby in Springfield on May 6 as part of Housing Justice Lobby Day. They can get a bus from Evanston rather than leaving from Chicago if enough people can attend. The meeting was adjourned at 8:30. Respectfully submitted, Donna Spicuzza, Housing Planner DRAFT - NOT APPROVED MINUTES EVANSTON HOUSING CO�iNiISSION Thursdavo June] 7, 2004 Members Present: Robin Snyderman Pratt. Chair, Judith Hurwich, Sara Ashmore Diggs Members Absent: Andre Carvaiho, Rob Grossinger, Thomas Marxsen, Susan Munro Staff: Donna Spicuzza, Housing Planner Others Present: Nevin Belzer, Reba Apartments Cal! to Order There was not a quorum present. Communications Donna Spicuzza distributed fliers for an Open House on July 27 for the affordably priced single family house at 1721 Brown. The City provided rehab funds to Evanston Housing Coalition to prepare the former rental property for purchase by an income eligible buyer at a price of 5135,000. Ms. Spicuzza also announced that Colin Matthew Proksel, an Evanston tenant, was recently appointed to the Housing Commission. HOME Fund Request from Reba Place Development Corporation Reba Place Development Corporation is requesting $180,000 in HOME funds for the rehabilitation and condo conversion of 5 units at 836-838 Elmwood. Donna Spicuzza gave a brief overview of the project, noting it is an Evanston landmark constructed in 1913 and has always been a rental budding. Reba Place Development Corporation (RPDC) owns the property after getting a 0% balloon loan for 5545,000 from their affiliate Reba Fellowship. Three of the four residential units are currently occupied and the tenants are interested in purchasing. The developers intend to make a fifth dwelling unit out of the basement office space. They have received a zoning variance for the unit and a code assessment report from the Building Department. The development cost of 5930,000 includes acquisition, S272,000 in construction, a 100/6 contingency, and a developer fee of only 5%. There will be three HOME assisted units, selling for S100,000, S125,000 and 5150.000. One of the existing tenants meets HOME income eligibility requirements and the other two HOME assisted units will be available to the community. The project will be reviewed by the Loan Committee will next week and staff feels that it is a financially feasible project, a good use of HOME fiords, and that the developer has worked diligently with different City departments to move the project forward. Nevin Belzer of Reba Apartments spoke on behalf of the applicant RPDC, one of three CHDO's in Evanston. He said RPDC has worked with the City on three previous projects in their south Evanston neighborhood: House of Peace, a 12-unit coop; a 25 unit rental building at 707 Seward, and the 2-flat next to the House of Peace. He said the work to be done on the condo project includes new electric service, individual heat and air conditioning, larger bathrooms, 2 new kitchens, and storage lockers in the basement. Judith Hurwich told Mr. Belzer that she likes the organization's work, and she used to live in that neighborhood and felt their presence made it a nicer place. She asked why they were interested in turning a rental building into condominiums. Mr. Belzer said that affordable condos was the key because homeownership for people of modest means is vanishing. They also wanted to give an opportunity to current tenants to can own their horses and have a little more control of their lives. Housing Commission Stinutes April 15.2004 Page 2 He said the range of unit pricing between S 100.000 and S200,000 accommodates a mix of incomes, while their market value is at least S200,000. He said they aren't taking any housing from the people who were there or are to the low income strata. Ms. Hurwrch wondered how many available condos are in that range. %Is. Spicuzza said she couldn't give an exact number but that most condo conversions with units between S170.000 and S200,000 are generally one bedrooms. `Is. Hurwich said she had a concern with turning a rental building into condo. Mr. Belzer noted there would be a deed restriction on the units to keep the prices affordable upon resale. Ms. Snyderman Pratt asked about the two non -HOME units and was told that the unit priced at S 175.000 would also be restricted. Ms. Ashmore Diggs asked about affordability. Mr. Belzer said they were priced to be affordable to targeted income levels and re%zewed an affordability analysis. RPDC has met with tenants to discuss home purchase and saving for downpayment. They will provide their own homebuyer counseling because the project is small enough. Ms. Snyderman Pratt asked about the relocation expense of S 1,200 in the development budget and wondered if the Uniform Relocation Act was triggered under the lease with the commercial tenant. Mr. Belzer said that cost was for relocating tenants to the vacant unit during rehab and permanent relocation expenses weren't factored in the budget. Ms. Snyderman Pratt suggested they confirm that LIRA didn't apply. The Commissioners present supported the proposal. Ms. Snyderum Pratt noted that a recent study by the National Housing Conference showed that while national homeownership rates are better than ever, at 68%, the rates for working families earning up to 120% of annual median income had declined from 62.5% to 56.5%. She said this project is serving a niche that is underserved. Update on Incluslonary Housing Policy Ms. Snyderman Pratt summarized the Special Planning and Development Meeting of April 19 where the Housing Commission presented its Inclusionary Housing Proposal. She said the meeting was well attended, with all but one alderman there and public comment was supportive. She said Committee members were also supportive about having a set -aside of affordable units but were concerned about the cost offsets and found all the options troublesome. There was discussion about how it could be structured so the City would have control. At the conclusion of the meeting, Alderman Tisdahl, who was suffering from laryngitis, made a motion that the audience couldn't decipher, but it passed unanimously. However, she said that the minutes reflect the motion was to go ahead and move forward with an ordinance that reflects the findings of the Task Force with extra language about condominium conversions to capture them as well. She said that she and Nick Brunick of BPI met with James Wolinski and Donna Spicuzza from Community Development to discuss next steps, and BPI will take a first step in drafting two ordinances, one on top of the existing zoning ordinance, the other as part of the condominium ordinance. She said they hope to have some drafts by the next meeting. Ms. Ashmore Diggs noted that the newspaper reported the recommendation was only for condominiums. Ms. Spicuzza read the P&D minutes which said that "Alderman Tisdahl moved to direct staff to draft an ordinance in accordance to what the Committee has agreed on for the Task Force to back and do further research or eliminate the "cost offset" and possibly the "in lieu of elements. Alderman Newman seconded the motion." Prior to the alderman's motion the minutes indicate a discussion about the condo conversion ordinance and Mr. Wolinski's comment that the condo conversion ordinance is not tight enough and agreed that there should be an affordable housing component included for each conversion. Housing Commission Minutes April 15, 2OD4 Page 3 Members discussed future public process and the best strategy to build public support.They noted there was an editorial in the Evanston Review supporting the idea. Affordable Housing Tool Kit Discusssion The Commission discussed other resources mentioned in the Affordable Housing Tool Kit. The first item was Employer Assisted Housing. Ms. Snyderman Pratt said as Chair of the Commission she sits on the Board of the Evanston Housing Corporation which runs the First Time Homebuyer Program. At the last meeting they learned that brochures were mailed to the university and employers. She wondered if there could be a link between this program and the City's Employer Assisted Housing program, which like many others, is slow to get off the ground. She mentioned that it could also be matched with the City's Homebuyer program for Police. She hoped that the City could act as a leader with other employers, perhaps with a letter from the Mayor to local employers. Discussion followed on how to promote EAH and link it with the First Time Homebuyer's Program. Ms. Spicuzza said she would change the information on the web to note that the programs could be used together. . Members then discussed the second tool, the Regional Housing Initiative. Ms. Snyderman Pratt explained this is where several Housing Authorities pooled some available rental vouchers for use as project based subsidies, which in the past was marketed for new development only but now can apply to existing housing. With vacancy rates now a little higher, she said her organization, Metropolitan Planning Council, is talking with another City about making these available to cities. The municipality could apply for a number of subsidies, reach out to landlords and ask them to set -aside units for low income households. Landlords can use the same tenant screening criteria and get market rate rent for the units. Members discussed in more detail how the program worked and the extent of the involvement with the Housing Authority. The City would have more control over where the subsidized units would go, while the contract is still signed with the Housing Authority of Cook County. It was agreed that Ms. Spicuzza and Ms. Snyderman Pratt would prepare a written explanation of the program for more discussion at the next meeting. It was also agreed that Ms. Sara Ashmore Diggs would discuss community land trusts at the next meeting, with an update on local efforts to establish one. Ms. Diggs said she was asked to be on the board of the Citizen's Lighthouse Community Land Trust. She accepted but would abstain from voting on any funding requests the group might bring before the Commission. Other Business Keith Banks, Executive Director of Evanston Community Development Association, said they were trying to assist someone financing for a co-op and were told that was not eligible for Evanston's First Time Homebuyer Program. He asked if commission members knew anything about financing for co-ops and members referred him to the Chicago Mutual Housing Network. Mr. Banks said that ECDA is a new faith based non-profit housing organization which just purchased their first unit, and they will be applying for HOME funds in the future. Susanne Carlson told Commissioners that the Ebeneezer Primm Towers building currently has about 35 units available, which is unusual, but is a result of some remodeling. They offer affordably priced studios and one -bedrooms for seniors. The meeting ended at 8: 10 p.m. Respectfully submitted, Donna Spicuzza DRAFT - NOT APPROVED MINUTES EVANSTON HOUSli.1G COIiI.NUSSION Thursday, July 15, 2004 Members Present: Robin Snyderman Pratt, Chair, Judith Hurwich, Sara Ashmore Diggs, Susan Monroe. Andre Carvalho Members Absent: Rob Grossinger, Thomas Marxsen Staff: Donna Spicuzza, Housing Planner Call to Order and Approval of Minutes Robin Snyderman Pratt declared that a quorum was present. Judith Hurwich made a motion to approve the minutes of January, February, March, April, May and June, 2004. The motion was seconded and passed unanimously. Communications Donna Spicuzza said the HOME fund proposal from Reba Place Development Corporation for a condominium conversion at 836-838 Elmwood, which the Housing Commission recommended, is going to Planning and Development and City Council in August. She noted that the funding. request includes relocation costs for bthe asement office tenant as a result of a the Commission's question about applicability of Uniform Relocation Act. Ms. Spicuzza said the Community Development Department plans to include information on the web about the City's pilot Employer Assisted Housing Program in combination with information on Evanston Housing Corporation's First Time Homcbuyer program. The pilot program has six months remaining. Certiftatious of Consistency with Consolidated Plan The Housing Commission was asked to certify that programs seeking HUD funding are consistaent with the goals in Consolidated Plan. Ms. Spicuzra explained that the Evanston Alliance on Homelessness, which operates as Evanston's Continuum of Care, is submitting a funding request through HUD's SuperNOFA process for homeless assistant programs. They received four applications, and it is likely the Continuum will qualify for enough money to fund all of them. Representatives from the agencies were present to discuss their funding requests. Alexander Brown from Housing Options for the Mentally III noted that their request expands on their Pathways program started four years ago and provides permanent supportive housing in , scattered sites for persons with mental illness. Their new Pathways Plus program will serve eight persons with severe and persistent mental illness, who require more assistance and support. Mr. Brown said they plan to rent studio or one bedroom units, preferably in the same building. as this population does not respond well to shared living space. Mr. Brown said they are also requesting renewal funding for the Claire Ganey project, which consists of two separate two -flats that serve ten individuals in two and three bedroom units. It serves adults who are disabled by severe and persistent mental illnesses who are unable to perform full-time jobs and have very low incomes. In response to Commissioner's questions, Mr. Brown discussed the agency's client selection, services, funding, operating costs, and how they work with landlords. Housing Commmssion Minutes July 15. 2004 Page 2 Marie Viseiy of Connections for the Homeless spoke next about the renewal funding for Hilda's Place, a transitional shelter which has been operating for 20 years. She noted it has evolved to more of a transitional program rather than Just emergency shelter offering a place to sleep and get a meal. They have added case management and guests can stay up to 6 months while following a program to help address the cause of their homelessness. Sue Calder, chair of the Evanston Alliance on Homelessness and a board member of Connections for the Homeless, added that all of the agencies in Evanston work well together in addressing the problems of homelessness. She noted that Evatmon's decision to form a separate Continuum of Care after being part of a consortium has been beneficial. Ms. Visely confirmed that, citing one of their programs which offers transitional housing for families. She said those clients were Evanston residents who wanted to remain in Evanston and most were able to find affordable housing in Evanston at the end of the program, often with the help of the agencps contacts with other organizations, landlords and housing developers. Richard Koenig, director of Housing Opportunities Development Corporation (HODC), then spoke about HODC's application. They are applying for renewal operating funds for seven units that are set aside for homeless persons with a disability, at their 319 Dempster property. Tenants pay 30% of their ncome for rent He said this is HODC's only SRO building, although they own and massage family buildings. HODC relies an Connections and Housing Options to provide the referrals and the social services. The tenants are perfectly integrated in the building, he said, and nobody knows which units house those referrals. The Housing Commissioners commended the agencies on their programs, and observed there is a range of services without duplication. They asked more about how they work together. Robin Snyderman Pratt asked the agencies what more they hope to see from the City. A discussion followed about the dilemma they will face if HUD decreases or doesn't increase funding for homeless services. Because HUD encourages new programs, there won't be enough funding for renewal funding. They noted that the Alliance received four applications this year and expects to get enough funding for all four based on the Continuum's allocation and bonus points, but next year they will have more renewal requests and there won't be enough funding for all of them. They also discussed the problem of getting enough support funding,for staff, case management and operating costs. Judith Hurwich made a motion to certify that the projects were consistent with the City's Consolidated Plan, and it was seconded and passed unanimously. Process for Preparing HUD Consolidated Plan for 2005 — 2010 Ms. Spicuzza referred members to the current Consolidated Plan and said that staff'will be doing focus groups to discuss consolidated planning and priority needs and will ask for comments from Housing Commission. Commissioners agreed that it would be a good idea to attach priorities to the needs, whereas the previous plan downplayed that in order to accommodate a range of activities. Ms. Hurwieh said she would like the Commission to be as involved in it as possible. Update on Inclusionary Housing Policy Ms. Snydenwn Pratt said that after the Commission's April 19 Planning and Development C,ommittre presentation on Inclusionary Housing, BPI agreed to draft two ordinances, including a separate condominium ordinance. She said that City staff had a preliminary discussion about the draft documents and plan to meet again. She said the drabs will be e-mailed to commission members. Housing Commission Minutes July 15, 2004 Page 3 Affordable Housing Tool Kit Discnsssiott Sara Ashmore Diggs reported on the progress of the Evanston Lighthouse Conununity Land Trust (ELCLT), noting that she is now a board member. She said they have made tremendous progress and have an action plan. They are waiting to get a new pro bono attorney from Community Economic Development Legal Project. Tbcy also made progress with Evanston Housing Coalition (EHC) developing a Memorandum of Understanding about their relationship. They will apply for tax exempt status. Members asked about the relationship aith EHC and Ms. Diggs said the land trust would be part of an umbrella organaization, with development and financial roles split. She also said that the consultant Michael Brown was coming on July 28 to continue work on the ground lease and resale formulas. Ms. Diggs reported they are looking for fimding sources and have 15 so far. The biggest obstacle is getting money for things like a director and initial acquisition. She said affordability of the housing is achieved by persons not owning the land. Affordability will perpettnate,after initial assistance from the City so they don't have to come back for more fimding requests. Susan Munro asked where the money to acquire land and housing comes from and wondered if they would take a loss at first with prices so high, unless they got land donated. She said some people might do that to get the Alinois donation tax credit. Ms. Diggs said they will need initial money to make it affordable. They asked whether the City owned land they could contribute, bud Ms. Spicuzza said generally the City doesn't own vacant land except for some parking lots. Outer Business Members indicated that they liked to receive the minutes and agenda via a -mail. If there are materials that are not available electronically, a packet will be delivered as well. Public Comment Richard Girard asked about the status of cite Inclusionary Housing ordinance and urged the Commission to continue to bring that forward. The meeting ended at 8:10 p.m. Respectfully submitted, Donna Spicuzra DRAFT - NOT APPROVED MINUTES EVANSTON HOUSING COS ]NUSSION Thursday, October 21, 2004 Members Present: Robin Snyderman Pratt, Chair. Sara Ashmore Diggs Judith Hurwich, Susan Munro Members Absent: Andre Carvalho, Colin Proskel. Thomas Marxsen Staff: Donna Spicuzza, Housing Planner Call to Order and Approval of Minutes A quorum was not present. Status of Incluslonary Housing Ordinances Members discussed three proposed draft ordinances, an Inclusionary Housing Proposal, Revisions to the Condominium Regulations, and a Demolition Tax ordinance, which they will propose to the Planning and Development Committee on November 8, 2004. Members had received drafts of the three proposed ordinances and related handouts Summary of the Proposal, Evanston Housing Facts, Background, and Affordable Housing Trust Fund basics. The meeting was spent comparing the summary pieces to the actual draft ordinances, with the bulk of the time spent on the Inclusionary Housing Proposal. These were among the points discussed: • Discrepancy between ordinance and summary on the resale formula. Ms. Snyderman Pratt said she would re%iew what formula was proposed and make both pieces consistent. + Questioned the detail in the ordinance section that referred to notification from the applicant of a project with affordable units. Members agreed it would be best if the ordinance was general so the specific procedures for notifying the public about the availability could be amended ifnecessary. They noted there was no provision for what happens after affordable period ends. In Lieu Alternatives; this was slightly different from task force recommendation, based on continents made in April by aldermen on the Planning and Development Committee. They discussed whether there should be a flat fee or a formula established by director and approved by City Council that reflected an estimate of the cost of providing an affordable dwelling unit. They weren't sure what the Task Force finally recommended. Commission members said that the fee should reflect the cost for the same type of bedroom mix as in the project. After discussion, it was agreed that the wording in the draft ordinance should be changed to agree with the summary, which states that the fee should be based on the number of required set -asides multiplied by the difference between the actual market rate and the designated affordable rate. • Questioned whether the ordinance noted that affordable set -aside units should be for Evanston residents and workers. It was found in the purpose and intent, but will be added to the Eligible Household section. Page 2 October 21, 2004 Housing Connnission Minutes • They discussed the incentive options listed and noted that while the existing climate is against increased density bonuses of any type, they should remain in the ordinance as options that would have to be approved by City Council on a case by case basis. Members reviewed the Evanston Housing Facts and made some suggestions to clarify some points that didn't make an obvious rase and to add some facts from the Needs Assessment. There were no comments on the Background handout. Members discussed whether they should encourage supporters to attend this meeting, and noted that there continues to be strong interest in developing housing in Evanston Regarding the changes to the Condominium ordinance, Donna Spicuzza noted that staff would recommend for changes to the ordinance that were unrelated to affordable set -asides, but they weren't ready yet. Respectfully submitted, Donna Spicu= Housing PIanner DRAFT - NOT APPROVED MINUTES EVANSTON HOUSING COINIMISSIO` Thursday, November 18, 2004 Members Present. Judith Hurwich. vice chair. Susan Munro, Colin Proskel Members Absent: Robin Snyderman Pratt, Sara Ashmore Diggs, Andre Carvalho SUIT. Donna Spicuzza, Housing Planner Call to Order And Approval of Minutes Judith Hurwich said the chair person was stuck in traffic so she would be chairing the meeting. A quorum was not present so the minutes were not approved. Communications Commissioners reviewed the proposed Housing Commission meeting dates for 2005. None of the third Thursdays conflicted with any holidays, so the calendar was approved. HOME Application from Evanston Community Development Assoeistio■ (ECDA) Donna Spicuzza said ECDA is a new non-profit housing organization that has been in development for over a year. Their first development project involves the rehab and sale of a townhome unit at 1717B McDaniel at an affordable price, which they are working on with an experienced Community Housing Development Organization, Reba Place Development Corporation. Ms Spicuzza said Keith Banks, the Executive Director, would provide background on the organization and their project. Keith Banks said ECDA is a faith based organization formed by seven churches primarily in the 5d' and 2"d ward. The organization's purpose is to maintain and preserve affordable housing in the City of Evanston, particularly in the west side community. He said the alarming number of distressed, abandoned properties led to their desire to maintain and renovate some of these buildings. They are looking to transform the houses in order to revitalize the community. Mr. Banks said they don't want to just transform property, but transform lives as well by providing jobs and job training, homeowner education and being a resource to people. He said that by maintaining affordable housing, the community will remain diverse. He said the proliferation of high end condos at $350,000 and up has forced many low and moderate income families out of Evanston. He said ECDA has a diverse board made up of religious lenders, contractors, accountants, and realtors. Reba Place Development Corporation, which has 25 years of experience developing affordable housing in south Ev-anston, is their partner and the developer and project manager for this project ECDA purchased the two bedroom townhome at 1717E McDaniel, a pre -foreclosed property, the day before the family was going to be evicted, giving them a chance for a fresh start. He said the owner was under financial duress after losing a job and was victimized by a predatory lender. The property had been in foreclosure two years. In order to help make the unit affordable, however, they need grant money. ECDA purchased the unit for S182,000 and it took almost $50,000 in repair plus development costs, for a project total of S256.000. They want to sell it for S170,000 in order to keep it affordable to someone under 800/6 of area median income. Page 2 November 18. 2004 Housing Commission Minutes I.1r. Banks said the propertrn was neglected for over 2 years, had no furnace or air conditioner, and one bathroom was ripped out. They sponsored a community work da%, where people helped clean out the unit and enjoted a cook out. This helped reduce rehab costs. Mr. Banks noted that it is expensive to buy even distressed propem. and also very competitive, but the project can help preserve that block and the neighborhood. Susan Munro said she used to w ork in Lawndale and was in favor of what they're doing and agreed situations involving predatory lending make it difficult to get the property for a price where you can rehab it and sell it affordably. She hopes they might be able to come out with a model of how to acquire foreclosed properties which can be shared with other groups in Evanston. She said it is a learning process to figure out who has title, when you can intervene, and how to put all the pieces together, and that it's also a moving target, with realtors and banks changing the way they put the property on the market. Mr. Banks agreed and noted that they were outbid on the first building they were interested in, a three flat on Dodge. He said they looked at how other successful housing organizations rehabbed property and used Lawndale and Habitat as a model. He also said they are a member of Evanston Community Development Corporation and interested in the revitalization of their target area. Judith Hunvich had questions about the market value and the selling price and was concerned about who was going into the building. She asked how they would ensure the family would have enough finances to maintain the building. Mr. Banks said that one of the seven churches will . adopt the family and work with them, and they arc working with CEDA Neighbors at Work on a homebuyer education program, and they will be able to give referrals for financing from their relationships with banks. Ms. Hurwich asked about the plan for buyer selection. David Janzen of Reba Place Development Corporation said they have a marketing plan and a homeowner selection team. They will distribute information about the project to 20 different churches and neighborhood organizations, have an orientation session, take applications, review the information and then select one family. He said someone with a 548,000 annual income could afford this, so they are targeting households with income from 548,000 up to $62,000 for a household of five. He said their marketing contacts target Evanston residents. Regarding a question about resale of the property, Mr. Janzen said that they have a plan in place so the resale price can't grow faster than median income or 3%, whichever is highest. After 15 years, it can grow gradually until year 40 when it returns to market rate. This way, he said, there are no windfalls in one year during the 40 year period and it is kept affordable at the same income level. Ms. Hurwich expressed concern that ECDA was selling this at a loss and hoped they would they be able to do more. Mr. Janzen said they were planning to break even due to the HOME subsidy, and if it goes well there would funds available for a developer's fee which is in the budget. He said it's a small project and they won't make a lot of money, but they want to get it right. After this, they hope to do other projects more rapidly. There was discussion about the other units in the townhome development. Mr. Banks said the development has 16 tov%mhomcs, and there are 24 townhomes on the block, all well maintained. When the townhomes were originally built in the late 50's there was a homeowner's association but it is no longer active. All the units are privately owned. However, there is an active block club. He said part of the project involves replacing sidewalks and other neighbors are contributing to expand the replacement to their units. Page 3 Noticmbcr 18. 2004 Housing Commission Minutes Ms. Spicuzza noted there are HOME funds available for the project and that the HOME Loan Committee reviewed the project and supported it. Colin Proksel asked whether the amount of subsidy was typical. 'ifs. Spicuzza said the City has done a few ownership projects, and started at around S50.000 per unit. They have gone as high as S97,000 per unit for new construction. Given the price of land and rapidly appreciating property values, she said an S80.000 subsidy is on par with %%hat it needed to do homeownership projects in Evanston. In response to a question. Ms. Spicuzza noted that the HOME loan would not be repaid. Instead the subsidy will stay with property to keep the resale price affordable for 20 years. ECDA will record a Declaration to limit the amount it can be sold for. The owner won't have to pay back any part of the HOME loan if they sell, but will have to keep the property affordable. Ms. Huroich said there wasn't a quorum but asked members what they thought about the request. All agreed it was a good project and good use of HOME funds. Nis. Spicuzza said that all Housing Commission members received project information before the meeting and no one voiced any concerns. so the HOME fund request will go to the Planning and Development Committee in December for their recommendation. Update from Evannton Housing Coalition on Housing Activities Ms. Spicuzza said that George Gauthier from Evanston Housing Coalition (EHC) was at the meeting to give an update on EHC's activities with single family rental projects and the sale of 1721 Brown. She said EHC also has a project at 1817 Foster that requires HOME funds and she wanted to provide background information. She said that in 2001 a private investor had received Mayor's Special Housing Funds to rehab 1817 Foster, but he got over his head and defaulted on the first mortgage and City's loan. The first mortgage lender initiated foreclosure, and the owner tried to sell the property' before it was foreclosed but was not successful. There was a strong possibility the City would not recover its funds if the property was sold at foreclosure for the bank's judgement amount, and the situation was brought to the City Council at Executive Session. Council members were interested in preserving the City's interest, but not in owning residential rental property. It was proposed that since EHC owns and manages single family rental properties in the same area, and since HOME funds are available, that EHC should bid on the property and manage it as affordable rental, to be financed initially with Mayor's Special Housing Funds then replaced with HOME funds. EHC bought the property at foreclosure and did some needed some rehab. The requested HOME funds will cover the acquisition and some of the rehab costs. Mr. Gauthier said they would maintain the property as affordable rental for tenants around 6016 of area median income for 20 years. He said there is a two bedroom unit on the first floor and a three bedroom unit on the second floor. There will be a twenty year affordable provision regarding rent. H ith the HOME loan due at title transfer if ever the building is sold or ownership is transferred. Ms. Munro asked what income level was targeted, noting the development budget said tenants may be below Wle AMI. Mr. Gauthier said 60% was the desired income level but you don't always get tenants at exact income limit, and thinks it's imprudent to do a pro -forma based on getting full maximum allowed rent. He said the 'idea is to have tenants pay nor more than 30% of their income for rem. One unit is currently rented and the tenant meets income eligibility and will be able to stay. The second floor was previously occupied but the tenant left before EHC took title from the foreclosure sale. The rentals would generate a positive cash flow of 6,800 per year, Page 4 November 18. 2004 Housing Commission Minutes supporting debt service of S430 a month. EHC took title, did the rehap and will pay $68.000 back to the City. the amount of the original loan, ss hen they get a conventional loan for that approximate amount. Ms. Munro observed this has already happened. Ms. Spicuzza said they wanted the Housing Commission to be aware of the project even though they acted at the behest of the City Council. Since HOME funds are available it was a way to prevent a loss to the Mayor's Special Housing Fund and retain affordable units. Ms. Munro said it was a good deal. Ms. Gauthier then reported on the Mayor's Special Housing Fund loan of $28,500 to EHC for the rehab of 1721 Brown. EHC used the funds to prepare the single family property for sale after 10 years of rental. He said with a target buyer having income at or below 80% AMI, they calculated the purchase price to be $ 135.000. The four bedroom, one bath home was sold to a young couple with one child and another on the way, with household income about 72% of AMI The property has resale restrictions for 20 years, limiting appreciation to 3% a year and requiring it to be sold to a household with income under 80% AMI. He said the buyers are descendents of an Evanston family, the wife went to school at ETHS but after college couldn't find anything affordable in Evanston. Mr. Gauthier said their marketing of the house for S 135,000 attracted a fair amount of people, but only three or four qualified to purchase. Mr. Gauthier said that after the sale, EHC paid the City its $28,000 loan plus a 10 year old $8,300 rehab loan. Other costs were S58,000 to LaSalle Bank, $2,300 to the Federal Home Loan Bank of Chicago and $7,800 in taxes and closing costs, which allowed EHC to keep $25,000 for future development. He said they own four other single family houses, and will probably do the same thing , so they may come back for more interim rehab financing as two tenants have given notice they are moving. Ms. Hurwich asked what happens to the tenants at 1817 Foster after the 20`h year. She asked if there could be a provision that they provide due notice, preferably 120 days, so tenants will have time to move in case the affordable rents will cease. Ms. Gauthier said they could add that provision. A member of the audience asked why the affordability period was 20 years and not longer. Ms. Spicuzza said the minimum HOME requirement for rental property with this amount of HOME assistance is 20 years and it is often tied in with term of loan and the value of the rehab funds. She said it's possible the affordability will be extended, but you don't know if the same non-profit organization will be around to manage it. Ms. Munro noted that since it's in the hands of a non- profit with a mission of providing affordable housing, they assume they will want to keep if affordable it feasible. Mr. Janzen said affordability provisions need some kind of an institution that will maintain its mission, and that organizations need to keep revitalizing themselves. Ms. Hurwich thanked Mr. Gauthier for his presentation. Inclusionary Housing Ordinances States Judith Hurwich said she attended the November 8 Planning and Development Committee meeting where Housing Commission Chair Robin Snyderman Pratt presented a summary of the includionsary housing ordinances recommended by the Housing Commission. Committee members wanted More detail on the ordinances and had questions about the cost offsets. Ms. Spicuzza. said the ordiances weren't presented in full because they were being reviewed by the Law Department and that Alderman Wynn objected to the cost offset provisions, where Page 5 November 18, 2004 Housing Commission Minutes de%elopers would get a bonus for set -aside, saying she was not in favor of them. However, it was noted that the ordinances %voufd be more likely to be challenged on legal grounds if there were no offsets for set -aside requirements. It was noted that even though the ordinances don't prescribe specific bonuses, but leave them to the discretion of City Council, some aldermen still objected. Alderman Bernstein defended the need for a menu of offset options, saying the City gives concessions to developers just for developing and gets nothing back. Members discussed whether they could get notice about the next presentation and where it would be on the Agenda. Ms. Spicuzza said they could notify people when it was on the Agenda but not at what point in the meeting it would be discussed as it isn't possible to know how long each item will take or if the Committee would address items in a different order. Ms. Hurwich said the newspaper articles regarding the discussion were not good. She noted that Sue Carlson from the audience made some favorable comments and thanked her. Ms. Carlson said it appeared to be a good sign that the ordinances went to the Legal Department for review, as long as they don't just sit there, and said it would help to know when it will be scheduled again so that can get people to attend. his. Spicuzza noted that the Law Department thought the inclusionary ordinance should be a section of zoning code, rather than part of the housing or building code. If that is the case, the ordinance would go to the Zoning Committee of the Plan Commission next, and they have full agendas. She said that BPI has been very responsive, and provided the names of attorneys and referrals to case law in other states regarding inclusionary programs. Members discussedgiving notice to people regarding next events and the issue of cost offsets. An audience member asked about the approval process and whether the three ordinances or sections of them could be broken down for approval. Ms. Hurwich and Ms. Munro noted that the Housing Commission wanted to present the three ordinances, the inclusionary housing ordinance, the condo amendments and the demolotion tax ordinance, as a package. They said that how the Planning and Development Committee decides to review them is their decision. The meeting ended at 8:30 p.m. Respectfully submitted, Donna Spicuzza Housing Planner ., _ 41 EVANSTON HOUSING COMMISSION MEETING OF December 16, 2004 Members Present: Andrew Car%alho. Sarah Ashmore Diggs, Judith Hurwich Susan Munro, Robin Snyderman Pratt Members Absent: Colin Proske) Staff: Donna Spicuna, Housing Planner N.B. The microphone used to tape record this meeting was defective so these minutes n•ere prepared without the benefit of a recording. Approval of Minutes: Chair Robin Soyderrr= Pratt declared that a quorum was present. A motion was made and seconded to approve the minutes of the July 15, September 23, October 21 and November 18, 2004 meetings. The motion passed 5-0. Request for Mayor's Special Housing Funds from Connections for the Homeless Will Sundblad, Executive Director of Connections for the Homeless, discussed the request of the Evanston Alliance on Homelessness for S 10,000 from the City to be used as matching funds for the Alliance's Homeless Management Information System (HMIS). Mr. Sundblad explained the Alliance is the made up of a number of social service agencies and is the entity responsible for Evanston's Continuum of Care serving the homeless population. The Alliance submits funding requests to HUD for programs that serve the homeless. HUD recently mandated that all Continua which receive federal funding must implement a homeless management information system to provide accurate data and an unduplicated count of the homeless being served, help the Continuum better plan to meet needs, promote integration of services by agencies, and evaluate program outcomes. Mr. Sundblad explained that Connections For the Homeless is the agency coordinating the HMIS project for the Continuum and they have started to implement the system with HUD funding. However, HUD requires that a portion of their funding be matched with local funds. He said they have tried a variety of sources but have been unsuccessful, as the majority of their donors prefer to fund direct services. They recently applied for funding from the City's Community Development Block Grant program but were turned down. He referred members to the CDHG application which explained the data base system and the need for the funding. He said other Continu, have received CDBG funds for this purpose. He said he hoped this would be a one-time request, which would allow them to continue implementation of the HM1S program and see some positive results in the coming year, while pursuing other funding sources for the future. Housing Commission members asked about the information system, the type of data that would be generated and how it would impact programs. Mr. Sundblad noted that they purchased a system after reviewing various products, and the system they chose is also used by nearby continua but not the City of Chicago. He noted that they have already purchased computers for agencies that needed them in order to participate in the system. He said that while the Continuum probably wouldn't have undertaken this project without the mandate from HUD, they feel that the data will be useful in generating unduplicated counts of the homeless and identifying successful program outcomes that help people address the causes of their homelessness. Commission member observed that the HUD funded programs in Evanston's Continuum of Care serve a genuine need and are a valuable resource to the community. They expressed the hope that the management information system would help the agencies in their service delivery. They asked about future funding, and Mr. Sundblad said dw.Connections would continue to pursue funding leads and he was hopeful that once the system is operational and a benefit can be seen, that other sources can be found. Housing Commission Page 2 Housing Commission December 16. 2004 members asked that if the City chose to help fund this project, that the Alliance report to the Commission on the system. A motion was made and seconded to recommend that the City Council approve S10,000 in funding from the Mayor's Special Housing Fund to meet the HUD requirement for matching local funds for the Homeless Management Information System. The motion passed 5-0. Communications Donna Spicuzza referred members to the drafts they received of the Five Year HUD Consolidated Plan, and the One Year Action Plan. The City is required to submit these documents to HUD, as recipients of CDBG, HOME, and Emergency Shelter Grants. They describe the community development needs and services in Evanston particularly for decent and affordable housing, neighborhood revitalization, and economic development and Job creation. She said comments on the draft should be submitted to the Planning Department, and a final report will be prepared by early January for approval by the City Council and submittal to HUD. Some members observed that from what they read ofthe report, it was more readable and informative. Judith Hurwich commented that she wished there was some thought given to how the City would address the parking needs ofpeople who work in the City, as part of the economic development strategy. Robin Snyderman Pratt also observed that there didn't appear to be discussion of housing needs for Evanston employees or how employers could contribute to affordable housing for their workforce. Betty Sue Ester from the audience noted that there was no mention in the Plan about the Citizen's Lighthouse Community Land Trust and they would submit some comments. Ms. Snyderman Pratt suggested that members review the Plan and identify any other issues and submit written comments. Ms. Spicttzza noted that the amount of HUD funding for 2005 would probably be finalized by the end of the December, and they were expecting a slight reduction from the earlier estimate. Members discussed the press coverage in the local papers concerning the recently approved HOME funding for Evanston Community Development Association's (ECDA) townhome project at 1717 McDaniel. Members were disappointed that some aldermen voted against funding the project, because they did not fee it was a worthwhile project and they felt the Housing Commission erred in recommending it for funding. They reviewed the benefits of the project and observed there was a misconception that a low income household was evicted as a result of the project. They discussed whether it would be helpful to send a letter to the editor explaining that the non-profit agency purchased the unit before the family was evicted and helped them get a new start. it was decided that if one or two members had time to draft a letter, they would e-mail other members for comments, but that the newspaper article presented information from the ECDA about the project benefits. Incluslonary Housing Ordinances Status Ms. Snyderman Pratt noted that the three ordinances were still being reviewed by the City's Law Department and that she and Nick Brunick of BPI had met with the Law Department to see if they could address any issues. She noted that ordinances were being referred to the City's Corporation Counsel, Jack Siegel, for review, and she was hopeful they would see some progress in the new year. The meeting was adjourned at 8:25 p.m. Respectfully submitted, Donna Spicuzza DRAFT NOT APPROVED EVANSTON HOUSING COMMISSION - MEETING OF January 20, 2005 Members Present: Judith Hurwich, Susan Munro, Robin Snyderman Pratt Members Absent: Sara Ashmore Diggs, Andrew Carvalho, Colin Proskel, Staff: Donna Spicuzza, Housing Planner Approval of Minutes: A quorum was not present so the December minutes were not approved. Communications Donna Spicuzza reported that the Five Year Consolidated Plan and the One Year Action Plan were and submitted to HUD this month. The Action Plan details goals and plans for entitlement programs funds. She referred to the memo that was distributed detailing the official authorized amounts, which were less than anticipated. Evanston will receive $564,960 in HOME funds in Fiscal Year 2005/06, of which $90,000 will be reserved for CHDO projects, $56,940 for Administration and S28,247 for CHDO Operating expense. As applications for HOME funds are accepted throughout the year, specific projects and funding amounts have not been identified. CDBG funds of $2,247,021 are less than the amount the Committee awarded to projects, so some allocations will be reduced. However, a reallocation of CD -Rehab Loan funds will address part of the shortfall. Evanston will also receive $87,597 in Emergency Shelter Grants. Members had a question on the total amount received and disbursed and whether there is any chance undisbursed funds can be taken away. Ms. Spicuzza said the total authorization of S4.7 million was since 1995, and that the City is current with commitment and disbursement requirements, and not in danger of losing the funds. She briefed members about proposed changes in the President's budget to move CDBG from HUD to Commerce and reduce its funding by 50%. HOME would stay in HUD. There is likely to be strong opposition from governors, mayors, as well as Congress to drastic CDBG cuts. Robin Snyderman Pratt said that she and Nick Brunick of BPI be on a an panel January 30 on Affordable Housing in Evanston sponsored by Evanston League of Women Voters. S600,000 HOME fund Request from Reba Place Development Corporation for 12 unit Condominium Conversion Donna Spicuzza summarized the request from Reba Place Development Corporation (RPDQ for S600,000 in HOME funds towards the acquisition of a multi -family building with twelve two - bedroom units at 602 Mulford. They currently have a purchase contract on the property, which has I I occupied units. RPDC would update the kitchens and bathrooms and sell as a mix of market rate and subsidized condominiums. The application was presented to the HOME Loan Committee which didn't make a formal recommendations, but made general comments and requested more information. Issues they wanted addressed were the condo management and the homeowners' assessment as it related to the operating budget and the need for reserve funds. They also discussed the possibility if the units didn't sell, would it work as rental and RPDC's ans«cr was that based on the acquisition price, it would be difficult to make feasible. One member suggested they consider applying for a Class 9 assessment which would lower the real Page 2 Housing Commission December 16, 2004 estate assessment if rented to low income renters. A loan committee member later worked up a proforma based on that assumption and lower rehab costs, and it came closer to being feasible but was still marginal. The Loan Committee wondered if it would be difficult for low income buyers to qualify and wanted to see comparables for condo units, multi -family buildings and a revised operating budget. Ms. Spicusza said the requested information will go to members of the Loan Committee next week and they would either meet or discuss the revisions by phone. David Janzen and Mary Goering from RPDC spoke about the project. Ms. Hurwich asked why they weren't keeping it rental. They said there are so many condo conversions in the neighborhood, it's very difficult to acquire a building and do rental, so they are trying to get some of the condos to be more affordable. They projected monthly housing cost around S 1,000, not much higher than current rent of $950.00. They felt a rental building would require more subsidies as selling prices for multi family buildings in the market are geared to the premium buyer would get for condo conversions. When asked if they thought the building was overpriced, they said it is high, but they expect it will sell for that price. They compared it to 8 buildings recently on market, and none were offered at under S 100,000 per unit. Ms. Snyderman Pratt said this is always the conversation before the Housing Commission, if you look back at other proposals. The question is should we put this much public subsidy into it, and spend more than we want to spend, or we find don't spend the HOME money because there's not the affordable housing to buy. Mr. Janzen responded that the building probably won't be rental a year from now. Ms. Snyderman Pratt brought up a concern about relocation costs and asked if they worked off the Federal Uniform Relocation Act to arrive at $30,000. Mr. Janzen said they would try to keep people in the building. and also said that because rents are high, relocation rents would be comparable so they wouldn't have to subsidize as much. There was a discussion about giving notice to tenants that they might have to relocate and what their rights are. Ms. Snyderman Pratt said the notice and requirements are triggered by any dollar of HUD funding. She worried that $30,000 would not be enough. Ms. Spicuzza said she would investigate to determine when notice must be given. Ms. Munroe agreed with the Loan Committee's concern about association fees and cautioned them to make sure adequate assessments are included in proforma, and reaffirmed the need to educate people about living in a condo. She questioned the $74,000 for construction interest on the development budget because it seemed high. Ms. Goering said it was for interest on both the acquisition and construction loans that would be paid during the construction period. Ms. Goering said they were also concerned about those issues and said that the bank where they are getting their financing has a condo specialist who offered to do financial training on things such as budgets, setting up bank accounts, and reserves. They may also get people from the HOME funded Clyde Condo project to talk about their experience, and possibly later on from RPDC's Elmwood condo when it gets operational. in response to a question about management, she said the budget includes a management company. They distributed the revised budget which included higher monthly assessment fees. Ms. Munroe asked whether the utilities were based on actual expenses for the building. Ms. Goering said they actually increased what was on the sales sheet because they thought it was low. They analyzed costs on this building and two others owned by RPDC to come up with operating costs. Owners will pay their heat as part of the assessment. In response to a comment that the architect fee looked low, Mr. Janzen said they hoped to get pro bona services for architecture and Page 3 Housing Commission December 16, 2004 legal. He said the construction would be used to update kitchens and bathrooms and upgrade electrical service to meet the code and add individual controls in the units, while keeping the central heater Ms. Hurwich asked about surrounding property, and Nis. Goering said their was a large home with coach house next door with several units, and a larger condo building on the corner, the el tracks to the east and a large park to the north. They spoke to Alderman Rainey about the property and she noted that that street didn't have problem properties. Ms. Munroe advised they work with buyer to make sure they access all the various subsidies possible to them and don't get a subprime mortgage. She suggested they talk to NHS about homebuyer education. Ms. Goering said they are investigating resources right now and will line of lenders who will understand the HOME funds and the affordability restrictions. They discussed comparable prices for condos and the likelihood of selling the market rate units. Ms. Snyderman Pratt suggested they contact Brenda Grower, at SHAC because she is providing technical assistance to suburban areas about mortgage counseling. Ms. Hurwich asked whether the City had ever given this much HOME to one application? RPDC's Seward project received $675,000 for the multi -family rental project, which was part grant and the bulk was a loan. In the Mulford project the funds won't be paid back, but it offers an affordable starting point for homeownership. Members disussed payments and affordability. The example of a S100,000 unit, came to S1,067 monthly housing costs. Mr. Snyderman Pratt noted that there was no quorum, and they had many of the same questions as the Loan Committee. She also recommended they look at the project as a rental with Class 9 application, and possibly look into project based subsidies. Ms. Goering said they had a contract until the end of January but they will negotiate to extend it a Iittle. Nis. Snyderman Pratt said there would not be time to come back to Housing Commission. Ms. Spicuzza said that if general the feeling was positive to use HOME funds for this project as a grant for condo conversion, the Commission could make a recommendation based on the comments of the Loan Committee. She thought there would be about S1.7 million in HOME funds left this year if this was approved. Ms. Snyderman Pratt said that while it is a lot of money, they wouldn't want to interfere with Reba's ability to preserve affordability of a building that's likely not to be affordable much longer, and that it's expensive to preserve affordability. Members concurred that they were comfortable deferring to Loan Committee after receiving requested information. Ms. Snyderman Pratt again advised RPDC to familiarize themselves with the URA because it can add costs and Ms. Spicuzza said she would provide that information to RPDC. Inclasionary Housing Ordinances Status Ms. Snyderman Pratt said the Law Department had questions for the City's in-house counsel, Holland and Knight, regarding the legality of the ordinances, and she heard the answers were provided. Ms. Spicuzza said she thought the law firm was still looking at the ordinances but that the new attorney in the City's Law Department, Andrew Huckman, will be working on it, as he is working on primarily on zoning and planning issues. Nis. Snyderman Pratt said as far as the general question about whether it is legal, the answer was yes. If the estimation that it will go to the City Council on March 14 is correct, they want to get supporters to testify for it. She thought Reba's experience will be helpful, to show who much money it takes to preserve a building like this. Page 4 Housing Commission Dezember 16, 2004 Judith Hurwich reported that she attended a meeting u-ith other Second Ward constituents about the ordinances with Alderman Jean Baptiste, which Sue Carlson coordinated. She said when they went over issues regarding inclusionary ordinances, the alderman thought it was already settled and couldn't understand why they were concerned about it. He wanted to know what the major opposition would be. Staff and cost offsets were named. The alderman said he'd do everything he could to get it out of legal, to be discussed at City Council. Commission members wondered why it wouldn't be considered until March, which might be too close to elections. Sue Carlson from the audience also said that constituent supporters met with Alderman Rainey who is supportive of the proposals as long as there is no new rental housing in the 8* ward. She said they are working on getting people from the 66 ward for a meeting with their alderman. The meeting ended at 8:20 p.m. Respectfully submitted, Donna Spicurza Evanston Housing Commission Thursday, February 17, 2005 Minutes Present: Robin Snyderman Pratt, Judith Hurwich. Sara Ashmore Diggs Absent: Andre Carvalho, Susan Munro, Colin Proksel L Call to Order, Approve Minutes of December 16, 2004 and January 20, 2005 Mimstes were not approved as them wasn't a quorum. IL Conamttulcatlons Doma Spicuzza provided updates on the following items: • Housine Commission - two appointments were approved and one was introduced at the February 14 City Council meeting, bringing the membership up to its full allotment. One new appointee, Carol Balkcom, was attending the meeting tonight in the audience. • Two Housine Commission recommendations were approved by City Council at the February I4 meeting. The first was Reba Development's 602 Mulford condo project for S600,000 In HOME Funds. At the Planning and Development Committee Alderman Newman expressed concern about tenant displacement. Alderman Rainey (not a member of P&D Committee, but in the room) spoke in favor of it, saying she thought the building was an ideal candidate for condominium conversion based on activity in the area and it is hard to find a building that's not occupied. The project was approved by the Council on the consent agenda without discussion. The Council also approved $10,000 from Mayor's Special Housing Fund for Homeless Management Information System. a HOME Proiect updates: The rehab on the townhome at I717-B McDaniel is complete and the sponsor, Evanston Community Development Association, has a buyer. Econ Development's construction of three townhomes at 1834 Darrow is nearing completion, and all three units have buyers. Reba Place Development Corporation's rehab of 836-838 Elmwood is moving along, and they hope to close soon on the condo units. Buyers had some difficulty getting mortgage financing with the price reduction subsidy and resale restrictions from Reba included, so they will just have 20 year affordability on the HOME subsidy. For future projects, they will have financing options arranged in advance. Housing Opportunity Development Corporation's rehab of three units at 1930 Jackson is complete, but they are having trouble renting it because of problems on the block. • Planned Development proposal for 1800 Ridge Planned Development, had offered to make a voluntary contribution to the MSHF for affordable housing. Candidates will receive drafts of the proposed Inclusionary Housing Ordinances, with background material and staff will also make sure all aldermen and Mayor receive them, as they weren't formally distributed before. Robin Snyderman reported that the League of Women Voters forum on Affordable Housing on Jan 30 had about 60 people, and she and Nick Brtmick of BPI were on the panel. She found it encouraging to see the momentum in support of affordable housing issues in the community III. Inclusionary Housing Ordinances Status Ms. Spicuzza reported that the new staff attorney is working on the ordinances and hopes to meet with colleagues this week and reach consensus on drafts and next steps. She should know on Friday whether it was likely to go to Planning and Development on March 14 and would inform interested persons. Ms. Snyderman Pratt said she had talked to the attorney, and he personally didn't see any red flags in his review of the ordinances. She also noted that there was an article in today's Daily Herald about Arlington Height's tear dowm tax. IV. FAection of Ufncers - and Discussion of Goals for 2005 Page 2 Housing Commission December 16, 2004 estate assessment if rented to low income renters. A loan committee member later worked up a profoima based on that assumption and lower rehab costs, and it came closer to being feasible but was still marginal. The Loan Committee wondered if it would be difficult for low income buyers to qualify and wanted to see comparables for condo units, multi -family buildings and a revised operating budget. Ms. Spicuzza said the requested information will go to members of the Loan Committee next week and they would either meet or discuss the revisions by phone. David Janzen and Mary Goering from RPDC spoke about the project. Ms. Hurwich asked why they weren't keeping it rental. They said there are so many condo conversions in the neighborhood, it's very difficult to acquire a building and do rental, so they are trying to get some of the condos to be more affordable. They projected monthly housing cost around $ 1,000, not much higher than current rent of $950.00. They felt a rental building would require more subsidies as selling prices for multi family buildings in the market are geared to the premium buyer would get for condo conversions. When asked if they thought the building was overpriced, they said it is high, but they expect it will sell for that price. They compared it to 8 buildings recently on market, and none were offered at under 5100,000 per unit. Ms. Snyderman Pratt said this is always the conversation before the Housing Commission, if you took back at other proposals. The question is should we put this much public subsidy into it, and spend more than we want to spend, or we find don't spend the HOME money because there's not the affordable housing to buy. Mr. Janzen responded that the building probably won't be rental a year from now. Ms. Snyderman Pratt brought up a concern about relocation costs and asked if they worked off the Federal Uniform Relocation Act to arrive at 530,000. Mr. Janzen said they would try to keep people in the building, and also said that because rents are high, relocation rents would be comparable so they wouldn't have to subsidize as much. There was a discussion about giving notice to tenants that they might have to relocate and what their rights are. Nis. Snyderman Pratt said the notice and requirements are triggered by any dollar of HUD funding. She worried that $30,000 would not be enough. Ms. Spicuzza said she would investigate to determine when notice must be given. Ms. Munroe agreed with the Loan Committee's concern about association fees and cautioned them to make sure adequate assessments air included in proforma, and reaffirmed the need to educate people about living in a condo. She questioned the 574,000 for construction interest on the development budget because it seemed high. his. Goering said it was for interest on both the acquisition and construction loans that would be paid during the construction period. Ms. Goering said they were also concerned about those issues and said that the bank where they are getting their financing has a condo specialist who offered to do financial training on things such as budgets, setting up bank accounts, and reserves. They may also get people from the HOME funded Clyde Condo project to talk about their experience, and possibly later on from RPDC's Elmwood condo when it gets operational. In response to a question about management, she said the budget includes a management company. They distributed the revised budget which included higher monthly assessment fees. Ms. Munroe asked whether the utilities were based on actual expenses for the building. Ms. Goering said they actually increased what was on the sales sheet because they thought it was low. They analyzed costs on this building and two others owned by RPDC to come up with operating costs. Owners will pay their heat as part of the assessment. In response to a comment that the architect fee looked low, Mr. Janzen said they hoped to get pro bono services for architecture and Page 3 Housing Commission December 16, 2004 legal. He said the construction would be used to update kitchens and bathrooms and upgrade electrical service to meet the code and add individual controls in the units, while keeping the central heater Ms. Hutwich asked about surrounding property, and Ms. Goering said their was a large home with coach house next door with several units, and a larger condo building on the comer, the el tracks to the east and a large park to the north. They spoke to Alderman Rainey about the property and she noted that that street didn't have problem properties. Ms. Munroe advised they work with buyer to make sure they access all the various subsidies possible to them and don't get a subprime mortgage. She suggested they talk to NHS about homebuyer education. Ms. Goering said they are investigating resources right now and will line of lenders who will understand the HOME funds and the affordability restrictions. They discussed comparable prices for condos and the likelihood of selling the market rate units. Ms. Snyderman Pratt suggested they contact Brenda Grower, at SHAC because she is providing technical assistance to suburban areas about mortgage counseling. Ms. Hurwich asked whether the City had ever given this much HOME to one application? RPDC's Seward project received $675,000 for the multi -family rental project, which was part grant and the bulk was a loan. In the Mulford project the funds won't be paid back, but it offers an affordable starting point for homeownership. Members disussed payments and affordability. The example of a $100,000 unit, came to $1,067 monthly housing costs. Mr. Snyderman Pratt noted that there was no quorum, and they had many of the same questions as the Loan Committee. She also recommended they look at the project as a rental with Class 9 application, and possibly look into project based subsidies. Ms. Goering said they had a contract until the end of January but they will negotiate to extend it a little. Ms. Snyderman Pratt said there would not be time to come back to Housing Commission. Ms. Spicuzza said that if general the feeling was positive to use HOME funds for this project as a grant for condo conversion, the Commission could make a recommendation based on the comments of the Loan Committee. She thought there would be about S 1.7 million in HOME funds left this year if this was approved. Ms. Snyderman Pratt said that while it is a lot of money, they wouldn't want to interfere with Reba's ability to preserve affordability of a building that's likely not to be affordable much longer, and that it's expensive to preserve affordability. Members concurred that they were comfortable deferring to Loan Committee after receiving requested information. Ms. Snyderman Pratt again advised RPDC to familiarize themselves with the URA because it can add costs and Ms. Spicuzza said she would provide that information to RPDC. Inclwionary Housing Ordinances Status Ms. Snyderman Pratt said the Law Department had questions for the City's in-house counsel, Holland and Knight, regarding the legality of the ordinances, and she heard the answers were provided. Ms. Spicuzza said she thought the law firm was still looking at the ordinances but that the new attorney in the City's Law Department, Andrew Huckman, will be working on it, as he is working on primarily on zoning and planning issues. Ms. Snyderman Pratt said as far as the general question about whether it is legal, the answer was yes. If the estimation that it will go to the City Council on March 14 is correct, they want to get supporters to testify for it. She thought Reba's experience will be helpful, to show who much money it takes to preserve a building like this. Page 4 Housing Commissiaa December 16, 2004 Judith Hurwich reported that she attended a meeting with other Second Ward constituents about the ordinances with Alderman lean Baptiste, which Sue Carlson coordinated. She said when they went over issues regarding inclusionary ordinances, the alderman thought it was already settled and couldn't understand why they were concerned about it. He wanted to know what the major opposition would be. Staff and cost offsets were named. The alderman said he'd do everything he could to get it out of legal, to be discussed at City Council. Commission members wondered why it wouldn't be considered until March, which might be too close to elections. Sue Carlson from the audience also said that constituent supporters met with Alderman Rainey who is supportive of the proposals as long as there is no new rental housing in the 8'h ward. She said they are working on getting people fmm the 6* ward for a meeting with their alderman. The meeting ended al 8:20 p.m. Respectfully submitted, Donna Spicuaa MARY MORRIS CITY CLERK Evanston Housing Commission Thursday, February 17, 2006 Minutes Present: Robin Snyderman Pratt, Judith Hurwich. Sara Ashmore Diggs Absent: Andre Canmlho, Susan Munro, Colin Proksel L Call to Order, Approve Minutes of December 16, 2004 and January 20, 2005 Minutes were not approved as there wasn't a quorum. IL Communications Donna Spicum provided updates on the following items: • Housini£ Commission - two appointments were approved and one was introduced at the February 14 City Council meeting, bringing the membership up to its full allotment. One new appointee, Carol Balkcom, was attending the meeting tonight in the audience. • Two Housine Commission recommendations were approved by City Council at the February 14 meeting. The first was Reba Development's 602 Mulford condo project for $600,000 in HOME Funds. At the Placating and Development Committee Alderman Newman expressed concern about tenant displacement. AIderman Rainey (not a member of P&D Committee, but in the room) spoke in favor of it, saying she thought the building was an ideal candidate for condominium conversion based on activity in the area and it is hard to find a building that's not occupied. The project was approved by the Council on the consent agenda without discussion. The Council also approved $10,000 from Mayor's Special Housing Fund for Homeless Management Information System. • HOME Proiect u at : The rehab on the townhome at 1717-B McDaniel is complete and the sponsor, Evanston Community Development Association, has a buyer. Econ Development's construction of three townhomes at 1834 Darrow is nearing completion, and all three units have buyers. Reba Place Development Corporation's rehab of 836-838 Elmwood is moving along, and they hope to close soon on the condo units. Buyers had some difficulty getting mortgage financing with the price reduction subsidy and resale restrictions from Reba included, so they will just have 20 year affordability on the HOME subsidy. For future projects, they will have fmancing options arranged in advance. Housing Opportunity Development Corporation's rehab of three units at 1930 Jackson is complete, but they are having trouble renting it because of problems on the block. • Planned Development proposal for 1800 Ridge Planned Development, had offered to make a voluntary contribution to the MSHF for affordable housing. • Candidates will receive drafts of the proposed Inclusionary Housing Ordinances, with background material and staff will also make sure all aldermen and Mayor receive them, as they weren't formally distributed before. Robin Snyderman reported that the League of Women Voters forum on Affordable Housing on Jan 30 had about 50 people, and she and Nick Brunick of BPI were on the panel. She found it encouraging to see the momentum in support of affordable housing issues in the community IIL Incluslonary Housing Ordinances Status Ms. Spicuzza reported that the new staff attorney is working on the ordinances and hopes to meet with colleagues this week and reach consensus on drafts and next steps. She should know on Friday whether it was likely to go to Planning and Development on March 14 and would inform interested persons. Ms. Snyderman Pratt said she had talked to the attorney, and he personally didn't see any red flags in his review of the ordinances. She also noted that there was an article in today's Daily Herald about Arlington Height's tear down tax. IV. Election of Officers - and Discussion of Goals for 2005 February 18, 2005 Minutes. Page 2 The elections for Chair and Vice Chair were tabled tmtil the next meeting when more members would be present. The -vice chair has been the liaison to the Planning and Development Committee, and Sara Ashmore Diggs was the liaison to the new Citizen's Lighthouse Community Land Trust. The Discussion of Goals was also deferred until next month. Ms. Snyderman Pratt suggested that they step back and get an o%m•iew of Evanston's housing program, with information on the City's housing activities (e.g. First time Homebuyer's Program. Rehab program, HOME program) to familiarize new members. She said that Evanston is ahead of other the curve in affordable housing activities compared to communities, as it has programs, staff, and a housing commission, yet the demand is not met, so they need to be creative about additional tools. She suggested that Nis. Spicuzza put together information to show how the City is performing in other housing programs so they can review the programs, how well they're utilized, how they are administered and what other bodies besides the Housing Commission are weighing in. Ms. Spicuzza said she would make sure new appointees also get a copy of new Five Year Consolidated Plan, which contains housing data and strategies. Ms. Snyderman Pratt said the Commission can Iook at the Affordable Housing Tool Kit for a discussion of goals and other tools, such as the community land trust which was something the commission wanted to support She toted another strategy was employer assisted housing strategy. She reported that the Evanston Housing Corporation is planting an event in 2005 to celebrate the 100* home buyer in the program, and the Mayor would invite employers from the area to inform them of City products. Ms. Spicuzza noted that the pilot Employer Assisted Housing program has expired, and could be reviewed by the Housing Commission. She said two people have reservations for downpayment and closing cost assistance grants - Ms. Saytlerman Pratt mentioned the program where Housing Authorities can convert Section 8 vouchers to property based operating subsidies on properties selected by the municipality. For example, Evanston could select preferred MF providers and ask them to set aside a percent of vacancies for affordable units and receive operating subsidies for tip to 10 years. She said the contract is still with the Housing Authority but the City decides the location. Projects don't have to involve rehab. Sara Ashmore Diggs said that a few years ago Evanston was capped in terms of vouchers, because market rents usually exceeded rents HACC will pay. She noted that it is still difficult for many people to find affordable rentals and many of the tools they looked at were for homeownership. Ms. Snyderman Pratt noted that the inclusionary housing proposals contain a right of first refusal for non -profits or the City to purchase affordable set -aside units and manage them as rental, but they haven't surveyed non-profit providers to get their ideas on that. She suggested they get input on it. Ms. Snydcmtsn Pratt also informed members of press conference by Assessor Houlihan scheduled for Tuesday, March 10 regarding a proposal to automatically reduce property assessments for affordable houses that are sold below market price, Currently owner can appeal, but it is not done automatically. She also said that the new State of Illinois Housing Plan will be presented March 14 from noon to 1:30 p.m., downtown at 191 N. Wacker, and Metropolitan Planning Council has details. Judith Hurwich thanked Donna Spiciraa for her assistance and all the information she provided. V. Public Comment Jan Weeks asked about the affordable housing forum. Richard Girard provided the web address of a citizen's group where people can register to support the inclusionary housing ordinances: www.evanoonhousine.com. VL Adjournment Respectfully submitted, Donna Spicuzza Housing Planner ' . e► Evanston Housing Commission Thursday, March 17, 2005 Minate Present: Robin Snyderman Pratt, Chair, Carol Baftorn; Eric Beauchamp; Andre Car aft; Judith Hurwich; Susan Munro; Genevieve O'Toole; Colin Proksel Absent: Sara Ashmore Diggs Staff. Dorms Spicuzza L Approve Minutes Robin Soydeimart Pratt called the meeting to order and welcomed new members, noting that tie Commission now has full membership. She asked all the members to introduce themselves to such other. Sarah Ashmore Diggs had e-mailed a correction to the ati m ses of February 17, 2005 regarding Sectim g votscirers. The February, 2005 minutes were approved with the suggested correction. The mirates of December I6, 20 4 and January 20, 2005 were approved as wriam Dotma Spkw= Camrne MW on the information in the packet ftm NCDA, which included updates on esfforts to save CDBG folding. She nmu ived an E-n all this evening, noting that both the Hots and the Soma voted to increase CDBG funding in their budget rrsohniotm and not accept retonrknakWd cats. Eh OU will continue, with two separate amendments from a Republican and a Democrat regard" CD$G. She said the Evanston City Council pesscd a resolution on Monday in support of restoring CDBG Raiding. Commissioners said they appreciated receiving the NCDA information. 1IL laehusiosary Horsing Ordinances States Robin noted that the Hoosing Commission has been waiting for the City Council to have a cc . :. . about the inctusnionary housing ordinances Two things cam up at Iasi meeting. She said the staff anwney reviewing the ord'msncen, who no longer works for the City, told her be didn't see any red !lags. lie law deputrrrent did draft a memo regarding the ordirwxw. Ms. Spicuzza said the ordinancea were Wood as items on the April 12 Planning and Development Agestda. Ms. Snydaum Pratt said she acre yo loped they would we a copy of the memo before it is discussed at P&D. She said she doesn't ware any surprises. She said the other related item was waatin= to tails to non -profits mace about right of first refusal option for affordable housing developers on affordable sex -aside units- She "onde ed if theta wcm any eaavasations among non -profits about whether it would be interesting. Mr. Roane in the audience said he hasn't had any conve nations in his organization about it, but thought it was a good idea. Ms. Sayderman Prat noted that the governor is looking at sweeping Illinois fiends, including the Asorad" Housing Trust Fund, administered by IHDA. It is ftmded through real estate transfer tame, which keep going up in this rising market, so funds are not getting spent rapidly. Every month M DA gets $4 miRim in its bank account for Affordable Housing Trust Fund, but the board only meets quarterly to review applications. She wondered if Evanston should submit a proposal for fiends to use for affordable zcF4 des units. She said even if there wasn't an inclushonary housing ordinance, the incentives could be used Judith Hurwich eap mswd concern about getting the Musiormy housing proposals to the Counwi befoul the April 4 elections,. Others thought that was unlikely. Ms. Spurn said current council members SM serve on April reeler", New members start in May. Ms. Snydtrman Pratt noted for the record that whenever we exptea- frustration with City delays, it wasn't with Ms. Spicuzza. Ms. Spicuzza said that staff was going to explore using bond volume cap for homeownership prof cNs. Sbe explained that when coded to IHDA, they coot use those funds on first time bomebuyer programs which . .. March 17, 2005 Minutes, Page 2 they can tailor program to a municipality, and which they administer. Susan Munro said that is something worth exploring. Ms. Snyderman Pratt also noted that Housing Illinois recently developed a communication campaign around affordable housing campaign, which are currently cunning on TV and radio. IV. Request from Housing Opportunity Development Corporation (HODC) for Certification of Compliance with Commiidsted Plan for Church sad Darrow project. Michael Roane of HODC they ate requesting certification in order to submit an application for Low Income Housing Tax Credits to 1HDA in April. He briefly described the proposed new construction development they have been nuking on with the Evanston Community Development Corporation at thee notthwest comer of Church and Darrow and it. He explained all the details weren't worked out, but all the Snits wilt be affordable to households under 80% of median income, and will include 1. 2 and 3 bedroom mats. Application requirements include obtaining a Certificate of Compliance from the municipality. Robin Sayderman Pratt explained that this was different from recommending a project. She noted that HODC is one of the strangest am -profits in Evanston. In order to keep the application alive, they new sonwhing formal from the City. She said a vote tonight isn't saying that they approve the project and will recommend it to City Council, but helps ensure that their application will be accepted by IHDA for consideration. Judith Harwich asked if this is rental or condo. Mr. Roane, said it initially would be rental, bus it may be may kale -to purchase, so it would be owner -occupied in the future. They will iron it those specifics in the next few days. Ms. Munro asked about likelihood of getting syndicators for federal L1HTC through IHDA. Mr. Roane said they've worked with a lot of syndicators in the past, and if approved, they will have to find some. Betty Ester in the audience said at one ECD meeting it was stated the units would be Car -sale housing, and now, site hear another non-profit, the Salvation Array is looking at the same land. She asked if they are going to sell it. Mr. Roane answtred he didn't know. Susan Munroe motioned that the Commission recommend that the Community Development Director certify► the proposal is compliant with the Condolidated Plan, and Judith Hurwich seconded. The Motion paste $a The chair also recommended the City add a note about HODC's excellent track record in Evanston for providing high quality, affordable, well managed projects. V. Election of Offkers — Ms. Saydermart Pratt suggested holding off until next month. giving new mp- I a time to think about it. The positions are Chair and Vice Chair. Last year the vice chair acted as a liaison to P&D Iasi year. VL Rsvlew of City's Housing Programs - Donna Spicuaa presented information on housing programs administered by Property Rehm, Evanston Housing Coalition, Planning, and Human Relations srum She xxpbdncd 2005 HUD Income Tables showing income caps by household size. The sheet also eakuUted the affordable wonthly bousing so as not to be considered housing cost-burdcaed, i.e. paying mare that 30-33% of incorsue for housing. 'Ile plamting division reviews Condominium disclosure submittals for compliance with the condo srepdations. She said the ordins= was designed to proton tenants in buildings being converted, for example, getting sufficient notice of conversion. At 7 months, Evanston requires longer notice period. than the State. Regulations also describe information a developer must put in a disclosure so purchaser will understand Improvements, operating costs, and also require an Engineer's or Architect's report on current oonditions. They are requirtd to set up of an escrow account of I % of purchase price of each unit to ensure March 17, 2005 Minutes, Page 3 warranty provisions are enforced. City doesn't manage the escrow account. Disclosures reviewed by planning division, budding division reviews the architect/engineer's as well as plans for permits, and the kgal department reviews escrow agreements. Distributed list of condo conversions and new construction in recent years. She said the ordinance was drafted in 1975, and conversions have changed. Previously, developers often just painted and changed ownership. The ordinance ensured code issues were addressed. Now more conversions are gut rehabs, invovlving more work and money in developer. In many older baiklings, all electrical being upgraded, and other problems are found. Ms. Snyderman Pratt noted that the inclusionary housing proposal also includes condo conversions, not just new construction. Ms. Spicuma described the Property Standards program which inspecting all the rental units in Evanston, and then described programs in the Housing Rehab Division. 'These included loans for low income single Wally owners and multi family properties with 50% low income tenants. Described different single family km m types, loan criteria, and roles of staff, and typical obstacles to getting conventional and City rehab ktom Discussed criteria and repayment. Sue Calder from the audience wondered if any thought had been given to using rehab funds to pay for special assessments for low income condo owners? Commissioners discussed how this could be a need. They discussed the repayment provisions of rehab loans, and the demolition program. Eric Beauchamp asked about Class 9 classifications, which gives lower assessment to multi -family buildings that rent to low income tenants. Ms. SPicuaa said there is info available on it but it's not heavily promoted. Sbe them discussed Evanston Housing Corporation's rust time homebuyer's program. It has made 93 loans made since its beginning in 1989.. Its popularity ebbs and flows with interest rates. With low interest rates recently, has not been used as much. Commissioners discussed ways to market the program to improve its use. Information is currently being sent to condo developers. There are limited funds for printing, mailing and distribution. Mr. Beauchamp suggested educating realtors and promoting it as a benefit to them and their clients. Ma. Spkuzm mentioned the Human Relations Department and Human Relations Commission which deal with Fair Housing issues and administers Landlordlrenant ordinance. She briefly discussed the HOME program, which commissioners are more familiar with She said Evanston receives about half a million a year in HOME funds. They can be used for conutruction, rehab, acquisition, for owner -occupied or rental properties, and for tenant based rental assistance. Carol Balkeom asked if they could see when the funds were granted and projects completed. dares. Ms. Sayderman Pratt said this was helpful and noted that compared to other municipalities, Evanston is for ahead with housing programs. She said that plates many demands and stafrand the said if staff thought of my policy - ,as that the Commission could help, they would be glad to do so. She said the Commission should also consider how it fits into the scheme of things in the city government. Mentioned that the draft Consolidated Plan is on the web site, the final approved version will be available soon. She will also Email a link to commissioners on the 1HDA funds to help them thing about for 2005 owls- VQ. Disctrnioa of Coals for 2005 — Some ideas were brought forth during the review of housing programs. Agreed to spend more time at the April meeting to discuss specific goals. A motion was made and seconded to adjourn, and the meeting adjourned at 9:35 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner Evanston Housing Commission Thursday, April 21, 2005 Minutes Present: Susan Munro, Chair, Carol Balkeom, Eric Beauchamp; Genevieve O'Toole, Robin Snyderman Pratt(arnved late) Absent: Sara Ashmore Diggs, Judith Hurwich, Colin Proksel Staff: Donna Spicuzza, Housing Planner f. Minutes of the March 17, 2005 were approved with the addition of noting a request for Inforrmation on Civic Center plans and one minor correction. 5-0. Donna Spicuzza informed Commission members that the Planned Development at 1228 Emerson was approved and they voluntarily will contribute $25.000 to the affordable housing fund in lieu of providing affordabel units. She discussed the memo regarding the purchase of 1710 Dodge by Evanston Housing Coalition, and thelt plans to demolish the property and build two unib of affordable owner -occupied housing. Members were enthusiastic about the new construction and the positive change it would bring. Susan Munro remarked about the fruitless efforts to contact the bank while the property was in foreclosure and said that is still indicative of how foreclosed properties are handled and makes it very difficult Members discussed the copy of the Housing Commission Ordinance they received, which they felt was helpful. Ms. Spb'"a also gave an overview of the City's web site which provides much useful information. 111. Inclusionary Housing Ordinances Status Commissioners were informed staff will review the analysis of the draft, proposed ordinances by the Law Division. Members requested that they be kept up to date on status through e-mails. IV. Election of Officers Robn Snyderman Pratt was re-elected chair, and Susan Munro elected vice chair by unanimous votes. Carol Balkcom will be a liaison to the Citizen's Lighthouse Community Land Trust, as she is on the Board. The Chair suggested that Judith Hurwich remain the liaison to Planning and Development Commiittee and asked new members to think whether there were areas they wanted to concentrate on. V. Discussion of Goals for 2005 Members asked what staff goals were for the coming year. Ms. Spicuzza said they included trying to promote an ongoing Homeownership Education program through a non-profit organization in order to help people work through barriers to purchasing and be ready for affordable opportunities. She also said it was her desire to try to fund a multi -family rental property with HOME funds, although that has not been possible the last few years because of the high cost of acquisition due to rising property values. She said it seems that the need for higher HOME subsidies is accepted, and she thought with the use of Class 9 Property Tax reduction and other funding sources, it might be feasible. She also said she would try to work on to IHDA application for Affordable Housing Trust Fund for incentive funds for developers who set -aside affordable units, and will get assistance with thatfrom staff at Metropolitan Planning Council. The final goal was to work with IHDA on a downpayment assistance program through ceded bond volume cap. March 17. 2005 Minutes, Page 2 Commission members agreed that those goals were worth pursuing and met the needs that they have been discussing over the years, although they admitted the multi -family rental housing would still be difficult. Susan Munro wondered if there was some way the Commission could help to promote home buyer educational programs, perhaps encourage banks to fund it. She added that she was interested in following up on the Vacant Building ordinance and get information on the number of buildings now vacant or foreclosed. Other goals included assisting the Citizen's Lighthouse Community Land Trust and promoting its goals, and discussing renewal of Employer Assisted Housing Program. Members acknowledged that a continuing goal would be to see the Commission's Inclusionary Housing Ordinance recommendations being presented to the City Council. A final goal mentioned was to meet with the Cook County Assessor's Office regarding their new initiative to lower assessments on below -market, affordable housing to ensure that affordable housing in Evanston could take advantage of that. Another idea was to have more outside speakers come to the Housing Commission and discuss their best practices and other tools they use, such as the Village of Arlington Height's affordable deed restrictions. Mr. Beauchamp noted that deed restrictions present a problem for resale. Donna Spicuzza said they just closed on ownership projects that included Affordable Resale Restrictions. Mr, Beauchamp asked how the unit would be marketed for resale because it couldn't be sold on the open market, through a real estate agent Carol Balkcom said there is no mechanism, but the Land Trust would have one. Members further discussed the application to IHDA Trust Fund regarding developer incentives to offset affordable set -asides. Robin Snyderman Pratt said an amount of $40.000 was used as an example and wondered If that sounded appropriate. Eric Beauchamp noted that it probably wouldn't totally offset costs, and would vary depending on the type and location of construction. but it probably wouldn't be refused. Ms. Snyderman Pratt said IHDA was most interested in applications that could draw down funds before October and asked Ms. Spicuzza if there were any condo conversion developments in the pipeline that could meet that. She responded that she'd have to take a look at the developments, and it is hard to determine when they are antidpating occupancy. The meeting was adjourned at 8:30 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner C1TY OF EVANSTOti INTERDEPAR.%MN-rAL MEMORANDUM May 16, 2005 To: Chair and Members Housing Commission From: Donna Spicuzza Homing Planner Re: Applications Seeking Compliance with the Consolidated! Plan The Evanston Alliance on Homelessness (EAH) is submitting applications to the U.S. Department of Housing and Urban Development (HUD) for housing funds for homeless persons. EAH manages Evanston's Continuum of Care of services for the homeless. They review and rank applications from agencies applying for funds through HUD's annual SuperNOFA grant process.. One of the requirements for submittal is a statement of compliance with the City's Consolidated Plan. Certifying compliance with the Consolidated Plan is one of the functions of the Housing Commission. EAH has so far recommended two projects for funding, out of four applications received. The two recommended projects total S589,647 out of an anticipated S658,758 in funding. Because there were no applications for permanent supportive housing, which adds up to 15% for the Samaritan Housing Initiative, and the amount recommended is less than the amount expected to be available, The Alliance extended the deadline until May 16 for permanent supportive housing applications. These are the recommended applications: 1. Housing Options for the Mentally III in Evanston is submitting a proposal for a two year renewal grant of S220,860 in Supportive Housing Program (SHP) funds for partial funding of its Pathways Transitional Housing Program. The housing component is $152,723 or 69%of the entire project. Of this amount, S126,606 is for leasing and S26,117 is for operations. Pathways provides permanent supporting housing to eight adults who have severe and persistent mental illnesses like schizophrenia and bipolar disorder, low incomes, and who were homeless when they first entered the program. Housing Options leases eight studio and one -bedroom apartments in Evanston for the program. In addition to receiving a fully furnished apartment, each resident receives ongoing support from our team of social workers, case managers, psychiatrists, and program nurse. In its first five years, Pathways has been extremely successful at getting individuals who are chronically mentally ill and homeless into permanent, supported housing. Before entering the program, these individuals had been chronically homeless and living in shelters, parks, alleyways, and vacant buildings. Pathways residents have had difficulty• using the mental health service system and need high Ievels of outreach and engagement. 2. Connections for the Homeless has applied for 5368,787 for two years of renewal funding for its New Beginnings Transitional Housing Program. The program provides supportive housing to homeless families in the community. New Beginnings for Young Families is a seven unit scattered site project offering transitional housing with intensive supportive services including case management, employment counseling, child care, transportation, life skills training and other services to families headed by older teens / young adults, or with at least one child under the age of sir. It is designed to be a two-year program where families gradually increase their employment / education skills and incomes, become more -self-sufficient, and successfully move to permanent housing. All families served are from Evanston. The program is currently full and the agency generally has a waiting list of 25 — 40 families. This is the potential third application, for permanent supportive housing: 3. Connections for the Homeless is also seeking SHP funding of 568,646 for three years for its Community Supportive Housing Expansion Project. This will add two units of permanent supportive housing in leased, scattered site units for chronically homeless individuals with disabilities. Services will be provided to help the residents live as independently as possible in the community. The project will target chronically homeless and those with severe mental illness, substance abuse and dual diagnoses. Referrals will come from street outreach, emergency or transitional shelter programs and will be persons who originally came from the streets or emergency shelter. The project is designed to assist participants in obtaining and remaining in permanent housing. The case manager will work with the participant identifying and qualifying for a particular housing unit and will assist the participant in moving, in practicing acceptable tenant skills, in taking care of the unit and in performing other tasks necessary to sustain housing. Ali the proposals appear to comply with the HUD Consolidated Plan for 2005 - 2009 submitted by the City of Evanston, which is enclosed in your packet. Refer to Priority Housing Need 92 on page 61, Summary of Specific Homeless/ Special Needs Objectives on page 68, and the Homeless Strategy on Page 102. Evanston Housing Commission Thursday, Mvy 19, 2005 Minutes Present Susan Munro. Carol Balkeom. Eric Beauchamp, Judith Hurwich, Genevieve O'Toole: Robin Snyderman Pratt Absent: Sara Ashmore Diggs. Staff: Donna Spicuua, Housing Planner I. Minutes of April 21, 2005 were approved. II. Communications: Members received the 2005-2009 Consolidated Plan and a current Vacant Building list in their packet. Members felt the Consolidated Plan contained very useful demographic data and program information. They briefly discussed the current list and the new Vacant Building ordinance and, and asked that it be an agenda item for further discussion. Ill. Review Certificates of Consistency with Consolidated Plan: Representatives from agencies applying for HUD Homeless Assistance Program Funds and the Chair of the Evanston Alliance on Homelessness presented information on their funding applications. The applications must include a certificate of consistency with the City's Condolidated Plan, which the Housing Commission traditionally recommends. Three applications totaling S658,293 were recommended by the review committee. Marie Visely from Connections for the Homeless discussed their two applications. One is for $368,787 for a two year renewal for the New Beginnings Transitional Housing Program which provides supporting housing to homeless families. New Beginnings for Young Families provides seven units of housing scattered throughout Evanston to families headed by older teens or young adults or with young children. Ms. Visely said the real goal of the program is to increase self sufficiency. Services include child care, help with transportation, how to access mainstreet resources, and life skills training. It's a two year program and they plan for the family to be self sufficient by then. She feels that the program has its biggest impact on the children. The other application for $68,646 is for Incline. a housing and supportive housing project which is an expansion of a program they just launched this year This will add two units of housing to the existing four, without requiring additional supportive services. It is designed for chronically homeless persons with severe mental Illness. substance abuse prohlems or dual diagnoses. The people served are referred from Hilda's Place Shelter and street outreach programs. The project is designed to assist chronically homeless persons get and stay in permanent housing. The case manager will work with the person to obtain a housing unit, help diem move, practice acceptable tenant skills and take care of other issues that are necessary to sustain housing. This application was submitted and recommended after the Review Committee issued a notice to agencies which indicated they might request funding for permanent supportive housing but didn't. This action was taken In order to take advantage of available funds. Tucker Wildes from Connections for the Homeless discussed their S220.860 application for two year renewal of its Pathways Housing Program. This program provides supportive housing to eight adults with severe and persistent mental illnesses and were homeless. They lease eight studio and one bedroom fumished apartments which are scattered throughout Evanston. The program works intensively with the clients and also provides social opportunities. When asked about whether it's more helpful to provide scattered site housing or to have ail the units in one building, Ms. Wildes said that Housing Options has experience with both models. y May 19, 2405 Housing Commission Minutes, Page 2 With scattered site, clients don't have to have a room mate, which some people enjoy but others find stressful. She said that having both types available. they can usually decide which model is best suited to the person. She also said that in the scattered site locations, the client is not Identified as being a client of a mental health program. and rt is full community integration Members asked if it was hard to find landlords for the program. Both representatives said no. noting they have a 24 hour on -call number so they can be reached if problems arise. They take care of the issues, and the landlord get timely and reliable rent payments. One apartment finding firm came to them to ask if they can help and that has been a good relationship. They noted R is easier to find units for single households than for families. Commission members asked about the number of homeless persons. Ms. Vlsely said they usually have 25AO famiilies on their waiting list at Connections for the Homeless. Sue Calder, chair of the Evanston Alliance on Homelessness, talked about the street count of homeless which they did in November. She said the numbers increased, but they also did a more thorough job of counting and finding persons. She mentioned that the various agencles in Regional Roundtable, which encompasses the Cook County area. is beefing up its family and youth committee, trying to help identify families living relatives or friends who are not really housed. So there is greater potential for homelessness. In response to a question about rental housing support bill, the presenters indicated they would contact the governor to sign the bill, as it is just the type of support they can use. Ms. Snyderman Pratt asked about status of Homeless Management Information System for which they received funding last year and Ms. Vsely gave an update, noting that more agencies were soon scheduled to come on line. They hoped to be able to take advantage of the reporting and tracking capabilities of the system in the coming year. A motion was made to recommend that the City certify that the three applications are in consistent with the needs and goals of the Consolidated Plan, and passed ". IV. Incluslonary Housing Ordinances Update: Robin Snyderman Pratt informed Commission of the meeting she and Nick Brunick of BPI had with the City Manager. Julia Carroll after learning of the Memo written by Corporation Counsel Jack Seigel about the proposed inclusionary housing ordinances. She said Ms. Carroll told her that the memo does the job of pointing out problems, but she didn't think they were insurmountable. She suggested that to make the policy work, it should be looked at as a workforce housing issue, and she understood the urgency of working on it. They were reassured that the Commission's recommendations would be moved along to the Planning and Development Committee and discussed there. Ms. Snyderman Pratt also made it Gear that the Commission was amenable to modifying the proposals and they hoped to use them as a starting point for discussion by the City Council. She said she and Mr. Brunick felt many of the issues identified in the memo could be addressed, but at minimum they could hope for a stahmxmt of City policy for affordable set -asides on Planned Developments Ms. Snyderran Pratt distributed a letter to Julia Carroll drafter by Nick Brunick and herself . addressing some of the points in the legal memo. Members discussed whether it should be sent to aldermen before the Planning and Development Meeting and decided to send it to Ms. Carroll as requested and ask her if she would like it distributed more widely. Commission members discussed the analysis by Corporation Counsel Jack Seigel of the proposed ordinances and some of the points he raised. Eric Beauchamp noted that he agreed with a number of the issues raised. He also felt that if required to set aside lower -priced units. developers would still maintain their profit margin by raising prices of other units and contribute to Increased housing costs in Evanston. Ms. Snyderman Pratt suggested that if they knew the requirements upfront. perhaps acquisition costs would be negotiated so as to achieve the desired profit margin. W. Beauchamp said many developers look for 15 — 20% returns before they decide May 19. 2005 Housing Commission Nfinutes. Page 3 on the project He felt condo prices would go up. There was more discussion around what the impact would be on affordable housing. Mr. Seigel is scheduled to present his analysis to the Planning and Development Committee's May 23 for discussion. Housing Commission members were urged to attend Ms. Spicuzza said the meeting will start at &30 p m and this is last on the agenda She also noted that the Planning and Development Committee is now composed of all nine aldermen so all the Council members would be aware of the issues. V. Discussion of Employer Assisted Housing Program. Ms. Spicuzza reviewed the Employer Assisted Housing pilot program parameters and results of the 18 month program. The program goal was to provide downpayment and closing cost assistance of 35,000 to five employees of the City of Evanston. Ms. Spicuzza noted that it was designed to meet IHDA requirements so that users could take advantage of IHDA *matching funds' of $5,ODO for households under 50% of median and S3,000 for households under 80% of median, for a total grant of 58,00 - 510,000. She said about a dozen employees attended information sessions on the program, eight received home purchase education, and four received intensive follow-up from the housing counselor. There was ongoing marketing to employees through a variety of means, including the intemal web page, paystub notices, fliers and employee newsletter. Two persons with household Incomes over 50% and at or below 80% of median received $5,000 from the City and $3.000 from IHDA for their home purchases. They purchased two of the newly constructed townhomes that were subsidized with HOME funds to reduce the price. The housing counselor reported that single Income employees with children who went through the sessions often found that housing prices were still beyond their reach and most wanted to purchase a single family home rather than a condominium. Robin Snyderman Pratt noted that in comparison to Evanston Housing Corporation's performance of one loan in the last year, doing two loans wasn't bad. Ms. Spicuzza said she wanted to note in fairness that the First Time Homebuyer's program was designed in a different mortgage climate with a goal of filling a gap, but it has been hard to compete the last few years with low rates and new products. including adjustable rate mortgages. Carol Balkcom asked if there was a downside to continuing the program. Ms. Spicuzza said one question was whether people would be able to benefit from it given high housing prices. Ms. Snyderman Pratt said that the Commission hoped the program would not only benefit City employees but could be the leading program to set an example for other Evanston employers. However, that next step to market to other employers was never taken. She noted that the Evanston Housing Coalition is talking about doing an event to celebrate the investment it has made and the 100 homebuyers served in 15 years through the First Time Homebuyer's Program. She said they discussed incorporating the employer assisted housing program into the event to build momentum for private sector investment. The Mayor could invite local employers and chamber members. and encourage other employers to offer assistance like the City's downpayment program. They would promote the First Time Homebuyer's program as another toot to help their employees live near work. She pointed out that employers could also take advantage of tax breaks through an employer assistance program. Ms. Snyderman Pratt said that tyre contract with Housing Opportunity Development Corporation (HODC) , the non-profit agency that administers the program, could be expanded to include outreach to other employers, the cost of counseling for other employer programs, or applying for tax credits on behalf of a pool of employer participants. She hoped that the City would renew the program and make it even better. Judith Hurwich asked about other companies that provide this and wondered if there were funds in the Mayor's Special Housing Fund to pay more to HODC. There are 25 employer assisted housing programs in the region. Members discussed increasing the income cap for eligible May 19, 2005 Housing Commission Minutes, Page 4 employees to 100% or 120% of median income. The Tax Credit can be applied when beneficiaries are up to 120% of median income, but the IHDA match is only for household income up to 80% of median. Members felt it would be good to reach a wider audience, even if the grant was only S5,000 without IHDA match. Mr. Beauchamp asked if the program was promoted to teachers because he felt they would be interested and eligible, however it is just for city employees. There was discussion about expanding EHC's First Time Homebuyer program designed for police, to include teachers. It was suggested they budget the same amount for grants plus another $10,000 to HODC which would cover the cost of the tax credit application. Ms. Snyderman Pratt asked Ms. Spicuzza about her meeting with the Wilmette Housing Commission about Evanston's employer assisted housing program. Ms. Spicuua said they were interested in the program and found Evanston's experience helpful, but they doubted that limiting the program to employees at 80% of median would work because of their much higher housing prices. However, they were still interested in exploring how the program might work. Commission members noted that they were in favor of continuing the program but raising the income limits to 120% and possibly increasing the grant amount by $3.000. They also recommended increasing funding for the program administrator so they could help market Employer Assisted Housing programs to other Evanston employers, and possibly underwrite some of their costs for applying for tax credits. They asked that staff prepare new program guidelines for recommendation to the City Council. Vl. Discussion of Evanston Housing Corporation Preawtion. Ms. Snydenman Pratt talked about tying in the City's Employer Assisted Housing program with an Evanston Housing Coalition celebration this summer in the course of the discussion on Employer Assisted Housing. VII. Adjournment: The meeting was adjourned at 8:35 p.m. Respectfully submitted, Donna Splcuzza, Housing Planner Evanston Housing Commission Thursday, June 16, 2005 Minutes Present: Carol Balkcom. Eric Beauchamp, Sara Ashmore Diggs. Judith Hurwich, Robin Snyderman Pratt, Chair Absent: Susan Munro, Genevieve O'Toole Staff: Donna Spk:um. Housing Planner I. Minutes of May 19, 2005 were approved as written. U. HOME Proposal from Evanston Community Development Association. Keith Banks, Executive Director of Evanston Community Development Association (ECDA) and David Janzen of Reba Place Development Corporation, discussed their request for HOME funds, Mr. Banks said that ECDA Is a faith -based organization with the goal of maintaining affordable housing In Evanston. He said their first affordable project at 1717 McDaniel which received HOME funds was successful and now they hope to purchase a 8-unit rental building at 736-738 Dobson. They will again partner with Reba Place Development Corporation on the rehab process. He sold the budding is for sale by the Evanston Mennonite Church which would like to see the building remain affordable. ECDA has a purchase contract for $750.000 with a 20% downpayment deferred until project completion. They will rehab and sell two of the 1,425 square foot, three bedroom condos for $90,000 to households under 60% of area median Income (AMI), and sell four at 3155,000 to households under 80% AMI. He said originally they were going to sell two units at $100,000 to families below 50°% of Area Median Income. and four units at 5150,000 each to families between 50-80% of Area Median Income but thought they should reduce the $100,000 to make it more affordable to very low income households. At the HOME Loan Committee's suggestion they expanded the buyer pool to 60% of median with a $90,000 sale price and raised the price by $5,000 for households between 60 and 80% of median. Mr. Janzen then went over the sources and uses of the $1.3 million project Sources include $360,000 In HOME funds, $120,000 from other grants or contributions, interim rental income nd sale proceeds of $800,000. ECDA has been approved by First Bank and Trust of Evanston for bridge loans of $290.000 for purchase and $450,000 for the construction phase. Financing costs are estimated at $53.600. Construction, Including contingency, is estimated at around $280.000. Soft costs total $108.798 and the Developer's Fees, to be split between the two organizations, total $113,732. Resale price will be restricted for 15 years to maintain affordability. The project includes relocation expense, job training, and homebuyer education.The rehab will convert the large 2 bedroom apartments into 3 bedrooms by eliminating the dining room and upgrading and reconfiguring the long galley kitchen to include a dining area. They will install individual heat and air conditioning units. Committee members asked if all the units and the homeowner's assessments will be the same and Mr. Janzen responded that they would. They asked about the targeted household size and Mr. Janzen said their buyer financing scenario used a household of 5 but the units should be affordable to a household of 4 and could also fit a household of 6. 7__ June lb, 2005 Housing Commission Minutes, Page They discussed monthly housing costs. Owners would pay their own heat and electricity and the assessments would include water and insurance for the whole building. The budget currently has a management fee, but 4 could eventually be self -managed and reduce some costs. Mr. Janzen said that ECDA wanted to provide project supervision for the condominium's first year of operation at least. He noted that there are replacement reserves in the budget, which will be initially funded at closing with two months' assessments from buyers. Carol Balkcom asked for clarification on soft costs and were told they include professional fees, construction interest and insurance, and taxes. The developers were asked about relocation plans and said they hoped that some occupants would purchase their units but the relocation budget allows for relocation costs for five tenants, including moving expense and rent differential of no more than $100 per month, and they are receiving assistance from Donna Spicuzza on meeting all the requirements of the Uniform Relocation Act Sara Ashmore Diggs asked about the buyer financing scenario and expressed concerns that the units would continue to be affordable. The scenario used mortgage financing through Evanston . , Housing Corporation's First Time Homebuyer's Program which qualifies buyers based on 80°% of the mortgage financing because payments on the other 20% of financing are deferred for five years. Ms. Ashmore Diggs was concerned about affordability when those payments began, as well as if taxes, budgeted at around $3.000 a year, increased. She said the Commission wants to make sure buyers are successful homeowners and don't get in a situation which they can't continue to afford. Mr. Janzen said that they estimated the taxes at a slight increase on current taxes, but they could be reduced if the building is eventually reassessed as a condominium. He thought total monthly housing costs of $1,000 to $1.200 was affordable to households between $42,000 and $49,000 and noted that continuing affordability is a challenge for many households in Evanston. He said that the reality is that the projected housing costs are not unusual and many renters pay $1.000 or more. Ms. Hurwidh asked if the garages were included in the sales price, which they are, and said the pricing and monthly housing costs seemed like a good deal for the buyers - Ms. Snyderman Pratt asked about long term affordability and Mr. Janzen explained they would use a resale restriction similar to that used on ECDA's McDaniel townhome project and RPDC's Elmwood corklo project The resale price is limited to 3% appreciation plus allowable capital Improvements over the base price for 10 years and then gradually ramps up to near market rate over the next fire years. He said it would be nice if the units could stay affordable and still allow owners to realize greater equity but it is hard to accomplish both at the same time. Ms. Snyderman Pratt suggested perhaps they could get more grant funds from IHDA or the Federal Home Loan Bank's Affordable Housing Program if they wanted to make it more affordable initially. Mr. Beauchamp asked what mechanism they would use when units were resold during the affordability period. Ms. Spicuzza asked him if he thought the units couldn't be listed through reactors and he said they could but reactors usually are not involved in determining buyer's income eligibility. Ms. Spicuzza said a Deed Restriction explaining the Resale restrictions would be placed on the property and the City would verify income eligibility of potential buyers. Ms. Snyderman Pratt said this is an increasingly common question throughout the region and there are different tools in use. She suggested the Commission hear a presentation next month on some of those tools. Mr. Janzen said the HOME application didn't ask for details on that, but on R€'DC's Elmwood project, they will oversee the resale process, finding and qualifying buyers, and receive'% percentage point of the sale for their role. Mr. Banks said that ECDA planned to be Involved in the resale with marketing and assisting new buyers. Ms. Batkcoasked for reassurance that ECDA would follow fa rm it marketing practices in their marketing and buyer selection, without tying it to an organization or religion. Mr. Banks assured the Commission that they were committed to fair marketing and in fact the buyers for their first June 16, 20D5 Housing Commission Minutes, Page 3 project were Evanston residents but didn't belong to any of the member churches in ECDA's network, He said the opportunity would be open to all persons in the City of Evanston. Ms. Snyderman asked Ms. Spicuzza about the Assessors special assessment program for affordable housing and whether this would apply. Ms. Spicuzza said she spoke about it with someone at the Assessors Office and sent him information on Evanston's affordable home ownership projects. She hopes to meet with hire soon to discuss whether the County can assess these projects at the affordable price rather that market price. Ms. Balkcom moved that the Commission recommend HOME funding for this project to the Planning and Development Committee, seconded by Ms. Hurwich. The motion passed 5-0. Ill. Incluslonary Housing Program Status Robin Snyderman Pratt said that she and Judith Hurwich and Carol Baikcom attended the May 23 Planning and Development Committee meeting at which the Commission's proposed Inclusionary Housing ordinance was discussed. She said the Committee was made up of the Council as a whole so all the aldermen heard the discussion as Corporation Counsel Jade Siegel walked through his memo commenting on the ordinance. She said that Sue Carlson presented petitions signed by supporters for indusionary housing program. Ms. Snyderman Pratt said she felt the meeting opened the doors to the realization that the City can require affordable units for Planned Developments and possibly condominium conversions, so they can move forward. City Manager Jufia Carroll said that staff would move forward on some type of City policy and try to have a proposal in 90 days. Ms. Snyderman Pratt said she and Nick Brunick from BPI are meeting with the City Manager on July 23, and Ms. Spicuzza said that staff is scheduled to meet on it next Tuesday. Ms. Snyderman Pratt noted that the proposed Tear Down Tax did not get discussed, and asked Commissioners if they still wanted to pursue that issue as a funding source. Members agreed they would like to pursue it. IV. Update on Employer Assisted Housing Program. Donna Spicuma reported that staff met to discuss the Commission's recommendations for continuing the program and will do an analysis to decide whether to expand the target population from 80°% of median to either 100°% or 120% of median. Staff suggested increasing ft amount of the City downpayment grant to $8.000 from S5,000, for six employees. Borrowers between 50 - BO% AMI would get $11,000 with the addition of IHDA match funds. She said staff also met with representatives from Metropolitan Planning Council (MPC), the program coordinator, and Housing Opportunity Development Corporation (HODC), the non-profit administrator and housing counseling provider. They discussed HODC taking an expanded roll in marketing and reaching out to other Evanston employers. Initial administrative cost estimates were around $10,000 for basic services to around $16.000 for an expanded role. They "get a written proposal from HODC and discuss the services and costs in more depth. Ms. Snyderman Pratt noted that the federal tax credit to employer assisted housing will be introduced soon and asked what the timefine was for the program. Ms. Spicuzza said a program recommendation for the Planning and Development Committee could possibly be ready in July. Members asked about the pilot program results and Ms. Spicuzza noted that about four employees went to a homebuyer education class, four received one-on-one follow-up and two employees bought homes in Evanston and received downpayment grants. Ms. Snyderman Pratt said that since the Evanston Housing Corporation is talking about a celebration for their program, she hoped it could be combined with a message on EmpkW . Assisted Housing. V. Dlecusston on Vacant Building Ordinance June 16, 2005 Housing Commission Minutes, Page 4 Members received a copy of the recent Vacant Building Ordinance after looking at the Vacant Building list at the last meeting. Ms. Spicuzza said she talked to Stan Janusz, Property Standards Director, who said the list they received last month represents all buildings he has declared vacant in accordance with the ordinance, although only about half of the owners have registered so far, as required. He said the goals of the ordinance are to stem developers from buying vacant or foreclosed buildings, doing little to improve them, and then selling them to unsuspecting buyers who could also go into foreclosure. Buildings on the list do not receive any Crty services including water, occupancy permits or transfer tax stamps, until the building has been inspected and meets all the required codes. Members asked if interns or university students could help with the time consuming tasks of finding owners and following up with them. Ms. Ashmore Diggs said that looking at notices of judicial sales she sees many buildings with large debt and said those people probably lose their property not through disrepair but because they can't afford them. She likes the idea though that the City is checking the condition of these properties. She wondered if there was some way the City could push banks if the foreclosed property goes back to them. Ms. Spicuzza said they would also have to register the building and comply with ordinance timelines. Ms. Ashmore Diggs discussed Instances where developers buy a troubled building demolish it in such a way that it damages the foundations of the adjoining buildings and then they purchased them as well. Betty Ester from the audience asked whether the ordinance applied to people who leave their homes vacant for IS months but keep them maintained. Members discussed whether the requirements applied to secured buildings that owners leave vacant because they have another home out of state or want to keep the property for their children. The ordinance also states that the director can determine not to regulate a building that meets the criteria if the regulation would not serve the public health, welfare and safety. Judith Hurwich asked where vacant buildings were located. Ms. Spicuzza said the majority were on the west side, some in the south portion and a few in the middle. Ms. Hurwich asked if aldermen were aware and could help getting owners registered. She also asked ongoing updates on the ordinance's success in tracking vacant buildings and eliminating public nuisances. V1. Discussion of State's Rental Housing Support Bill Ms. Snydennan Pratt said that the bill was recently passed and is expected to be signed by the governor. It is the first time for a long time in Illinois that new revenue was created to support rental housing. The program will create $30 million In revenue and will help 5600 households around the state, and will be allocated by population with 30% used in Chicago and 21 % in Cook and collar counties. Eligible applicants include non -profits, municipalities, and housing authorities. The funds go directly to the landlord. They are currently putting together the rules regulations and she thinks that knowing the need for rental assistance In Evanston and among nearby towns, we should think about whether it would be best for non -profits to apply individually, if they City wants to get a new pool of resources internally, or reach out more broadly and do something together. This is an opportunity to provide input on the rules. Ms. Ashmore Diggs wondered if it could apply to current tenants, and the answer was not known. She thought it would be good if it applied to a variety of buildings, not just large buildings. Donna suggested discussing it with other departments that might have an interest in it such as Health and Human Services Department and Human Relations. Public Comment: Richard Girard observed that nonprofit entities apply for HOME funds to help finance affordable housing projects usually have to pay full market price for the property they are developing. He said that an affordable housing amendment to the Condominium regulations would give the *rrori- ■ June 16, 2005 Housing Commission Minutes. Page 5 profit housing provider a way to lower the cost to acquire property for affordable housing if it gives them a right of first refusal option to purchase up to W of the set -aside units In a condominium conversion project at the affordable price in stead of full market prig. The larger the condo conversion project the more units would be set aside for affordable housing (10% for 12-24 units, 15% for 25 — 99 units.) Thus, the more condo units that are set aside as affordable, the greater are the opportunities for initial sales to housing providers at the affordable sale price rather than the full market price. units acquired through initial sale to housing providers may then be resold or leased. The target group for those units might be the extremely low- income, 30°% of area median Income. He thinks that's a good reason for Evanston to get an Wuslonary housing program on the gooks as soon as possible. Betty Ester commented that it would be nice of there were monthly or quarterly meetings of groups Interested in housing. She said housing organizations don't do that. Members noted that agencies in the Continuum of Care meet monthly, although the focus is on providing shefter to homeless persons. Adjournment: The meeting was adjourned at e:30 p.m. I DRAFT Evanston Housing Commission Thursday, July 21, 2005 Minutes Present: Carol Baikcom, Eric Beauchamp, Sara Ashmore Diggs, Genevieve O'Toole, Robin Snyderman Pratt. Chair, Absent: Susan Munro, Judith Hurwich Staff: Donna Spicuua, Housing Planner L Minutes of June 16, 2005 were approved as written. II.Communications Donna Spicuua reported that the ECDA HOME proposal for 736 Dobson was held over from the July 11 meeting, and will be on July 25 agenda. Ill. Proposal from Evanston Housing Coalition (EHC) for 1709 Dodge George Gauthier from Evanston Housing Coalition discussed his request for $50,000 in Mayor's Special Housing Funds to rehab the single family home for sale to an income eligible household. After sale EHC would pay back the City's funds. Mr. Gauthier said EHC has owned it since 1993 after receiving a grant from 1HDA for 5 single family rental properties. The 10 year affordability period has expired, and the plan is to fix them up again and sell them as ownership. The tenant has moved out of the property. This rehab will bring it to ownership standard. He said it is a 3 bedroom, one and a half bath old Victorian, beautiful house. EHC will sell it for 5155,000 to a households under 80% AMI, which will be affordable to a family of four. Members asked about timing of the rehab and sale. Mr. Gauthier said he thought they could finish construction in fall and sell by end of year, but since property on Brown took longer than expected to complete, he's being conservative by asking for seven months. Ms. Ashmore Diggs asked if there would be a sign in front of the house with information. Mr. Gauthier said they'd have a sign, and will have an open house. interested persons would lilt out an interest sheet, provide income information, and submit a pre -qualification letter from mortgage lender. They would select a buyer at random from those meeting the qualifications. Members voted unanimously to recommend funding and told Mr. Gauthier to keep up the good work. IV. HOME !Fund Reservation for Evanston Housing Coalition for 1710 Dodge The Commission was updated on 1710 Dodge, which contained a problem property that had gone Into foreclosure. EHC acquired it with City funds approved by the Council. After EHC and City staff toured the property, it was agreed that it was not worth putting more money into it and it would be tom down. The building is now demolished and EHC is working with a local architect on designs for the 6000 square foot lot. They plan to work with the Evanston Community Development Corporation to market it as affordable homes. They will construct a 2 story duplex. with 4 bedrooms each and 2 baths each, and a 2 car garage. Although the total development costs are not yet calculated, since EHC is a CHDO, staff recommended that $200,000 in HOME - funds be reserved, which can later be modified if necessary. June 16, 2005 Housing Commission Minutes, Page 2 Members asked if the units will face Dodge, which it will, and were told the selling price for each unit will be $185,000. Commissioners voted unanimously to reserve $200,000 In HOME . funds for 1710 Dodge, V. Review of Draft Inclusionary Housing Policy Discussion Paper. Members were e-mailed a draft copy of the inclusionary housing policy paper the day before the meeting. The staff -prepared document will be sent to Council members the next day for discussion at the July 25 Planning and Development Committee Meeting. Robin Snyderman Pratt said it was meant to be a discussion paper, developed after the City Manager said they would take a kook at the Housing Commission's earlier proposal in view of comments from the Corporation Counsel and from the May discussion at Planning Development Committee. She suggested that the Housing Commission could send comments on the paper to Council members on Friday and or speak at Monday's meeting. Ms. Snyderman Pratt acknowledged that it's been 3 years since the idea was first raised, and it is encouraging to see such a substantive document from staff, and she said it's a big step forward. Members asked for clarification on some of the policy criteria. The suggested set -aside percentage is a flat 10%, but half that could be met through payment of a fee. They asked for the rationale of applying it to Planned Developments, which includes 25 or more, so that housing that was not part of a Planned Development isn't covered. Ms. Spicuzza said the idea of applying it only to planned developments came from the Corporation Counsel since aldermen were not Inclined to offer specified cost offsets nor provide incentives that would result in building denser, taller, greater lot coverage or other zoning bonuses. Mr. Siegel was concerned it could be considered a taking and challenged under Illinois law, unless it was done as a planned development where the developer asks for some type of negotiated relief. Ms. Snyderman Pratt said she anticipated that the applicability would be more narrow than that recommended by the task force, but thought it might include any developments that asked for something special such as a zoning variance or city funds. She also thought there was an opportunity to proceed with condo conversions. Ms. Spicuzza said staff chose to separate them from new construction but they would be looked at after initial policy elements were thrashed out. Mr. Marino said that most residential developments asking for city assistance would generally be Planned Developments, so he thinks there's little chance the policy would miss many developments. Sue Brady in the audience said a planned development is 20 units, not 25 and asked if this is required or negotiable. She said it was hard to understand without a copy of the report. Mr. Marino said planned developments are based on series of zoning factors, and the discussion paper frames It as a requirement. Ms. Snyderman Pratt questioned the median income figures, which at times refered to the Evanston median and asked if affordability would be based on that? Mr. Marino said the proposal was based on Evanston. He said the 2000 census data for Evanston was the most reliable data, especially since it looks at households spending 35% of income on data, so they made adjustments on that. He said it's a starting point, and if down the road they find a better set of Income data, they can adjust it. Ms. Snyderman Pratt asked if they could have a balance. She agreed it is critical to took at local numbers and demonstrate the demand. But she said if developers are trying to leverage other state and federal programs and comply with monitoring, it would be helpful to use Area Median Income (AMI). She said that's what banks, IHDA, and others use. She didn't have time to compare the figures, but thought HUD AMI would be more useful. She said however, that it's significant that 2000 census data shows that 35% of renters and 20% of owners in Evanston are housing cost burdened, spending in excess of 35% of their income for housing. June 16, 2005 Housing Commission Minutes, Page 3 Ms. Ashmore Diggs said she thinks those numbers are sometimes skewed because of the way people use mortgages. They pay off loans or pay for college, so its not really reflective of housing costs. Ms. Spicuzza said even though the loan funds weren't used on the house, they are secured by the house. Mr. Manna said Ms. Ashmore Diggs made a good point. but if you look at the increase in housing prices, they have gone up dramatically. Ms. Snyderman Pratt said recent articles in Forbes and Crains reported that compared to other housing areas, our housing prices going up but incomes are not She then referred to the suggested affordability period and mentioned that BPI had pointed out to them that a number of programs started with short restriction periods, but realized when then ended, the demand was still there. Many then lengthened the affordability periods. She asked why 15 years was chosen. Ms. Spicuzza said the idea was not to make it so long that the original buyer couldn't take advantage of the equity appreciation. Also, the housing might need improvements or maintenance, which would require larger capital expenditures after a period of time, making it hard to remain affordable. Mr. Marino said it was also consistent with federal standards like the HOME program. He said if it is longer, you could create a disincentive for reinvestment In the unit, and hopefully, ongoing development would keep replenishing the supply, He was a little concerned about the economic life of the housing, particularly amenities such as kitchens and baths. He said they felt the equity should go to people who stayed 15 years, and they were entitled to some of the money they invested. Mr. Beauchamp asked if the resale formula provides credits for work done and improvements and questioned the example where the City took 60% of the appreciation profits. He wondered if that was the right percentage, as the City was not making a cash investment into the property, but taking a share of proceeds. Carol Balkcom said some people have a problem with a subsequent owner getting the benefit of the gap between the formula price and the market price. She said if the Citizens' lighthouse Community Land Trust owned it, the homeowner would be entitled to a 25% share of the equity difference between the first appraisal and the appraisal when it's sold. So the 40°% owner's share seems high to her. Ms. Snyderman Pratt said the Commission has often talked about how to provide long term affordability that still allows people to earn equity, and making the most of public resources, and the issue keeps coming up. She said there are new tools to balance those desires and they should look at different options. She asked that Commission members receive a copy of BPI's memo on the issue and discuss it further. Jill Graham from the audience commented that in areas where there is a lot of vacant land, shorter affordability periods would make sense, but since that is not the case in Evanston, they need to create a sustainable supply of housing that is restricted forever. She asked about the property tax issue and noted the Assessors office allows for special tax assessments if property is maintained as affordable. Ms. Snyderman Pratt said that was mentioned at the last meeting and asked Ms. Spicuzza about her meeting with the Assessors office. Ms. Spicuzza said she met the people at the Assessor's office this week, and there was no definitive result, but they looked over documents used for HOME funded projects that had 15 year affordability periods. She said they were very interested, and liked certain elements of the resale restrictions, but will analyze Evanston's documents and have more discussions. Ms. Snyderman Pratt pointed out on page 6 of the document that it says the State's goal Is that communities should have at least 10% affordable housing, based on recent legislation. She June lb, 2005 Housing Commissiont Wrims. Page a thinks that is a false summary of tie legislation because that is not the goal for affordable housing, but a minimum. Towns mat fell below the minimum are required to come up with a plan for affordable housing. She said tie State's comprehensive housing plan is moving forward. Betty Ester from the audience asked about the change from targeting 80% of AMI to targeting the 100% of Evanston median income Mr Manna said they framed it from 60% to median Income for Evanston, noting that households at median are under stress as well in this housing market. Ms. Snyderman Pratt asked ff staff could incorporate changes in the discussion paper. Ms. Spicuzza said she could change the wording about the state legislation and will see that Council members receive a summary of the Commission's comments about other issues: • Embracing it as a step forward. • Eventually want full proposal as outlined, encourage its broader application to rentals and condo conversions; • Consider using federal AMI. Analyze both AMI and Evanston, and use whatever maximizes resources: • Resale restriction and equity sharing need more discussion, they support a longer affordability period. Ms. Snyderman Pratt suggested that it is helpful to use language throughout the report that refers to homes, families, and condos, for example, rather than talking about projects or units, as that helps people relate to how it benefits the community. Ms. Brady asked if they could get a copy of what goes to Council and said if it only applies to Planned Development ownership projects, that's just the tiniest little squib of housing. She told commission members that their job as a Housing Commission is not to start with the minimum, as what they're asking the City to do is really very tiny. Mr. Marino said that this document addresses where the housing market has been, which is in multi -family ownership, not rental projects. Mr. Beauchamp said he was pleased to see it apply to Planned Developments as that gives relief to smaller developments for whom it might not be feasible. Ms. Balkcom said she received the Impression that the City Manager wanted to approach it in a phased way, and rental wouldn't be excluded, but addressed later. Ms Snyderman Pratt said they'd been waiting for the moment when City staff could engage itself on a policy proposal they can stand behind and it was clear after the last Planning and Development meeting that there is not a willingness to look at density bonuses. So she was expecting this modification. However, she still thought it should say that it applies to developments that get anything special from the city. Ms. Ester expressed concern it wasn't addressing condo conversions. and didn't think it was practical to do one without the other. Ms. Snyderman Pratt said she didn't get the impression condo conversions were on the back burner. She said this piece is harder to bite off so it's a good start and hopes more people will show up at Monday's meeting Ms Spicuzza said she would e-mail the report when it is finalized. VI. Update on Employer Assisted Housing Program. Donna Spicuzza informed the Commission that they received a proposal from Housing Opportunity Development Corporation to administer the program and provide homebuyer education as well as marketing efforts to other local employees. Staff will work on the administrative budget and meet with HODC and then write a proposal for continuing the program for consideration by the Planning and Development Committee. The Chair updated the Commission on tax credit programs at the state and federal levels for employers offering employer assisted housing. Adjournment: The meeting was adjourned at 8:25 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner I DRAFT Evanston Housing Commission Thursday, August 18, 2005 Minutes Present: Carol Balkcom, Eric Beauchamp, Judith Hurwich, Susan Munro, Robin Snyderman Pratt, Chair Absent: Sara Ashmore Diggs, Genevieve O'Toole Stall: Stan Janusz, Donna Spicu=a L Minutes of July 21, 2005 were approved M. Communications — Donna Spicuzza informed members that the Council approved the use of $360,000 in HOME funds to ECDA for purchase of 736-738 Dobson. ECDA will rehab the six unit building and convert to affordable condominiums, selling two units to purchasers under 60% of AMI and four units to purchasers between 61 % and 80% AMI. NI. HOME Fund reservation for Evanston Housing Coalition (EHC) for 1933 Dodge and 1016 Foster. EHC requested $106,900 In HOME funds to rehab two single family houses to prepare them for sale to low income homebuyers. They would be maintained as affordable units for 20 years through resale restrictions. Ms. Spicuzza said the final house in EHC's single family rental portfolio won't be vacant for another year, at which time EHC will have enough funds from prior home sates to use on its rehabilitation in preparation for sale. She recommends that S110.000 In HOME funds be approved for these two properties, In case there are overages, and all the funds will be paid. Carol Balkcom asked for clarification of program income mentioned In the staff memo. Ms Spicuzza said funds that are repaid are counted as HOME program income and must be used for other HOME projects in the future. George Gauthier, executive director of EHC. said the rehab of these two properties is part of an ongoing program in which EHC purchased fire boarded -up properties in 1994 using HOME. funds from IHDA as well as rehab loans from the City and conventional financing. Now that IHDA's ten year affordability period is over, EHC win sell than as affordable single family homes. They are rehabbing the homes to bring them up to ownership standards, so purchasers won't be confronted by repair problems in the near future. He said the City's rehab loans from 1994 and 1999 and all the debt will be paid off. EHC w9l recoup its management fees for the ten years of operation from the remaining proceeds which wdl be put Into the EHC treasury so they can be a self-sustaining organization. EHC proposed that each home be sold for $185,000. Ms. Spicuzza said the City has used $185,000 as a base affordable price for new construction houses, and would like to see these sold for a We less because of their age, even though it would reduce the proceeds to EHC. Commission members acknowledged the difference and Mr. Gauthier agreed in theory, asking how much less. Eric Beauchamp asked what EHC planned to do with the proceeds. Mr. Gauthier said they would finance purchases of other properties for rehab and resale as affordable homes. Robin Snyderman Pratt aside if EHC managed the construction internally and Mr. Gauthier said yes. Ms. Snydemman Pratt then wondered if the deliberations regarding Tong term affordability, which the Commission was going to discuss later in the meeting, could apply to these properties. Ms. Spicuzza said one issue would be when they were marketed, because they couldn't change the structure after marketing. She said the first property EHC sold, 1933 Brown, has a 20 year affordability, with a 3% annual appreciation and allowance for capital improvements. The formula August 19. 2005 Housing Commission Minutes, Page 2 took recent trends into Consideration, where property appreciation has been higher than the grown in incomes, averaging 10% appreciation over the last few years. Ms. Spicuzza said however, that over time it was possible the rate of appreciation would average out. She said they felt when the Brown property was sold that 3% seemed fair and could possibly allow the owner to get enough out of the safe and buy another house. Concerning the term, she noted that these are not newly constructed houses but anywhere from 50 — 100 years old, and you had to consider their continuing functionality without more subsidy in the future. Mr. Gauthier said he supports the 20 years, with 3% annual increase, saying that could provide a decent return on equity, and noting that median Incomes increased maybe about 2 '/x%t in recent years. Ms. Snyderman Pratt said they'd be looking at the affordability topic more carefully and if they came up with something better asked If there'd be time to introduce it In these properties. Ms. Spicuzza said it would be a problem If they recommended a longer affordability period. She thought perhaps they could consider different criteria for new construction and rehabilitation but said all the EHC ownership properties to date were proposed for 20 years. Judith Hurwicch said that 20 years could be too long, especially given the age of the properties and the upkeep and repairs that older buildings require. Mr. Gauthier said that was the argument for not extending the affordability period, othe wise the owners are trapped in the agreement which is a covenant running with the land. Ms. Snyderman Pratt said perhaps the discussion was premature and they will have a comprehensive discussion about affordability provisions. Ms. Spicuzza said this proposal will be for 20 years, but she believes there Is a section in the decLvatlon they have used that if the buyer Is unable to sell the property at an affordable price to an Income eligible household, the City can help market it or either buy It or take some other action, she was not sure of the exact provisions. Members concurred that the affordability Issue is mom broad and this proposal only concerns three houses. It was moved and seconded that the Commission recommend reserving HOME funds for EHC to rehab these two homes. The motion passed unanimously, 5.0. Commission members told Mr. Gauthier he does great work. IV. Increasing the maximum loan amounts for the City's Housing Rehabilftatlon Programs. Stan Janusz described the City's rehab programs for low income homeowners and multi -family with a majority of low Income venters. He said It has been some time since the dollar amounts far rehab grants have been adjusted, and as time goes on, work has gotten more expensive, Increasing loan caps will help cover higher costs and allow a greater scope of work for projects. They are proposing that owner -occupied rehab caps from 530,000 to $40,000 for one unit properties, from $35,000 to $50,000 for two -unit properties and condo units go from $7,500 to $10,000. The loan cap for multi -family rental properties would go from $7,500 to $12,500 per unit. He salso said they are recommending that emergency assistance go from $7,500 to $10,000 per project, and garage demolition be Increased to $8.000 and diseased/damaged tree removal to $6,000 per project Mr. Janusz said that emergency assistance loans often mature Into a fall rehab case, but they don't have to. He said that the increase would allow the property owner to get more work done. The rehab staff tries to stretch the available dollars by getting separate bids on items that don't need a general contractor and also by using a lead grant from Cook County on properties with lead hazards. These funds are generally 512,000 per unit and are used on friction surfaces fake windows and doors. Commissioners asked where the rehab funds come from. Ms. Spicuzza explained they were from Community Development Block Grant allocations orlginaliy, but are now operating on program income into the revolving loan fund. As loan payments and pay-offs come in, they are put track in the ban fund for other projects. Mr. Janusz said there is approximately $800,000 in the fund now, as they have gotten a lot of pay-offs recently due to low interest rates for refinancing, but they still have some tide transfer loans on the books from the 1970's when the program began. W August 18, 2005 Housing Commission bdinums, Page 3 Ms. Snyderman Pratt asked if they rejected loans because there was not enough money to do the required work. Mr. Janusz said they don't reject an application if there is not enough to do the full scope of work. He has heard that some communities don't fund any of the work lf it can't be brought into full compliance, but in Evanston they do the most important things first with the available money. Ms. Hurwich asked who the applicants are and whether the City sought out properties that appear to be in disrepair. Mr. Janusz said that Property Standards inspectors may identify some as a result of a complaint or routine inspection, and they always provide the owners with Information on the program. They also promote it in the quarterly Highlights newsletter. Mr. Beauchamp asked if they have a process for making exceptions to the loan limits and Mr. Janusz said they have an intemal review process where all cases are presented and they can diumss whether a ,rase needs to go above the guidelines. It doesn't happen often, though, and these increases should help eliminate the need for exceptions. it was moved and seconded that the Commission support the Increase In rehab program guidelines and passed unanimously, 5-0. V. Discussion of Affordability Periods and Resale Restrictions for Affordable Housing Projects. Before discussing this agenda item, Ms. Snydemnan Pratt asked if the housing planner could provide a monthly update on all the affordable proposals, so they'd be familiar with the addresses and the status month to month. She also distributed a draft letter to the City Manager from the Housing Commission that summarized their response to the City's inclusionary housing proposal. She asked members to look it over and get back to her with corrections or comments. Members agreed a copy should also be provided to the City Council members. They decided to use footnotes to indicate how the new proposal differed from theirs, so the letter stressed items of concensus among the commission. Commission members then reviewed material from BPI addressed to the City Manager detailing mechanisms for dealing with resale of affordable housing and deed restrictions. Ms. Snyderman Pratt said this was one of the last things Nick Brunick did for Evanston before he left BPI to work In the private sector. Ms. Balkcom said the memo mentions Highland Park and lists Betsy Lazar and Lee Smith as possible resources and asked if there's been an opportunity to follow up and get more Info from them. Ms. Spicuzza said they've met with Lee Smith and Mary Ellen Tamasy, the director of Highland Park's land trust, and have a lot of their materials which they will analyze and send to City Council as part of work plan. Ms. Snyderman Pratt asked If they were anticipating making a presentation on a range of options or a recommendation. Ms. Spict¢za said that they planned to present Information in late September of their analyses, then based on ensuing discussion synthesize the Council's comments and put it into an ordinance, perhaps in October. Ms. Balkcom asked about the concept of deed restriction vs. community land trust and asked If staff gets together to talk about merits of each and how the process works. Ms. Spicuzaa responded that staff met and will continue to meet to talk about different issues, and the group includes Jim Wolinski, Dennis Marino, Julia Carroll, Ellen Szyamanskl and herself. Ms. Munro pointed out that you could use both a deed restriction and a land trust. Ms. BaRcom said Evanston currently does not have a community land trust as the Evanston Lighthouse Community Land Trust is still waiting for its non-profit status, but the difference is that the affordability period Is In perpetuity with a land trust, while it's limited with a deed restriction. August 19, 2005 Housing Commission Minutes, Page d It was suggested they examine elements from the different examples and they observed that in the Arlington Heights example, the village has the option of purchasing first. Some wondered what happens if the village chooses not to purchase. Ms. Spicuzza said the unit would sell for a price based on a formula, whether the City or an individual bought it. She referred to the example in Exhibit F but couldn't tell from the worksheet if it was a cumulative appreciation. Members said it would have to be, but they couldn't determine the affordability period. They noted it had a provision to deduct for excessive damage but didn't Include improvements. The example from Cambridge Massachusettes used the initial price, a small equity increase plus capital improvements, but Mr. Beauchamp wondered how you Indicate what capital improvements are allowable. Ms. Baikcom said a land trust could monitor the Improvements, but asked who would monitor it for the City. Ms.Hurwic h said the IRS details capital improvements for calculating the basis of your house in order to determine capital gains. She and Mr. Beauchamp discussed it further and they thought the IRS guidelines could be used for the list of improvements. Ms. Spicuzza sold that the City's formula, found in Section 3 of its Declaration of Covenants, uses the initial price, plus an annual adjustment, plus closing costs paid by seller, and allowable capital improvements evidenced by receipts, up to average amount of $5,500 per year of ownership. It also provided an example and a list of allowable capital improvements in an Exhibit. She said they took the list from tax code took but eliminated some luxury items. Members commented that reviewing receipts may be difficult and it would be good to look at them when they make the improvement. Ms. Spicuzza said owners get the list, so they'll know what's Included and excluded, such as painting. Mr. Beauchamp said that with older buildings it's Important to keep up general maintenance, and maybe they could get some credit for keeping it up to a standard. Ms. Balkcom said that would be difficult to do, and most agreements she's seen don't try to include maintenance. However, programs provide education and counseling to owners before they buy. Ms. Munro noted tuckpointing was not on the list which can be substaintial but Ms: Hurwich said It Is maintenance and not a capital Improvement. There wasn't anything In the Clty's declaration about the City having the right of first refusal. Ms. Spicuzza said this was a template used for Econ Development's townhomes and also Reba Place Development Corporation's condos. She believed Reba had a clause In their declaration that Reba could buy tt at the formula price. The terms are for 15 or 20 years. Ms. Snyderman Pratt said she was having trouble figuring out the term questions. For instance in Montgomery County it was originally 15 years, then they lost so many units they increased iL Mr. Beauchamp said he was concerned about the jackpot buyer who buys near the end of the affordability period and gets a stack of cash when they sell. He struggles how to get around that. He said that was why he liked the example Chicago uses, where they have a second lien and take a part of the appreciation from the sale. Even though the affordability is lost when it is sold, they have funds back to do other projects and thinks this brings more to the City and Is fairer to the buyer. Ms. Balkcom said she read that that method works best where there's available land and more opportunities for affordable housing. Other examples provide one half of the excess of affordable resale price to city's affordable housing trust fund. Mr. Beauchamp said he is still struggling with the issue because he sees homeownership as wealth building and helping people get to the next level. He wondered how you fixthe problem of losing the affordable housing as you go along. If a person is not building wealth while owning a house, why own? He thought they could invest in other things, if they're not keeping up with what the community's doing. He wondered if there was a better model. Others discussed the trade -of that the homeowners couldn't get in the market on their own and just really want a house. Ms. Munro said that they're getting an advantage at the front end, but maybe losing some wealth accumulation at the back end. August 18, 2005 Housing Commission Minutes, Page 5 They discussed the equity formula and wondered if it should be indexed to what's going on In the neighborhood or Evanston and thought the 3% seemed arbitrary. Ms. Balkcom said the land trust uses an appraisal at beginning and at the end, so the formula percentage is the difference between those two. Ms. Spicuzza said she went through those same those same lines of thought when trying to develop a formula and worked on various methods using a spreadsheet from LISC. She said the problem was that 0 you Index appreciation to the area, will it then be affordable to the next buyer? For example, while housing process went up as much as 10°% in the last few years, incomes have been going up maybe 2°%. Will we need more subsidy to make it affordable? Ms. Balkcom said she didn't know if the issue of needing more subsidy for the next buyer win go away. Ms. Munro said perhaps they needed more subsidy for the current buyer, noting in Chicago they have many different pots of money to help subsidize units initially. She said most are grants not bans, they only have to pay back the 'new homes for Chicago' subsidy. She said we don't have all those tools. Mr. Beauchamp commented on a recent deal that where HUD paid the monthty mortgage for the term, with a housing choice vouchers. Ms. Balkcom pointed out the Colorado example that accounted for realtor and closing costs in the formula and wondered how a realtor gets Involved. Mr. Beauchamp said he Is still struggling with that, to make sure realtors and brokers would not violate any fair housing laws if certain income letir~!s were precluded from buying. He asked the Illinois Association of Realtors if there were any Implications for reactors on how to market or sell a deed restricted house. Ms. Snyderman Pratt said they were hitting on many key variables they want to consider. She has more questions about what's worked elsewhere, such as Montgomery County, Cambridge and Arlington Heights. She suggested everybody study the materials a little more and asked Donna to e-mail everyone the LISC spread sheet. She said everyone can do some analysis on their own and they would continue the discussion next month. 011 W Roma Richard Girard from the audience commented on the Housing Commission's recommendations that were missing in city's draft discussion paper and hoped they would bring that up, Ms. Snyderman Pratt said she would add some items to the letter, In the footnotes. Ms. Snyderman Pratt announced that the Chamber of Commerce will have a meeting an September 22 for its members about Employer Assisted Housing. The Chamber looked at the Inclusionary proposal and were concerned that affordability period too short but disappointed to see cost offset options removed. Ms. Munroe announced that the Evanston Community Foundation getting a substantial grant from Grand Victoria, and one of the three areas they will use funds is land use and protection. She its on a foundation committee helping to gather information to come up with a plan for the money. The Grand Victors is providing $250.000 to community foundations throughout the state. They have to raise a match locally. Child care, work force development and landuse and protection. So she said this could be another possible pot of money for affordable housing. The meeting was adjourned at 8:25 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner IDRAiF1' 2 Evanston Housing Commission Thursday. September 15, 2005 Minutes Present: Sara Ashmore Diggs, Carol Balkcom, Judith Hurwich, Susan Munro, !Robin Snydemmn Pratt, Chair Absent~ Eric Beauchamp, Genevieve O'Toole Staff: Donna Spicuzza I. Minutes of August 18, 2005 meeting were approved II. Communications — Donna Spicuzza said there were two proposed residential developments members should know about and also reminded members they can sign up for zoning information news that would provide updates. At a recent Site Plan and Appearance Review Committee, Optima Development discussed their concept for a three to eighteen -story residentialloommercial development at Davis and Chicago Avenue. Representatives said there were no plans to include affordable units or contribute a fee -in -lieu of units. A revised proposal by Bob Homer and Ibrahim Shihade for 1567 Maple, is scheduled for Planning and Development and City Council meeting on September 26. The developers have proposed a voluntary contribution of $150,000 to the City's affordable housing fund as part of the public benefit for planned development approval Committee members discussed how to encourage the developers to consider including or contributing to affordable units even though there is not yet a City policy or requirement. They decided to communicate in writing to Committees and staff how the proposed Incluslonary requirements would affect the development proposals and encourage them to ask the developers to make voluntary commitments. Robin Snyderman Pratt said she would take a first pass at getting a letter to the housing planner to distribute to the appropriate people. IN. Families in Transition application from Connections for the Homeless Jill Longnecker and Marie Vesely from Connections for the Homeless were introduced. Donna Spicuzza explained that the Families in Transition (F.I.T.) program provides a rent subsidy for up to two years to a sponsoring organization for a very low income family. It is funded through the Mayor's Special Housing Fund. The family receiving the subsidy must have a transition plan for achieving self sufficiency after two years. Ms. Spicuzza referred to the table of previous F.I.T. applications to provide a history of sponsors, goals and results of prior applications since 1989. She noted that Connections for the Homeless successfully sponsored a family In the F.I. T program for two years, ending in April, 2005. Ms. Longnecker said that the family they propose to sponsor is composed of a mother with duee daughters and one son between five and nine years of age. The mother is part of Connection's Family Housing Services which provides transitional housing, vocational and educational housing, life skills training and peer support groups. She must leave the program due to time limits on these services, but still requires additional assistance before becoming totally self sufficient if she is to be able to continue her education. White in the Family Housing Services program, the mother followed through with her personal goals, complied with the program rules and fulfilled her financial obligations, paid off past debts, met with a case worker, attended support groups, worked part time, managed her household, and started college. She recently took a full-time job to make more money and plans to continue to take college courses part time, working toward an Associate's Degree in Education, which she expects to complete in May, 2007. Getting the financial assistance through the F.I.T. program will allow her to continue her education rather than take on an additional part time job in order to afford market rent. September 15, 2005 Housing Commission Minutes, Page 2 Connections for the Homeless will continue to provide intensive case management services, home visits, referrals, advocacy and life skills training. They will continue to asses and monitor her progress. Ms. Longnecker said the staff has developed a positive relationship with the family over the last two years and is willing to continue to work with the mother and family as needed. Connections is proposing that the family move from their current apartment in a building owned by Reba Place Development Corporation into another unit In the same building, as the current unit is set -aside for their Family Support program, The landlord is happy to continue to rent to the family and has a two bedroom apartment available for $750, which is below market rate. The tenant's share would be slightly less than the maximum of 30% of household income, allowing more discretionary Income for savings or other living expenses, and would not require Connections to make rent payments. Housing Commission members agreed that the family was a suitable applicant for the program and that Connections would provide positive assistance in meeting transition goats. Sara Ashmore Diggs questioned the wisdom of housing five people in a two bedroom apartment, however, and felt strongly that a three bedroom apartment would be more suitable and advantageous for the children. Ms. Longnecker said that the current living arrangements in theft two bedroom apartment have the three girls in one bedroom and the mother and young son In the second bedroom. She said that while it is not ideal, the mother has deoorated and provided Individual space for all the children so that they have a place to study and to call their own and feels they can manage for two more years with that arrangement. Donna Splcuzza said that one of the funding conditions is for the apartment to be inspected to ensure it meets property standards, including space requirements. Other commission members said they felt it would be better for the household to have lower housing costs since the tenant's share is much more than what she paid in the Connections program and they have managed successfully in the two bedroom unit Members reviewed cost scenarios and discussed rent and subsidy amounts for different sized units. Ms. Spicuzza said the tenant's maximum share would be up to 30% of monthly income which is $492. The F.I.T. subsidy for a two bedroom could be about $565 a month or $6,790 for a year, but if the lower priced unit was rented the monthly subsidy would be about S405 or $4.860 for a year. She said the subsidy for a three bedroom unit would be 50% of the fair market rent of approximately $1,300, plus a allowance per month. Marie Viisely said that Connections does not have a funding source to make up any gap between a higher priced rent, the tenant's share and the subsidy. They discussed whether they needed to recommend approval of a specific subsidy and unit Ms. Spicuzza said that since the family was supposed to vacate their unit In November, they brought the proposal to the Housing Commission before the exact subsidy amountwas determined in order to provide enough time for City Council approval. She said they could recommend a funding maximum would cover a two or three bedroom unit based on fair market values. The Commission voted 4-1 to recommend an annual F.I.T. subsidy of up to $7,000 for two years for Connections for the Homekss for the proposed family. Staff said the proposal would probably go before Planning and Development and City Council on October 10. Before then, the specific apartment would be reviewed and the subsidy amount would be fine-tuned for that meeting, and would probably be less than $7,000. N. Discussion of Downpayment Assistance Program through the Illinois Housing Development Authority Donna Spicuzza reviewed the mortgage financing and downpayment and closing cost assistance available through IHDA using the City's ceded bond volume cap, to see if Commission members were In favor of supporting this use in the future. Members discussed the list of local lenders which are current IHDA participants and reviewed pricing scenarios using the assistance. The program would assist households up to 115% of area median Income. Members expressed support for the concept. September 15.2005 Housing Commission Minutes, Page 3 V. Update on Employer Assisted Housing Proposal and Presentation to Chamber of Commerce members Robin Snyderman Pratt discussed the September 22 meeting on Employer Assisted Housing (EAH) sponsored by the Chamber of Commerce. City staff will discuss the City's pilot program and ideas for program modifications. Other speakers include Robin Snyderman Pratt from Metropolitan Planning Council, the EAH program coordinator, Richard Koenig from Housing Opportunity Development Corporation, the EAH partner that handles counseling and administration. and a representative from Charter One, which is a member of the Evanston Housing Coarition and which sponsors an employer assisted housing program. The meeting will be at 8:30 a.m. at the Rotary Building. VI. Discussion of Affordability Periods and Resale Restrictions for Affordable Housing Projects Members decided to meet or conference as a subcommittee to go over different resale formulas using the spreadsheet Donna Spicuzza e-mailed, since not all Committee members were there. They hoped that Eric Beauchamp and Sara Ashmore Diggs could be involved to provide their expertise. Robin Snyderman Pratt expressed hope they could come up with a different formula than the one proposed in the City's Incluslonary Housing paper, which would include a longer affordability period. VII.Other Business Ms. Snyderman Pratt reminded members of the regional housing initiative that offers project - based subsidies for multi -family rental properties. Members discussed whether they want to work with the Property Standards Division to get a letter out to multifamily housing providers suggesting that if owners are Interested and able to assist the city advance its affordable housing goals they can fill some of their vacancies with eligible households using the project -based subsidies. Ms. Spicuzza said she would discuss it with Stan Janusz, director of the Property Standards division. Judith Hurwich said she would like to discuss how the City can use its funds to help create more affordable rental units as recent projects have been ownership opportunities. She suggested discussing it at the next meeting when members look at the list of projects which they requested. ViIi. Public Comment Sue Carlson congratulated the Commission for addressing the long term affordability issue and supporting longer terns. Vlll. The meeting was adjourned at 8:30 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner List of City -Assisted Affordable Housing Developments — Completed In Process and In Development Cotnoleted Rental Proiects funded by the City of Evanston Address Developer q Units Source Amount Year Occupied and Description 319 Dempster Housing Opportunity 48 HOME S250,000 2002. "The Claridge." Purchase and rehab SRO Development Corp into efficiency apartments for extremely low and very low income individuals. 743 Brummel Housing Opportunity 13 HOME $202,458 1999. Purchase and Rehab for rent to low income Development Corp'. households 1930 Jackson Housing Opportunity 3 HOME S44,000 2004. Rehab of donated rental property, for rant to Development Corp. low income households 619 Brummd Creative Designs 22 HOME $198.000 1996.Purzhase and rehab for low income households 707-13 Seward Reba Place 24 HOME S625,00D 2000. Acquisition and rehab for low income Development Corp'. MSHF $150,000 households 700-02 Monroe Reba Place 12 MSHF $125,000 I998. "House of Peace" Rehab and convctsion of Development Corp.' of apartment building into Co-operative buildipg, 1001 Emerson Jacob Blake Manor 76 MSHF $56.000 2003. "Jacob Blake Manor" New construction of LLC senior rental building with HUD 202 funds by Ebenezer Primm development company Scattered Site Evanston Housing 6 IHDA Affordabilit Rehab funds for six Single Family Homes Coalition' HOME; y period purchased with HOME funds through 1HDA and CD expires conventional financing in 1995, for rent to low Rehab 2005 income large families. EHC will sell houses to Loan income eligible households when affordable rental period expires.. NV I of 3 Affordable pmjam lob 9-05 List of City -Assisted Affordable Housing Developments — Completed, In Process and In Development Co ookted Ownershin Projects funded by the Citv of Evanston Address Developer Units Source Amount Description 1916 Darrow Econ Development I HOME S30,9W 2003 - New construction of SF home on donated Corp. Land $50.000 lot for sale to low income household 1311-13 Lyons Econ Deveiopmaut 2 HOME $100,000 2004 - New construction of duplex unit, for sale to Corp low income household 1234-33 Darrow Econ Development 3 HOME 5292,500 2005 - New construction of three townhome units Corp for sale to low income household 124-132 Clyde Evanson Housing 10/12 HOME 5594,000 1999-OConversion of 24 unit building to 12 Coalition, Condominiums, 10 of which were sold to low I income households. 8364LU FAwwood Reba Place 5 HOME j 5180,000 -Conversion and rehab of 4 unit rental Development Corp .1 I 12005 building to 5 affordable condos, 3 HOME assisted. 1717-B McDaniel Evanston Community I HOME $90,000 2005 - Purchase and Rehab of townhome unit Development before it went into foreclosure. Association 2 1721 Brown Evanston Housing I MSHP 528,500 2004 — Rehab 1 of 6 scattered site rental houses, I Coalition sold for $135,000 to low income household - Pap 2 of 3 Affix&Wc pmjom los. 9-05 List of City -Assisted Affordable Housing Developments — Completed, In Process and In Development Avvroved. In Development: Rental Proiects Address I Developer I Units Source I Amount � Description Approved. In Development. Ownership Prniects Address Developer Units Source Amount Description 602 Mulford Reba Place 9-12 HOME S600,000 Acquisition of 12 unit rental building for Development Corp. conversion into condos at affordable prices; 9 HOME assisted, 3 market price 736-738 Dobson Evanston Community 6 HOME S360,000 Acquisition of 6 unit rental building for conversion Development into condos at affordable prices; Association 2 1709 Dodge Evanston Housing 1 HOME $50,000 Rehab Coalition' 1710 Dodge Evanston Housing 2 MSHF S 158,000 SF Acquisition, Teardown, New Consauction Coalition ! HOME I � )Pre Deveovment Address Developer Type Units Source Description Citurch and Darrow Housing Opportunity pent 27 IHDA New construction Developmerrt Corp LIHTC 1820 Dodge Housing Opportunity Own I HOME New construction Development Corp 1915 Foster Evanston Housing Own i HOME S45,000 in Rehab Coalition 1933 Dodge Evanston Housing Own I MSHF S65,000 in Rehab Coalition ' f Pap 3 of 3 Affordabk ptojmu k)& US Evanston Housing Commission Thursday. October 20.2005 Minutes Present: Carol Balkcom, Eric Beauchamp, Robin Snyderrnan Pratt, Chair Absent Sara Ashmore Diggs, Genevieve OToole, Judith Hurwich, Susan Munro Staff: Donna Spicuaa L Them was not a quorum present. September minutes were not approved !revery appointed member Jean Keleher, attending in the audience, was introduced and weicorred. She wdl join the Commission as a voting member next month. U. Cormmunieations — Members were upCaMC on the following: • The FIT proposal from Connecaors for trse Homeless which the Commission recommended at the September 15.2005. meeting, was withdrawn by the sponsor at the family's request; • the Employer Assisted Housing Program proposal should go to Planning and Development Committee November 14; • the October 24 Planning and Devebarnent Committee Agenda includes Evanston Housing Coalition's application for rehab funds for 2 houses and the Planned Development Proposal for 1567 Maple; • Housing Opportunity Deveiopnvm Corporation submitted a CDBG Application for their Housing Counselling program, wtuch has not prevwusly been funded by Evanston. Members discussed the benefits of homebuyer education_ They noted that other non-profit groups can take advantage of HODC's program, =1 it advances the goals of Employer Assisted Housing efforts and that many Evanston residems nave cenefaed fnxn their workshops. HODC's application will be heard November 1, and members vM agreed for someone to attend to support the application • a concept for a proposed res+derrt:al development at 2123 Harrison was heard at SPARC this week; • a modifi ation to the Planned Deveopment at 1100 Clark by Roszak ADC was approved by the Plan Commission October 11 and will go to Planning and Development Committee in November. it includes changing some townriomes to condominium units and changing the affordable set -aside to 100% of median for the 8 remaining unsold units because they had trouble Wing qualified buyers at the 80% incorne lever. Members bmfly discussed the issue_ of modifvina the affordable housir�q� Robin Snyderman Pratt dcstnbutec a draft memo from the Housing Commission concerning the inclusion of affordable unrs in new residential developments which members had suggested the Commission distribute. Members discussed edits and how best to disseminate the information so developers are aware at me ean,est possible date that creation of affordable units is among the public benefits the City encourages in Planner! Developments, even if there is not an ordinance requiring it. . 111. Presents6on from Housing Opportunity Development Corporation Michael Colan from Housing Opportur rty Development Corporation informed members of their plans to construct a 27 unit rental Wading in partnership with the Evanston Community Development Corporation at Church and Darrow. He described the proposal and its pre - development status and noted they will apply for Low income Housing Tax Credits from IHDA In December. He asked Commission members rf they could indicate their support for the project. Members present felt it was worthy of support and would propose a vote at the November September 15, 2005 Housing [am msston Minutes. ?a=, 2 meet,rV when other members *out-. be present, tt mas noted tral :^e fa= Mt the lot was donated and the donor will recerve state donation ar credits shci c De pu34=ed to encourage others to take advantage of Tr s yxram. Mr. Co+ar arso rnforttec r^er-aers of their proposed new single family constr,,_jon at -820 Dodge and r-,gntioned HODC s Hcmebuyer Education efforts and their proposed rote .r: Evanston's Emycyer Assstec arogr'am. IV. Review of Affordable Housing List and Discussion of Affordable Rental Issues Members reviewed the 1-=tat wn,u+ trey sa c Aashelpful and asKeC rf it could include affordable set -aside un,s as weft r.+F - e s : sass+ : •�a.s t ;; a- a •e-ra ass+stancnd horr'eownersh* ass4ta'•:,F Ms Sc:__**a sir --a• ce.e :Onsrden r nt I Qroeas had been deterred in Me last few years Prase of the a ;A• _^ t subsidy that would be recuttec cue to hrare• ace,. s-r^ _csts a t^e --ce;to recu _e ce_• sevrce in order to make the aro+ect economrCall•r `eas,c,e'c• t e ic*C !e -^Never Sns. -VE—, •^w ire Der -unit subsidy forcwnershiD protects rT_s bee^ •5a5,n^ s' • -_.:,e time tc'e. s' •~e •ental issue She (toted that Julius Belzer'-c,m on i5 , :F'eS'e convanirin a._SeCOnd meet,no c! non-profit hr,'_s -OQ ce.e Pis an^ Se^, re �•pv f,,erS a^c • 3! •-e sumect of grqvigi more tow ,ncome rental-r.jsir.; :r,j C De c S^ sser; further. Members said they wou c I to !c earn more ax.1 "CDC s eXn4r•e^ce-arkeunq affordable ast-aside unrs to 80% ir_�rre cu•c: asers fu• t e Se ---a craec- a^r ^s ,elpowgln Inclusionary policy could assist •►e creatxm of rental units. They suggested ,nvning HODC to next month's meeting. They r-ed to ,ete•-rine -1 of sr-cat•e ter-asices •^.a vet rate develooments will be affordable to the ta*cet x ,u.a!bn anc wi'I se, 11 was no:ec !-a,'ne mGusionary housint; polrov could allow non-cr i(it de.eoaers to purchase -n2s at affcrrat,e ✓.ces and rent them, pithouah that was not sop-ificao or sta!eo in the ar9cGsal_ ......I foearle11- b Fbm OW Oe4ted: torr+a Delrtae: They sa4 My woultl Ike to !Barn mare annul HOOCs Rxpn'nn= tnetlutnp i1iGrCabtB arts to W% Y1=, purd'"WS lnglitib ri,"Mil' warli Members also Asked atxfut the status of tar assess" -eras of mares create^ throug_q_effordab(e housino Droorams. Ms Sozu=a said she has follcwe; uD on Evanvcn s request for their liffordabte homepwnersh)c Dmiec's to qei this sDecsar cortsidera,4rl brut has not hQPrd back from the Assessor's office are will ccntUrrue to follp/v uo f3pb n Snvderman Pratt said that at the Last Me!rc:,U-an Mavor s Ca-czjs. Commissioner t ;t 141arkowskv talked about Cnicacs s Strated,v for Crtl•h' ce land trusts Site noted that in Evanston ih8 issue is in the court of the non-Drofd and the Cdy -.as said they c :-ee to see how to bnno it to rate She asked Commssione• Elajwcom lvrio is or the board cf t~e Cr zert s Lrohthouse Commundv Land Trust if sne t^oucr! t %s j,c ce d the Cr,.a,c n!crmat,on was presented to the Housinc Comr- ssr^ to See � an'er na would ce a✓^a.:aD°e to Evanston interests. Ids $alkisom sa,7 sre iove a oresertation if it toll c -ave a laroer audlenc4, V. Discussion of Affordability Term b Resale Restrictions for tnduslonary Housing Policy Members continued their discuss ar or structurna the affordab0j-,y for new affordable hornes created out of the DroDosed +,)Vus.onary Dr,a•am Housinc Ccrn-- iss�on members felt that 15 Years was too short but wanted to rrcpose somet-.!iq that W04 '. er Sure inai Deople who penefd from the InduSKtnary crocram can sGrl wa'K a+vav wdfl so-e ^.'l 4 they sett their uQjL The other side is how to make sure Evanston coesr t totally lose tncse •eso,;rces after 15 Years. They revelled a scenana cf resale prices lntn a IS ,ea, time frare fds Snvdemnan Pratt commented that it cc,;ld ,us! as eassly be a 3G ,ea, time frame Ire soenano showed an affordable home once In 19_'0 ar,c G^drinared it to ar•Pnf m@Ne:: -:es Ore example Used, ,a Mare formula which increased annually leas cr ire averace c1-.a1:e r ire CPl The 1990 affordable once of 5104. tC0 increased to 5153 880 ten added S13 Xij �n improvements fort resale rare of $166 M after 15 years Drov6ra S62 780 on ecu'y to the homeowner. This gpmoared to the Evanston median manret rate onces cr 5181 600 it t 991 and S348,000 in 2005. The second examole baser; affo.daDfe onces cf three rmes HUD's 8�- annual income cap. with g Qtanrne once of 5104.tCA grrC*na to 5174.0r,0 in 2_ 5 Witna.t attune '" cost of • i Delrtek look at 5eptm*a 15. 2005 Housing Commission %tinutm. Page 3 imorovements time d&erence aetwee- --e -,-t,a, once an; the X ,es once crovidec S69 5¢g in eavily to the homeohner Enc Beaucnarhp notec that a ieaves _— --e C5•scr hmo .r' r - later. He said. for example. if purchased in Year=for S 1500 . tre owner could se" w -e ems.:1 the aftordaoility aenod for piket once at 13N.001)five years later a--� opt tie acr;r„ kiss 5-ryerman Pratt saij tnat is WWI they want to elim-nate cy keQ: '�o 1 a":.raab a in WDetu t, r,t• Beauchamp suo^,gsted a roltind 15 year term so that somecre n^c stays there for tree fu ,e-rn can sell for market gnce and benefit from me ecu:ty Pi c.s:, ,ssed 'miethe• the IS rear y9nod was hetoful Based on the scgnani the oncunal owner we d --i away with $244 C•i: in equity They weren t sure that was fair. either They discusW- ;"!! ^.a .n an ecuity snare re:'.: rernent at the enC of 15 yU.0, wAh a share n b ck to tre A f:,caD e HDusinc Trust F -,a PAS Balkccom Sabi thaLf yQu want to keeo it affordable. then s t •. De set uo fo, the I `e o' the pro22rty Deleted- IlAerni mv*wW a ftembers ,maoired it would be nam tc eeeN Dace if affordabie u"-ts end after 15 years They saanano>; * "G alfordabo Am" didn't think Ihey Could Continue to create as many units as they lose as crown will eventually vd and isamdunrV tS u �l and mess issue d e° p1° fun4 level off Then noted trial hlantgomer: C ,unty. Maryland onq,ra, y had a 15 year time ►ram but M --� re , who tser+e6ts whert ,.r>,t taem,r,es °Ines IalQr expanded rt becag then were :os ,o too many units Also tr,e qr4inal >arogosat seameij uvesnxte°. AAs preserx unfair, because ne Deople who orC-ra"•f owned it and Derhaas sold in year 10 wouldn't alt any agreed on a sokponmri a extra benefit. wade the next owner h'c owns it for fire years wcuid get the benefit, They felt it ref aMtwdabAty '� S bhoufd be continually affordable with a fsrmula based on an imex plus allowances for N. updsta on DentoYEpnTsx Imrxovemgnts. Proposall Carol Bak= surnm ¢eo rw Mi tubers aoreed that they would crs22 ? that the term be amerrdea to keeQ �t afford ble rid not diswssiorta(a'eF")p°s"attra Sepremrrient E&m to market rate aher 15 years tf *,ne eauit}f-arrangement� more aalatable to City Coungil offmt e Derebprnern Comrr►t�ee meeriN and members, they wptddn'tobject, but did not want a plain 15 year term Mr. Beauthamvnoted their noted areas ofwricentand regmu 1glution arov+des eouily with the e%..L for more iMarmaean. She -J Deena Mondays meemta j Y1. Uodats on Demolition Tax P►oaasal The rnoWnq wm &dlowned at $2 ggrol Balkcom Summart;gd the discussion of thrLDemotd,on T xa PrMposal at the 5eplember 1 pm= i Mannino and development Comm.ttee meeting which she attended She said members raised $ Y number of concerns. and it was referrEd back to staff for more ,nformat)on regarding trends and RespectluaY how many giant homes replaced tear cowns Ms Soicuzza saej thev were able to aet information u0irndwii Donna Spcum ►+ararq PannerZ on about 50 demolrtton Dermas and found sales prices for a rratonty of them. The recent average I purchase price before demolition was W0,009, and the average replacement house selling price Dtwuswn of onoraaoimy Psaoos wall Dyer�C+OO.t)f}0. and Resale Restrrmons for Inclus ovary prograrni Another concern was owners who oxr*a DrolJerty and wanted to tear a down to build another to Fo satsedt Tara: 0,44', Lett + liy in. The c2ncensus was thaty e ^goose f the ordinance was not to prevent people from Y 0.63•, list tab r doing what thev wanted with their homes Deleted: BPI started to run mxnbers, from 28% to 27% atsRttabe units Ms. Snydemian Pratt noted that it is similar to the HklhlaW P91 ordinance. which has iced F.Rupos'e trial 1i441'"i "'re °evebpulp.Y over S1 million since it oassed Mr. Beauchamp questioned now it would apply, to redeveloping Eric offgi hborhoods, fearing it discourace MODle who need to take a house down. The members agreed the exceptions should be: per; any For Cam -mandated demolrbons due to unsafe conditions If the replacement house is af!ordabie edet°d= °dnl g'" Trrk tnaC: a tf the owner tears it dawn Another issue raised was how to determining affordability of replacement housing. The Committee's recommendation was not to tie with dollar value but to income. Members agreed with land and construction costs. d is unlikely replacement would be affordable, certainty not without a subsidy. Ms. Balkcom said she would attend the Mondav_Planning and Development Committee meeting. Other BLminess 0 September 15, 2W5 Housing Cammission Minutes, Page 4 Member asked for an uadate cncn tMe proposed Ms. 5picuzza said it would likely go back to Planning and Development Committee at one of the November meetings. She said staff worked on a oeyelc22r survey, ser4tng out Z3 surveys. Only four were returned to date, but she said they gave thoughttul responses. When asked about the sentiment of developers towards the policy, she said they ran the gamut One response Was extremely opposed to the entire idea, while another respondent who has done mixed -income housing thought it was a workable proposal. Two other developers who worked in Evanston were generally in favor but offered suggestions regarding certain elements :Members asked if they could see the surveys. The rt"tlnQ was adfoumwd at 8:20 o.m. &jper,tftjIIv StPhmuttP!;L Donna-ascuzza. Houstno Planner «�-. '. ', %L. Evanston Housing Commission Thuraday. November 17, 2006 Minutes Present: San Ashmore Diggs, Carol Balkcom, Eric Beauchamp, Jean Keleher, Susan Munro. Sus Sinnamon, Robin Snydemman Pratt, Chair Absent: Genevieve O'Toole, Judith Hurwich Staff: Donna Spicuzza I. Approval of Minutes Newly appointed cornrnissioners Jean Keleher and Sue Sinnamon were welcomed. The minutes of the September and October, 2005 meetings were unanimously approved. 11. Communications — Commissioners were updated on Roszak ADC's request to Planning and Development Committee to modify the number of units and the Affordable Housing Program in the Planned Development at 1100 Clark The modifications would target households up to 100% of median and allow set -aside units purchased for disabled individuals belonging to the Center for Independent Living bo be rented to other disabled persons in the group under certain circumstances. Commissioners were informed that the Committee was opposed to allowing rental and suggested that the developer contribute a fee in lieu of providing affordable set aside units since sale of the affordable units was not working out This was held until the 11f28 P&D Meeting. Housing Commission commissioners spent considerable time discussing this and felt they would need more information about the rental circumstances if they were to comment on it They hoped this would not send a negative message of inclusionary housing because this program is different from proposals. They want to comment at the 11f28 P&D meeting about this fact and may prepare a communication to the Committee. Commissioners were told that the Employer Assisted Housing Program proposal will be presented to Planning and Development Committee on November 28 and a summary was distributed. Susan Munro pointed out the recent Tribune article on predatory lending and mortgage fraud and resulting problems with foreclosures and vacant buildings. She asked if the Commission could discuss this issue again. Robin Snyderman Pratt said that BPI had updated numbers of affordable units in Evanston, using the state's formula which previously showed Evanston at 26% based on census data. She said their analysis indicated that Evanston's percentage of affordable housing has declined to 19%. Ill. Re -Certification of Housing Opportunity Development Corporation's Darrow Comers project for consistency with Consolidated Plan for UHTC appikation. Copies of the information packet regarding Darrow Comers were sent to commisslonerswho were not present at the October meeting at which Michael Colon of Housing Opportunity Development Corporation spoke to the Commission about their proposed 27 unit development He had requested that the Commission again certify that the proposal is consistent with the City's Consolidated Plan for their submittal of a Low Income Housing Tax Credit application to IHDA. Their application didn't get approved last time because their zoning approvals weren't in place. Now they have been through zoning approval and started the Planned November 17, 2005 Housing Commission Minuses, Page 2 Development process. Susan Munro moved to certify the proposed development's consistency with the goals of the Consolidated Plan, and it was seconded by Carol Balkeom. The motion passed 7.0. IV. Review of HOME Program Resale/Recapture Requirements as modified for 2005106 Action Plan and In preparation for 2006107 Action Plan Donna Sp(cuzza noted that resale recapture provisions for the HOME program were distributed In the Commisioner's packets. They are the current provisions that were submitted to HUD in the spring in response to their comments on the 2005/06 Action Plan, and were just approved at the end of September. The HUD field representative thought they represented a revision to the Action Plan, although Ms. Spicuzza said that staff is already working on next year's Action Plan which will be presented at a public hearing at the Housing and Community Development Committee in December. She said the HOME resale provisions differ from the affordability terms for Incluslonary Housing which commissioners discussed recently and said they could discuss the HOME requirements if they desired. Ms. Balkcom asked for more information on the Action Plan. Ms. Spicuzza said it refers to how the City spends federal entitlement money, CD13G. HOME, and ESG funds. The Plan is based on the City's Fiscal Year, so it must be completed before March 1, requiring approval by City Council In January. She said the Action Plan is a subpart of the Five Year Consolidated Plan and has to meet certain requirements from HUD detailing how funds will be spent .Ms. Balkcom said she thought the Commission's discussions about affordability periods were for all affordable housing projects and referred back to the Minutes and the Agendas. The Agenda did not specify whether the affordability period discussion related to inclusionary housing, the HOME program or both, but the minutes pointed out the discussion was in relation to inclusionary programs. Ms. Snyderman Pratt said their affordability discussions tried to achieve concensus on a formula for keeping unlats affordable in perpetuity that would allow owners to still get equity, but not cause the City to lose affordable units. She said she felt the discussion should be broader than just inclusionary units and should be the way we deal with housing In general. She said commissioners did not want the affordability period to end at 15 years and go back to market rate. They had discussed having a rolling affordability period which could be extended every 15 years, and thought erybody was on the same wave length. Commissioners then discussed what would happen under various future economic scenarios. They agreed to continue the discussion. V. Update on Demolition Tax Proposal Commissioners reviewed the changes to the Demolition Tax that will be presented to the Planning and Development Committee on November 28.2005. They discussed the exceptions. An owner who has occupied it three years prior and will live three years in the replacement house, could get a refund. The other exception was that the ordinance would not apply If the replacement housing purchase price was less than $500,000. Some aldermen hoped for a graduated tax based on value of housing, but it was determined that would be too difficult to Implement. The concem remained that some replacement housing could be built that would affordable to middle income households, and the $10,000 tax would be a hardship. Ms. Snyderman Pratt mentioned the analysis of teardowns which showed replacement prices averaging around $1 million, far above the pre -demolition purchase price. Commissioners discussed a definition for Affordable Housing, as requested by the PSD Committee. They reviewed two different definitions distributed by the Chair that detailed ownership housing costs that would be counted in a calculation where housing costs would not exceed 30% of household income. The Committee agreed on the following definition: AFFORDABLE HOUSING: De=t, safe, sanitary housing that is affordable to Relevant Households as defined below. The cost (including a utility allotment and adjustment for household size) of such rental dwellin,&,units shall not exceed 30°/o of the Relevant Household's gross annual household income (the total income of all adults over eighteen years of age in said household). The cost of the mortgage payment rind relevant expenses (a calculation of property taxes, homeowner's insurance, November 17, 2005 Housing Commission Minutes, Page 3 and, when applicable, condominium or homeowner association fees) of puch owner-mctmied dweUin !aiM shall not exceed 30% of the Relevant Household's gross annual household income (the total income of all adults over eighteen rears of age in said household). Mr. Beauchamp motioned approval of the definition and It was seconded by Carol Balkcom. The motion passed 7-0. Commissioners had no issues with additional exceptions the Committee made to the Ordinance and discussed and suggested that the Ordinance add an exemption for property being demolished as a result of a natural disaster. They also recommended that the mull -family residential definition be clarified. Ms. Spicuzza said she would prepare a memo with their recommendations for the Planning and Development Committee. Vi. Update on Incluslonary Housing Policy Proposal Ms. Spicuzza updated commissioners on the revisions to the July inclusionary Housing proposal. She said they changed the defiinition for targeted beneficiaries to be based on HUD median income levels instead of Evanston median income, and that there were changes regarding set -aside requirements, initial affordable price, fee4n4leu provisions and a recommendation for a 15 year affordability term. Ms. Spicuzza said the discussion paper presents a number of issues concerning the affordability period and points out that the Housing Commission recommends it be In perpetuity while staff recommends a limited time. Ms. Snydennan Pratt asked why staff did not want the affordability period In perpetuity and Ms. Spicuzza said one concern was with keeping units affordable to 80% households over time. She felt if improvements need to be made, it could reach a point where the addition of renovation costs paid out by owners could exceed the affordability levels of potential buyers. Ms. Snyderman Pratt said hopefully the units should be very high quality and would not require expensive improvements. Commissioners asked for copies of the revised policy and noted that they support an affordability period that Is in perpetuity. Other Business Employee Assisted Housing Proposal was distributed. This will be presented to the Planning and Development Committee on November 28, 2005. Public Comment Sue Carlson expressed concern about whether the difficulty selling the set -aside units at the Sienna Project would Impact people's perceptions about the success of an Incluslonary housing policy. She urged people to think about how it differs from the proposed policy, especially in terms of initial pricing, the shared appreciation mortgage financing and assessment costs for set -aside Mr. Beauchamp said that per the state Law on condominiums, assessments and the percentage of ownership are established based on the initial purchase prices, so the affordable units shouldn't have the same assessments as comparable market rate units. However, it was pointed out that the set -aside units are actually market -rate units but the deferred payment second mortgage financing reduces buyers monthly mortgage costs so they can afford the unit The Chair confirmed that many would be present at the Planning and Development Committee meeting and they are interested in commenting on the revisions to the Sienna set -asides, the Demolition Tax Ordinance, the Employer Assisted Housing proposal and the Inciusionary Housing discussion paper. The meeting was adjourned at 8:30 p.m. Respectfully submitted, Donna Sph=a, Housing Planner DRAFT Evanston Housing Commission Thursday. December 15. 2005 Minutes Prosent: Carol Balkcom, Jean Keleher, Susan Munro, Robin Snydemran Pratt, Chair Absent: Sara Ashmore Dina, Eric Beauchamp, Judith Hurwich, Genevieve O'Toole, Sue Sinnamon Staff: Donna Spicuzza I. Approval of Minutes November 17, 2005 Minutes were not approved due to leak of a quorum. II. Communics0one — Members received the following: • Calendar of meeting dates and pest serve information, as well as Housing Commission schedule for 2006. • Draft Action Plan that will be submitted to HUD after it is approved by the City Council In January. • Summary of recently passed Lake Forest Inclusionary Housing Ordinance. The following were mentioned: • Housing Opportunity Development Corporation will present its plan for Darrow Comers to the Plan Commission on January 11. Robin Snyderman Pratt asked If someone could be present to express support for the pncject which the Housing Commission certified as in conformance with the Consolidated Plan. Carol Balkcom said she would do it if available. 611s. Snyderrnan Pratt also asked if they could get on the Planning Commission Agenda to provide an update on the inciusionary Housing propoeal. A special Planning and Development Committee to discuss the Indusionary Housing proposal Is scheduled for January 5. Housing Options for the Mentally iif is planning to purchase a property on Crain Stroet. Ire an opportunity for the Housing Commission to be supportive if they can get briefed on the project. They will invite Alexander Brown to the next meeting. Ill. Request for Families In Transition Funds from YWCA Members received a financing scenario and confidential copy of the Families In Transition (Fit} application from the YWCA, along with a summary of FIT program, funded through the Mayors Special Housing Fund. The YWCA is a first time applicant. The Family they are sponsoring is in their time -limited transitional housing program, which runs out in February. The family will have a ditlkuit time affording market rate rent and YWCA staff feels she is a good candidate for FIT. Donna Splcu=a saki that the FiT program is designed for families with Incomes under 40% AM) and this family currently meets the income guidelines. However, because they startled receiving child support in August, they are likely to be slightly over the 40% limits when income Is re- determined in stx months. She said that in the past, 4 appeared that the FIT subsidy was discontinued if a family's income increased over 40% AMI. She suggested the Housing Commission could request funding for a year to cover the lease period. If the family is over 40% November 17, 2005 Housing Commission Minutes, Page 2 Development process. Susan Munro moved to certify the proposed development's consistency with the goals of the Consolidated Plan, and it was seconded by Carol Balkcom. The motion passed 7-0. N. Review of HOME Program ResalelRecapture Requirements as modified for 200:5106 Action Plan and In preparation for 2006f07 Action Plan Donna Spicuzza noted that resale recapture provisions for the HOME program were distributed in the Commisioner's packets. They are the current provisions that were submitted to HUD in the spring in response to their comments on the 2005/06 Action Plan, and were just approved at the end of September. The HUD field representative thought they represented a revision to the Action Plan, although Ms. Spicuzza said that staff is already working on next year's Action Plan which will be presented at a public hearing at the Housing and Community Development Committee in December. She said the HOME resale provisions differ from the affordability terms for Inclusionary Housing which commissioners discussed recently and said they could discuss the HOME requirements if they desired. tiAs. Balkoom asked for more information on the Action Plan. Ms. Spicuzza said ft refers to how the City spends federal entitlement money, CD9G, HOME, and ESG funds. The Plan is based on the City's Fiscal Year, so it must be completed before March 1, requiring approval by City Council in January. She said the Action Plan is a subpart of the Five Year Consolidated Plan and has to meet certain requirements from HUD detailing how funds will be spent .Ms. Baikcom said she thought the Commission's discussions about affordability periods were for all affordable housing projects and referred back to the Minutes and the Agendas. The Agenda did not specify whether the affordability period discussion related to indusionary housing, the HOME program or bout, but the minutes pointed out the discussion was in relation to incusionary programs. Ms. Snydetman Pratt said their affordability discussions tied to achieve concensus on a formula for keeping uniats affordable in perpetuity that would allow owners to still get equity, but not cause the City to lose affordable units. She said she felt the discussion should be broader than just indusionary units and should be the way we deal with housing in general. She said wnmissio st did not want the affordability period to end at 15 years and go back to market rate. They had discussed having a rolling affordability period which could be extended every 15 years, and thought erybody was on the same wave length. Commissioners then discussed what would happen under various future economic scenarios. They agreed to continue the discussion. V. Update on Demolition Tax Proposal Commissioners reviewed the changes to the Demolition Tax that will be presented to the Planning and Development Committee on November 28, 2005. They discussed the exceptions. An owner who has occupied it three years prior and will live three years in the replacement house, could get a refund. The other exception was that the ordinance would not apply if the replacement housing purchase price was less than $500,000. Some aldermen hoped for a graduated tax based on value of housing, but it was determined that would be too difficult to Implement. The concern remained that some replacement housing could be built that would affordable to middle income households, and the $10.000 tax would be a hardship. Ms. Snyderman Pratt mentioned the analysis of teardowns which showed replacement prices averaging around $1 million, far above the pre -demolition purchase price. Commissioners discussed a definition for Affordable Housing, as requested by the P&D Committee. They reviewed two different definitions distributed by the Chair that detailed ownership housing costs that would be counted in a calculation where housing costs would not exceed 30% of household income. The Committee agreed on the following definition: AFFORDABLE HOUSING: Decent, safe, sanitary housing that is affordable to Relevant Households as defined below. The cost (including a utility allotment and adjustment for household size) of such rtnW dwelling units steal! not exceed 30% of the Relevant Household's gross annual household income (the total income of all adults over eighteen years of age in said household). The cost of the mortgage payment and relevant expenses (a calculation of property taxes, homeowner's insurance, a•_i - ••i�„tit` November 17, 2005 Housing Commission Minutes, Page 3 and, when applicable, condominium or homeowner association fees) of such weer-occu iced dwe gniq shall not exceed 301. of the Relevant Household's gross annual household income (the total income of all adults over eighteen years of age in said household). Mr. Beauchamp motioned approval of the definition and it was seconded by Carol Balkcom. The motion passed 7-0. Commissioners had no issues with additional exceptions the Committee made to the Ordinance and discussed and suggested that the Ordinance add an exemption for property being demolished as a result of a natural disaster. They also recommended that the multi -family residential definition be clarified, Ms. Spicuzza said she would prepare a memo with their recommendations for the Planning and Development Committee. V1. Update on Incluslonary Housing Policy Proposal Ms. Spic:u= updated commissioners on the revisions to the July Incluslonary Housing proposal. She said they changed the definition for targeted beneficiaries to be based on HUD median income levels instead of Evanston median income, and that there were changes regarding set -aside requirements, initial affordable price, feedn-lieu provisions and a recommendation for a 15 year affordability terra. Ms. Spicuzza said the discussion paper presents a number of issues concerning the affordability period and points out that the Housing Commission recommends It be in perpetuity while staff recommends a limited time. Ms. Snyderman Pratt asked why staff did not want the affordability period in perpetuity and Ms. Spicuzza said one concern was with keeping units affordable to 80% households over time. She felt if improvements need to be made, it could reach a point where the addition of renovation costs paid out by owners could exceed the affordability levels of potential buyers. Ms. Snyderman Pratt said hopefully the units should be very high quality and would not require expensive improvements. Commissioners asked for copies of the revised policy and noted that they support an affordability period that is in perpetuity. Outer Business Employee Assisted Housing Proposal was distributed. This will be presented to the Planning and Development Committee on November 28, 2005. Public Comment Sue Carlson expressed concem about whether the difficulty selling the set -aside units at the Sienna Project would impact people's perceptions about the success of an inclusionary housing policy. She urged people to think about how it differs from the proposed policy, especially In terms of initial pricing, the shared appreciation mortgage financing and assessment costs for set -aside owners. Mr. Beauchamp said that per the state law on condominiums, assessments and the percentage of ownership are established based on the Initial purchase prices, so the affordable units shouldn't have the same assessments as comparable market rate units. However, it was pointed out that the set -aside units are actually market -rate units but the deferred payment second mortgage financing reduces buyers monthly mortgage costs so they can afford the unit The Chair confirmed that many would be present at the Planning and Development Committee meeting and they are interested in commenting on the revisions to the Sienna set -asides, the Demolition Tax Ordinance, the Employer Assisted Housing proposal and the Inclusionary Housing discussion paper. The meeting was adjourned at 8:30 p.m. Respectfully submitted, Donna Spicuzza, Housing Planner DRAFT Evanston Housing Commission Thursday. December 15. 2005 Minutes Present: Carol Baikeam, Jean Keleher, Susan Munro, Robin Snyderman Pratt, Chair Absent: San Ashmore Diggs, Eric Beauchamp, Judith Hunvich, GerwWave OToole, Sue Sinna.mm Staff: Donna Spicuna L Approval of Minutes November 17, 2005 Minutes were not approved due to lack of a quorum. Il. Corn munications — Members received the following: • Calendar of meeting dates and fist serve information, as well as Housing Commission schedule for 2006. • Draft Action Plan that will be submitted to HUD after it is approved by the City Council In January. • Summary of recently passed lake Forest Inclusionary Housing Ordinance. The following were mentioned: • Housing Opportunity Development Corporation will present Its plan for Darrow Comers to the Plan Commission on January 11. Robin Snyderman Pratt asked if someone could be present to express support for the project which the Housing Commission certified as in conformance with the Consolidated plan. Carol Balkeom said she would do it if available. Ms. Snyderman Pratt also asked If they could get on the Planning Commission Agenda to provide an update on the Incluusionary Housing proposal. A special Planning and Development Committee to discuss the Inclusionary Housing proposal Is scheduled for January 5. Housing Options for the Mentally III is planning to purchase a property on Crain Street. It's an opportunity for the Housing Commission to be supportive If they can get briefed on the project. They will invite Alexander Brown to the next meeting. qL Request for Families In Transition Funds from YWCA Members received a financing scenario and confidential copy of the Families in Transition (FIT) application from the YWCA, along with a summary of FIT program, funded through the Mayor's Special Housing Fund. The YWCA is a first time applicant The family they are sponsoring Is In their time -limited transitional housing program, which runs out in February. The family will have a dMiicult time affording market rate rent and YWCA staff feels she is a good candidate for FIT. Donna Spicuzza said that the FIT program Is designed for families with Incomes under 40% AMI and this family currently meets the income guidelines. However, because they started receiving child support In August, they are fkely to be slightly over the 40% limits when income is re- deWmined In six months. She said that in the past, it appeared that the FIT subsidy was discontinued If a family's Income kicmased over 40% AMI. She suggested the Housing Commission could request funding for a year to cover the lease period. If the family is over 40% December 15, 2005 Housing Commission Minutes. Page 2 after six months, the subsidy amount could be reduced with the tenant paying a full 30% of Income, but they would still receive rent assistance. Susan Munro suggested looking at that policy overall, because housing is so expensive relative to people's income. She supports the proposal for this case. She asked about the summary that shows many different organizations as sponsors, but with only one or two families each. Ms. Spicuzza said that because the sponsor plays a role in working with tenant on their transition plan, It takes a tot of effort and most of the sponsors were small churches or groups. She said one church had a few families at the same time, but had trouble keeping on top of all issues. it's very labor intensive. She saki the YWCA has the advantage of providing the necessary service and help professionally. Jennifer Williams from the YWCA described the family they propose to sponsor. She said that within one month of the mother and her two children coming to the domestic violence shelter, the mother had obtained employment. She noted that is extremely rare because people coming to Me shelter don't come with many resources. She said the mother has been with the same company for the two years. She Is moving out of YW's transitional housing because the time period is expiring, and will get an apartment on her own. The transitional housing program is limited, with 7 apartments, and they pick people who will be the most successful. This family exemphfkn what they took for. Ms. Williams said she runs the children's program and provides one-on-one counseling to the daughter. She has observed that the mother keeps a neat home and her parenting style exemplifies what they teach. The mother often initiates calls about her children and attends counseling at Northwestern with her daughter. She always attends group sessions, and has currently saved $1,000 through a savings plan at work. She Is pursuing training opportunities in the hope of a promotion. She also plays an Important role in the YWCA's program, helping to settle people when they come in. In response to questions about the program, Ms. Williams said the temporary shelter currently serves 16 women and 10 children and they receive referrals from a domestic violence hotline. People can slay for three months. She said they haven't secured a unit yet and were waiting until they know if the FiT subsidy will be approved, but are looking for an apartment between $750 and 850. Ms. Snydemnan Pratt asked what criteria they use for choosing an apartment. Ms. Williams said that location is Important and should be near transit as the family doesn't have a car. The daughter attends Lincoln School, which is In a higher income area, but they would like it to be relatively close to the school. Ms. Spkxuza added that the selected unit will be inspected by Property Standards staff to ensure it meets all codes. Ms. Balkcom said she liked the idea of providing the subsidy for a year and wondered if the program should be amended in the future. She said it would be a shame to recommend the family for the subsidy and only have It last 6 months. Ms. Munro said it would be de -stabilizing. She suggested reducing the subsidy after six months if necessary, but keeping it going for a year. Ms. Spla= said that most families in the program have been significantly under 40% ARM. so there were not too many cases where people went over the Income limits, even if their Incomes increased. Susan Munro moved that they recommend approval of the YWCA's request for t'fT subeldy for a period of one year, and that It be continued for a second year 0 the famify% Mcoaw b under50% AMf. Carol Balkc om seconded the motion. All Commissioners present approved. As with the earlier vote regarding funding for a Predatory Loan Program, absent Commissioners wits be polled for their vote. Members continued a discussion of the FIT Program in general. Ms. Splcuzza said there was a lot of interest in the program when It started in 1989, but it has declined. There has only been one case in the last two years, sponsored by Connections for the Homeless. Members asked about December 15, 2005 Housing Commission Minutes, Page 3 the application from Connections which they recently recommended and were told they withdrew the appkaatison. The two bedroom apartment they wanted to rent was too small for the family but the mother felt it would be too hard to find a larger one within the price range, so she decided to move In with other family members instead. Ms. Snyderman Pratt asked how the earlier sponsors knew about the program and how the YWCA learned of it Ms. Spicuzza said originally churches and non -profits were contacted and in addition Julius Betzer from Reba Place promoted the program to those groups. It has not been widely promoted In recent years, but Ms. Spicum said that she mentioned it at meetings of the Evanston Alliance on Homelessness and that is how the YWCA heard about it Ms. Snyderman Pratt asked if someone could reach out to churches and synagogues and educate the faith -based community that they can tap these dollars. Ms. Munro noted that the analysis shows that many of the families had multiple problems and needed Intensive counseling. Ms. SpIcuzza said that probably church groups could handle it if they knew what resources were available. She said that promoting the program should include educating potential sponsors about referral resources, and making sure they are realistic about the responsibilities, including the Isom. If the tenant doesn't pay the rent for a few months, the sponsor is on the hook Ms. Snyderman Pratt said there are similar programs in Arlington Heights and Chicago and wondered it there's anything to seam from those programs about keeping up referrals. She said she would hate to see the program disappear, it is a precious resource. Ms. Munro said she Mked the idea of not taking people out of the program if they're over 40% AMI. She said maybe the subsidy could be reduced incrementally. Ms. Balkoom asked if the City could handle pMram administration tf It was widely used. Ms. Spicuzza said administration involves requesting payments, quarterty reviews, income reviews, and keeping In touch with the sponsors, so there Is probably a Nrnitad number of cases they could oversee. IV. Request for $10,000 in Mayor's Special Housing Funds for Predatory Lending Counseling from Interfaith Housing Center of the Northern Suburbs Interfaith Housing previously received CDBG funds for its anti -predatory efforts but this year didn't get as much as asked for because of limited funds and the large number of requests. It was suggested by the Community Development committee that the Mayor's Special Housing Fund would be an appropriate source. Gail Scheeler and Carol Downs from Interfaith appeared to Wk about their program.. Ms. Schecter provided background on Interfaith. which is a fair housing organization. After a number of years of looking at the issue of foreclosure and predatory lending, they came to the City for CDBG funds for education and outreach. They received a modest grant, and didn'teopect to do counseling work However, they ended up looking into nine loans and other groups began to look to Interfaith Housing to work one-on-one with folks. They applied last year for another grant to work with more people. They anticipated working with 5 people and worked with 14. When the Board went through a strategic planning process this spring they agreed that Interfaith will do default counseling and work toward HUD counseling. This year's grant from CD is even less money than last year, and they will be putting in more hours. Carol Downs said she's working with a number of families in Evanston and that predatory lenders generally target minority or elderly. She said she's worked with Donna Spicuzza and Jeff Murphy from the City who have referred people who were seeking rehab loans, but their mortgage terms seemed predatory. She said with easy credit, families get into loans they can't afford. The key piece is education, empowering people before they get a bad ban, and know they can go to Interfaith to get information they need. She attends meetings of the anti -predatory re -financing Initiative, sponsored by FNMA, which Is attended by attorneys, lenders and housing counselors. They talked about other scams, such as rescue fraud, which are coming into play. She mentioned that HUD Is considering opening up reverse mortgages to private Investors, which December 15, 2005 Housing Commission Minutes, Page A could be a problem. Predatory lenders look for people with a lot of equity in their home. She wants to empower residents of City of Evanston to know what they're getting into. It is the best way to fight the battle because it is extremely diff=ft to get out of a bad loan. She has gone to churches, community organizations, and service providers, so they can recognize what questions to ask about a loan and incomes when clients come to them with problems. She noted that 'stated Income' loans can be a problem. The consumer states their income, and there is no income verification or documentation required. If d is overstated they may not be able to handle the debt She said they have a booklet to distribute to service providers such as Evanston Skokie Valley Senior Services, Metropolitan Family Services, CEDA, the City of Evanston, and mental health agencies. She said those people are on the front lines and 4 intake people can ask basic questions, they can catch the red flags. She said the recent article on predatory lending in Evanston's highlights newsletter prompted a number of calls from families who had questions. It helps to build knowledge. Ms. Snyderman Pratt asked how they handle the overflow of clients. Ms. Downs said a lot of the activity is just giving information and education. She wants the industry to know that they should back off from Evanston residents because they have resources and knowledge. Ms. Snyderman Pratt said usually the funding they recommend is for housing projects. She asked how the Commission would be informed about their program results, to educate them about the supply and demand and also hold the agency accountable. Ms. Scheeter said they do rnontNly reports on their activities for the CD Conxnitiee and could provide a copy for the Housing Commission. She added that Ms. Dawns Is doing the predatory lending review and counseling and fair housing activities In the service area. They feel that predatory lending takes priority but they are being pulled, She sold with the additional funding, they could get additional staff to help with other demands on their time. Members discussed the issue of reverse mortgages. Ms. Downs said that if private companies get in the market they could write their our terns and increase the loan amount available, which could strip equity from senions. Susan Munroe made a motion to reconeenend the funding request and it was seconded by Card Balkcorn. All present approved the recommendaWn. Because there was not a quorum present, Ms. Snyderman Pratt said they will ask for e-mail votes from absent members before the request goes to the Planning and Development Committee. V. Other Business — Nrctusionery Houses Many of the Commission member attended the November Punning and Development Committee meeting during which the Inclusionary Policy was discussed. Ms. Snyderman Pratt said she liked Alderman Jean-Baptiste's comment to Richard Girard that he remembered he spoke two years ago and said you keep telling us you want it to work, but you have to show us the will. The Alderman said it Inspired him ali this time. She said she attended a Metropolitan Mayor's Caucus meeting yesterday in Schaumberg about workforce housing for mayors and developers. There were 120 people In attendance including 60 developers, and 25 suburbs represented. it was pointed out at the meeting that it requires political will to achieve workforce housing and affordable housing goals. Ms. Munro said she was impressed by the support from the Chamber of Commerce and mentioned that Jonathan Pernw, the eroecutive director, had gone to Montgomery County Maryland to view results of their inclusionary housing efforts. She said that she felt there was a big shift from the last time the Committee discussed it and they seemed to want a proposal. Members will attend the special meeting on the issue on January 5. Ms. Snyderman Pratt said that she and Hoy McConnel of BPI have been talking to aldermen and they also were distributing December 15, 2005 Housing Commission Minutes, Page 5 fact sheets on affordable housing in Evanston. One fact sheet applied the formula used by the state in calculating affordable housing for the Affordable Housing Planning and Appeals Act it showed that while 26°% of housing in Evanston was affordable in 2000. it is now 19°% and thars a huge difference. The other fact sheet used calculations that were not as hard to follow as the state's formula. It compared home prices in 2000 and 2005 from private MLS data and Indicated that In 2000, 42°% were under $200,000, but decreased to 17°% in 2005. She also noted an article In the Evanston Review that said of all the Big Ten football schools. Evanston is the fifth most expensive town. Alderman Tisdale's commented in the meeting with Ms. Snyderman Pratt and Mr. McConnel that she would be supportive of the policy if workforce housing was defined to include public employees including school teachers. Members discussed this suggestion and felt that preference for people who live or work in Evanston was adequate to meet those needs. Ms. Keleher noted that the City also offers and Employee Assisted Housing Program for its employees. Members discussed whether they should try to distribute a letter from the Housing Commission about their position before the January 5 meeting. They also discussed the length of the affordability period and noted that other programs have increased the periods. They discussed how the resale price and return to the owner is determined. Ms. Balkcom said the Community Land Trust will use appraisals at the time of first sale and at resale, with the owner getting a percent of the difference. The resale price would not be based on the appraisal but would remain affordable, although it could Involve another subsidy to do so. It was noted that lake Forest just passed an inclusionary ordinance. Ms. Spicuzza pointed out that seniors get highest preferences. Ms. Snyderman Pratt said that while seniors get a preference, anyone under 80°% AMI is eligible and the first development in the pipeline Is all family housing. She noted they offer density bonuses and an affordability period in perpetuity. The Issue of whether a separate housing trust fund needs to be created was discussed. Members asked about reports on the Mayor's Special Housing Fund. Ms. Spicuzza said she doesn't get regular reports but periodically requests the Accounting Department for information. They also discussed Alderman Moran's comment about administrative costs and procedures, and whether it should be handled intemally or through a non-profit Administration would include outreach and housing counseling. It was suggested they do some homework on what administrative costs are In other areas. One Year Action Plan Members briefly discussed the One Year Action Plan that will be submitted to HUD. They said it would be a good Idea to use a meeting in January or February to go over the plan, as It could provide an orientation to new members and help give direction to the Commission. VI. Public Comment Sue Carlson said she one of her coneems is how condo assessment costs are determined, whether by square footage or original purchase price. She said they need to be sure of that Information as it was reported In the minutes. She also thinks that there should be a housing trust fund that's transparent and has public accountability. The account Information in the Budget doesn't provide revenue, just what is anticipated to be spent out of the fund. The meeting was adjoumed at 8:35 p.m. Respectfully submitted, Donna Spkx=, Housing Planner