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HomeMy WebLinkAboutMinutes 1998DRAFT. HOT APPROVED Members Present: Members Absent: Staff Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, January 28, 1988 Evanston Civic Center Room 2403 - 7:30 P.M. S. Brady, R. Bush, M. Curry, A. Newman, G. Outlaw, J. Ritter, R. Warshaw and M. Vold T. Bobinsky, D. Drummer, C. Ross and C. Schafer C. Powers, R. Rudd and L. Talkington R. Bush I. Declaration of Quorum The meeting was called to order at 7:45 p.m. II. Minutes of December 3, 1987. The minutes were accepted as submitted. III. Communications A. Planning & Development Committee Minutes: November 23, December 7 and December 21, 1987. The minutes of the P g D Committee were accepted into the record. R. Bush briefly discussed the membership on the Zoning Commission. The Zoning Commission has not had any meetings as yet, but Rudd stated that they will probably meet for the first time in February. B. Housing & Community Development Act Committee Minutes: December 8. 1987 Members briefly discussed ECDC and their 1988/1989 funding status. ECDC has not been funded for any housing programs in the upcoming fiscal year. In fact, their housing portfolio is being turned over to the City. However, the program income from their housing program will continue to go to ECDC and help fund their corporate maintenance budget. Members of the Housing Commission expressed concern about how the City intends to take over the marketing and technical assistance aspects of the housing program that ECDC was previously handling. Rudd stated that basically the housing programs will market themselves; currently staff has a multitude of program applications. Members are concerned about what marketing efforts the City Will take and asked staff to place marketing and technical assistance on an up -corning agenda. Brady asked that the Housing Commission review the ECDC loan portfolio at a future meeting. Evanston Housing Commission - Minutes . January 28, 1988 C. letter from State National Bank. Rudd discussed a meeting that he and Catherine Powers bad with State National Bank and First Bank of Illinois. The banks are interested In doing something with the City. There has been discussions on getting other local banks involved in a residential lending pool. The lending pool will be used to leverage money from other private sources such as corporations. Brady asked what the income ratio would be' Rudd stated that he believes that with a loan pool the lending institutions would be willing not to lock into a set ratio. With the lending pool the lending institutions feel they can be less stringent. They could, for instance, offer lower interest rates. With the loan pool no single bank would be making a bad loan. Warshaw stated that she is working with the Woodstock Institute on putting together a linkage ordinance. With this type of linkage ordinance, deposits into a particular bank are linked to the bank's willingness to cooperate with the community and serve low and moderate income residents. Rudd stated that he would like a representative from the Housing Commission to work with staff and the lending institutions in forming some type of agreement. It is his belief that we need to increase pressure on the banks. It is uo longer useful for staff to most with middle management bank representatives, but rather staff should begin meeting with higher-ups in the banks. Brady suggested that the Housing Commission have two (2) representatives work with City staff on this project. Warshaw stated that she was not interested in working with staff. Warshaw believes in a divide and conquer route. In her opinion the banks will not respond until the City has some mechanism in place to discontinue depositing funds in banks that will not participate in a lending pool. The City should begin to deposit funds in those institutions which are willing to participate. As an example, Warshaw discussed Evanston National Bank. Evanston National Bank (ENB) desires to have a foot in the door especially in terms of City deposits into their institute; ENB would participate in a residential lending pool. Brady moved that Marge Wold and Michael Curry be appointed as Housing Commission representatives to work with City staff on bank negotiations. All members voted in favor of the motion. -2- Evanston Housing Commission - minutes January 28, 1988 D. Affordable Housing/Community Development Corporation Articles. Bush stated that these are good references for what the Housing Commission is talking about and asked that Commission members keep these articles on hand. B. Memoranda on Rehabilitation and Building Department Inspection Procedures. Rudd stated that the enclosed memoranda have nothing to do with procedures on code violations. These letters were a response to a question posed by Ald. Horton. Brady requested that copies of the memoranda be sent to the Housing Commission for their perusal. hold suggested that City staff and the Housing Commission begin to intensely examine the code violation issue. Rudd stated that staff needs specific questions, with the scope of the questions defined, so that City staff may provide the information that the Housing Commission is looking for. Newman stated that he has the following questions: (1) how many inspectors? (2) what area do the inspectors cover? (3) how often is each multi -family unit inspected? (4) what happens after a violation is noted? (5) how long does it take noncompliance cases to get into court? (6) what is happening in court? Rudd stated that City staff can provide a report to the Housing Commission divided by section. Staff can pull examples on the dissemination of court cases. Rudd reminded the Commission that there are over two -hundred cases a year that reach housing court. Housing Commission members were surprised by the number of cases that reach the housing court. Rudd again stated that City staff will be happy to provide the Housing Commission with further information. Newman stated that he never sees anything in the Evanston Review about landlords who refuse to comply with City codes. He is interested in having the Review cover the court dates and begin to prepare articles on the cases that go to housing court. Yold asked if staff could send the housing court schedule to the Evanston Review. Brady suggested that Newman may want to send the information to the Evanston Review as a private individual. Brady asked how soon Housing Commission members and staff could be notified about when a particular case is going to court. Rudd stated that staff would know ten (10) days prior to the case being heard. Brady asked if this information could be placed in aldermanic packets? Powers stated that we can provide the Housing Commission and/or the alderman with a court calendar. Bush stated -3- Evanston Housing Commission - Minutes January 28, 1988 that more specifically he would like to see the docket sheet transmitted to the Aldermen. This information would provide the case numbers and addresses for the properties going into court. Rudd stated that staff could provide a docket, but not status reports-. Brady stated that staff would want to transmit a disclaimer with the docket. This disclaimer would state that the material may be dated. Bush stated that the Housing Commission only needed the court dates not the docket sheets. Brady further stated that staff should provide a memo in the aldermanic packets that limited the value of the information that is being transmitted. Powers reminded Housing Commission members that not all cases that go to housing court are serious infractions. Some of the cases are as simple as painting and scraping and the property owners simply do not haft the funding or have not taken the time to resolve the infraction. Newman requested that staff prepare a summary of cases every three (3) or four (4) months for the Housing Commission. Rudd stated that staff can provide case summaries every three (3) or four (4) months and staff will also prepare some general information on the code violation process that will presented to Housing Commission members over the next three (3) or four (4) meetings. IV. Old Business None V. New Business A. Burxlary Prevention Ordinance. Chairman Bush stated that it was his preference that the Burglary Prevention Ordinance be transmitted to a subcommittee for their review. He further stated that another option was to have members carefully read the ordinance and discuss it more thoroughly at the February Housing Commission meeting. Members then discussed the expense to property owners if the Burglary Prevention Ordinance were adopted as is. It was the consensus of the Housing Commission that the Burglary Prevention Ordinance should apply to multi -family rental structures and not to single family structures. Not only is there a problem With expense to the property owner, but there is also a problem in how to implement the policy and check to make sure that property owners have followed the process outlined in the ordinance. -4- Evanston Housing Commission - Minutes January 28, 1988 Warshaw requested that staff prepare a spreadsheet with comparisons. It is her desire to see if there is uniformity in the ordinances that other communities are using. Once the uniformity has been detailed then staff could cost out the economic impact of the ordinance. Rudd stated that staff could prepare this type of spreadsheet with costs, but it would be impossible for staff to respond by May 1. Rudd stated that among the key issues are deadbolt locks and the time period in which the ordinance would kick in. Warshaw stated that she wants security but not at the price of displacing people. She believes in minimum protection, especially in multi -family housing. Rudd reminded the Housing Commission that the ordinance is not designed to prohibit entry, but merely to delay entry. Rudd also reminded the Housing Commission that this ordinance would have a major impact on historic structures. As an example, he noted that front doors with bevel glass would no longer be allowed. Bush stated that he wants to refer this to his subcommittee. Bush stated that he would call Tinley Park and Oak Forest to see what their experience has been with the Burglary Prevention Ordinance. Rudd stated that he would give the list to the Police Department for a summary. B. Housing Assistance Plan (HAP). Laurel Talkington briefly described the necessity of preparing the Housing Assistance Plan for the City of Evanston and having it reach HUD by October 1, 1988. All of our federal funding is contingent upon HUD favorably reviewing our HAP. The HAP was transmitted to Subcommittee I for them to begin working on. VI. Subcommittee Reports. A. I Bush reported on the progress of his subcommittee. The primary focus of the subcommittee is to prepare and set the parameters for a comprehensive housing plan. Bush stated that he believes that a first step in preparing a comprehensive housing plan is to begin reviewing the zoning ordinance in terms of housing. The subcommittee could then prepare recommendations for the Zoning Commission, to be reviewed and approved by the Housing Commission, that will be used by the representative on the Zoning Commission to make recommendations. Brady stated that she feels that this is -5- Evanston Housing Commission - Minutes January 28, 1988 appropriate, but that it broadens the charge of the Housing Commission. She further stated that the zoning aspect is only one facet of the comprehensive housing plan. Brady suggested that if the subcommittee is going to begin making recommendations on the new zoning ordinance, then the subcommittee should wake inquiries from boards and commissions, such as the Plan Commission, Commission on Aging and the Rental Health Board to determine what they believe are the housing needs of their constituents within the City. B. II Newman reported on the first meeting of his subcommittee. The focus of Subcommittee II is to proceed on the special housing fund. Newman stated that there is approximately one million dollars left In the fund. The subcommittee will begin to look at strategies for dealing with boarded -up structures and will also be working an putting together an RFP for boarded -up structures and for transitional/multi-family housing. Brady stated that the boarded -up list is short and that there is a different strategy for each property. Bush asked why the boarded -up list dropped from twenty (20) properties to twelve (12). Rudd stated that it was probably due to market conditions. Rudd then reported on the status on 1832 Lamar. The Housing Commission had in their packet a draft letter to Representative Sidney Yates asking for his assistance with the property. In essence the Housing Commission is requesting that HUD deed the property to the City and the City will then proceed with demolition. In this instance demolition is preferable to rehabilitation because of the exceedingly high cost to rehabilitate the structure. In fact, the cost to rehabilitate would be in access of $100,000 and the after rehab appraisal of the property is nearly at $80,000. Rev. Curry passed around of a copy of a petition that neighbors have signed concerning the property at 1832 Lamar.. A copy of the petition will be sent with the letter to Representative Sidney Yates. Ritter moved and Vold seconded that the draft letter be revised and then sent to Representative Yates. All members of the Housing Commission voted in favor of the motion. Members then briefly discussed the properties at 1815 Foster and 1811 Hovland Court. -6- Evanston Housing Commission — Minutes January 28, 1988 The Housing Commission then discussed the progress of the Evanston Housing Coalition. Members discussed the fact that Bruce Copeland will be leaving the area and will no longer be assisting the Coalition on this project. There was concerned raised by Housing Commission members that a viable leader had not come forth to represent the Housing Coalition at this point in time. Staff reported that they are looking into this. Staff continues to keep In touch with the Coalition, and will have reports on the status of the project at a later date. VII. Comments Commission None Staff None Others None IZ. Adjournment The meeting adjourned at 9:40 p.m. The next meeting of the Evanston Housing Commission will be February 25, 1988. S tof f : J&&WU L ko,4 vi'r-YL/ Laurel Talkingtdn 71(5/11) -7- DRAFT, NOT APPROVED �fi I 1' 11 1 11 IIIIj 11 1 II 11 11 11 II' , I 1 1 1 1 IMF, 'I!II II II I I IIII I 1� 111 11 1 1 1 '1I 1 DRAFT. NOT APPROVED Members Present: Members Absent: Staff Present: Others Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, February, 25, 1988 Evanston Civic Center Room 2403 - 7:30 P.M. T. Bobinsky, S. Brady, R. Bush. M. Curry, A. Newman, G. Outlaw, J. Ritter, C. Schafer. R. Warshaw and M. Wold D. Drummer and C. Ross C. Powers, R. Rudd and L. Talkington J. McQuire and P. Peters R. Bush I. Declaration of Quorum The meeting was called to order at 7:40 p.m. II. Minutes of January 28, 1987. Ald. Warshaw requested the following clarifications to the minutes: (1) Page 2, paragraph 3, third sentence should read "she thought that it was no longer useful for staff to meet with middle management bank representatives, but rather staff should begin meeting with higher ups in the banks. (2) Page 2, paragraph 4, sentence 2, "Warshaw stated that she is not interested in working with lower level bank representatives." (3) Page 5, paragraph 2, sentence 1, "Warshaw stated that there is a need for security, but not at the price of displacing people. The minutes were accepted as amended. Minutes of December 3, 1987. The December 3, 1987 minutes of the Housing Commission were accepted as submitted. III. Communications A. Planning & Development Committee Minutes: January 11 and 25, 1988. R. Bush questioned whether it was necessary for the Housing Commission to become involved in the transitional housing issue. Brady explained that the Planning & Development Committee has recommended that the Human Services Committee begin working on licensing requirements that would become part of an ordinance recommending transitional housing. Members further discussed that the number of transitional housing units within the City of Evanston will probably be limited to two. Members concurred that no action from the Housing Commission was needed at this point in time. f Minutes Evanston Housing Commission February 25, 1988 B. Housing & Community Development Act Committee Minutes: January 12. 1988. The Housing & Community Development Act Committee minutes were accepted into the record. C. Court Dates Warshaw asked how many cases per court date there are on the average. Powers replied that there are six (b) to eleven (11) cases; some are continuances. Types of cases include single family violations, multi -family violations, junk and debris violations or simply cases where the owner won't allow the City entry into the property. Brady asked whether the same judges heard the cases every month. Powers stated, no, the judges change. Warshaw wondered if the City became aware of an on -going problem property would it be a simple process to notify the aldermen? Powers stated that this would not be a problem. Newman again asked if it would be possible to get an update on the court cases? Powers stated that, yes, it was possible. Bush stated that staff might want to include docket descriptions in the Housing Commission packet on a monthly basis. Powers stated that was fine, staff would provide that to the Housing Commission. D. Real Estate Tax Delinquencies on Boarded -Up Structures. Bush asked if there were only nine (9) boarded -up on properties the list? Powers replied "yes." Newman stated that his subcommittee believes it is unnecessary for the City to pursue a policy on purchasing boarded -up properties for back taxes. Members asked about the status of the letter to Representative Sidney Yates. Bush responded by stating that the letter has only recently been sent out and a reasonable amount of time has not yet passed for which we would expect the Representative to respond. Members then questioned the status of the properties that Roger Parris has an option to buy. These are currently HUD owned properties. The addresses are 1834 and 1747 Hartrey. Rudd stated that Parris will be closing on these properties. Newman questioned whether he is planning on utilizing Special Housing Fund dollars to upgrade these properties. Rudd stated that it is his belief that Parris will use his own money to do the rehabilitation work on the two (2) Hartrey properties. However, Parris is still interested in coming before the Special Housing Fund Committee to request funding to upgrade the property at 1927 Jackson. Newman initiated a lengthy discussion on whether slum landlords should be able to apply to the City's rehab program or to the Special Housing Fund program. Rudd stated that if an applicant is within our -2- Minutes Evanston Housing Commission February 25, 1988 guidelines, as written, then we are obligated to allocate rehabilitation dollars to the applicant. The funding is not discretionary. Newman stated that this is a policy problem that needs to be considered. He is not in favor of undesirable landlords getting any type of funding from the City and believes this is an emergency situation. Newman further stated that he would like the subcommittee to meet and discuss the matter and amend the guidelines to include a policy on prohibiting funding to slum landlords. Rudd stated, and Warshaw concurred, that it is difficult to distinguish between desirable and undesirable applicants. To do so is subjective. Warshaw went on to say that this is particularly difficult to do in ordinance form. Newman stated that one way to solve the problem is to set up a policy whereby individuals with pending lawsuits would not be eligible for City dollars. Bush stated that it is not a bad policy to keep bad people from getting money. He referred the topic to the Housing Fund Subcommittee. It will be their charge to come up with suitable ordinance language. Members further discussed that it is possible for anyone to have law suits filed against them. Newman stated that mortgage companies will not lend money if there is a law suit pending. Warshaw briefly discussed her complaint filed against Manchester Realty for solicitation and panic peddling. Warshaw has received two (2) offensive solicitations, by phone, from the Manchester Realty Company. IV. Old Business A. Burglary Prevention Ordinance. Members briefly discussed the memorandum from C.Powers which provides cost estimates associated with the Burglary Prevention Ordinance. Bush stated that it is his preference to send the Burglary Prevention Ordinance to the Special Housing Fund Committee for their review. It is his belief they could review the ordinance probably at one subcommittee meeting and pass on their recommendations to the Housing Commission for review. Ritter stated that she is extremely concerned with costs associated with the ordinance. V. New Business A. Plan Commission Memorandum re Comprehensive Plan Housing Element. Phil Peters, Chairman of the Plan Commission, was present to answer any questions and briefly present the memorandum. Peters stated that it is the desire of the Plan Commission to forward the memorandum to the Planning & Development Committee. The memorandum is the result of -3- Minutes Evanston Housing Commission February 25, 1988 two (2) Plan Commission meetings, one that was held with Housing Commission members and another meeting that was held with housing staff. Peters believes that this is a useful effort and will help spur an interest in creating a comprehensive housing plan for the City of Evanston. Ritter questioned whether a computerized housing data base was a possibility in the City of Evanston. Rudd explained that currently the City of Evanston's Housing Department has a partial software program with which we are creating a building base for new construction permits. The program has been purchased from BOCA. City staff are beginning to process building permit data. C. Powers explained that Property Maintenance Department will also be purchasing a software program. The program will be adjusted to meet the needs of the City of Evanston. Staff will be doing data base collection. Within three (3) to five (5) years all residential buildings in the City of Evanston will be recorded. Phil Peters stated that he would be pleased to help the Housing Commission in any way. B. Requests For Proposal: Havor's Special Housinr Fund. A. Boarded -Up Residential Structures. Bush questioned why the subcommittee is recommending a grant program. The Mayor's Special Housing Fund Committee was against creating a grant program. Brady stated that it was a staff idea. The program is, however. limited to 50% of acquisition cost with a $30,000 maximum limit per structure. Subcommittee members believed that greater incentives were needed. Newman stated that it was the thought of the Subcommittee that we are getting down to the tough, boarded -up properties, e.g. 2010 Emerson. The Subcommittee believes that the City will be doing the neighborhoods a favor by attending to these boarded -up structures. In addition, the applicant will have to invest a significant amount of his/her money. Wald questioned why there are no rent limits. Newman stated that there is market control. The boarded -up properties on the current list are not in the high rent areas of Evanston. Warshaw further stated that the Subcommittee assumed that the applicant will couple funding from the Mayor's Special Housing Fund with Rental Rehabilitation dollars. Use of Rental Rehabilitation dollars will require that the property remain available to low/moderate persons. -4- 1 Minutes Evanston Housing Commission February 25, 1988 Ritter stated that she has a problem with unenforceable requirements. She was troubled by the ten (10) year language; she was primarily troubled with the semantics. Other members concurred with Ritter that some confusing language existed in the RFP, the following changes were made: (1) On page 3 of the RFP, under owner occupied eligibility criteria, point 4 was omitted. (2) On page 4, under eligibility criteria, point 4 was omitted. Members believe that the language referring to ownership as an eligibility criteria was confusing and not necessary. Bush stated that he was still not convinced that the grant option was the best alternative to pursue. Newman stated that the City is trying to provide a strong, financial incentive. Bush stated that previous applicants have not complained about a title transfer option. In his opinion the title transfer option was superior because it provided a way of perpetuating the program. Bush also questioned why funding was limited to 50% of acquisition cost or a $30,000 maximum, without a payback. Rudd stated that these houses do not appreciate. There is a strong possibility that with a pay back provision applicants would find themselves losing money on the project. Curry stated that good incentives are needed to get. Individuals involved in the program and to entice them to continue to maintain the property. Newman stated that during the first round of funding there were riot many applicants for boarded -up funding. Wold stated that is is possible to limit the RFP to the existing boarded -up list. Brady stated, in response to Bush's question that the 50% of acquisition or $30,000 maximum was incorporated in order to eliminate those individuals who have no means to purchase a home. Ritter questioned whether anybody is interested in the program. Bobinsky questioned whether we should increase the incentive for owner occupants. Bobinsky also discussed the possibility of utilizing a shared equity program for the boarded -up structures. Housing Commission members agreed to approve the RFP as submitted, with the two previously mentioned amendments. Members agreed that if they are not satisfied with the response to the proposals then they can change the RFP and create another round of funding. cold moved approval and Warshaw seconded the motion. All members were in favor of the motion. -5- Minutes Evanston Housing Commission February 25, 1988 Brady stated that she was interested in devising a strategy for publicizing the RFP. Rudd stated that there would be a notice to aldermen and the various boards and commissions as well as a notice of funding availability placed in the Evanston Review. Rudd further stated that City staff are already receiving phone calls from parties interested in submitting proposals. Newman suggested that staff try to place an article in the Sun -Times. Powers expressed concern since there is a limited number of housing units involved in this RFP. Brady stated that a massive publicity campaign might draw the prices of the houses up. Curry stated that he believes there is enough interest in the community. He doesn't see any need for having an intensive publicity campaign. Newman stated that the Sun -Times article was helpful in publicizing the single family, multi -family and rental rehab programs already in existence in the City of Evanston. Powers stated that we have sufficient applications and the City does not need any further publicity for those programs. B. Transitional Housing Newman stated that the Housing Fund Subcommittee is only interested in funding one (1) transitional housing proposal, therefore, the subcommittee will wait until all proposals have been submitted before reviewing them. Brady stated that in reality, from a capital standpoint, one (1) building is all the committee can fund. Brady further stated that it was the desire of the subcommittee to have Housing Commission members decide whether or not to include a $200,000 maximum funding level for transitional housing. Warshaw stated that it was the intent of the subcommittee that applicants secure more than one source of funding. Wold moved, and Warshaw seconded, that the transitional housing request for proposal to approved. All members were in favor of the motion. Warshaw suggested that staff send the RFP to all not -for -profit agencies who have shown an interest in housing. She believes we should contact not only the Evanston Review but perhaps the Sun -Times and the Tribune. Brady made reference to the composite directory for not -for -profits that City staff might be interested in using. Curry stated that he has a copy of that directory and will make it available to City staff. Members agreed that the proposal for transitional housing should have a broader and more diverse publication base than with the boarded -up structures. -6- Minutes Bvanston Housing Commission February 25, 1988 Members then briefly discussed the pros and cons of staggering the proposals. The Housing Fund Subcommittee explained to the full Housing Commission that they had not yet prepared a request for Multi -Family Housing and that it could be prepared at a future date. Members asked if other Housing Commission members could attend the meeting. Newman stated yes that would be desirable. Curry asked what course of action the City would take if they are not satisfied with the response from the Evanston Housing Coalition. Newman stated that it was his desire to send letters to Rev. Thompson, Kay Huller and Bruce Copeland and invite them to attend the meeting. Newman also stated that City staff should inspect the units prior to the meeting, e.g. to examine such things as the boilers to see if they are operable. Curry stated that he could take a Subcommittee member along with him and go out to the units and talk with the tenants. It is his belief that if staff went out to do this the tenants would do a lot of covering up. Brady stated that she has a problem with the Housing Commission sending a letter to Copeland, Muller and Thompson, but she felt that it would be fine if Newman wanted to send out the letters as an individual. VI. Subcommittee Reports A. Bush - Subcommittee (Planning Subcommittee) Bush stated that his subcommittee will be proceeding on the Housing Assistance Plan (HAP) and the Comprehensive Housing Plan. Staff will make a presentation on code enforcement procedures at the March 17. 1988 subcommittee meeting. B. Newman - Subcommittee (Housing Fund Subcommittee) Newman briefly discussed the Request For Proposal (RFP) process and stated that the subcommittee will be prepared to focus on a multi family proposal in the future. Newman then updated the Commission on EHC. His subcommittee has requested that EHC Board members attend the March 10, 1988 meeting of the Housing Fund Subcommittee. To date EHC has purchased two of the three buildings; two of the buildings are vacant; no rehabilitation is underway; and there has been a delay in the purchase of the middle building. -7- Minutes Evanston Housing Commission February 25, 1988 Powers stated that EHC will probably ask the Subcommittee to release $14,200 (City contribution to purchase of middle building) to cover emergency operating expenses. Powers further stated that she is not certain whether EHC has secured a letter of intent from a lending institution for their contribution to the project or whether they have secured the necessary construction bonding. VII. Comments Hush discussed the meeting with the local lending institutions. Rudd, Powers, Bush, Ross and Vold were in attendance during this meeting. It is his belief that the lending institutions would be interested in creating a lending pool for single family mortgages. This lending pool would make otherwise ineligible people eligible for single family mortgages. The lending institutions are asking the City to design the parameters of the program. When the program has been designed the lending institutions would like to meet and further discuss this private -public venture. Bush stated that it is his belief that an Ad Hoc Subcommittee should be created. Members of this committee should consist of Bush, Wold, Warshaw, Ross, Brady, Outlaw and Bobinsky. One option members of the lending institutions discussed was to create a funding pool; allocate the dollars to a not -for -profit agency for the purpose of making single family mortgage loans; and, in return the banks would request a lower return on their dollar, e.g. 4-6%. Brady questioned whether the City and lending institutions are limiting the program to the purchase of single family homes. Bush stated that the only limitation is the pool option. IX. Adjournment The meeting adjourned at 10:00 p.m. The next meeting of the Evanston Housing Commission will be March 24, 1988. Staff : 6 (L j UQ;fa kc _ Laurel Talkington 71(10/17) DRAFT, NOT APPROVED -8- DRAFT, NOT APPROVED Members Present: Members Absent: Staff Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, !larch 24, 1988 Evanston Civic Center Room.2403 - 8:00 P.M. T. Bobinsky, S. Brady, R. Bush, M. Curry, A. Newman, G. Outlaw, J. Ritter, C. Ross, R. Warshaw and M. Wold D. Drummer and C. Schafer C. Powers, R. Rudd and L. Talkington R. Bush I. Declaration of Ouorum The meeting was called to order at 8:00 p.m. II. Minutes of February 25, 1988. The Housing Commission minutes of February 25, 1988 were accepted as submitted. III. Communications A. Planning & Development Committee Minutes: February 8, 22 and 29, 1988. Referring to the February 29. 1988 minutes, Newman stated that he felt there was a missed opportunity. The Planning & Development Committee should have taken the opportunity to explore problems with the procedures set forth by the Zoning Board of Appeals. Warshaw stated that this was not designed as a meeting to tell the ZBA how to change their policies, but rather was a meeting designed to create a better communication network between the two bodies. The purpose of the meeting was to detail the individual roles of ZBA and P & D Committee. B. Zoning Commission Agenda. Rudd stated that the Zoning Commission meeting on Monday, March 21, 1988 was a brief meeting. At the meeting the format for the Commission was set by Chairman Mann. There was also a brief presentation by Camiros, the consultant charged with producing a new zoning ordinance. At that meeting Commission members established a tentative meeting schedule. The following dates have been set by the Commission: April 18, May 16, June 6 and possibly June 27. C. Correspondence from Representative Yates to HUD Regional Administrator. The correspondence to Representative Yates concerned the property at 1832 Lemar. Chairman Bush has yet to hear from Gertrude Jordan, the HUD Regional Administrator. Bush stated that he will contact George Van Dusen, Aid to Representative Yates, and ask him to follow-up on this matter. Minutes Rvanston Housing Commission March 24, 1988 D. Elderly Housing Information from Mayor Barr. The following information from the State of Illinois was included in the article transmitted from Mayor Barr: The State of Illinois has an active program which entitles eligible homeowners to annual rebate of up to $700.00 on local property taxes, and renters to an annual rebate of up to $80.00. The income limits was recently raised to $14,000. This program is targeted to low income households and, as such, is not limited to the elderly. Outlaw believes that staff should make an effort to publicize this information so that it becomes known to potential applicants for the program. Brady suggested that an article be completed for the next issue of HiRhliRhts. Members then discussed the information which was provided by Catherine Powers on Senior Citizen Tax Deferral. Rudd stated that he has had contact with individuals responsible for administering the Senior Citizen Tax program and they do not believe it is a successful program. The owners must be up-to-date with their taxes to be eligible. The program is also very narrowly structured. Warshaw stated that the elderly do not want a lien and that is a major problem with marketing the program. E. Over the Rainbow: Status Report. Rudd stated that this memorandum was a follow-up to Housing Commission questions on the status of Over the Rainbow project. He also stated that members are free to visit the modal unit that has been set-up in the old Community Hospital. Over the Rainbow has worked with Sears to design new devices for their future residents. Sears will now begin to market the new products they have designed. F. Income Guidelines. This was an informational piece submitted by C. Powers. Brady stated, as an aside, that in public housing units it is rare to have incomes in excess of $5,000 to $6,000 a year. G. Information on Senior Citizen Tax Deferral. This item was discussed in conjunction with the elderly housing information provided by Major Barr. -2- Minutes Evanston Housing Commission March 24, 1988 H. Information on Pending Court Cases: March 21 and April 5. There was a brief discussion regarding cases that were heard in court on March 21, 1988. Newman stated that he would like to have a better understanding of the policy on pursuing fines on buildings found to be in non-compliance. Members requested that the Legal Department provide a memorandum which details their policy on pursuing fines. Members also requested that if the information is not clear in the memorandum that a representative from the Legal Department appear before the Housing Commission and explain this process to them. I. Correspondence from the Mental Health Board. The correspondence from the Mental Health Board is a request for Housing Commission assistance to develop a mechanism for acting quickly, when necessary, to gain control of Evanston real estate that seems suitable for housing for special populations. Members concurred that this would be a dangerous activity for the City to get into. The City could be responsible for such things as displacement and in the event that the program fell throc.gh, the City would be owner and manager of the property. Members asked Chairman Bush to send a letter to the Mental Health Association of Evanston stating their concerns about entering into this type of endeavor. IV. Old Business None V. New Business A. Township Housing Proposals and Presentation by Edna Summers, Township Supervisor. This item was considered prior to members going over their communications. Edna Summers and Anna Willis, from Evanston Township, were present at the meeting. Members from ACORN were present. Mid discussion, two members from Evanston Housing Coalition were in attendance. Summers stated that there is a possibility that the Township will have a surplus of money; possibly $300,000. Summers approached various social service agencies and housing providers within the community and asked them to prepare a proposal for the allocation of these funds. The Township received proposals from ACORN, Family Focus and Evanston Housing Coalition (EHC). All agencies were working under a very tight time frame. -3- minutes Evanston Housing Commission Narch 24, 1988 The first thought of the Township was to purchase a building, rehabilitate the building and provide mixed residential housing. At a later date the Township decided that this was too grand an endeavor and that it would be difficult for them to successfully manage the program. Hold stated that she objected to getting material on the same day of the meeting. In her opinion there is no way to ask questions if one has not carefully read the material. Newman stated that he concurs with Hold. Hold further stated that the Township is appearing before the Housing Commission at her urging. gold believes that it is important not to have duplication of effort within the City and it is also useful for the Housing Commission to be aware of the direction of the Township. Summers went on to explain that the allocation for housing is coming from this year's surplus Township dollars, It is a one-shot deal. The project they support should have mixed residential tenants. The Township does not want a building that is totally Township clients. Newman stated that it was bad judgment on the part of the Evanston Housing Coalition to prepare a proposal for this project. The Evanston Housing Coalition has already received almost one million dollars in funding from the City and they have not yet established a track record. It is his belief that EHC's first obligation is to finish the Wesley project. ACORN then made a presentation to the Housing Commission. ACORN currently has five shared apartments. They utilize an extensive screening process. ACORN is also sponsoring the homeless apartment that they are renting from the City. Along with their housing program, ACORN has an active jobs program. ACORN admitted that they are not terribly skilled in dealing with families. Their main focus has been on adults. ACORN would need to look to other agencies for assistance. ACORN is proposing a three year program. They will utilize units that are already available within the City. ACORN has no intention of purchasing a multi -family unit and rehabilitating the unit. Wold stated that ACORN has a good track record. cold was curious what would happen at the end of three years? Would ACORN come before the Unified Budget Panel or would they look for continuation funding elsewhere. -4- Minutes Evanston Housing Commission March 24, 1988 ACORN members stated that they would begin to generate funding from other sources e.g., foundations. Both Brady and Warshaw discussed with ACORN the advantages of having a capital asset. It might be beneficial for ACORN to purchase a multi -family dwelling unit. ACORN members stated that their philosophy is to utilize scattered sites so that their clients will be integrated into the community. ACORN does not want to isolate their residents in one building. Warshaw asked ACORN representatives if they have considered purchasing low cost condominium units throughout the City and utilizing these units. ACORN members liked Warshaw's suggestion and asked Housing Commission members if they could revise their proposal and make a presentation at their April meeting. VI. Subcommittee Reports. A. Planning Bush stated that C. Powers made a presentation to the Subcommittee on the code enforcement process. Bush stated that it was an illuminating discussion. He further stated that he felt that the process works. Members will be receiving minutes from the Subcommittee meeting. B. Ad Hoc Ross stated that the Ad Hoc Subcommittee is grappling with loan terms and the structure of the loan fund. The goal of the Subcommittee is to have the structure to the banks by the end of April. At the present time they are considering having the fund provide first mortgage money. The City will assist with rehab dollars and possibly provide down payment assistance. C. Housing Fund Newman made the presentation on behalf of the Housing Fund Subcommittee. Their March meeting primarily focused on the Evanston Housing Coalition. Newman had both positive and negative reactions to the meeting. EHC as a group seems to be intact, narsha Wilson is the liaison person with City staff. She will be directing the rehabilitation. It appears that she has a significant amount of experience and will be serving as the construction manager on the Wesley buildings. One of the major obstacles for EHC is securing construction bonding for the project. EHC would prefer to utilize minority contractors but not all of these contractors can secure their own bonding. The -5- Minutes Evanston Housing Commission March 24, 1988 inability to secure bonding and to forge ahead with the project has forced EHC to fall behind. A result of falling behind is that their income projections are no longer valid because they do not have full occupancy of the units. EHC will be putting together a new economic pro forma which they will submit to the Subcommittee in May or June. Budd stated that he and C. Powers have continued to work with EHC and continue to keep a close eye on the project. EHC still has not secured bonding for the project; they do not have a track record. The inclination of EHC at this point and time is to have the subcontractors secure their own bonding. Further, State National Bank has not finalized the loan to EHC. It seems that State National Bank is willing to issue $100,000 in mortgage money and an additional $100,000 line of credit. The City will have to subordinate the loans to EHC. It is Rudd's opinion that EHC will have to draw down most of the funding issued to them by State National Bank. To date the Bank hasn't decided how to fund the $200,000, but the bank does seem committed to working with the project. In a recent conference with EHC, City staff denied allocating City dollars to EHC to spend on architectural fees. Architectural fees are a soft fee and it was the decision of the Housing Fund Committee to allocate dollars for brick and mortar costs only. Rudd stated that the biggest problem facing EHC is financing. Their old pro forma is not up to date and they are continuing to fall behind on the project. Because of the lack of tenancy EHC will have to draw down upon the line of credit immediately. Members discussed their concerns with the Wesley project. Members were curious what avenues the City could take in the event that EHC cannot complete the project. Because of their concern about the Wesley project, and due to the fact that the City has allocated a large amount of funding to the project. Housing Commission members asked that staff and the Housing Fund Subcommittee carefully monitor the project. Members requested that EHC be present at the next Housing Fund Subcommittee meeting to give a brief status report on the project. VII. Comments None VIII. Adjournment The meeting adjourned at 10:15 p.m. The next meeting of the Evanston Housing Commission will be April 28, 1988 at 8:00 p.m. Staff • Q Laurel Talks gton 71(9/14) -6- DRAFT, NOT APPROVED I' IIII '1 1 N 911 11 1 1� I I I ' ,IlII I I ' 11 1 1, — I I' nW"II 11 1 1 1 1 11 1 11 ' I 1 11 11' I Ill I I I 1 A' II '1 1 Y 1111 ll II I I DRAFT, NOT APPROVED Members Present: Members Absent: Staff Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, April 28, 1988 Evanston Civic Center Room 2403 - 8:00 P.M. T. Bobinsky, S. Brady, R. Bush, D. Drummer, A. Newman, J. Ritter, C. Ross, R. Warshaw and M. Wold M. Curry, G. Outlaw and C. Schafer C. Powers, R. Rudd and L. Talkington R. Bush I. Declaration of quorum The meeting Was called to order at 8:15 p.m. II. Minutes of March 24, 1988. The Housing Commission minutes of March 24, 1988 were accepted as submitted. III. Communications A. Planning & Development Committee Minutes: March 14 and 28, 1988. Chairman Bush stated that he appreciated the comments at the March 14, 1988, P & D Committee meeting on the monthly rehab report. The Housing Commission did not have any comments on the March 28, 1988 minutes of the P & D Committee. B. Housing & Community Development Act Committee Minutes: February 9, 1988. Housing Commission members did not have any comments regarding the minutes. C. Zoning Commission Agenda and Minutes: Ross stated that he was in attendance at the April 18, 1988 meeting of the Zoning Commission. Zoning Commission members went over zoning issues with the consultant. The consultant, Camiros, interviewed each member of the Zoning Commission. Ross stated that issues that he raised were continuance of SRO s, Shelters, Special Use Provisions, and Transitional Housing. It was Ross' opinion that the Housing Commission did not want the zoning ordinance to materially change the housing patterns within the City of Evanston. Ross stated that he wanted Commission members to beware of non -conformity. Ross also stated that it was his belief that non -land use issues should be omitted from the new zoning ordinance. D. Reminder on Financial Disclosure Statements. Chairman Bush reminded all Housing Commission members that they must turn -in their financial disclosure statements to the City Clerk by May 1, 1988. Housing Commission - Minutes April 28, 1988 E. Correspondence from HUD Regional Administrator. Gertrude Jordan. The memorandum from Gertrude W. Jordan was to the Honorable Sidney R. Yates and concerned the property at 1834 Lemar in Evanston, Illinois. HUD has accepted a gross bid of $46,100.00 to purchase the property. The purchaser will have until May 6, 1988 to close the sale. HUD did not concur with the City that the property could not be rehabilitated. Housing staff will follow-up on the property and see if the closing actually occurs on May 6, 1988. F. Letter from Rev. Michael D. Curry. The correspondence from Rev. Curry was accepted into the record. G. Court Case Docket. Chairman Bush asked what violations the majority of the court cases represented. C. Powers explained that the Court cases were predominantly exterior violations. They also had a case that was a refusal to entry. Bush asked Powers if housing staff has ever sought assistance from the Dewey Community Conference. Powers stated that staff attends various community meetings and they also work with Evanston Neighbors At Work. IV. Old Business A. Township Housing Proposals Edna Summers, Township Supervisor, made a presentation on a Township Housing Proposal. The Township will have approximately $300,000.00 in surplus town funds. Ms. Summers believes that the dollars are best spent filling a pressing need in the community, the provision of affordable housing. Housing Commission members concurred that the money would be best spent on affordable housing rather than abating the surplus dollars. Wold moved and Newman seconded that $300,000.00 be transferred from Town funds to the City of Evanston to be used for the development of housing for very low income people. If the City Council agrees to transfer the surplus dollars, the Housing Commission will form a subcommittee to work with Ms. Summers in developing criteria for a request for proposal. Housing Commission members agreed to send a memorandum making their recommendation to the Human Services Committee for consideration on May 9, 1988. The recommendation would then be forwarded to City Council for their consideration at their May 23, 1988 meeting. -2- Housing Commission - Minutes April 28, 1988 B. Memo from Law Department re Use of Township Funds. The use of surplus Town funds for affordable housing does not seem to be inconsistent with Chapter 139, Illinois Revised Statutes. If necessary Housing staff will run this by the Law Department one more time. C. Memo from Law Department re Code Violation Cases. In response to questions raised by the Housing Plan Subcommittee, and other members of the Housing Commission, Herb Hill, First Assistance Corporation Council provided the following response: (1) The practice of the Law Department is to file a lien on all matters In which a substantial fine is accessed. A substantial fine is one in excess of $500.00. As you are aware, the focus of Property Maintenance litigation is correction and not the collection of fines. Therefore, the majority of Property Maintenance cases are concluded with the imposition of no fine. (2) An estimate of over 95% of Property Maintenance cases are concluded successfully. The violations are corrected and the property meets code requirements. (3) It is difficult to provide an approximate length of time between first court appearance and final resolution, as each cases poses distinct compliance problems. As you are aware, the process of correction is dependent upon many variables including the nature of violation, the time of year and the ability of the defendant to effect correction. Some cases may be resolved within four (4) weeks some others may necessitate a six (6) month or longer correction period. Often times the judge disregards the City's request and allows the defendant a longer period for correction. The focus of litigation is to obtain correction in as short of a period of time as possible. V. New Business A. Funding Request from the Custer Redevelopment Committee. (This item was taken up at the beginning of the meeting and appears out of order in the minutes). Representatives were present at the Housing Commission meeting from the Custer Redevelopment Committee. The Custer Redevelopment Committee was requesting special housing funds to complete the Custer Redevelopment Project. The project is a locally sponsored effort to eliminate neighborhood blight, and to produce neighborhood reinvestment. Committee's studies indicate that the project sight is ideal for construction of a new moderate cost housing development and they anticipate that such a development will provide a beneficial impact on the entire neighborhood, particularly the -3- Housing Commission - minutes April 28, 1988 condition of its housing stock. Specifically, the Custer Redevelopment Project Committee requested the appropriation of special housing funds for use in the completion of the Custer Redevelopment Project. The amount of their request was $100,000.00, which they reasonably believed would complete the project. The $100,000.00 would be used for acquisition and demolition. Brady had a procedural question concerning the request for funds. It was her belief that the request did not fit any criteria developed by the Special Housing Committee for tha all.,cation of funds. It would not be fair to other agencies to allochte the funds to the Custer Redevelopment Project without establishing criteria and opening up the process for competitive proposals. in order to consider the Custer Redevelopment Project the Housing Commission would need to recommend to the City Council that the scope of the Mayor's Special Housing Fund be broadened. Upon City Council approval specific criteria would be developed and the process would be opened for competitive proposals. For Brady it is a fairness issue. There are other possible competitors. Warshaw stated that the Custer Redevelopment Project is consistent with what the Committee is trying to accomplish with the lending institutions. Warshaw raised the possibility of short term borrowing. Brady stated that the Commission could develop criteria for an interim financing program which would justify eliminating a request for proposal, then they could go to the City Council with the loan agreement. Warshaw stated that this is different because it is a City sponsored project. Bush stated it was his belief that a short term loan agreement was a good idea. He stated that we could defer the topic until the next Housing Commission meeting. Bush also asked staff for a description of the criteria approved by the City Council. It was his opinion that the Commission could ask the City Council to loosen the reins on the allocation of funds. His reasoning is that the Commission wants to be able to meet needs in a more timely manner. Dick Carter stated that he would take up the matter of a short term loan with the City Manager. -4- Housing Commission - Minutes April 28, 1988 B. Proposed Not -For -Profit Mortgage Corporation. Sid Ross was the Chairman of the Housing Ad Hoc Subcommittee that prepared the proposed not -for -profit housing fund corporation. Members of the Ad Hoc Subcommittee met with representatives of local lending institutions on Tuesday, February 23, 1988. At that time the lending institutions indicated an interest in a proposed not -for -profit housing corporation. The Committee has outlined the possible structure for the establishment of the housing fund corporation. Housing Commission members were presented with a draft detailing how the participation of the local institutions in the City of Evanston could possibly work. Essentially the proposed not -for -profit housing corporation would provide below market mortgage loans to income -eligible residents of Evanston. Housing Commission members discussed the draft proposal which is attached to the minutes. Bush described his hesitancy with limiting the program to individuals who can prove a minimum of one (1) year residency in the City of Evanston immediately prior to submitting their application for mortgage loan assistance. Warshaw moved, and Wold seconded, that the proposal be submitted to the banks for their consideration. The vote on the motion was 9--1. Bush's opposition to the proposal was solely attributed to the one (1) year residency requirement. Otherwise, Bush was entirely in favor of the proposal. C. New Board -lip List. C. Powers provided the Commission with a revised board -up list as of April 20, 1988. Powers pointed out to the Commission that two (2) properties have been added and four (4) have been deleted. The new properties included 1520 Pitner and 1130 Fowler. Those properties deleted were 1826 Simpson, 1732 Dodge, 1747 Hartrey and 1622 Darrow. The four (4) deleted properties are either completed or substantially rehabilitated. In addition work is in progress at 1927 Jackson and 1815-17 Foster. Demolition is proceeding at 2015 Emerson. It is anticipated that these properties will be eligible for deletion from the board -up list in the near future. VI. Subcommittee Reports. A. Housing Fund Newman stated that the Housing Fund Subcommittee will consider the Burglary Prevention Ordinance at their May 12, 1988 meeting. It is -5- Housing Commission - Minutes April 28, 1988 his opinion that cost is a critical factor when considering the ordinance. Members of the Subcommittee requested that staff provide them with a copy of the Chicago's Security Ordinance. Newman then discussed Subcommittee meetings with the Evanston Housing Coalition on their Wesley property. Newman stated that positive things were not happening, for instance, property taxes have not been paid. The Coalition stated that with a refund from the Tax Assessor for property taxes they would pay for the property tares on the second building. However, EHC did not know how they were going to raise the $5,000.00 for the property taxes on the third building. Newman stressed the necessity of the EHC providing the Subcommittee with a revised pro forma. He stated that the Coalition was supposed to have it for the meeting of April 28, 1988, but they have not presented a revised pro forma to the housing staff for disbursal to the Subcommittee. It was also clear that the Coalition was having difficulty negotiating the loan with State National Bank. Warshaw stated that she was frustrated because the project was moving very slowly and not very professionally. Wold stated that she believes that the Commission should start exploring ways in which the City can back -out of the project. It is her belief that the City should begin looking for someone else to take-over the project. Newman stated that he agreed with Wold. Bobinsky stated that he was in agreement with Ross that an independent audit should be performed for the project. Liquidation is a possibility. Brady stated that before any action is taken Subcommittee members need to study the revised pro forma. Housing Commission members also requested that staff provide them with copies of the original economic pro forma. It was Warshaw's opinion that the project was not structured properly from the very beginning. The project should have been syndicated; the Coalition should have sold the tax breaks to corporations in return for operating dollars. Wold stated that members of to attend the May 12. 1988 Coalition. -6- the Housing Commission should feel free meeting with the Evanston Housing Housing Commission - Minutes April 28, 1988 Brady stated that the Subcommittee will be working on the Burglary Prevention Ordinance from 7:00 to 8:00 and will be receiving a status report from the Coalition. A. Plannin&_ The Planning Subcommittee did not meet during the month of April. B. Ad Hoc The proceedings of the Ad Hoc Sub committee were discussed along with the proposed not -for -profit mortgage corporation. VII. Comments Brady discussed new federal regulations that will go in to effect July 1, 1988. The regulations will dramatically effect the public housing stock. If the new regulations are authorized the waiting list for public housing units, particularly senior's housing units, will include names from the entire County and there will no longer be a preference for Evanston residences. Brady felt that City Council should be informed of these new regulations and requested that staff more clearly follow new regulations and bring their concerns before the Housing Commission. Staff stated that they will check on the preferential treatment clause and will discuss the clause with the Housing Commission members. VIII. Adjournment The meeting adjourned at 10:25 p.m. The next meeting of the Evanston Housing Commission will be May 26, 1988. Staff: 4nilAtily Laurel Talkingt$n 71(3/9) IWI DRAFT, NOT APPROVED DRAFT. NOT APPROVED Members Present: Members Absent: Staff Present: Others Present: MINUTES Evanston Housing Commission Thursday, May 26, 1988 Evanston Civic Center Room 2403 - 8:00 P.M. S. Brady, R. Bush, A. Newman, J. Ritter, R. Warshaw and M. Wold T. Bobinsky, N. Curry and D. Drummer, G. Outlaw and C. Ross C. Powers, R. Rudd and L. Talkington J. Dugan Presiding Official: R. Bush I. Declaration of Quorum The meeting was called to order at 8:10 p.m. II. Minutes of April 28, 1988. Wold moved, and Warshaw seconded, that the April 28, 1988 minutes be accepted as submitted. III. Communications A. Planning A Development Committee Minutes: April 12 and 25, 2988. The April 12 and 25, 19BB P S D Committee minutes were accepted into the record. B. Housing 6 Community Development Act Committee Minutes: April 5, 1988. The April S. 1988 minutes of the Housing & Community Development Act Committee were accepted into the record. C. Court Docket: May 18 and June 2: C. Powers introduced the court docket. Responding to a question, Hs. Powers stated that there were many continuances. IV. Old Business A. Transference of Township Funds M. Wold updated the Housing Commission on the proceedings of the Human Services Committee concerning the Township Budget. The Human Services Committee is recommending that the Township Budget reflect a $500,000 transference from the Township budget to be utilized for low income housing. City Council will vote on the budget on June 13, 1988. Housing Commission - Minutes May 26. 1988 If the $500,000 is transferred, the Housing Plan Subcommittee will work with Ms. Summers in developing an appropriate Request For Proposal for use of the funds. B. Negotiations with Lending Institutions Rudd updated Commission members on the continuing negotiations with the local lending institutions on the development of a not -for -profit Housing Development Corporation. A meeting was held with representatives of State National Bank, First Illinois Bank of Evanston and Horizon Federal Savings Bank on May 12, 1988. The major concern was the amount of capitalization required. Other comments focused on interest rates and the possibility of tax exempt bonds. The overall structure of the proposal was favorably received by the bank representatives. An additional meeting was scheduled for Friday, June 3, 1988 at 8:00 a.m.; bank representatives will come with any counter -proposals. V. New Business A. Keeler Subdivision Mr. John Dugan, Attorney at Law, spoke on behalf of his clients, Mr. & Mrs. Keeler. The Keeler's are requesting zoning variations which will allow the subdivision of the property at 425 -29 Lee Street. The single parcel currently holds a 2-flat and a rooming house. The rooming house contains six (6) rooming units and four (4) dwelling units. The Keeler's live in the 2-flat. The Keeler's are requesting the subdivision so that they may continue to live in the 2-flat and sell the other structure. As elderly persons, they no longer desire to maintain the rooming house. It is possible for the Keeler's to request that the property be down -zoned. and then subdivided. However, if the variations are granted the existing rooming house use may continue which would not be the case if the down zoning option were pursued. Mr. Dugan believes that the rooming house currently houses lower Income persons: a waitress; grocery store clerk; receptionist; three part-time students. The subdivision of the property, in his mind, is the only means by which this housing (that meets an affordable housing demand) can continue. Housing Commission members discussed, and dismissed, the possibility of requiring assurances that the property be maintained for low income housing. Ritter moved, and Newman seconded, that the Housing Commission transmit a letter of support to ZBA. The transmittal will urge that the rooming house use be maintained. Bush. Newman, and Ritter voted in favor of the motion. The Alderman abstained from discussion or voting due to conflict with their City Council function. -2- Housing Commission - Minutes May 26, 1988 B. Burglary Prevention Ordinance Wald moved approval of the draft ordinance submitted by the Housing Fund subcommittee. Ritter seconded the motion. Rudd stated that staff awaits an opinion from the Law Department as to whether multi -family existing and multi -family new construction can be treated differently under the ordinance. The vote on the motion was unanimous. VI. Subcommittee Reports. A. Housing Fund Newman spoke on behalf of the Housing Fund Subcommittee. He explained that the Evanston Housing Coalition was unable to attend the Subcommittee meeting. The Subcommittee requested a special, full Housing Commission meeting on June 9 to review the project with EHC members. Members agreed to the meeting. The Housing Commission requested that staff prepare a chronology on EHC to be reviewed by the Commission and transmitted to the Housing & Community Development Act Committee. A. Planning No report B. Ad Hoc No report C. Zoning Commission No report VII. Comments None VIII. Adjournment The meeting adjourned at 9:30 p.m. A special meeting of the Housing Commission will be held on June 9, 1988 at 8:00 p.m. The next regular meeting of the Evanston Housing Commission will be June 23. 1988. S taf f : Laurel Talkington 71(3/5) -3- DRAFT, NOT APPROVED I lil! I 1 0n I i �1Il 11 111, IlI I i Ili' ii Ili��� illh Ili'"�I���'P II^I ^ir , i� API ti DRAFT, NOT APPROVED MINUTES Special Meetink Evanston Housing Commission Thursday, June 9, 1988 Evanston Civic Center Room 2403 - 8:00 P.M. Members Present: T. Bobinsky, S. Brady, R. Bush, M. Curry, D. Drummer, A. Newman, J. Ritter, C. Ross, R. Warshaw and M. Wold Members Absent: G. Outlaw Staff Present: C. Powers, R. Rudd and L. Talkington Presiding Official: R. Bush I. Declaration of quorum The meeting was called to order at 8:O5 p.m. II. Review of Evanston Housing Coalition Project. Ms. Ashbrook and fir. Jack Crane designated themselves as the primary spokespeople for the Evanston Housing Coalition (EHC). R. Bush stated on behalf of the Housing Commission that it is the goal of the Commission, with the use of City monies, to rehabilitate the three (3) Wesley Avenue buildings as quickly and as economically as possible. Ms. Ashbrook began with an opening statement. She introduced herself as the new President of EHC and stated that they are confident that they have the ability to carry out the rehabilitation project on Wesley Avenue. The architectural drawings are in and have been approved by the City. Bids are out. When the bids come in EHC will be able to complete their agreement with State National Bank. Mr. Crane introduced himself and stated that he has been on board for three weeks. Mr. Crane went on to say that he has had satisfactory meetings with the City and banks and that the bids have been sent out on the Evanston project. Mr. Crane expects the bids to be in within two weeks. Any subcontractors hired by EHC will have their own bonding. EHC expects to have the total rehabilitation dollars calculated by June 24. 1988. Speaking on the subject of State National Bank, Hr. Crane stated that he met with bank officials and went through the draft commitment letter. State National Bank needs to know the total rehabilitation cost and they also need assurances that EHC has the ability to pay back the loan. Mr. Crane is confident that EHC can put together a pro -forma that will indicate that EHC can pay back the loans. Housing Commission - Minutes r Special Meeting - June 9, 1988 Bush asked EHC if they had hired a general contractor? Mr. Crane stated that EHC has a construction manager, Marsha Wilson, and that was an agreement that they had with the City from the very beginning. Bush asked how much of the project was sent out to bid? Mr. Crane stated that the entirety of the rehabilitation project has been sent out to bid. Bush asked how many families are residing in the three buildings? Ms. Ashbrook stated that there are ten families residing in the Wesley Avenue buildings. Bush asked if EHC had completed any additional fund raising? Palmer stated that EHC has raised $148,000.00. The $148,000.00 has been used for operating expenditures for the three buildings. In addition EHC has approached foundations, individuals, accumulated money from membership fees and has taken -on one fund raising activity. Bush asked how EHC planned to raise any money needed that would be in access of the dollars lent to them by State National Bank. Bush also asked how EHC plans to get bank approval? Crane stated the pro -forma that was submitted by EHC is inaccurate. In his opinion the rents are unrealistically low and will have to be raised. Mr. Crane is also confident that expenses can be reduced. Wold stated that the agreement with EHC was based on low rents, If there is a need to escalate rents, it may negate the agreement. Crane stated that the project has been significantly delayed. It is his job to devise methods to make the project whole. EHC is open to suggestions. Bush stated that EHC can relinquish the project to the City. EHC can continue serve as a liaison for the project. Housing Commission has monitored the project since September 1987 and there has been a lack of _ progress. Essentially, there has been no significant change in the state of the buildings since EHC took them over. It is now the burden of EHC to convince the City that they can make the project work. -2- L Housing Commission - Minutes Special Meeting - June 9, 1988 Gitelson was concerned about the objective of the meeting. Did the Housing Commission desire to have a clarification of how EHC is progressing on the project or did the Housing Commission simply want to have EHC relinquish any interest in the project? Newman stated that part of the problem with EHC has been the turnover in personnel. Newman has reached the conclusion that EHC does not have the ability to deliver. The inability of EHC to deliver on the project is based on turnover, lack of experience, and the inability to raise funds. Newman is disheartened to see the project going further into arrears. Newman would like to see the project work under EHC, but does not see how that is possible. Gitelson responded to the subject of turnover. Gitelson stated that 75% of the original board is in tact. Mr. Copeland who was the original financial consultant with EHC has been replaced by Hr. Crane. EHC is stable in terms of membership and he doesn't understand the leadership issues that have been alluded to. Newman reiterated that he is concerned with getting the rehabilitation Job done and not concerned with who completes the project. Palmer began to present to the Housing Commission a history of the Wesley Avenue Project. Bush stated that he appreciated the history of the project, but this was not the time or the place to repeat the history. The City in his opinion has shown a commitment to the project in that they have allocated over $800,000.00 to the project. Hr. Hammond, introduced himself as a lawyer and property manager for the project. Mr. Hammond said that he had gone over all of the documents to date and EHC has never committed to a particular timetable and he believes that it was unfair that the City was holding EHC to something that they had never agreed to. Ross stated that the completion dates are built-in to the pro forma. Curry stated that this is an emotional issue for everyone involved. There seems to be an antagonistic relationship and it is his belief that the City is not trying to undermind or ceased contrjl of the project. He also believes there is nothing racist in what the City intends to do. Curry went on to state that before becoming a Reverend he was a contractor and understands the process very well. Particularly, he understands project costs and projections. Curry is concern that there Is no fixed contract. Costs will increase. The pro forma needs to revised. Curry suggested that EHC hire an experienced general -3- Housing Commission - Minutes Special Meeting - June 9, 1988 contractor to assist in the project. Curry further stated that he is making this suggestion not because he has anything personal against Marsha Wilson. Curry is concerned that the figures are outdated; that they are not accurate. EHC needs to resolve how much it will cost to get the project done. EHC also needs to deal with how they are going to raise additional dollars. Crane stated that he is confident that EHC can carry through on the project. He is also confident that Marsha Wilson can get subs to set a fixed rate for a period of time. By June 24 the numbers will be in so that EHC can complete a realistic pro forma. Curry asked what alternatives EHC is looking at in terms of saving dollars. Palmer responded by stating that EHC will engage in a self-help type of program. Volunteers can do the painting and landscaping to help save valuable dollars. Crane agreed that there may be a serious monetary problem. He further stated that it is not EHC's fault if they need an additional $100,000. At this point in time the dollar amount would be the same for any developer. Crane further stated that a major factor is the federal government requirement to use a prevailing wage schedule. Warshaw stated that she is not familiar with any not -for -profit (NFP) agency engaged in development that does not have skill and experience. These (NFP) development agencies work with general contractors and have an experienced development staff. Warshaw stated as examples the Voice of the People and Bethany. Warshaw stated that she believes what EHC is trying to do is impossible. She further stated that the Housing Commission has a duty to the citizens of Evanston. The Housing Commission must recommend to the City Council any available options for ensuring that the Wesley Avenue project is successful. Crane stated that he has experience helping NFP's get needed financing. He further stated that most NFP's started with less experienced people than EHC. Crane further posed a question as to why the City funded EHC In the first place. Brady stated that she concurs with Warshaw's assessment. Brady further stated that EHC in no way can present a pro forma that does not show an extreme deficit. Brady's major concern is that EHC has shown no evidence of financial capability. In Brady's opinion the project is unworkable financially. -4- Housing Commission - Minutes Special Meeting - June 9, 1988 Palmer stated that EHC has been subsidizing the operating expenses, they have pre paid the insurance, they have paid the property taxes on 2018 Wesley, and will have taken care of other taxes by the end of the month. Walter Malone, an observer in the audience, spoke to the topic. Kr. Malone is an engineer involved in energy and construction management. It is his belief that a construction manager is preferable to a general contractor. A construction manager can work with bonded subcontractors and the construction manager will look out for the owner. In Kr. Malone's opinion a general contractor will only add cost to the project. Bush asked how EHC will raise any additional dollars needed. Crane stated that EHC will need to raise the money for the taxes. EHC cannot borrow money for the property taxes. In his opinion rents will be increased and expenses must be decreased. Expenses will be decreased by scaling down the rehabilitation. Wold moved that the Evanston Housing Commission hold an executive session to discussed land acquisition. The following members voted in favor of moving into executive session: Schafer, Bobinsky, Ross, Bush, Warshaw, Wold, Ritter, Brady, Newman, Drummer and Curry. The executive session ended at approximately 10:30 p.m. There was a u..animous voted to end the executive session. When the Housing Commission meeting resumed the following motion was made by floss and seconded by Drummer: The Evanston Housing Coalition (EHC) will prepare and deliver to the Housing Commission (not later than 12:00 p.m., July 13, 1988) a revised project plan including detailed project costs supported by necessary building contracts and detailed data on other costs, a revised pro forma five year income and expense budget in detail, revised pro forma five year project statements of assets and liabilities, evidence that funding for 100% of remaining project costs has been formally committed, and current financial statement including project costs to date, project income and project assets and liabilities. A formal presentation of the revised plan will be made to the Housing Commission by the Evanston Housing Coalition on July 21, 1988 at 7:30 P.M. No extensions, to information requested, will be granted. If these conditions are not met the Housing Commission will recommend to the City Council that EHC relinquish all interest in the Wesley project. -5- Housing Commission - Minutes Special Meeting - June 9, 1988 Bush stated that they will get a copy of the motion to EHC, in writing, on Monday, June 13, 1988. III. Adiournment The meeting was adjourned at 10:40 p.m. The next meeting of the Evanston Housing Commission will be June 23, 1988 at 8:00 p.m. Staff: Laurel Talkington 71(3/8) DRAFT, NOT APPROVED -6- I Ii1I "i " p 1,1 1111 1 il' DRAFT, NOT APPROVED MINUTES Evanston Housing Commission Thursday, June 23, 1988 Evanston Civic Center Room 2403 - 8:00 P.M. Members Present: S. Brady, R. Bush, A. Newman, J. Ritter, R. Warshaw and M. Wold Members Absent: T. Bobinsky, M. Curry, D. Drummer, G. Outlaw C. Ross and C. Schafer Staff Present: C. Powers, R. Rudd, M. Stern and L. Talkington Others Present: Edna Summers Presiding Official: R. Bush I. Declaration of 0uorum The meeting was called to order at 8:15 p.m. II. Minutes of May 26, 1988. The minutes were approved by the Housing Commission with the following change: C. Schafer should be shown as present at the May 26, 1988 meeting. III. Communications A. Planning S Development Committee Minutes: May 9 and 23, 1988. Members briefly discussed 1218 Sherman Avenue. The May 9 and 23, 1988 minutes were accepted as submitted. B. Housing & Community Development Act Committee Minutes: May 10, 1988. The minutes were accepted as submitted. C. Zoning Commission Agenda 6 Minutes The agenda and minutes were accepted as submitted. D. Suggested Guidelines for Cancelling Scheduled Meetings. The guidelines for cancelling scheduled meetings were accepted as submitted. E. Court Case Update C. Powers briefly discussed 605 Oakton. Ms. Powers stated that the case was still in court, there has been some compliance and the owners have been given a six (6) week extension by the judicial system. Minutes - Housing Commission June 23, 1988 IV. Old Business None V. New Business A. Assignment of Subcommittee to Review Expenditure of Township Funds. Ms. Summers was present at the meeting representing Evanston Township. Chairman Bush referred the topic to the Housing Plan Subcommittee, cold stated that meeting dates should be arranged so that Ms. Summers can participate with the Subcommittee. Bush stated that the Housing Plan Subcommittee generally meets the third Thursday of the month, however, the Housing Plan Subcommittee will not be meeting the third Thursday of the month in July. After a brief discussion. members decided that the next meeting of the Housing Plan Subcommittee Will be July 28, 1988 at 7:00 p.m. Brady stated that it is very important that any proposal include housing for individuals that are classified as very low income. Brady reminded members and staff that very low income is defined as 30% of median for the SKSA. Warshaw stated that it was the intent or the spirit of the proposal to provide housing for some general assistance recipients. Ritter stated that she was not clear about the parcel for the Township project. Summers stated that the parcel is located at Emerson and Dewey. Ritter asked if there are currently buildings on the site. Yes, there are buildings on the site. Ritter asked it is was the intent of the Township to recommend rehabilitation of these structures. Summers stated that it is their intent to demolish any existing structures on the parcel. Ms. Summers then presented the Housing Commission with a preliminary drawing of the site. The drawing had been completed by a local architect. The building drawing that Ks. Summers presented could provide sixty (60) apartment units. B. Evanston Housing Coalition Discussion and EHC Community Development Block Grant Ouarterlv Report. Members reviewed the June 14, 1988 transcript of the Community Development Act Committee meeting, at which EHC members were present and members also reviewed the EHC Community Development Block Grant Quarterly Report. -2- X Minutes - Housing Commission June 23, 1988 Bush asked Housing Commission members what they feel should happen if the Commission is not satisfied with the information they received on July 21, 1988 from EHC. Newman stated that it was unfair to have a discussion without everyone present. Wold stated that she would like to have the City attorney available at the meeting on June 21, or would like to have a legal opinion from the department prior to that meeting. Newman asked where the memo was from the Legal Department on foreclosure? Bush stated that members need to know what the City can and can not do with reference to the Wesley properties. Ritter in reference to the quarterly report, questioned what the Coalition meant by demolition? Talkington stated that demolition simply meant removal of faulty appliances from the units. Newman asked if there have been any progress since the last meeting? Rudd stated that he and Ms. Powers have met with Mr. Crane and went over the letter sent to them by the Commission. Housing Commission members requested that staff transmit a copy of the letter to EHC in the next Housing Commission packet. As a side note Rudd stated that had recently met with the lending institutions and discovered that Mr. Muchow from State National Bank was no longer employed there. It is his belief that this may pose a problem for EHC, since he was their contact person there and seemed to be supportive of their project. Rudd also stated that EHC should be receiving bids by June 24, 1988. Bush asked whether staff could inspect the buildings prior to the July 21. 1988 Housing Commission meeting? Bush is curious as to how many people are living in the units and what the present condition of the buildings are. Newman stated that he did not believe there would be any purpose served by inspecting the units. Brady requested that staff collect all minutes of meetings that addressed the EHC project. Minutes would be gathered from the Mayor Special Housing Fund. the Housing Fund Subcorsnittee and the Evanston Housing Commission. Brady further suggested that the minutes be put together in a packet and sent to Ms. Ashbrook. The Housing Commission could request that Ms. Ashbrook distribute the minutes to her board members. In this way the new EHC board members can be better informed about how the process has been progressing. Warshaw thought that a copy of these minutes should be sent to the Community Development Act Committee. In this way the CD Committee would be -3- Minutes - Housing Commission June 23, 1988 Ir informed on how the process with EHC has been proceeding. Members would also be aware that the attendance of the Housing Commission members has been exemplary and that CD Committee members will also be aware that Housing Commission members have read all of the materials present to them and have been on top of the project. It is Warshaw's opinion that the difficulty has been the ever changing EHC board. Brady then moved that the minutes of the Mayor Special Housing Fund Committee, the Housing Fund Subcommittee and the Housing Commission (which have EHC as a primary topic) be transmitted with a cover memo to Ms. Pat Ashbrook, President of the Evanston Housing Coalition and to the Evanston Housing & Community Act Committee. Members voted unanimously in favor of the motion. After a brief discussion, Housing Commission members also requested that staff have this material prepared for Housing Commission members and also include the original EHC proposals as submitted to the Housing & Community Development Act Committee and the Mayor Special Housing Fund Committee. Newman questioned how the City would proceed if the Housing Commission is not satisfied with the progress that EHC has made on July 21, 1988. Specifically, Newman wonder when a recommendation could go to the City Council? Brady stated that a recommendation from the Housing Commission could go to the City Council on August 8, 1988 for executive session. Brady stated that the Housing Commission may not be prepared to send a recommendation to the City Council by August 8, 1988 because the legal opinion may not be prepared by that date. Newman then requested that a representative from the Legal Department meet with the Housing Fund Subcommittee on July 14, 1988. Rudd stated that he would contact the Legal Department and ask them to have a representative present at that meeting. Members also discussed the possibility of a joint meeting between the Housing Commission and the Housing & Community Development Act Committee after July 21, 1988. This meeting will only be necessary in the event that EHC has not been able to provide the requested materials to the Housing Commission. VI. Subcommittee Reports A. Housing Fund Brady requested that a correction be made to the Thursday, May 26, 1988 working note of the Housing Fund Subcommittee. Brady surmised that Crane talked with an individual at the Chicago Equity Fund, but did not talk directly to the executive director. —4— ��.I�I li � it � �' �� � pal i 1 Ig11 �— Minutes - Housing Commission June 23, 1988 B. Housing Planning No report was submitted, because there was not a June meeting. C. Ad Hoc: Update on Negotiations with Lending Institutions. Bush stated that Committee and staff had met with bank representatives and a representative from EBIC. The representative reviewed how the ECIC program was established and how it now operates. Bush stated that some staff and Committee members noticed steps that they need to take. There are definitive operational procedures that needs to be established. Bush also stated that he believes the City has a firm commitment from the lending institutions to allocate up to $100,000 to the mortgage lending pool. VII. Comments Brady stated that Gail Outlaw is recovering from major surgery and is fine. She does not believe that Gail will be seeking another term on the Housing Commission. Ms. Outlaw's term expires in August, 1988. Brady asked that the Mayor be informed that Ms. Outlaw will be leaving and be prepared to make another appointment to the Housing Commission. Warshaw discussed the Citizen Banking Conference that she and staff attended. One portion of the Conference discussed the idea of link deposits. Warshaw is pleased that the idea is now familiar to more individuals. Warshaw is prepared to distribute the information from the Conference to the banks and to officials within the City. Warshaw also stated that she is working on putting together a link ordinance. Rudd stated that there seem to be a growing trend across the nation for municipalities to adopt link deposit ordinances. At the conference he attended there was a presentation by the finance director from the City of Detroit on this topic. It seems that when Detroit banks were unwilling to provide any assistance to the City of Detroit, they moved all of their deposits to New York banks. Brady stated that the City Council and banks needs the information on link deposits. Warshaw stated that she has the information to draft the link ordinance. Brady stated that the last issue of NAHRO had a discussion on federal regulations pertaining to the preference rule. Brady asked that staff prepare a copy of this article for the Housing Commission. VIII. Adjournment The meeting adjourned at 9:25 p.m. The next meeting of the Evanston Housing Commission will be July 21, 1988. Staff Laurel Talkington 11(3/7) -5- DRAFT, NOT APPROVED DRAFT, NOT APPROVED MINUTES SPECIAL MEETING EVANSTON HOUSING COMMISSION Thursday, July 21, 1988 Evanston Civic Center Room 2403 7:30 p.m. Members Present: S. Brady, R. Bush, M. Wold, M. Curry, J. Ritter, C. Ross, C. Schafer, T. Bobinsky, D. Drummer, A. Newman Members Absent: R. Warshaw, G. Outlaw Staff Present: R. Rudd, C. Power, R. Brenniman, C. Yonkers, S. Lufkin, R. Steuben, H. Stern Others Present: Alderman A. Rainey, Alderman M. Sommers, P.Ashbrook (EHC), Julian Coleman (Julian Coleman, CPA Limited), A. Gittelson (EHC), P. Gerby (EHC), B. Palmer (EHC), J. Hammonds (EHC), C. Smith (EHC), M. Wilson (EHC), N. Belser (EHC), G. Gauthier (EHC), A. Stover (Evanston Neighborhood Conference) Presiding Official: R. Bush I. Declaration of Ouorum The meeting was called to order at 7:35 p.m. II. Working Notes of June 9th (Special Meeting, June 23, 1988) The working notes of June 9, 1988 (Special Meeting) and June 23, 1988 were accepted as submitted. III. Communications All communications were held over until the next meeting (August 25. 1988). IV. Old Business: Review of Evanston Housing Coalition Status Chairman Bush opened the meeting by stating that the Housing Commission was meeting that evening to discuss what has occured since June with the Wesley -Green Bay project and the Evanston Housing Coalition. The Housing Commission would go through a letter sent to EHC, dated June 10th, to give EHC a chance to justify each document that was sent to the Housing Commission as requested by this letter. The chair then allowed EHC to present any statement that they had prepared for that evening before review of the letter commenced. At the conclusion of the discussion between the chair and EHC Chairman Bush would allow each member of the Commission an opportunity to ask questions of EHC. After the discussion the Commission would then consider whether or not it was necessary to go to Executive Session. r PAGE 2 P. Ashbrook started by reading from a prepared statement. The statement reflected the feeling and position of the Evanston Housing Coalition. Chairman Bush proceeded to ask questions regarding EHC's pro -forma and list of bids attached to the July 12th letter. B. Palmer responded by saying that EHC had a meeting with R. Rudd and the bank and supplied information at that meeting. The contract document that was supplied to R. Steuben would be used with the contractors for the project. Chairman Bush asked if it was a copy of a blank contract or copies of the actual bid contracts? B. Palmer responded by saying that they were copies of the contract to be used by the contractors since there were no signed contracts yet. For the items that you have definite bids on, are those in writing? Yes. Are those bids submitted to the Housing Commission yet? No, the bids were gone over and discussed with the CDBG Committee and R. Steuben. The contract document was discussed over the telephone but was not submitted. Have you any other bids besides those contained on the list? No. Do you have any detailed project costs in written form other than what are contained on the pro -forma or the other information supplied on July 12? EHC was investigating a program within the City that could supplement the program costs. One of the programs regarded Graffiti cleanup. EHC was also investigating the possibility of utilizing another program but found out that they were not able to do so. Chairman Bush verified the answer to the question as there was no other written materials submitted. Chairman Bush went on by stating that the next item of discussion would be the revised 5-year pro -forma income and expense budget in detail of July 13, 1988. is there any other information in written form that you consider as a response to the 5-year pro -forma income and expenses budget? George Gaudier responding: "The pro -forma was based upon projections of rents collected throughout the construction year and the current operational expenses. What source did you use to determine the expenses? EHC discussed it with Jack Crain. Did you make a comparison with the original pro -forma submitted with the 1987 proposal? Due to the involved nature of the project, G. Gaudier did not make that comparison. What evidence do you have that you have funding for 100% of the remaining project costs being formally committed from July 13, 1988? Hone. After June 13, when was the next time that EHC met with the bank? A. Gittelson responded: Materials were sent the previous week for review by the bank and to be discussed with EHC, but the first time that EHC actually met with the bank since June 13th was on July 21st. Did they give you 100% commitment? No they did not. Chairman Bush asked if the auditor would like to respond to his audit specifically the balance sheets. Julian Coleman, commented that the document was a compilation and that a compilation is a very limited service that puts together figures upon a financial statement. PAGE 3 Chairman Bush then moved to the other members of the Commission to ask questions towards EHC. The floor was turned over to C. Ross who stated that if EHC submitted the audit to a bank, no bank would be able to lend any kind of funds based upon such report.. C. Ross also requested an explanation on how there was a $21,000 difference regarding expenses between the August 1987 originally submitted budget and the July 13 budget? It was important to explain this since if the difference was added back on to the submitted budget of July 13, 1988, the project would become unfeasible. B. Palmer responded: On the July 13, 1988 budget there was a 5% increase In rents and a 51 loss of rent due to vacancy rate whereas in the 1987 budget there was a 7% rent loss to vacancy rate. Based upon greater experience in administrating the building the costs were better projected on the 1988 budget as opposed to the August 1987 budget. C. Ross explained that there still was a problem with the figures due to the fact that these costs were prior to rehab and that there were still a majority of apartments that were vacant in the three buildings. Specifics of the expense budget were discussed between C. Ross and B. Palmer. C. Ross expressed his concern over the fact that the Commission had to be very careful that EHC would not come to the City at a future date and ask for a substantial increase in funds due to ill projected expense figures. EHC and the Housing Commission must be satisfied that the expense figures are absolutely correct. The project should be completed with the least amount of expense as possible, yet the expense figures were not terribly convincing. Based upon the expense figures for the first five months of the year and carrying those out to a twelve month period , the total amount of expenses would exceed $125,000, which is a substantial increase in the amount of total expenses projected for the year. There was an obvious shortfall between the total expense that is projected to complete the project and what the City and the bank would have to contribute to make up that shortfall. C. Ross's summation was that he could not see where the project would come in on budget based upon the numbers submitted by EHC. The floor was turned over to C. Schafer. She requested a clarification upon the bid numbers on contracts. (Primarily on the numbers that were missing from the bids). Specifically C. Schafer wanted to know how the $125,000 figure was projected for bids that have yet to be obtained. C. Smith responded: After reviewing all the bid items there were a number of items that were deemed unnecessary and were deleted and that certain aspects of the project were changed. Specific items were discussed further. C. Schafer continued by commenting that the total bid estimate was $559,000 while the bids that were received to that date came in at $557,000. If you include the $125,000 it would come up to a total of $682,000. EHC is essentially 207. over their original estimate. C. Smith stated that the figure was not totally unreasonable considering that a year has passed since the projected start-up date for construction. After talking with contractors on what EHC could and could not do, C. Smith believed $125,000 was an accurate number. PAGE 4 The floor was then turned over to S. Brady. S. Brady requested details of what transpired during the meeting between the bank and EHC. Her first statement of understanding was that EHC would need a loan of $259,000 from the bank if the City would not lend EHC the $82,000 that EHC is requesting. G. Gaudier explained that EHC would need an additional $259,000 with the $82,000 that was requested by them. S. Brady then went on to clarify that EHC would need $341,000 from the bank If the City did not accept EHC's request for an additional $82,000 in funding. The $341,000 figure did not take into account any contingency. The pro -forma submitted by EHC on July 13 took into account a $200,000 loan from the bank at 10 3/4% interest for a 30 year term. S. Brady stated that she had no indication since the start of this project that the bank would loan EHC that kind of money for a period of 30 years even if they were in first position, G. Gaudier responded. The pro -forma designates that the project would generate cash available for debt service of approximately $44,000 a year. The point was recognized that EHC could not handle a debt service of the size that would require repayment of the $341,000 at 10 3/41. over 30 years. S. Brady asked for a clarification as to why on the present pro -forma that there is not any carry over cash balance, no carry over deficit, no accounts payable and that there is nothing on the pro -forma that would be effected after January 1, 1989! It appeared after June 30, 1988 cash available was $6,896. That is the cash that EHC had to operate the entire project. S. Brady continued by stating if you project the cash collected from rents and the expenses in operating the buildings until January 1, 1989, it seems that the project will be starting at a deficit level of over $100,000 by the first of the year. J. Hammonds responded by saying that the accounting for the property and the organization itself is different. If you look at the property right now, EHC does not have any outstanding liabilities, they are current as of today, so if you project that to 1989, that would reflect the accounting more accurately . S. Brady commented that EHC did not have a correct pro -forma the Housing Commission could deal with. G. Gaudier went on to explain the tax situation. S. Brady commented that despite the tax situation presented there still needed to be some indication that property taxes were to be paid for the present year and for future years. In her summation S. Brady stated that she wanted it to be known that she had attended all 33 meetings where the Wesley -Green Bay project had been discussed and that property management was her business. It was her belief that she had some expertise to talk intelligently about the project. A. Gittelson explained that EHC appreciated the comment made by S. Brady but EHC feels that they have been slighted as well through alledged comments and inuendos that had been passed onto certain committees, the Housing Commission and to City Council. S. Brady wanted EHC to understand that the Housing Commission is very interested in the project due to the fact that at least 50% of the Housing Commission has attended all 33 meetings regarding the Wesley -Green Bay project. PAGE 5 The floor was passed on to N. Wold. K. Wold's questions were directed towards EHC's tax status. B. Palmer responded that approximately $11,310 was owed on all of the properties. There will also be another tax payment due in September totaling $13,600. B. Palmer explained that a fund raiser is being planned for September and EHC is seeking grant money to assist them in paying the property taxes. Property taxes will also be paid from income received through a completely rehabilitated 2014 Wesley. Not all of the units would be completed. The major items should be completed by September with a construction date starting August 1. The stairway, the electrical system and the plumbing are the three major Items that would be worked upon first, then 2014 Wesley would be completed and rented by November 1. H. Wold wanted to make sure that she understood that EHC would be able to raise $26,000 to pay the property taxes by their due date in September. P. Ashbrook responded that EHC has been able to raise enough money to keep themselves afloat and to pay bills when they become due and that they continue to do that. M. Wold requested an approximation of how much EHC raises through contributions and fundraising per month. B. Palmer stated, approximately ;500-$1,000 on the average per month. This is based upon the total amount EHC received through contributions and fundraising and for the past year and by dividing that by 12. After clarification on the compilation regarding donations received by EHC, H. Wold asked J. Coleman why there was a $44.000 current liability listed under property taxer' J. Coleman responded by mentioning that even though they are not due, 1988 property taxes are acruing and that is how they are listed. X. Wold then directed her questions toward the utility bills on the three buildings. P. Ashbrook explained the property manager has a checking account to pay the operating expenses for the three buildings. B. Palmer explained that she kept track of whether or not the bills are paid by the property manager. She also explained what happens when there is a deficit in the checking account and how EHC handles it to pay the utilities and the other operating expenses upon the buildings. The question of whether or not the utilities are current was then directed to J. Hammonds. Hr. Hammonds preceeded his answer by stating his credentials for the record and then went on to state that the utilities were paid as of June 30, 1988. EHC will be paying the water bill as soon as the rents are collected from the buildings and then that would take care of the July utility bills. The floor was turned over to A. Newman. A. Newman wanted to make a clarification for the record regarding the funding of the Wesley -Green Bay project. He stated that even if the Housing Commission did not meet at all to diecess any of the Wesley -Green Bay project they still wouldn't have received any additional funds except for the $400.000 that was originally allocated to the project due to federal regulations regarding releasing federal funds and property taxes. PAGE 6 A. Newman further stated that the Housing Commission has not been obstructionist. The bottom line is that the taxes have not been paid and that the City of Evanston can not release the money. As far as the changing faces on EHC's board is concerned, there is no question that many of the board members present at the meeting on July 21st have been with EHC for a long time, yet members such as Bruce Copeland and K. Muller are not with EHC anymore. It was based upon Bruce Copeland's expertise in real estate development that he was able to support the Wesley -Green Bay project. The Housing Commission acted in good faith by forwarding $400,000 for the acquisition of the buildings. Even though the buildings were not worth $400,000, the Housing Commission Was committed to providing better housing in the west end of Evanston and still are, yet there has to come a time when the City has to decide whether or not it's investment is protected. EHC will not be able to get that loan in his opinion because there isn't $341,000 in equity in the buildings. In conclusion the Housing Commission performed and have not been obstructionist. A. Newman asked that his question be responded to regarding if there is $341,000 of equity in the three buildings. B. Palmer responded that the bank did not state the equity in the buildings but they mentioned if the City was willing to release their funds, the bank would get back to EHC with an answer regarding a loan within 24 hours. The project is still viable and can work. In all the proposals that were submitted to the City, administrative costs were not taken into account. Palmer thought that if the Housing Commission and EHC could come to an agreement upon revamping the rehabilitation plan, the project could come into the satisfaction of all involved and within budget. The floor was then turned over to J. Ritter, who asked about the additional request for funds? G. Gaudier responded that the $82,000 is to cover the difference between the construction projected expenditures and the construction actual expenditures. J. Ritter then asked how EHC felt that they were going to complete this project within everyone's satisfaction. EHC's response was during the time period of August 1987 through July 1988, EHC has been waiting month to month to complete the project. They had been able to keep up with their expenses, paying bills and keeping the project afloat. EHC has had to endure many situations that might not have occured if the rehab would have been completed sooner. C. Smith pointed out that there are many items within the specifications that aren't necessarily needed. The floor was turned over to D. Drummer. D. Drummer asked what happened at the bank meeting of 7/21/88. G. Gaudier discussed the construction loan and that the construction loan would be used for paying expenses on the project. He also rehashed the equity issue. As the project stands, G. Gaudier commented that the project itself could not attract more than $260,000 in a construction loan. Once again he stated that the bank would consider lending more than $250,000 based upon the results of the meeting tonight. D. Drummer asked EHC why Section 8 rents were not considered very seriously. P. Ashbrook explained, EHC planned to have some Section 8 families, but did not want the entire project filled with Section 8 families. PAGE 7 A. Gittelson commented that the issue is not to question Section 8 participants, it is how to integrate housing at a cost effective level within the City of Evanston. D. Drummer asked if EHC could expand upon their efforts obtaining grant money. P. Gerbie responded, explaining that EHC has grant proposals submitted to a number of private corporations and foundations at a total of $86,5OO. B. Palmer elaborated upon other efforts EHC has made regarding obtaining additional funds for the Wesley -Green Bay project. The floor Was turned over to M. Curry. M. Curry explained that he wasn't an Evanstonian but he came from a community of similar background. He also had experience working with City government. His concern was about housing and people who do not have adequate housing wherever it is. M. Curry explained that he has been criticized for not knowing everything about the project yet he felt that he has an understanding of the project. He also wanted it known that no deals have been made privately by the Housing Commission. M. Curry then continued in greater detail regarding his involvement with the EHC project. After a review of the cost figures regarding the Wesley -Green Bay project, B. Palmer stated that the City's investment of $473,000 can still be protected if a change in the rehab plan is made. The Housing Commission and EHC must look to see how this project can be made feasible. M. Curry pointed out that there are certain regulations, rules and policies that need to be followed no matter what the issue is. The Commission does not have the power to make the changes that EHC would like have done to the rehab plan. Chairman Bush reminded EHC that the original proposals stated that EHC would bring the buildings up to code and that all the requests made by the Housing Commission were to make sure that rehab would comply with the building codes. The floor was then turned over to T. Bobinsky, who was concerned about the City's mortgage position and the potential bank loan. Since the loan would not be based upon the equity of the buildings would that change the City's position from it's current position? G. Gaudier explained that the bank becomes the first mortgage holder on the 2014 and 2024 buildings and becomes second mortgage holder on the 2018 building. A. Newman then asked if the City was guaranteeing payment of the loan? R. Rudd stated that the City was not guaranteeing payment of the loan but is agreeing to subordinate it's position. T. Bobinsky then asked why in the capital budget EHC's commitment decreased from $115,000 to $800 from August of 1987 to the last capital budget submitted to the Evanston Housing Commission. Has the proceeds gone elsewhere? G. Gaudier explained that the decrease is due to the change in capital sources and that the decrease from $115,OOO to $800 could be attributed to the line of credit. The floor moved back to Chairman Bush. Chairman Bush mentioned that the Housing Commission would be in line to entertain a motion to go to executive session but commented before doing so on the Housing Commissions concern over the completion of the Wesley -Green Bay project. PAGE 8 The Housing Commission will be recommending to the City Council what they think would be the best method to accomplish the goal that the Evanston Housing Coalition set up in August of 1987 which the Special Housing Fund Committee approved in August of 1987 and it needs to be accomplished as soon as possible. Chairman Bush then called for a motion to adjourn to executive session. Annette Stover of the Evanston Neighborhood Conference asked if the Housing Commission was going to entertain comments from people who are not in EHC because there is an interest in the project other than from the members of EHC. Chairman Bush then asked the audience for any comment that they wish to make. Annette Stover of the Evanston Neighborhood Conference was the first person to comment. After investigating the project and despite initial skepticism, she was very impressed with EHC. She could not understand why the Housing Commission was requiring EHC to do the scope of rehab that was requested. It was her belief that project could work if the Rehab was downscaled. Chairman Bush then asked if anybody else had a comment to make. J. Hammond responded. He commented that he was working on a project in the City of Chicago and that there have been many delays and millions of dollars of cost overruns. The City still continues with the project because of the bottom line that is to be obtained which is to provide low income housing within the City of Chicago. If the City of Evanston wants the Wesley -Green Bay project to be completed it would do whatever is necessary to complete it. Despite costs overruns the Evanston Housing Commission should take the word of all the members of the Evanston Housing Coalition that the project will become whole due to their commitment to the project. The City of Evanston should not be concerned with the bottom line because peoples lives are involved. Chairman Bush responded, there is no one who cares more about housing in Evanston and that project than every member of this Housing Commission. Every member of the Housing Commission that was a member of the Special Housing Fund Committee have all been working on this project since the summer of 1987. Chairman Bush then recognized Alderman Summers for comment. Alderman Summers was always interested in knowing where the money would go after the project has been completed and who would have control over the money generated as a result of the rentals in the buildings. Would they be reinvested in that community? Despite earlier negative feelings regarding this concern, his feeling was different on that evening. The project would not be given to another developer or another group without a major fight from the Community where the project derived from. Alderman Summers had finally heard a sense of trying to make the project work. what really counts is how the project is going to be completed. Once the Housing Commission completes its deliberation in executive session, he was sure that they would realize that everyone is in the same boat together. There is a large risk that if the Commission came back with a certain decision that people would be turned off from committing any more money in improving the City of Evanston. PAGE 9 The Commission was unanimous on the motion to go into executive session for the purpose of discussing probable or iminant litigation or land acquisition regarding the Wesley -Green Bay project. The Commission came out of Executive Session at 11:00 p.m. The following resolution was presented by Chairman Bush: "The Evanston Housing Commission has been devoted to the Wesley -Green Day project since it's inception, the Commission recognizes the commitment of the Evanston Housing Coalition. The Commission after reviewing the submitted documents will not recommend to the City Council that more money be loaned to the Evanston Housing Coalition nor that the rehabilitation requirements be scaled down. The buildings must be enhanced to assure a long term improvement in the neighborhood. The Commission stands by it's original commitment and encourages Evanston Housing Coalition to move forward to complete the project." This resolution was passed with nine ayes and one nay. A. Newman explained that he voted against the Resolution because it was his feeling that the project needed to move forward. V. Adjournment The Commission meeting was adjourned at 11:05 p.m. The next Evanston Housing Commission meeting will take place on Thursday, August 25, 1988 at 7:30 p.m. room 2403. Staff: ' o 1?,� XichaA B. Stern DRAFT, NOT APPROVED DRAFT. NOT APPROVED Members Present: Members Absent: Staff Present: Others Present: MINUTES EVANSTON HOUSING COMMISSION Thursday, August 25, 1988 Room 2403, 7:30 p.m. T. Bobinsky, R. Bush, R. Warshaw, J. Ritter, S. Brady, M. Vold, A. Newman C. Schafer, f. Curry, D. Drummer, G. Outlaw R. Rudd, C. Powers, f. Stern P. Ashbrook (EHC) Presiding Official: R. Bush I. Declaration of Quorum The meeting was called to order at 7:40 p.m. II. Minutes of July 21. 1988 The minutes of July 21, 1988 were accepted with the following correction. On the last line of the minutes of July 21. 1988 it should state that A. Newman was the only desenting vote because he felt some action needed to be taken to initiate the return of the Wesley property to the City of Evanston. He voted against the motion so that the project would progress, but agreed with the spirit and the intent of the resolution that was passed. III. Communications A. Planning and Development Committee Minutes, July 25 and August 8. 1988 The housing Commission reviewed Planning Development Committee minutes of July 25 and August 8. Chairman Bush explained that much of the housing related issues discussed during the Planning and Development Committee meetings pertained to the Burglary Prevention Ordinance. A. Newman commented that it would not be in the tenants interest if an expensive Burglary Prevention Ordinance passed because the costs would be passed on to the tenants. R. Warshaw explained that the Housing Commission submitted a proposal that dealt with less expensive elements that could have been implemented in a timely manner. A. Newman asked if there needed to be a further statement on the Housing Commission's position. M. Wold suggested a resolution stating the Housing Commissions support for the original proposal submitted to the Planning and Development Committee. S. Brady explained that there is basically no support on the Planning and Development Committee for expensive security measures and most discussion is centered on locks and other less expensive options. B. Housing and Community Development Act, Committee Minutes June 14, 1988 The Housing Commission reviewed Housing and Community Development Act Committee minutes as transmitted in the July 21, 1988 Housing Commission packet. I PAGE 2 C. Zo_ ninR Commission Agenda Minutes The Housing Commission reviewed the Zoning Commission Agenda and minutes that were transmitted from the July 21, 1988 Housing Commission Packet. D. Zoning Commission Meeting Schedule The Housing Commission reviewed the Zoning Commission meeting schedule as transmitted in the July 21, 1988 Housing Commission Packet. S. Brady Commended Bob Ahlberg on the quality of his minutes from the Zoning Commission meetings. E. Letter to Pat Ashbrook From Housing Commission R. Bush explained that it was already reviewed at the last Housing Commission Meeting. F. Economic Development Seminar Regarding Relationships of Cities and Banking,. The Housing Commission reviewed the materials transmitted in the July 21, 1988 Housing Commission Packet regarding the Economic Development Seminar. H. Evanston Housing Coalition Summary of Events The Housing Commission reviewed them at the prior meeting on July 21, 1988. I. Board -up List C. Powers explained that there were some recent additions to the Board -up list and that these additions were due to fires. C. Powers explained that the commission should be aware that 1927 Jackson was burned again and that the property would be an addition to the board -up list. The City is asking the owner, Roger Parris to demolish or the City would have to commence proceedings to obtain a court order demolition. J. The Counselor R. Warshaw explained that the article presented to the Housing Commission was submitted because there was an earlier discussion of liability of officers and directors of not for profit organizations. The article that was presented in this packet discussed the current status of the laws pertaining to that subject. K. Evanston YWCA Letter Regarding 721 Hartrey Avenue This communication was not discussed because the YWCA was no longer Involved with 721 Hartrey Avenue. L. CD Proposals Regarding Housing Review R. Rudd explained that the process was pushed back by a month for FY 89-90. If it meets with the approval of the Housing Commission, staff will schedule a joint Housng Commission/Community Development meeting for Tuesday, October 25, 1988 to review the housing proposals submitted for C.D. funding. The schedule will allow review of the proposals of the October 27th Housing Commission meeting and recommendations finalized the first meeting of November. PAGE 3 M. Court Cases Scheduled for August 18 and September 2. 1988 General discussion took place regarding individual properties on the court list. A. Newman commented that there is support of strong enforcement of the code. S. Brady expressed concern regarding displacement of tenants in 1211 and 1215 bodge. R. Rudd explained that there is contradictory versions of the situation at those properties. R. Rudd further stated that the City would inform tenants of their rights but may have to address an over -occupancy problem. IV. New Business A. Alderman Rainey's Reference Regarding Amendment to the Residential Landlord/Tenant Ordinance. R. Rudd explained the reference from Alderman Rainey to research reducing the maximum security deposits from the 1 1/2 months rent to one month's rent. A. Newman stated that it is difficult to come up with 1 112 month rent as a security deposit and an additional one month rent. R. Warshaw stated that she was surprised that the market place did not dictate one months rent yet she understood why some landlords would require I I/2 months rent. A. Newman suggested that a meeting should be scheduled to discuss this subject and invite the Property Owners Association. B. Evanston Housing Coalition Request to Township for $500,000 J. Ritter opened the discussion stating that she feels strongly that something be done on the properties on Wesley. J. Ritter passed out a resolution stating that: The Evanston Housing Commission will not provide additional grants and loans to the Evanston Housing Coalition for the Wesley/Greenbay Project. We request the Evanston Housing Coalition to return the project property to the City of Evanston. We attempt to find a contractor who can complete the project without increasing costs beyond a sensible limit. If costs per unit are out of a sensible range: 1. Relocate the tenants 2. Demolish the buildings 3. Try to sell the land to recap part of the loss 4. Use remaining money in the Housing Fund plus the Township Housing Fund to develop rehab or new housing for low income Evanston residents. 5. In the meantime for the coming winter provide safe decent housing for current residents of the project by at least bringing the units up to minimum standards. If necessary relocation of residents may need to be done to meet this goal. R. Bush then stated that the Commission should further discuss this subject before this motion became formal. Discussion regarding EHC's lack of funds to leverage public dollars ensued. PAGE 4 A. Newman commented that he agreed with the intent of J. Ritter's motion. He also commented that the politics of this situation has affected the decision making process and that his main concern is to supply adequate and affordable housing in the West end of Evanston. A. Newman also commented that there are developers that are interested in the project but won't get involved due to the political nature of this situation. R. Warshaw elaborated upon A. Newman's point that there are developers who are interested in developing the project but will not get itself in the middle of a political argument. She continued to state that it would inappropriate for a developer to offer it's services due to the nature of this situation. The City would also not be in any position to make an offer until a disposition of the property was resolved. S. Brady explained that she thought the intent at the July 21, 1988 Housing Commission Meeting was that the Commission should hear from EHC on It's status regarding the Wesley/Green Bay project. She thought it was appropriate to have a formal response at the September 8 Commission meeting whether or not EHC was going to go ahead with the project. M. Wold then made a motion to deny the request of the proposal for township funds from EHC and to send a memo to EHC and to Edna Summers as to the reasons why the Housing Commission denied their request. A. Newman offered an amendment that would have the memo send to all concerned parties within the City. The motion carried unanimously. M. Wold expressed her concern over the tenants and what would happen to them during the winter season. She suggested that the Commission needed to meet with EHC to see how that problem could be resolved. J. Ritter commented that if anything was going to happen at that project, EHC must returned the project property to the City of Evanston. With this in mind she moved that the Housing Commission request that the Evanston Housing Coalition return the project property to the City. T. Bobinsky commented that the Housing Commission has to decide whether or not to initiate foreclosure proceedings or have EHC voluntarily give up the project property. R. Bush suggested that an Ad Hoc committee meet privately with EHC to discuss what needed to be done to initiate return of the property. Pat Ashbrook explained that their was a board meeting recently to discuss what should be done to further the project along. M. Wold made a substitute motion which stated that the chair would appoint an Ad Hoc Subcommittee to discuss with EHC how to move the project forward. R. Warshaw commented that communications had not broke down and the Housing Commission wants to see the project go forward. The Commission decided on a meeting date and time The Commission members that would serve on the Ad Hoc Subcommittee would be R. Bush, A. Newman, R. Warshaw, and R. Rudd. PAGE 5 V. Subcommittee Report A. Housing Fund The Housing Fund Subcommittee working notes of July 14, 1988 were reviewed. A. Newsman gave a report on the Housing Fund Subcommittee meeting of August 11, 1988. He explained that the Subcommittee was looking at ways of developing affordable housing using township funds. The subject of infill housing was introduced and the Subcommittee directed staff to provide information on infill housing development. A tour of the vacant lots of Evanston was also planned at that meeting. Finally it was mentioned that Brian Ring was in attendance at that meeting to help the Subcommittee brainstorm ideas for the use of the township funds in developing affordable housing. A. Newman commented that Brian King's expertise should be utilized due to his genuine concern regarding the housing needs of the west side of Evanston. B. Housing Planning, Working Notes of July 28, 1988 Were Reviewed. VI. Adjournment The meeting was adjourned at 9:05 p.m. Staff: Michael B. Stern DRAFT, NOT APPROVED ��II I+ 11 dull ^ �I III III III III �� III l�� I1 II^ R 'l I "I 11 Im ll I 9q1 III 1 Il I^IM � IIMI IIII 1 TT 44�� �`I DRAFT. NOT APPROVED Members Present: Members Absent: Staff Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, September 8, 1988 Evanston Civic Center Room 2403 - 8:00 P.M. T. Bobinsky, S. Brady, R. Bush, M. Curry, A. Newman, J. Ritter, R. Warshaw and M. Wold D. Drummer and C. Ross C. Powers, R. Rudd and B. Povalla R. Bush I. Declaration of Quorum The meeting was called to order at 8:08 p.m. II. General Comments. C. Powers introduced the new Housing Planner. Bill Povalla and gave a brief description of his background. Chairman Bush mentioned that last month's Housing Commission meeting was the first which operated under the new procedures of no subcommittees. In the future there will be two Housing Commission meetings each month. The first will have a working meeting format and the second will have a regular meeting format. III. Communications Locations of Vacant Lots Discussion ensued concerning the list and map of vacant lots which were given to the members of the Commission. There were some concerns raised that only vacant lots within the "target area" were listed. In addition it was questioned if any of these lots belonged to the city. or if demolition liens existed on any of these properties. The Chairman asked if staff could submit a list of vacant lots throughout the City, in order to allay concerns expressed by Commission members concerning looking at only the "target area". Information Regarding Infill Development The Chairman indicated that after reading the information and looking at the map of vacant land, he was disappointed. He indicated that the information suggests that any infill project may be unsuccessful in the areas being targeted. It was mentioned that a new zoning ordinance is being developed and perhaps the Housing Commission might want to make recommendations, in order to encourage more infiil development. The Chairman indicated that the purpose of the new ordinance was to make the zoning laws more uniform. The issue of modular housing was raised, and Housing Commission - Xinutes September 8, 1988 it was questioned if the Building Code would allow modular homes. R. Rudd stated that most types of modular housing today meet BOCA standards. The question was raised if any of the lots listed in the packet were of the dimension and size to allow more than one unit. It was requested that staff match the zoning map with the map showing the vacant lots. It was also requested that staff pinpoint the lots which have demolition liens on them. The Chairman also asked if the market values of these lots or the estimated values could also be included. It was brought to staff's attention that the 2105 Ashland lot should be removed from the list since this was being used as a church parking lot. H. Curry indicated it was his belief that infill housing or modular housing would be well received in the neighborhoods. The Chairman indicated that this item should be considered as a continuing item until further information is forthcoming. Memo re Special Neetinx Between Housing Commission and EHC Representatives. A meeting prior to the regular Housing Commission meeting was held between representatives of EHC and the Housing Commission. Representing EHC were James Hammonds, Marsha Wilson. Pat Ashbrook, and Allen Gittelson. Representing the Housing Commission were Chairman Bush, A. Newman and Ald. Warshaw. Before the meeting the Commission members received two pieces of information (1) a list of subcontractors which EHC claims have submitted bids in the project and (2) a request for release of a $95,000 bridge loan. It was stressed that no signed contracts have been forwarded to City staff for review. A Gittelson indicated that EHC was attempting to involve a developer to work in coordination with EHC. The EHC representatives were asked by the Housing Commission that if no developer can be found within thirty (30) to sixty (60) days, would the organization then relinquish site control to the City for six months for the City to secure a developer and allow the project to progress. This question was asked to each representative and none of them answered affirmatively. The meeting ended with a suggestion that a detailed presentation of the Housing Commission proposal be forwarded to the EHC board. The Chairman indicated that this was not a very prudent option since the four EHC representatives would not commit to the City's proposal. It was stressed by a number of Commission members that it was unfortunate that there is a view within EHC that the City is setting up obstacles to the implementation of this project. It as also stressed that many of the requirements being made by the City were to insure compliance with HUD regulations. It was a concern that if the 30-60 day period laps=_ and nothing changes that the Housing Commission will be faced with an even greater problem of tenants who are forced to live in terrible conditions. -2- i t ... I I, I, 1 � Housing Commission - Minutes September 8, 1988 IV. Old Business Evanston Housing,Coalition Project. The Chairman indicated that he would like the Commission to take up the question raised by the September 7, 1988 correspondence from the Evanston Housing Coalition, Inc. requesting a bridge loan from the City of Evanston in the amount of $95,000. M. Wold made a motion that the Evanston Housing Commission deny the request by EHC for the $95,000 bridge loan and that a letter be drafted by staff indicating such along with the various reasons why. Ritter then offered an amendment that the Evanston Housing Commission reconfirm its decision of August 25, 1988 that no further public funds be granted to the Wesley Greenbay Project. Both the original motion and the amendment were seconded by T. Bobinsky. After expressing their opinions and further deliberations Ritter withdrew her amendment and Bobinsky concurred. A vote was then taken on Wold's original motion. All were in favor and the motion carried. A number of members voiced the opinion that they were in opposition to providing EHC a proposal. It was stressed that emphasis should be placed on the fact that both the Housing Commission and EHC want to accomplish the same things, but if EHC will not cooperate, foreclosure action should be initiated. Newman made a motion to send a communication to the City Council stating that the Housing Commission recommends that the Council entertain a motion to begin foreclosure action on the subject properties immediately. S. Brady seconded the motion. After much discussion,M. Wold called for the question and a voice vote was taken on the motion. A roll call was taken. The vote 6-3 in favor, the motion carried. Neuman stated that the 6-3 vote reflects the Commission's concern over the hesitancy by the four (4) EHC representatives to give their backing for recommendation of the Housing Commission proposal. Curry recommended that a communication be sent to the Council outlining the Housing Commission's reason for their vote. cold made an amendment stating that such communication be drafted and the the City Attorney have time in which to study the ramifications and that the Housing Commission would approve such letter at its September 22, 1988 meeting. Curry seconded, all were in favor and the motion passed. V. New Business Township Funds for Affordable HousinK. A discussion ensued stressing that criteria should be developed for the five hundred thousand dollars of Township funds which are available for -3- Housing Commission -- Minutes September 8, 1988 affordable housing. Some ideas were discussed including a mortgage pool, an option for purchasing moderately priced condominiums, and subsidy programs. It was agreed that this would be further discussed at the next meeting. It was decided that criteria for an RFP was what the Housing Commission is striving for. VI. Subcommittee Reports Housing Fund (working notes attached) Planning (Working notes attached) VII. Comments A question was raised concerning the resignation of Gail Outlaw. Brady requested that staff research the ordinance concerning replacement procedures, and the number of members who should be on the Commission and whether additional tenants are needed. VIII. Adjournment The meeting adjourned at 9:55 p.m. Chairman Bush reminded everyone that prior to the next Housing Commission meeting of September 22, 1988, there would be an executive session beginning at 7:30 P.M. Staff: Bill Povalla 71(4/7) -4- DRAFT, HOT APPROVED DRAFT, NOT APPROVED Members Present: Members Absent: Staff Present: Others Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, September 22, 1988 Evanston Civic Center Room 2403 - 7:30 P.H. S. Brady, R. Bush, M. Curry, A. Newman, C. Ross C. Schafer, R. Warshaw and M. Wold T. Bobinsky, D. Drummer and J. Ritter C. Powers, R. Rudd and B. Povalla E. Summers, Township Supervisor and M. Milner R. Bush Declaration of Quorum The meeting was called to order at 7:34 p.m. M. Wold made the motion to convene into executive session per State Statute chapter 102, paragraph 41.01, section 2(c) and (h), in order to discuss pending litigation concerning the Wesley/Greenbay Project. H. Curry seconded the motion. A roll call vote was taken on the motion and all members present voted aye, thereafter the Evanston Housing Commission was in executive session. At 8:23 p.m. the Evanston Housing Commission came out of executive session on a motion by M. Wold and seconded by A. Newman. Wold made a report on the executive session stating that during the executive session the memo which will be sent to the Evanston City Council on Konday, September 26, 1988 was discussed and clarified. Working Notes of August 25 and September 8, 1988. A. Newman requested that the minutes on page 3, item IV(A) reflect that both the tenants Organization of Evanston and the Property Owners Association were to be invited to a meeting to discuss Ald. Rainey's reference regarding an amendment to the Residential Landlord/Tenant Ordinance. Newman made the motion to approve the minutes as amended, Curry seconded the motion. Wold made a motion to approve the minutes of September n. 1989, Curry seconded the motion and the motion carried unanimously. Communications Chairman Buck asked if there Were any comments concerning any of the communications. R. Warshaw stated that item 6 the "Reinvestment Alert" article came from her. She indicated that if an agreement with private lending institutions was not forthcoming in a reasonable amount of time that she would be interested in working with staff to develop deposit linkage legislation. minutes - Housing Commission September 22, 1988 Planning & Development Committee Minutes: July 11. July 12 (special meeting) and August 22, 1988. Chairman Bush asked if there was anything to add concerning the Burglary Prevention Ordinance. R. Rudd answered that this would be on the October 10, 1988 agenda. Housing & Community Development Act Committee Minutes: July 12, 1988. Chairman Bush reminded the Housing Commission members that there may be a number of projects which the Housing Commission will be involved with. Zoning Commission Agenda and Minutes: August 29, 1988. No comment. Letter to the Evanston Housing Coalition re Rejection of Bridge Loan. Chairman Bush noted that he signed the loan request rejection letter and it was sent to the Housing Coalition, per the Housing Commission's wishes. The Chairman then commented that in the future that aldermen in affected wards concerning any agenda items should be notified. He requested that staff assist in this effort. Memorandum re Ordinance/Number of Members. No comment. Article re Hottest Issue in Village -Group Homes. No co:rsnent. "Reinvestment Alert" Article. No comment Memorandum re: Median Income (Living Expenses). Newman requested clarification of the components of monthly housing expenses. Powers gave an explanation. Warshaw commented that the figures given were not low enough to house general aid recipients. Wold requested that since a representative from the Over the Rainbow Association was present that the sequence of the agenda be suspended and that the Over the Rainbow Association item be considered nex_. Hearing no objections the sequence was suspended. Letter from Over The Rainbow Association. The Chairman asked if this item could be placed on the first working meeting in October's agenda and that a preliminary presentation be made tonight. Mitch Milner introduced himself and stated that there maybe a timing problem. The Over the Rainbow Association is developing 33 units of Handicapped Accessible housing units located at the corner of Brown and Simpson, the site -2- Minutes — Housing Commission September 22, 1988 of the former Community Hospital of Evanston. All of the residents will be below 50% of the median income and therefore eligible for Section 8 assistance. Milner indicated that his organization was grateful for the public and private support which has been forthcoming. The Association is working with Sears Roebuck & Company to have state of the art amenities built into each apartment such as remote control lifts and bathroom toilet lifts. The targeted population are handicapped individuals who are living in nursing homes or are living with their parents. He continued to state that the mortgage financing with HOD has taken a long time since there were legal problems between the present landowners (Metropolitan Sanitary District) and HUD. A consensus has been reached and the stalemate has now been lifted. Because of the delay, the cost of construction has increased. The Over the Rainbow Association representative asked the commission for two things (1) to reallocate $73,000 in funds to housing construction which were originally earmarked for the development of a vocational center and (2) approval for a loan in the amount of $100,000, backed by a $100,000 grant from the Robert R. McCormack Foundation. Mr. Milner stated that the McCormack Foundation awarded a grant in the amount of $100,000 to be distributed over a four year period in $25,000 installments. (75,000 is earmarked for the vocational center.) HOD is requesting that the association show them that there is sufficient amount of money in order to release their funds. The association is $100,000 short. The Association representative indicated that various sources have been approached for help with the $100,000 goal but it has not been forthcoming. The Robert R. McCormack Foundation has expressed a willingness to pay the City back for the $100,000 loan. The City has presently committed $73,000, if the loan is approved the total City portion would amount to $173,000. The total project cost is estimated at $1.4 million. M. Wold stated that she sympathized with the problems t`;e Association was having but questioned the October 13th deadline. She felt the reallocation was not a problem but that she personally wants to see a better plan on how the $100,000 will be repaid. Mr. Milner answered that money to build the Vocational center is not as tight as for the housing construction and that he has a list of contributors considering funding the Vocational Center. R. Warshaw asked if the Association can switch the purpose of the grant money. Mr. Milner answered that all funding is triggered by of construction. R. Warshaw requested a letter from theFoundation stating that the contemplated switch was permissible by them. A Neiman asked if the Association would receive the McCormack Foundation grant, unless the $100,000 short fall was raised. Mr. Milner stated no. Chairman Bush asked if the Association could procure a letter from the McCormack Foundation approving the loan repayment to the City. A. Nowman stated that the request for the -3- Minutes - Housing Commission September 22, 1988 letter should not be seen as an approval for loaning the money. M. Wold made a motion to permit the use of the $73,000 grant for construction of apartments instead of the Vocational Center. This was seconded by a R. Warshaw, all were in favor and the motion carried. C. Schafer requested that Mr. Milner bring the list of organizations which are contemplating or have given money towards this project. Criteria for Township Fund. R. Warshaw started the conversation by stating that option 4 (purchase of condominium units) may be the most desirable since this would leave only the monthly maintenance fee as a cost. This option would not entail any costs for management. Township Supervisor Summers stated that those served would not be permanent tenants. Clients would stay until they were able to straighten out their situations. Chairman Bush stated that it is very difficult to come up with an idea where a maximum number of people would be helped. He stated the purchase of a permanent location might be the best option. M. Wold stated that a boarding housing idea is workable but public pressure maybe so intense that it would cause difficulty. A consensus was reached that the Housing Commission and staff should approach some relators who deal with primarily condominiums and see if the condominium purchase idea is workable. Discussion centered around the possible reception this idea might generate. R. Warshaw raised the issue of buying a building. Chairman Bush reiterated the problem with transitional living facilities is the question of management. R. Rudd mentioned that the YMCA is contemplating a rehabilitation project. H. Wold asked Township supervisor Summers how many general assistance clients are in need of housing on a month to month basis. Supervisor Summers stated that everyone is living somewhere either with family members or by themselves. M. Wold asked if 15 or 20 rooms at the YMCA would be enough to meet the demand. Supervisor Summers stated that the YMCA does not have kitchen facilities so clients would have to be paid more money since they would be forced to eat elsewhere. Chairman Bush asked about the demographic composition of general assistance clients. Supervisor Summers stated that there were approximdte_y fve families and 85% of the remaining clients were single males. Chairman Bush requested that an invitation be issued to Mr. Cyrus of the YMCA to speak on this project. M. Curry stated that a shift in attitude towards general assistance clients is necessary and that many of these people should be seen in a more positive prospective. After further discussion it was decided to place this item on the November 10 agenda. Comments Adl ournment M. Curry moved for adjournment, seconded by M. Wold. The meeting adjourned at 9:37 P.H. St a f f Bill Povalla 71(2/5) -4- DRAFT, NOT APPROVED DRAFT. NOT APPROVED MINUTES Evanston Housing Commission Thursday, October 13, 1988 Evanston Civic Center Room 2403 - 7:30 P.K. Members Present: R. Bush, M. Curry, A. Newman, J. Ritter R. Warshaw and M. Wold Members Absent: S. Brady, T. Bobinsky, D. Drummer, C. Ross, and C. Schafer, Staff Present: C. Powers, R. Rudd and B. Povalla Others Present: E. Summers, Township Supervisor, M. Milner, C. Manning, Ald. Rainey, J. Matykiewicz, I Kolker, R. Heiberger and C. Petersen Presiding Official: R. Bush Declaration of Ouorum The meeting was called to order at 7:40 p.m. Minutes of September 22. 1988. R. Warshaw moved and J. Ritter seconded the motion to accept the minutes as presented. All were in favor and the motion carried. Planning & Development Committee Minutes:. September 13 and 26, 1988. No Comment. zoning Commission Minutes and Agenda. R. Bush mentioned that these minutes should be put into paragraphs if possible, since the present format makes it difficult to read. He also mentioned that the Commission members should watch for housing related activities such as transitional living facilities. Court Cases J. Ritter had a question concerning the disposition of the 605 Oakton case. C. Powers answered that a final compliance letter would be sent out on October 20, 1988. Chairman Bush asked if there was anything that could be done to indicate how many times a particular building has been on court call on the report sheets which are submitted to the Housing Commission. Powers explained that we have that information but it is not readily available and would involve a lot of work. Chairman Bush asked if starting from this point forward if the number of court calls on a property could be indicated on the reports. Housing Commission — Minutes October 13, 1988 Over the Rainbow re Report to Citv Council. It was reiterated that the $74,000 could be reallocated for the use of housing construction/rehabilitation instead of for the Vocational Center. Mr. Milner asked if a letter was forthcoming indicating such. R. Rudd answered there would be one forthcoming. Since there were a number of people in the audience concerning the Over The Rainbow Association project, the Chairman indicated if there were no objections that item "C" under old business be the next item on the agenda. Hearing no objections the Over The Rainbow Association was invited to make their presentation. Over The Rainbow Association Mr. Mitch Milner began the presentation by introducing Ms. Claire Manning, who is the Chief Fundraiser for the organization. Mr. Milner gave a lengthy description of Ms. Manning's background and credentials. The Housing Committee then viewed a video program which is produced by All State Enterprises, The video explained an individual's story and showed how this facility will help him and individuals like him. Ms. Manning then explained that the film was developed in May and was being utilized now, with very positive results. She indicated that there were 75 proposals which were sent out requesting funds to major foundations and corporations. The time lines for the proposals are generally quite long, although the Over The Rainbow Association will be going before five or six boards in December with their proposals. She indicated that they will raise the money, the only question, is when. R. Warshaw asked; If the City lends funds based on the McCormack Foundations' financing, would this adversely impact the chances of receiving financing or grants from other organizations, since there would be an indication of paying off a debt. Mr. Milner answered no, since the grant has already been given and the money would be used to pay the City back. Chairman Bush asked if the City gave the $100,000 loan, what are the assurances that construction will be under way. He wanted to know if the Association was confident concerning the Vocational Center being completed and how much more money was needed to be raised for the Vocational Center. M. Milner answered that they have received a $100,000 Kresge Company matching grant. The construction cost for the Vocational Center is approximately $300,000 and he estimated that approximately $250,000 was needed to be raised, Chairman Bush asked how many tenants would be involved and M. Milner answered there would be 33 units. Chairman Bush asked if the project would be considered functional without the Vocational -2- Housing Commission - Minutes October 13, 1988 Center. Mr. Milner answered that the project would be functional but it is the Vocational Center which makes this project special. Ms. Manning added that the Vocational Center is the main selling point for this idea and that the Center and the apartments should be viewed as an entire package. Chairman Bush then clarified the point that if the Vocational Center is not completed, the City would not get its money. A. Newman asked when would the City be paid back. Milner answered as soon as construction starts on the apartments. The first $25,000 should be released around the end of November or early December. Milner then explained all the delays and bottlenecks and expressed concern that if Over The Rainbow does not have the $100,000 on hand when HUD does the mortgage credit, that HUD might stop processing the paperwork. Newman restated the question; When does the City get the $100,000 back. Milner answered that there would be $25.000 payments made on an annual basis. The first $25,000 would be released December, 1988 and $25,000 on each subsequent construction anniversary date. Newman asked about the $250,000 needed to be raised for the Vocational Center, and questioned if the City gives Over The Rainbow $100.000, and it takes ten years to raise the $250,000, then the City would be repaid in ten years, Milner replied yes but this would be a worse case scenario. Warshaw commented that she understands the delay because of the problems between the Metropolitan Sanitary District and HUD and realizes that the delay caused the set -aside cost to go higher. Milner stated that the lease payments on the property were crazy. The lease costs could increase up to 30% after the first ten years. After the next 10 years it could go up on additional 30%. HUD will not fund the possible additional increases and will only fund the initial amount. Chairman Bush simplified the issue at the request of a Commission member, stating that Over the Rainbow needs an additional $100,000 in order to demonstrate to HUD that this project is fully funded. Over The Rainbow Association received $100,000 from the McCormack foundation and now has a letter stipulating that their money could be used to repay a $100.000 loan made by the City. Newman stated that he is opposed to giving a $100,000 loan. He stated that in the past he has supported this project and believes that this is a good project with merit, but that Over The Rainbow organization already requested money and is now coming back again. Newman stated that he felt uncomfortable that groups keep coming back to the Commission because they view the Housing Commission as the easiest group around to get a bailout. He continued to state that representations were made in the past that the Over The Rainbow Association would raise all the money needed. The only way that he could support loaning the money is if the money could be found -3- Housing Commission - Minutes October 13, 1988 in the budget as being unallocated, and that any loan made, be paid back with 8 or 9% interest, and as an added stipulation, that the project be underway within two (2) years. Wold asked for M. Milner's reaction to a loan with interest. Mr. Milner indicated that he didn't have a problem with this. Chairman Bush stated that the City is tying the money to the McCormack Foundation and the McCormack Foundation will release funds if the Vocational Center is built. He stated that he was uncomfortable over the time frame of four (4) years and that the last thing built will be the Vocational Center. Milner reiterated that he does not have a problem with interest being charged. He only wanted to use the McCormack Foundation as a way to show the Housing Commission that there was cash behind his organization. Wold stated that she is nervous about loans being paid off by funds which are expected to be raised. She asked what happens if the City doesn't get its money back? Milner answered that HUD does not allow a mortgage on the building. Ms. Manning interjected that an option might be that the Vocational Center does not get built, in a worse case scenario, for 10 years, but it could be arranged to have a payback after four years. She stated this naturally doesn't solve the issue which Wold mentioned. She stated that there was no question in her mind that the funds will be raised. Chairman Bush asked when the closing date was. Milner stated that the critical date is when HUD processes the mortgage credit. He guessed that this date would be in two weeks. M. Curry stated that a viable interest option might be to assess interest after four year if construction is not complete. Warshaw stated that interest should accrue with a forgiveness clause. Interest would accrue on unpaid money. If project was completed, no interest payment would be due. Milner stated he had no problem with this option. Warshaw then made a motion to recommend to City Council that a $100,000 unsecured loan be made to Over The Rainbow Association with the balance payable over a four year period. In addition, such interest on the loan will be set at the prime rate at the anniversary date of the loan in each subsequent year, and shall be forgiven, if paid back over the four year period. The motion was seconded by Wold. The motion was then amended linking it to the McCormack Foundation money and that at a minimum the McCormack Foundation will be directed to pay the City back directly. This was offered as a friendly amendment and was accepted. All were in favor of the motion as amended, except for Newman, who voted "nay". -4- Housing Commission - Minutes October 13, 1988 B. Rudd explained to Milner that Over The Rainbow Association must draft an agreement and that the agreement must go through the Planning & Development Committee. the next City Council meeting was scheduled for October 24, 1988 and that he should allow two (2) working days to get documentation reviewed. Vacant Lots and Nays. Chairman Bush expressed some concern that a vacant lot at Ashland, Florence and Lake was not on the list or indicated on the map. Warshaw asked if the City had begun foreclosing on any of the liens on the vacant property. Rudd answered that most of the liens on the properties were for demolition and that the City had not foreclosed or begun foreclosure proceedings on these properties. Special Township Funds. Township Supervisor Summers introduced the HOME Group. Ms. Petersen then introduced herself and made a quick presentation. Chairman Bush asked if this group is asking for a loan or a grant. Ms. Petersen answered that the group would naturally prefer a grant but at present is caught in a chicken and egg problem. She stated that it is very difficult to come up with a firm dollar figure since there is no pro forma. She stated that "HOME" can't go to the Council of Jewish Elderly and not have a down payment or any cash on hand. She asked if the Housing Commission would be willing to give "HOME " a sense of if the Commission felt that this project was a good use for the money. Chairman Bush asked where the site was. Ms. Petersen stated that the site is located in the 8th ward at 135 Callan. Wold asked the appropriateness of using the Township funds to serve the population targeted by this project. Supervisor Summers agreed that it was. Wold asked how would the screening be done of the residents, and what will be the levels of their mental illness. Ms. Petersen stated that it was dependent on which organization they contract with. Their goal is to make sure that the residents be functional. In addition Ms. Petersen stated there would be supportive services. Wold asked if there would be staff on -site and for which periods of the day. Ms. Petersen answered that it really depends on the contract. Chairman Bush asked if she could be more specific. Ms. Petersen answered that it depends on the number of people who will live on the site. Wold stated that she was concerned with the ability of HOME to raise money. Ms. Petersen answered that the Council of Jewish Elderly has indicated they might be willing to give some support. The Department of Mental Health does fund operating costs as well. Wold asked if there will be a preference for people already living in Evanston. Ms. Petersen -5- Housing Commission - Minutes October 13, 1988 responded that excluding the facilities for, or giving preferential treatment to Evanston residents is against the law, but it is estimated that most of the clients of this facility will be Evanston residents. Chairman Bush asked if there has been any input from the aldermen of that ward. Ms. Petersen responded yes. Chairman Bush followed up by asking if there had been any meeting with neighborhood groups or residents. Ms. Petersen answered no, and it was a bit premature at this point. Chairman Bush requested that the aldermen of the 8th ward be invited to any further meetings before the Housing Commission and that neighbors or block groups also be invited. The Chairman indicated that site control is a very important issue and that the requirements for the Mayor's Special Housing Fund are specific and should be followed. He indicated that at this point, it is premature for the Housing Commission to make any kind of show of support or non-support. Ritter asked if this will be a self-supporting facility. Ms. Petersen answered that because no pro formes have been done she couldn't really answer this. Newman reiterated concern that the neighbors be contacted and Informed. Ms. Petersen answered that she agreed that the neighborhood should be informed but suggested at this point it may be a bit premature since no contract or agreement has been more than just discussed. Ald. Rainey was in the audience and she indicated that she would not vote for an appropriation of funds without massive neighborhood involvement. Chairman Bush stated that the HOME Organization should work with staff to determine the next steps in the process for requesting funds. Ms. Petersen thanked the Housing Commission for their time. A five minute break was taken. Ald. Rainey Reference re Amendment to Residential Landlord Tenant Ordinance. Ald. Rainey explained to the Housing Commission why she is trying to amend the ordinance. She stated that her concern is from an economic standpoint and is raising this issue because of constituent pressure. She stated that rents are extremely high and that all landlords are not requiring 1 1/2 months rent. She maintained that this is being imposed as a bias against people who for whatever reason are perceived as being high -risk. She stated that if a landlord doesn't like to rent to high -risk clientele then don't rent to those people. Yold asked that given the Fair Housing Ordinance in Evanston, can a landlord not rent to an individual because that individual can't afford a particular apartment, based on previous credit history. Rudd stated that previous history can be taken into account. -6- Housing Commission - Minutes October 13, 1988 Warshaw stated that she does not see the 1 1/2 months security deposit as being a negative, but as a positive, for the renter because it opens opportunities for people to rent an apartment who otherwise couldn't, because of a perceived risk factor. Curry told a story of a parishioner of his indicating that there is a very real problem in the community and that a landlord would not even accept the extra half month's deposit which was backed up by the Church. Jim Matykiewicz handed out a document to the Commission members which outlined some problems which the Evanston Property Association of Evanston has had with the Housing Commission with getting issues on the agenda. Chairman Bush responded by saying that as long as he has been Chairman, anyone that wanted something placed on the agenda would be heard. Mr. Matykiewicz stated that this all sounds nice but he does not know the ground rules. the Chairman stated that Mr. Hatykiewicz or anyone wanting to put something on the agenda should call Bob Rudd. The Chairman then stated that no final decision would be made on the security deposit issue at this meeting. Mr. Matykiewicz then left the meeting. Mr. Irving Kolker introduced himself and began a discussion on how this was being viewed from a landlords' perspective. He stated that the realty is that Evanston is an expensive place to live. He explained that in some instances he has been very flexible with tenants in paying the 1 1/2 months security. He indicated that 1 1/2 months rent gives him a feeling of more security and thus he may rent to someone who is borderline or may not have the best credit history. He also brought up the issue that in 401. of the cases tenants move out of an apartment without paying the last months' rent, which in effect leaves a half months' rent to cover damages. Newman asked if Mr. Kolker has a concern for people who have lived in the community for a long period of time and have to move into an apartment to stay in Evanston. Mr. Kolker explained he has a concern but these concerns should not be legislated on the back of the landlord. Bob Heiberger made a number of points. He stated on a single-family residence the month and one half rent provision simply does not cover the coats. He thought if the ordinance only permits one months security it will be even that much more onerous. Chairman Bush stated that this issue would be before the Housing Commission at its next regularly scheduled meeting. Newman stated that he thought there was a communication problem. He wanted it clear that the Housing -7- 1 Housing Commission - Minutes October 13, 1988 Commission welcomes EPOA's input. Mr. Heiberger reiterated that EPOA feels that their concerns have not been given adequate consideration by the Housing Commission in the past. Chairman Bush again emphasized that if EPOA or any other group wishes to have something placed on the agenda, having to do with housing related matters to call Bob Rudd or himself. He stated that the Housing Commission is for all groups not just tenants or not just landlords. HAP Three Year Plan Wold made a motion to approve the three year Housing Assistance Plan (1988-91). R. Warshaw seconded the motion. All were in favor and the motion carried. Comments Chairman Bush commented on the City Council's vote concerning the EHC project. The Chairman, Ald. Warshaw and Ald. Morton will be the representatives from the City. The Chairman indicated that he welcomes everyone's input. Curry commented that a meeting was held at his Church and the Mayor was present. One EHC member was present and the Wesley/Greenbay Project was informally discussed. Newman mentioned that the meeting scheduled for the 27th of October was in conflict with the Unified Budget meetings and that it would be a good idea to hold the regularly scheduled Commission meeting on Wednesday, October 26, 1988. All were in favor. Adjournment Wold moved for adjournment, seconded by Ritter. The meeting adjourned at 10:25 P.M. Staff Bill Povalla 71(1/8) -8- DRAFT. NOT APPROVED DRAFT, NOT APPROVED MINUTES Evanston Housing Commission Wednesday, October 26, 1988 Evanston Civic Center Room 2403 - 7:30 P.M. Members Present: R. Bush, S. Brady, A. Newman, J. Ritter, C. Ross, R. Warshaw and M. Wold Members Absent: M. Curry, T. Bobinsky, D. Drummer and C. Schafer Staff Present: C. Powers and B. Povalla Others Present: None Presiding Official: R. Bush Declaration of Quorum The meeting was called to order at 7:42 p.m. Minutes of September 22, 1988. M. Wold moved and C. Ross seconded the motion to accept the minutes as presented. All were in favor and the motion carried. Planning & Development Committee Minutes: October 10. 1988, C. Ross asked about the satellite dish issue and whether it was ultimately approved. C. Ross also stated that there was a similar dish on top of a garage located on Forest Place near Davis. A. Newman asked about the status of the Burglary Prevention Ordinance. S. Brady stated that the ordinance is being worked on and should be presented shortly. Housing & Community Development Act Committee Minutes: October 4, 1988: Minutes and Agenda. M. Wold asked why the TOE proposal was heard under the public services division as well. R. Bush commented that there were a number of other repetitions as well. C. Powers clarified the CDBG process, by stating that all organizations which submitted proposals were invited to :hake presentations at the October 4, 1988 meeting. Special Township Funds C. Powers stated that at the next meeting, criteria for putting an RFP Proposal will be on the agenda. R. Bush asked that the tenant landlord ordinance issue, which addresses reducing the amount of security deposit a landlord can charge be changed from one and one-half month to one month, also be placed on the agenda. Housing Commission - Minutes October 26, 1988 Community Development Block Grant Housing Proposal: Chairman Bush thanked the eight Housing Commission members who attended the joint meeting of the Community Development Committee and the Housing Commission on the previous night. The Chairman stated that he Was thinking of making the recommendations in five categories high priori ty,priority, neutral, negative priority and not a priority. S. Brady expressed that high/low priority maybe a bit too simplistic and wanted to make sure that comments would be transmitted as well. C. Ross stated that the view presented from the Housing Commission in the past, was if someone was opposed, mention was made, and if the vote was unanimous then it would reflect a greater endorsement. Newman stated that he did not think the process was very good. He felt that staff was making a lot of policy decisions on these projects and was deciding the types of programs and where the resources are spent. He felt that the Housing Commission should have more to say in these matters. In addition, he felt that the in-depth review of these proposals should be done on the Housing Commission's schedule and not on Community Developments. He suggested that if possible, the Housing Commission should look at things earlier and lobby Council if Community Development disagrees with the Housing Commission recommendations. Wold asked if Newman was referring to just the City proposals. Newman replied that he is interested in developing the process for all projects. Wold questioned Newman further and asked if he wants organizations like the Tenants Organization of Evanston to come directly to the Housing Commission. (Bush stated that he is not sure if the Housing Commission is responsible for reviewing the organizations before September or October. Neuman stated that the decision to fund rehabilitation versus demolition versus code enforcement is important. To see the Community Development Committee talking about this and making these decisions when there is a Housing Commission represents a problem. It should be possible for the Housing Commission to have significant input in developing housing programs for C.D. funding. Bush stated that this really is as much a political issue as a policy decision. As long as the Housing Commission reports to the City Council through another Committee, this situation will remain. In the past some issues were never raised. Today, he feels that there is a higher level of expertise on the Housing Commission and therefore the issues being raised are bound to come up. Brady stated that the 1974 Community Development Act purposely referred to Housing & Community Development and that the Housing Commission's job is to make sure that a substantial percentage of funds goes to Housing activities. A general rule of thumb is that a minimum of 1/3 of a Community's CDBG money goes to housing rehab activities. She stated that she faults herself, the Housing Commission and the City for not coming up with more housing programs. Warshaw stated that she agreed that what was needed is more creativity, and that housing priorities should be -2- Housing Commission - Minutes October 26, 1988 set by the Housing Commission. Newman stated that part of the problem is that the City doesn't spend the money which is allocated. Bush stated that maybe because there is so little being spent on housing that there maybe some merit at examining the programs in place. Ritter stated that it seems that the assignment to staff appears to be, to keep the engines humming on what is in place, and not necessarily on developing new programs. The discussion of projects began with proposal #30. Minor Repairs and Painting Assistance Program - Sponsored by CEDA/Evanston Neighbors At Work. Bush gave a brief summary of the program. He gave an overview of the presentation which was made the night before. Bush stated that one of his major questions was why the director needs twenty-four days of personnel time and compensatory time. Newman answered that he had the same question, but was told that this is comparable to City staff. Ritter asked when will the committee rank each project, and Bush replied after each one is discussed. Brady stated that the positive aspect of this program is the training component, but that the program is far too expensive for the output. She stated that the concept is totally valid for senior citizens and other individuals, but from a housing standpoint it has some flaws. She stated that she does the kind of work this organization does everyday and felt that she can informatively say that the cost and output do not match. She stated that it would be very difficult to continue supporting this program. She stated that she would support this program if the funding request was cut in half. Warshaw stated that this was more of a training program and that she felt they were very good as a training program, but in her mind there is a question about the quality of work, especially since she has had a number of constituents ccmplain about the work which was done. She stated that the City is not getting its moneys worth and the results are not terrific. Bush asked if the cost of repairs is above a given threshold, and if that so, are cases then given to a City department? He stated that it was his understanding that the internal threshold was $500.00 per item. Newman asked if the work was contracted out privately, how much would it have cost. He stated that this program is the major housing program in Evanston. He stated that it is amazing how easily this program goes through the CDBG process and yet it is nearly SOS of the housing component's funds. Bush asked if the training program lead to union membership since the issue was raised the night before. He answered his own question by stating no and proceeded to explain that the hourly work rate paid was too low and that the program was not meeting the specifications set down for a union authorized training program. -3- Housing Commission - Minutes October 26, 1988 cold stated that her problem is determining a priority rating for this project. She stated that the concept is an excellent one. She said that the training and minor repairs is good but that the amount of money being spent on the project and the results shown thus far are not very effective. She asked the Housing Commission when making the recommendation to word it in a way to reflect the high priority of the goals, but the way in which the money is spent as being low priority. Hitter said that if we have experts on the Housing Commission, then perhaps the board should look at the expenditures and give helpful hints. She also questioned if the pay was increased would that lead trainees to union membership. Bush reiterated that the training program is not union sanctioned. Ritter stated that she had figured out the cost per job at $1,677. Ihis was derived from 161 jobs and $270,000 spent. Newman again stated that he would like to see what the cost of the program would be administered by the private sector. If the cost of the program could be accomplished at $100,000, he stated, he would be in favor of giving $25,000 to the Youth Job Center for training. Warshaw stated that it was her understanding that some of the participants are not really getting jobs. Bush stated that he thought the Commission was losing focus by discussing the training aspects. Ritter then asked where is the money we use to rehabilitate houses going? Newman stated that the original point is being lost. No matter how good the training is, or is not, the real issue is what impact has this organization had on housing. Ross stated that to judge impact is very difficult. Newman stated that most of the jobs which individuals are being trained for is painting. He stated that there is not a high volume in painting jobs. Ross stated that he felt that from the information given the Commission, one can not get an average cost per job. He stated that fifty three interiors were done at $3,000 each which equals $150,000. Twenty-one exteriors were done at $5,000 each which equals $100,000. He stated that the Commission has no idea of what kinds of houses were done. The Commission doesn't know if trim was painted, or just the exteriors of the homes. He continued, that he heard alot of valid comments but now this is at the eleventh hour and it is very difficult to reco=end pulling an existing program when the criticism has not been offered directly to the director or representatives of the organization. He stated that if there were questions with the program, then the Commission has got to take those questions back to the organization. -4- III °IIIII Ill ryi III ' I q v I li 11 11 111111l1 II' ^ 1^ M 111 il 11 11 9I 111 , 11 �l I. I I Ill 1 1 1 1 I111 1 11 Housing Commission - Minutes October 26, 1988 Bush asked if City inspections were performed on homes which utilized this program. Powers answered that if a permit was pulled, they would be inspected. Bush asked if there was any estimate of the number which had permits, and Powers answered she did not think it was very many. Warshaw stated that a repair and employment training program is difficult to combine. If the priority is on repairs, the training component suffers. If the priority is on the training component, the repair portion suffers. She indicated that perhaps the Housing Commission should ask Neighbors At Work to prioritize. Brady stated that she felt that a more structured program was needed with only 1-2 trainees per professional tradesperson. Bush asked that a vote on the purpose of the program be taken. Ross recommended that the Commission vote, and give this program high priority but the Housing Commission would then audit the program. Wold stated that the last time the Commission asked for this information they never showed up. Ross stated that every organization keeps records, and if they don't show up then during the next CDBG funding cycle, the Commission will raise the question why they did not appear, and then we can recommend not giving any money. Bush stated that whether the organization sends a representative or not to the Housing Commission,`a meeting in the future should be reserved for discussion of this program. Bush then called for a motion to give high -medium or low priority to the purpose of the Minor Repairs and Painting Assistance Program. Newman stated that he was uncomfortable with this system since the recommendation will not really reflect the discussion. Ritter made a motion that the Housing Commission make a decision as to high priority but in addition, ask the Chairman with help from staff to draft a letter to Evanston Neighbors At Work outlining the discussion of this meeting and set up a meeting in the future. The motion lost for lack of a second. Brady made a motion that the Housing Commission rate this program as having a high priority for goals, but low priority for program design and implementation. Warshaw stated that the real question is if this is an effective use of funds. -5- Housing Commission - Minutes October 26, 1988 Bush stated that he agreed with Newman and that the goal of Neighbors At Work is a high priority but a number of questions on the way the program is administered, funded, and supervised were raised, and that the organization should work with the Housing Commission to find answers to these questions. This was placed in a form of a motion. Wold seconded the motion, all were in favor and the motion passed. Newman stated that he might make another suggestion that staff find out what was done on the 160 jobs and find out what it would have cost privately. He suggested that this be done in the first quarter of 1989 and be placed on the Housing Commission agenda. It was then asked if staff could do an in-depth review of the summer quarter. Item #35, the Home Security Lock Program There was a brief discussion. Newman moved that this program be given a high rating, Warshaw seconded the motion and all were in favor. Item #37, the Safe Homes/Code Enforcement Program sponsored by the Tenants Organization of Evanston (TOE). Warshaw stated that the long-term goals are better than the short-term goals. She did not understand the linkage between the long-term goals and the short-term goals. Wold stated that she agreed with Warshaw and that this was a proposal that had something there for everybody. She continued, that it is unrealistic to think that TOE will be able to accomplish all of what they propose. Brady stated that this proposal was placed under housing but the way it is worded it is very close to public rservice. She stated that she would like to fund this because Evanston needs a tenant organization but that the goals of assisting the residents in self -inspections of their dwelling units and to help arrange for and coordinate inspections by the City are borderline; per the regulations, in having this considered as a housing program. Powers stated that in order for a proposal to be placed in housing, it has to have a direct housing delivery service. It must be directly connected. Ross stated that the Housing Commission and CDHG is already funding City staff to accomplish the same objectives which are listed in the proposal. He was concerned with the overlap. He then asked, when whoever will be taking complaints on the phone, how does that person screen individuals for income information or for a determination that the caller lives in the target area. He stated that if TOE is funded for their various proposed activities, money should be subtracted from the City's proposals, but ultimately, it is the City which has the power to move against landlords legally and TOE can not do this. -6- Housing Commission - Minutes October 26, 1988 Newman stated that if CDBG money is used for TOE to answer complaints he is In favor. If money will be a supplement to code enforcement he would also be in favor since there are a numbed of buildings which have fallen through the cracks. He stated that his reservation is that the proposal is very ambitious and that it will be very difficult to deliver all that it promises. He continued to say that the Tenant/Landlord Ordinance is very progressive but the enforcement of the ordinance is questionable. It is like a divorce decree in a drawer. The City needs someone other than the Housing Planner to do this. Ross stated that enforcement is the reason why the City should do the kinds of things called for in the proposal, because there is something backing it up. Newman stated that all disputes between landlords and tenants are being handled by the Housing Planner. Ross reiterated that this is not what the TOE proposal is trying to do and thus the discussion about the Housing Planner position has no bearing on what was presented last night. Newman stated that the proposal is not offering duplicate services. Wold asked, couldn't the Housing Commission take the money which TOE is asking for, and hire another City employee? She stated that in order to support this proposal she must be convinced that TOE would be better suited to handle the problems addressed in the proposal, than the City. Bush commented that TOE will not get the kind of person which is needed at the proposed salary rate and benefit level. He stated the person would be a virtual volunteer. The attitude expressed by the salary level causes failure. Unless there is sufficient staff at the City level to handle the increased number of claims which this program will generate, there will not be an improvement in the inspection or the enforcement process. It costs approximately $43,000 for a City inspector and he stated that if someone adds $5,000 to what is proposed, another City inspector could be hired. Newman directed his comments to cold and stated that if there was someone at the City solving tenant/landlord problems, he would be in favor of giving more money to the City. He stated that one of the goals should be to help people on the tenant side. The question is if the City will actually commit to hiring another staff person. cold answered that the politics of this is incredible, City staff versus funding an equivalent amount to TOE. She stated that she would not want to predict that. She stated that personally given a choice, she would lean to giving the money to the City in order to have more support services. Ritter stated that she was a bit confused with the proposal, although she thought a liaison or ombudsman was a good idea. -7- Housing Commission - Minutes October 26, 1988 Warshaw stated that people are generally afraid of repercussions and by the City's involvement in a landlord/tenant dispute. She stated that there is obviously alot of confusion about the proposal, but the salary is not that bad, and that many people will look for a job just like the one proposal because of its satisfaction level. Brady stated that she has a problem with the program design because she sees it as being too ambitious. She stated that TOE may have an excellent idea and proceeded to say that perhaps for the first year TOE may want to scale it back. She then gave an example of a scaled back version, whereby TOE, with input by City staff, would concentrate their effort in 3 or A census tracts, hire a part-time employee, and work with the objectives to make them more realistic. She continued that the program should be tested for one year and would then be looked at, and analyzed, to see if it made a difference. This approach she continued, gives the opportunity for a demonstration project. Bush commented that the money doesn't need to be cut but that the program itself needed to be cut back. He stated that for one person to deal with both violent crime victims and inspections is a full time job. Bush stated that by cutting the request by 50% the City would be open to the criticism that they did not give TOE enough resources to handle the project. He stated that giving only 50% is not a real good test of the program. cold stated that as the proposal stands at present, she would not support it. She stated that it is too much, and is a duplication with various City services. Warshaw stated that if the proposal was a simple ombudsman type program, which would help residents with housing problems, she is heartily in favor, but there is too much extra baggage with the proposal as it now stands. Newman stated that he could support Brady's idea, that it was worth giving money to this project, and that he believed that TOE is truly a dedicated organization. He continued, that perhaps TOE is not aware of the needs of the City. If possible, he would like to see a redesigned proposal for the following year. To place this as a demonstration project is not unreasonable and therefore he could support it. Ross stated that he could go along with Brady's idea but could see some potential trouble spots. He stated that he was especially leery of setting up a body which will do what the City should do, because it leads to possible conflict. -8- Housing Commission - Minutes October 26, 1988 Newman stated that with a Not -For -Profit, you get more enthusiasm, and that this might be what is needed to insure stricter enforcement of the codes and involvement by neighborhood block groups in crime prevention. He stated that you can not rely on City staff to have the same kind of enthusiasm that another individual might have. Ritter asked Powers and Povalla for their opinion. Powers answered that she really didn't have an opinion, and briefly explained the present Property Maintenance procedure for answering tenant complaints. Wald stated that the amount of enthusiasm maybe correct, but she remembers other organizations which had enthusiasm, and that enthusiasm alone is not enough. Newman responded that TOE is different because of its ties to block groups, banks and other organizations. Brady made a motion that the Housing Commission rate this project as having a high priority for the Initial year of funding and that this project is done on a test basis. The project should be operational in several contiguous census tracts that have high crime rates, and at an amount of $15,000. The motion was seconded by Newman. A vote was taken and the motion passed with a 5-2 vote (Wald and Bush voting nay). Brady stated that something be added that there was agreement on why the two members descented. Bush made a suggestion that the project be given a low priority but that a test program in the amount of $15,000 with an emphasis on code enforcement and housing issues be given a high priority so that TOE can demonstrate that this project is sound and will generate positive effects. Brady commented that she likes the proposal but thinks that the way it is worded may take the program out of the housing category. Wald made the suggestion into a motion. Nearman stated that he didn't like the motion and would not support it. Brady then offered it as a minority report. Warshaw left the meeting. Proposal #30 and #31, Housing Rehabilitation and Construction Administration and Proposal #32, Housing Rehabilitation and Property, Maintenance Administration. Bush asked if these proposals were solely for administration. Powers answered yes. Bush then wondered aloud if these requests were not funded at the requested levels, if someone would be fired or would there be serious problems. Wald stated that there is a short fall in projected revenues for the upcoming budget. She stated that this will be a rather lean budget. -9- Housing Commission - Minutes October 26, 1988 Bush stated that consideration should be made for more inspectors. Bush questioned if another inspector can be hired or an additional staff person be added to help the Housing Planner answer tenant/landlord calls. Wold stated that if the Housing Commission went to the City Manager requesting an additional inspector or landlord/tenant individual, it would not pass because of the budget. Bush commented that the Housing Commission should not be afraid to say that more staff is needed. Ross suggested that a review of City programs and staff be placed on the agenda within the next six months. Wold made a motion that proposals #30, #31, #32 and #33, be given a high priority. Brady seconded the motion, all were in favor and the motion carried. Newman commented that he wanted a good housing department and that at present he did not think that the City was too cost efficient. Bush commented that the Commission might want to research the Housing and Property Maintenance Department and study where changes might be made. Proposal #34. Demolition and Vacant Lot Improvement. Brady commented that this was a good program. Wold stated that the lien concept is a good one since by spending money the City will realize at least some of it back eventually. Newman stated that the amount which the City will get back is very small because most of the vacant lots are unbuildable. Wold made a motion to give this project a high priority rating and indications why. Ritter seconded the motion, all were in favor and the motion carried. Comments Wold wished to have inserted into the minutes that Powers made an excellent presentation in front of the Community Development Block Grant Committee and that she should be made aware of the Housing Commissions feelings. Adjournment The meeting adjourned at 10:00 p.m. DRAFT, NOT APPROVED 71(1/10) -10- DRAFT. NOT APPROVED MINUTES Evanston Housing Commission Thursday, November 10, 1988 Evanston Civic Center Room 2403 - 7:30 P.M. Members Present: R. Bush, S. Brady, A. Newman, J. Ritter, C. Ross, R. Warshaw and M. Wold Members Absent: M. Curry, T. Bobinsky, D. Drummer and C. Schafer Staff Present: C. Powers, R. Rudd and B. Povalla Others Present: Lisa Capitanini Presiding Official: R. Bush Declaration of Quorum The meeting was called to order at 7:35 p.m. Minutes of October 26, 1988. M. Vold moved and S. Brady seconded the motion to accept the minutes as presented. A Newman objected and proposed the following amendments. On page 3, third paragraph, strike the words, "and yet it is nearly 50% of the housing component's funds". Newman requested that in paragraph five that the last two sentences be stricken. Ross asked if in paragraph 2, page 7 that, "and thus the discussion about the Housing Planner position has no bearing on what was presented last night" be stricken. Neuman requested that on page 8, paragraph 6 that the word strongly be inserted before the word support. Newman requested that an page 9, paragraph 4 that the minutes be rewritten to read "Newman stated that he didn't like giving low priority to this project and therefore would not support it." cold then made the motion and Brady seconded the motion to accept the minutes as amended. All were in favor and the motion carried. COMMUNICATIONS Planning & Development Committee Minutes: October 24, 1988. The Commission had no comments. Housing & Community Development Act Committee Minutes: October 11 and 18. 1988: Minutes and Agenda. The Commission had no comments. Zoning Commission Minutes and Agenda: October 17 and 31, 1988. The Commission had no comments. Housing Commission - Minutes November 10, 1988 An Example of Linked Deposit. Warshaw commented that she placed this item on the agenda as an information source. Bush commented that the Special Ad Hoc Committee dealing with this issue was held before this meeting. Delinquent Tax Sale Constitutional Amendment. Warshaw commented that this was on the November 8 ballot as an amendment to the Illinois Constitution. She stated that the measure received a 59.2% yes vote but did not pass because a 60% yes vote was needed. Clarification of Vacant Housing Commission Seat. Povalla mentioned that this was a clarification of a previous transmittal to the Housing Commission. He stated that Gail Outlaw's position does not need a replacement since there are still three (3) tenant members on the Commission. He stated that a letter was sent to Ks. Outlaw which requested her to write a letter of resignation. As of the morning of November 10, the Clerk's Office had not received such a letter. Bush made a suggestion that a letter of resignation be drafted and sent to her with a return envelope. Court Cases Bush commented that only a few cases were showing more than four appearances. He asked if the figures represent cumulative violations on the properties or represented the times in court for the same violation. C. Powers stated that the figures represent the times in court on the originally cited violations. Bush commented that he hoped that Corporation Council was objecting strenuously after four (4) continuances have been filed on a particular case. A number of cases were singled out by Housing Commission members. Discussion ensued concerning a number of properties listed on the report. On a related issue, Wold made the comment that everyone who is working on the Dodge Avenue situation should be congratulated since only one family remains on the premises. Brady asked if the Dodge Avenue tenants had received their Section 8 Certificates. Rudd and a number of Commission members commented that the Section 8 Certificates have not come through. It was revealed that all families living at the Dodge Avenue addresses, who had school age children were relocated to housing in Evanston. OLD BUSINESS Ald. Rainev Reference re Amendment to Residential Landlord Tenant Ordinance. R. Bush gave an overview of the issues involved with the proposed change. R. Warshaw asked if anyone had studied what other community's regulations -2- I- 111 1 "' 1' I' 1 III 1 I IIII II I I I'l l^ I I JA , I III 1 11I1 III i l l 111 111111 1 11 1 -111 1 9 1 l i mil Housing Commission - Minutes November 10, 1988 were, and which had restrictions on the amount of security deposit that can be held. She stated that she can see both sides of this issue. The one and one-half month's security deposit allows marginal tenants an opportunity to rent, but on the other hand she is fearful that the one and one-half month security deposit is being used in a way which might be racially biased. C. Ross stated that he remembers that this issue had been discussed by the Housing Commission before. The argument for one and one-half month's security deposit is that many tenants use the security deposit for the last month's rent. The consensus was that one month's rent was not enough insurance for landlords and perhaps the one and one-half month's security deposit was a compromise. Rudd stated that originally the ordinance stated two months rent and was reduced. Bush stated that at the public hearing, the Evanston Property Owners Association brought out the fact that 60% of tenants use their security deposit for the last month's rent. Brady stated that a compromise might be to allow tenants to take up to six months in order to come up with the half months' portion of the deposit. Warshaw commented that she thought most landlords charge only one month's security deposit. Povalla commented that from the complaints generated on landlord tenant problems that one and one-half month's security deposit is more prevalent. Newman stated that Brady's suggestion may solve the problem. He indicated that he would like a periodic report what landlords and tenants are complaining about. Bush asked if a monthly summary could be given to the Commission members concerning landlord/tenant complaints. Ross made a motion that the Housing Commission recommends that the Landlord/Tenant Ordinance be amended to state that the amount of security deposit in excess of one month's rent be allowed to be paid over a six month period. Brady stated that the Housing Commission needs more documentation before forwarding this amendment to the Planning S Development Committee. She stated that there had to be some basis for change. Warshaw recommended that Ross' motion be tabled in Committee. Newman suggested that staff might prepare a memo giving some figures on this based upon landlord/tenant calls. Povalla cautioned that figures obtained from that source would not be totally valid because it would be complainants only. Brady added that additional time would afford staff a chance to provide the new language. Ross withdrew his motion for amending the ordinance. -3- Housing Commission - Minutes November 10, 1988 Special Township Funds A memo to Commission members was passed out listing questions on various housing programs for expenditure of Special Housing and Township funds. Povalla made a short presentation. Wold wanted to limit the discussion to the five (5) general questions. Warshaw suggested that the discussion related to questions regarding expenditure of Special Housing and Township funds be postponed until the November 17th meeting. Ritter asked the status of the EHC situation. Some discussion ensued whether the issues surrounding the City Council's executive session could be discussed. The question was raised if the Housing Commission went into executive session could the issue be discussed. It was determined that the issues raised in the City Council's executive session could not be discussed by the Housing Commission in closed or open session. Ross asked if the Commission could talk about the project which will utilize the District 65 Warehouse on the south side of Oakton Street. Rudd stated that someone had talked to staff about this project concerning funds. Bush stated that Carol Phelan wanted to come before the Housing Commission solely illicit support before she went to the Zoning Board. He stated that if material is received in time. this project should be placed on the agenda for the next meeting. Rudd reminded Chairman Bush that the information deadline was this afternoon. Newman made the comment that concerning the EHC situation, that if concessions are made by the City council, that these concessions should be publicly debated and if adopted should be sent back to the Housing Commission. Bush stated that when the Housing Commission made the foreclosure recommendation, that the responsibility went to a higher body. Newman stated that any concessions which are made should have had an opportunity for the public to comment on them. Warshaw stated that if radical changes are made by the City Council, the agreement be sent back to Housing Commission, so that the details of the new agreement could be made available for all of the Housing Commission members. Rudd stated that the December meetings were scheduled for the 8th and 22nd. Brady moved that the second meeting be moved to December 15th. Warshaw asked that the second meeting not be a business meeting but follow past tradition and be a party. Adjournment Ross moved and Warshaw seconded a motion to adjourn. The meeting adjourned at 8:32 p.m. Staff:QL� Bill Povalla 71(1/4) DRAFT, HOT APPROVED -4- IJIII R ' I�� q I R1�1 II i i n n ICI h �A � II 1�� ' q I, I ri� �I ' 71 P DRAFT. NOT APPROVED Members Present: Members Absent: Staff Present: Others Present: Presiding Official: MINUTES Evanston Housing Commission Thursday, November 17, 1988 Evanston Civic Center Room 2403 - 7:30 P.M. R. Bush, S. Brady, A. Newman, J. Ritter, C. Ross, R. Warshaw and M. Wold M. Curry, T. Bobinsky, D. Drummer and C. Schafer C. Powers, R. Rudd and B. Povalla Lisa Capitanini R. Bush Declaration of Quorum The meeting was called to order at 7:40 p.m. Planning & Development Committee Minutes: November 7. 1988. Chairman Bush commented that the Burglary Prevention Ordinance will be Introduced to City Council on Monday, November 21, 1988. He asked if there was an internal rule which mandates that an ordinance be introduced on one night and then the City Council passes the ordinance at the subsequent meeting. Warshaw stated that an ordinance is generally introduced on one night and then passed at a subsequent Council meeting or "second reading". Wold asked how the Burglary Prevention Ordinance is different than when it was presented to the Housing Commission? Warshaw stated that there were not that many changes. Rudd stated that an issue which will need to be clarified is that the word accessible should be placed before the mention of windows, sliding doors, etc. Brady stated that the Ordinance defines what its scope will be and uses the same language as the Landlord/Tenant Ordinance in describing its applicability. She stated that all windows, doors, etcwere covered under rules for new construction. She stressed that the draft ordinance passed the Planning 6 Development Committee by a unanimous vote. Ritter asked if the loan to the Over the Rainbow Association was completed. Bush answered that the City Council took action on this. Memorandum re Housing Commission 1989 Meeting Schedule. Bush asked if this was basically the same schedule as this year, the second and fourth Thursday of each month, expect for November and December. Povalla answered it was. Brady moved and Warshaw seconded the adoption of the proposed meeting schedule as presented. All were in favor and the motion carried. Housing Commission - Minutes November 17, 1988 Bush made a recommendation that the Committee take up the new business item. Hearing no objection, the Commission moved to new business. Brady stated that the Burglary Prevention Ordinance passed the Planning 6 Development Committee unanimously because there was reference made that the Mayor's Special Housing Fund might set up a program to help property owners pay for activities which will help bring their buildings into compliance with the new ordinance. Ald. Morton had strong feelings on this matter and stated that she could not support the Burglary Prevention Ordinance without this program. Brady stated it was the Housing Commission's job to come up with criteria to identify Income eligible landlords. Vold commented that she had previously disapproved of the Mayor's Special Housing Fund being used in this manner but she stated that Brady's explanation did clarify how this idea was started. Ross asked if the multi -family rehabilitation program might be a vehicle which might be used to help income eligible landlords comply with the ordinance. Powers stated that it wouldn't work because the multi -family rehabilitation program covers all code violations and is not geared towards the correction of one item. Warshaw stated that Rental Rehabilitation may be too burdensome for just installing locks and other safety precautions. Her concern is for the lower Income landlord who has a two or three flat. She agreed that a separate program to allow a low income owner to increase security and meet code requirements is a good idea. Newman raised the issue that there will be a great deal of time spent figuring out if a landlord qualifies for such a program. He wondered if the amount of paperwork which has to be done is worth the $500 or $1.000 that an owner might receive. Ritter asked what are the requirements for the paint program. Rudd answered that individuals must be of low to moderate income. Ritter asked how are those persons' incomes verified. Powers answered that a copy of the individuals tax return for the previous year is used. Rudd stated that staff could come up with an equitable program. Bush asked that the program guidelines be placed on the February 9th agenda of the Housing Commission. Rudd commented that the Burglary Prevention Ordinance would be mailed out in the spring and late summer with the other mailouts which go to landlords. -2- Housing Commission - Minutes November 17, 1988 Special Township Funds Bush stated that additional money will be returned to the Mayor's Special Housing Fund from the sale of a rehabilitated building because of a tenant problem. Bush also raised an issue which aired on the ABC News Nightline program which dealt with HUD foreclosures being given to homeless families. Ritter asked if there were many HUD foreclosure homes in Evanston. Powers answered that there are not too many and that the structures which are foreclosed by HUD are rapidly bought on the private market. Bush mentioned that in some communities, the City has the right of first refusal on HUD foreclosed properties. Rudd stated that this type of program exists where the City steps in, and buys foreclosed properties at HUD's asking price. Bush asked if this type of program should be a policy for the City of Evanston. Rudd answered that he thought the Housing Commission already has that direction from the City Council. The real problem is you have to know what you are going to do with the foreclosed properties before you buy them. Rudd mentioned that he had just attended a seminar in Chicago, which outlined some innovative programs. Nationwide, communities are taking control of HUD properties, fixing them, and selling them, with a major write down of the cost. This approach avoids the prepayment of mortgages. The downside of the program is that people feel as if they are renting and sometimes will not see themselves as homeowners. Bush stated that the program sounds interesting, but in Evanston, there is a lack of housing stock to work with. Rudd stated that what is needed is a program put into place before any decision to buy a property is made. Wald asked how many HUD foreclosures came up in Evanston per year. Rudd answered maybe three per year. Brady asked who sets the foreclosure price? Rudd answered that HUD sets the price, and the prices are very difficult to negotiate downwards. Warshaw commented that she felt compassion for the poor people who were struggling with the foreclosed properties and who then subsequently lost them. She indicated that some supplemental program like financial counseling maybe needed before foreclosure occurs. Rudd commented that it is very difficult to identify the people having difficulties meeting their mortgage payments. Brady mentioned that there are certified HUD counselors who have access to a list of properties in danger of foreclosure. -3- Housing Commission - Minutes November 17, 1988 Brady began to talk about criteria for an RFP for the Mayor's Special Housing Fund and Township funds. She stated that the Housing Commission needed general criteria, not necessarily criteria which is aimed at a particular targeted population group. She commented that she liked the idea of three people forming a subcommittee to work this out. Rudd asked in a general sense, what the Housing Commission wanted. He stated that prices are so inflated in Evanston that buying a home on a moderate Income is virtually impossible. Additionally, he stated that there is a very small number of units which low and moderate income residents could afford. Bush commented that an RFP would not be able to solve all of Evanston's housing problems. Wold stated that a set of general guidelines should be made so as to facilitate the flexibility needed, for example, if a group wanted to purchase a four unit building to help house homeless families. Bush stated that he thought site control might weed -out a lot of unworkable proposals. Newman stated that a site control requirement does make a prospective organization or group serious, but he pointed out that the Housing Commission lost the project with the Interfaith Housing Group because of the site control limitation. Brady commented that she is not displeased with the conceptual amounts of money for the various targeted populations. She stated that the Mayor's Special Housing Fund has approximately $200,000 for transitional living arrangements, $500,000 in multi -family programs and $450,000 for single family programs. In addition there is $500,000 from the Township which is earmarked for low income single individuals. Rudd commented that $137,000 was earmarked for the Over the Rainbow Association. Wold asked the group to think of the parameters which all of the Committee members could agree on. Rudd stated that a representative of the YMCA met with him and requested to meet with the Housing Commission. Their proposal would fit into the transitional living arrangement category. They are interested in the 135 Callan property. They are looking for purchase money, but as of the date of this meeting they do not have site control. He stated that no rehabilitation money was requested. Rudd indicated that the YWCA had met with the two aldermen of the ward. Bush asked staff to invite the aldermen of the ward to the Housing Commission meeting when the issue is on the agenda. Newman stated that for organizations planning projects like this, just talking to the aldermen is not enough. He indicated that there may not be the level of support for this project as it appears. Bush stated that the Housing Commission has never committed money for a project after only one night's worth of discussion. He then commented that the Commission should go back and discuss the site control issue. -4- Housing Commission - Minutes November 17, 1988 Ross stated that site control should be a criteria but the Commission should be flexible. If there is a viable project, and an organization needs the Housing Commission's commitment before they can get site control, the Commission should not flatly deny this groups' request. Bush commented that he understood Ross' concern but a specific site control stipulation would help keep staff from being inundated with calls. Warshaw commented that if a group can not get an option on a site, then it is useless for negotiations to begin, because there would be no set price. She stated her concern was that as soon as the City becomes involved, nothing prevents the price from automatically going up. Rudd stated that an implication that the Housing Commission will give a mortgage is not a strong policy. Newman stated that Brady's idea of a small screening group to look over proposals is a very good one. Bush asked if this group should be Housing Commission members only, or if it should be a joint, Staff and Housing Commission group. Rudd stated that there must be some structure to the application process. Serious developers will not want to submit proposals unless they know the rules. Newman asked if a group or organization could talk to the Housing Commission or to the smaller screening committee before having site control. Rudd questioned that besides site control, what other criteria are needed. Brady commented that all the money should be used for capital purposes, i.e. rehabilitation or purchase. Rudd commented that any project should primarily benefit low to moderate Income residents. Ross asked if the Housing Commission wanted to place a cap as to the percentage of the cost of a project. Wald answered that she really didn't think that was a good idea, especially at the beginning phase of a project. Rudd commented that everyone must be treated equally. Because this is public money, there has to be equitable and uniform guidelines. The Commission can not fund Project A at 30% and Project B at 50%. Warshaw brought up the idea of helping people who are bankable get a mortgage for single family homes something on the order of gap financing. Rudd commented that making people bankable won't really help. Ratio's don't work, the price of a single family home is where the problem is. Ross commented that the Housing Commission had come up with a lot of criteria at a previous meeting. He requested that copies of that criteria be made and distributed. &Z Housing Commission - Minutes November 17, 1988 Rudd commented that the transitional living category also had criteria. Ratio's Were used with input from banks and it didn't work. Wold commented that the Housing Commission should try to work at programs which will lower the purchase price of the home. Rudd agreed, the solution is to make the $100,000 items cost $50,000. Wold offered an idea that for single family homes, a grant will be made up to 33% of the price of the home. Bush asked why doesn't the Commission adopt a title transfer program. Rudd interjected that the City would have first right of refusal. Ritter asked about condominiums, she stated that she would assume there would be problems with other condominium owners in a building accepting low income families. Rudd asked if the condominium association could stop a sale. Bush commented if the by-laws of the condominium association had a right of first refusal, technically the unit could be purchased by the association, but most associations could not come up with enough money to buy a unit. Ritter commented that condominiums are generally more available and are less costly than a single-family home on a square foot basis. Rudd commented that the Village of Wilmette has a program for elderly residents. The project is a partnership. If a condominium is put up for sale, the village has the right to buy it back, and the purchaser must be another elderly person. In this way the units are recycled. The village prequalifies applicants and places them on a waiting list. Bush asked if more information could be gathered on this. Brady commented that assuming a price write -down program is the easiest program to put together, especially for moderate income people, that this might be the thing the Commission would like to do. She envisioned a total of 10-15 homes. Bush stressed that condominiums should be included with single-family homes. Rudd commented that assessments in condominiums would be a problem. Applicants would have to stay current on the assessments. Warshaw commented that taxes are increasing and that people are having problems, especially the elderly on fixed incomes, meeting the increase in taxes and association assessments. Rudd stated that the Housing Commission will see the affects of the higher taxes in the rehabilitation programs. Ross thought about setting a maximum market value of $100,000. Bush asked if the Commission was going to fit an applicant to a house. Ross commented that if an applicant could afford 301 of their gross income for housing costs, the City would provide up to 40% of the purchase price. The applicant must have evidence of income and that they could secure a mortgage. -6- Housing Commission - Minutes November 17, 1988 Warshaw wanted a stipulation, that an applicant would have to put some money down. Rudd asked if one assumed 10%, would that be of the mortgage amount or total amount of the cost of the home. Ross answered 10% of total purchase price. Wold commented that Ross' suggestion would prove that someone was serious. Bush recapped the conversation by saying $100,000 would be the maximum a buyer under this program could go up to. The buyer would put down 10%, the City would put up to 40% of the purchase price, which would leave a $50,000 mortgage. Ross then discussed the housing mortgage corporation. He stated that under this proposal banks would have a pool of money for mortgagas. He stated that on a $100.000 home, if he was a banker, he would not be sure that a SOIL down payment would be enough given that the individuals applying for this program may have a poor credit history. He further commented that a housing mortgage corporation is more likely to work because banks will have an absolute commitment at making loans. Brady stated if someone goes to the housing mortgage corporation, the Housing Commission doesn't want to get 40IL. Rudd commented that applicants could have both, a write -down as well as a lower interest rate. Brady reiterated Rudd's comments by stating that the interest rate could be written down by the corporation and then the Housing Commission's program could follow. Rudd stated that a question is who does the Commission wish to help? For example, a recent college graduate, at present, may not have a lot of money but there is a potential earning power. This is in contrast to the person making $20,000 today and who will be making $21,000 next year. Which person do we help? Brady commented that she might be jumping ahead a bit, but what about the housing corporation buying vacant lots and land -banking, much like some Saving and Loans have done in redlined neighborhoods. Bush stated that the housing corporation could do this, if it was contained in the by-laws. He then stated that it was best to start with the original idea and work forward. Rudd stated that the corporation crust have successes, make good loans, in order to instill confidence. Ross stated that he would like to make a presentation to the Housing Con-nission concerning the housing corporation at the next meeting. Bush commented that the single family program had been discussed but what about the RFD's for the other areas. Wold commented that in order to use the Township money, maybe an advertisement be made and solicit proposals from responsible agencies. After some discussion, it was determined that -7- Housing Commission - Minutes November 10, 1988 an S.R.O. was an ideal solution to the situation and that the staff should prepare a letter to solicit ideas from not -for -profit agencies. Brady commented that perhaps a letter should be put together, advertising that a predevelopment fee is available on the multi -family level. Rudd asked what was meant by a predevelopment fee, if it included consulting, design, etc. If it does, he stated, that most established organizations already have these items covered. Warshaw suggested that a list of architects who will work with not -for -profits may be useful. Brady asked if the minutes could be checked from the Special Housing Fund meetings in order to determine what was meant concerning predevelopment fees. Wold volunteered that she would check the minutes and report back to the Housing Commission. Ross stated that first-time home buyers would be the target group. Rudd asked if the last five (5) years of income should be used to determine eligibility. Warshaw stated that families should be targeted. Brady stated that earning potential is the way targeting can work. Warshaw commented that the limit on single family houses should be no more than $100,000, Rudd asked if the Commission wished to target a 3-5 person household. Bush commented that this was entering a constitutional question since the City can not discriminate on the basis of the number of children or lack thereof or on the basis of marital status. Warshaw stated that we can discriminate on the basis of need. Ross stated that perhaps census tracts were the answer, confining the program to certain census tracts which have a large low to moderate income population. Warshaw asked if an asset test might work. Bush felt that limiting the program to low to moderate income census tracts would be the proper targeting mechanism. He then asked for a target date of when the RFP should be ready. Wold stated that the multi -family and specific population groups should be placed on the January 12th agenda and that the single-family would be at a later date since the housing corporation would be involved as well as the banks. Adjournment Ross made a motion to adjourn the meeting. seconded by Vold. The meeting adjourned at 9:45 p.m. Staff G_� Bill Povalla 70(7/14) -8- DRAFT, NOT APPROVED DRAFT. NOT APPROVED i MINUTES Evanston Housing Commission Thursday, December 8, 1938 Evanston Civic Center Room 2403 - 7:30 P.K. Members Present: S. Brady, M. Curry, A. Newman, R. Warshaw and M. Wold Members Absent: R. Bush, T. Bobinsky, D. Drummer, J. Ritter, C. Ross, and C. Schafer Staff Present: C. Powers, R. Rudd and B. Povalla Others Present: E. Summers, Township Supervisor, Zirl Smith, Consultant, Zirl Smith & Associates Presiding Official: A. Newman Declaration of Quorum The meeting was called to order at 7:38 p.m. Minutes of November 10, and November 17, 1988. S. Brady moved and M. Wold seconded the approval of the minutes. S. Brady asked about the Landlord/Tenant Ordinance amendment. She requested that staff, as an addendum to the minutes, explain the process and when this matter will be discussed again by the Housing Commission. Povalla mentioned that the proposed change which leaves the maximum security deposit at one and half months rent, with the stipulation that the half month's deposit could be paid over a six month period has been sent to the Legal Department for the appropriate language to be drafted. Once the language has been drafted, the issue will be discussed by the Housing Commission for a formal vote. Povalla indicated that this issue was scheduled for the January 12, 1988 meeting. All were in favor of the minutes with the inclusion of an addendum and the motion passed. COMMUNICATIONS Planning & Development Committee Minutes: November 7 and 21, 1988. The Commission had no comments. Housing & Community Development Act Committee Minutes: October 25 and November 1, 1988. A. Newman asked if the Housing g Community Development Act Committee had completed their evaluation of the housing related programs. Rudd answered that the next packet will have the results of the Housing & Community Development Act Committee's recommendations. Housing Commission - Minutes December 8, 1988 F Zoning Commission Minutes and Agenda. The Commission had no comments. Cook County Assessor Letter re Class 9 Incentive Program. Brady asked if there was any additional information concerning the Class 9 Incentive Program. Warshaw commented that the purpose of the program is to decrease property taxes on rehabilitated property. It is used as an incentive for developers to invest in property without having a tax increase because of the increased valuation due to the rehabilitation of the property. Brady commented that this program might be very useful for the City of Evanston and requested that staff contact the Assessor's office for more information. Court Cases Discussion ensued concerning a number of the court cases. Some general questions concerning the process were also asked. M. Curry asked if a list of violations on each court case could be furnished to the Housing Commission. C. Powers stated that it would be very difficult to give a written description of each court case. Curry asked if it was possible for Housing Commission members to get a list of the violations. Powers answered that once the case goes to court, the file concerning that particular property is public record. R. Warshaw requested that a list of violations be given for the cases which are continuously being continued from one court date to another. Brady added that if there are more than three (3) continuances, and there are no title problems or other extenuating circumstances that a list of violations be given. Brady made a recommendation that cases with over three (3) continuances be asterisked on the report and reasons for the continuance should be given. Then if there is a need for a list of violations one can be requested. Powers stated that this information would be supplied as part of the court case report. Election of Chairman and Vice Chairman. This was held over to the January 12, 1989 meeting. Design and Development: Infill Housing Compatible with Historic Neighborhoods. X. Wold stated that this is a handy reference article. -2- Housing Commission - Minutes December 8, 1988 OLD BUSINESS Presentation Evanston Township General Assistance (Housing) Program Report - Township Housing Fund. E. Summers introduced Kr. Zirl Smith, who is the consultant that put the proposal together which appeared in the Housing Commission packets. Zirl Smith began by stating that he had been hired by Ks. Summers to do a review of options available for use of the Townships' housing funds. The objectives were to develop a multi -family facility which would stress public/private partnerships. He continued, that there was a specific site mentioned in the report but that this site was too costly for the type of housing which is needed. He stated that the report looked at bank financing, bond financing and a purchase -rehabilitation option of existing units. Each option uses tax credits which are available through the Illinois Housing Authority. He recommended buying existing properties and rehabilitating them, and selling the tax credits for internal leveraging. The sale of the tax credits creates a scenario where the leveraged money can be used to fund various stages of the project. Warshaw stated that this was exciting but that she was concerned that because of the very low vacancy rate, rehabilitation may cause displacement which is undesirable. She was wondering if the internal leveraging might be used to create housing opportunities for general assistance clients, such as an S.R.O. She also asked Hr. Smith if the $700.00 rent, which was the base rental figure for a two (2) bedroom apartment in the report, includes heat. Mr. Smith answered no. Warshaw then commented that $700.00 a month rent is really not addressing the needs of low income people. Brady stated that she would like to delve into the rent question further. She stated that with a $700.00 a month price for rent, a person on SSI or general assistance could nog even afford $200.00 a month rent , thus the subsidy would be over $500.00 a month. In addition all of the calculations are based on two bedroom units which makes it difficult for a single person to receive a subsidy. Kr. Smith answered that only 50% of the residents would be lower income He stated that the subsidy would be drawn from a subsidy on the funds generated by the debt service. In only a few years time the rents would out -weigh expenses. -3- Housing Commission - Minutes December 8, 1988 1. Warshaw stated that the projection of a 5% rent increase and a 5% increase In operating expenses is not reality, because as a property ages, the expenses increase. Brady stated that given the $700.00 projected rent is across the board for thirty units, if single adult persons would be the clientele, the amount of subsidy would be $500-$600 per unit. If 50% of the units were for low income, then a $7,500 a month subsidy would be needed. She asked where would the money come from for the subsidy' Mr. Smith referred the Commission to the chart in Section 5, labeled Bank Financing, the income and expenses were estimated at $476.037. He stated that this amount is generated through the sale of the tax credits and would be the reserve from which money would be taken to cover a shortage. If this would be run as a Section 8 program, the fixed rents would need to be higher. Warshaw asked if the proposed site was located in a part of the City where $700.00 a month rent was realistic. Kr. Smith answered that this was one of the reasons why he does not recommend new construction. Brady stated that this idea would work for small families, but not for general assistance clients. Vold asked if there was some consideration to building studios and one bedroom apartments which would be the size of housing unit needed for most general assistance clients. Kr. Smith answered that he could calculate the numbers using studios and one bedrooms units. He stated from a management background, the inclusion of studios and one bedrooms will create some bad management problems. Elderly tenants do not mix well with small families because of the noise. If commercial activities are included in an elderly building, it is the type of activity which is geared towards the residents. Wold commented that there has to be somewhere where general assistance clients could live. Kr. Smith stated that generally, general assistance clients live in a large facility. He stated there has been little activity in the construction of SRO's. -4- i Housing Commission - Minutes December 8, 1988 Wold again commented that this is an exciting concept but where are the single male general assistance clients going to live? Warshaw asked if there are any vacant buildings available in town such as a warehouse which could be readily converted into apartments. Summers answered that garages at Simpson and Payne were looked at, but these were committed to the Robinson Bus Company. Vold asked about a warehouse on Ridge near Emerson. Curry commented that he is excited about new construction but the problem is that the price of vacant land in Evanston drives up the cost of new construction by making it too expensive. He also asked if new construction of two bedroom units took place, wouldn't that free up other housing which might fit the needs of general assistance clients. Brady asked if the amount of displacement associated With the rehabilitation option, would negate any positive cash reserve. She also asked if there was some way to get the amount of reserve higher on new construction. Kr. Smith answered that what was needed was to increase the down payment. The key is that the cost of land is too much. If land was cheaper, if there was $800,000, and you paid less than $400,000 for the land the cash reserve would be higher. Kr. Smith stated that new construction tax credits are limited to 4% of hard costs. In rehabilitation, 4% of the acquisition costs and 91. of the rehabilitation costs can be used as tax credits. Warshaw stated if there was a building which was a shell, the rehabilitation option would work well. Mr. Smith stated that the 1986 tax law changes allowed these tax credits to be made over a three year period. However, 1989 will be the last year that credits will be issued. The credits for 1988 have been expanded since the amount of credits which can be issued for 1989 will be limited. In order to take advantage of the 1988 credits, there must be proof that at least 10r% of the cost has been committed. The deadline would be at the end of December, 1988. Brady asked if the Wesley Greenbay Project could utilize these credits. -5- eM -1�11 1plriy "Fill Housing Commission - Minutes December 8, 1988 R. Rudd asked who is the issuing authority of the bonds in the bond financing option. Kr. Smith answered that it could be a municipal government, a state agency or a TIF could do it on behalf of a 5010 Corporation. Rudd asked if there could be a saving up to 2 points. Mr. Smith answered that there could be a savings of up to 3 points. It depends if the numbers are Workable. Brady commented that on a rehab with a $500 a month subsidy, an entry level working person or an SSIIAFDC recipient with a $200 internal subsidy would be able to afford living in the units selected. She questioned if Class 9 would fit into this. Warshaw answered that Class 9 would only work under the rehabilitation option. Brady asked if the four houses on the proposed new construction site were occupied. Summers answered that two of the four houses are occupied for sure. Brady asked if the developer could go for a zoning variation on all four parcels at the same time. Rudd stated depending on the particular situation it might be able to go as one variation. Warshaw asked if they were non-contiguous parcels. Rudd answered if the parcels were non-contiguous there may have to be two separate applications. Brady commented that to take advantage of the tax credits, all the necessary steps will have to be done yesterday. Summers asked if the City might be willing to make a commitment for a variation for more apartments. Mr. Smith commented that the Illinois Housing Development Authority board meeting is on the last Thursday of the month. Brady stated that the Evanston Housing Coalition and Hr. Smith should be put in contact with each other before December 31, 1988. Rudd stated ;hat the Housing Commission can not enter into any type of contract witnout the City Council acting upon it. Since the Commission does not have the authority to do so, it would be virtually impossible for the Housing Commission to make the December 31st deadline for the proposed new construction on the proposed site. -6- Housing Commission - Minutes December 8, 1988 Mold make a motion for staff to write a letter from the members of the Housing Commission to EHC. informing them of the tax credits and to encourage them to utilize this source of help. This was seconded by Warshaw, all were in favor and the motion passed. Rudd commented that the City will be awarded $89,000 in tax credits for 1989. Brady asked staff to prioritize work on this project, to make any necessary phone calls and develop ideas on how to talk to the Zoning Department about alternative properties. Wold asked that a legal opinion be rendered, pursuant to negotiations, to the latitude that the housing authority has. Curry stated that the main reason for the meeting tonight was to hear the proposal by Kr. Smith, and he suggested that the RFP discussion be postponed until next meeting. Brady asked that staff be directed to draft a consolidated RFP. Rudd stated that he was contacted by the YMCA and they are really anxious to start working on their rehabilitation proposal. Brady asked about the YWCA. Rudd stated that he had talked to them about the 135 Callan property project. He stated they do not have site control. He also stated that staff should have a final draft RFP developed by the January 12th Housing Commission meeting. Adiournment i Warshaw moved and Wold seconded a motion to adjourn. The meeting adjourned at 8:32 p.m. Staff:7c, . --?� 8111 Povalla 71(1/7) _7- DRAFT, NOT APPROVED M Rr