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HomeMy WebLinkAboutMinutes 1987NUMBS • Mayor's Committee on the Special Housing Fund January 13, 1987 r 7:30 P.A. Aid. Present: S. Brady, R. Bush, Rev. N. Caery, 0. Dr+m■er, A. Newman, C. loss, L. Spieth, 1. Warshaw, and N. Wold Ald. Absent: so** Starr Present: L. Talrington, and A. Rudd Others Present; Jane rolbording and Charlotte Walker tr+ssiding official: N. Mold Minutes of 0ecember 9. 19ea Lld. Drummer moved and Spieth seconded that the Committee appeeve the mimateg of December 9, 1996 meeting as submitted. Committee voted 9-0 to approve the minutes. Chairman Vold called the meeting to ardor at 7:40 p.m. and reviewed various staff reports supplied to the Committee as requested at the prior meeting. Smomw of Housing Related Programs: City, of Evanston and Outside Agencies The Camimittee briefly reviewed this report and a report dated December 31, 1986 from Laurel Talkington, Rousing Planner, titled Affordable Housing Needs Indicators: A Susmary of Relevant Demographic Data. Committee membor Warshaw requested that copies of a recent Homeless Report, that was supplied to City Council, also be forwarded to the Special Housing Fund Committee. Chairman Vold indicated that at the next meeting, on Tuesday, January 20, 1987 at 7:30 P.M. the Committee will feature three (3) speakers: Saul Klibanow. Bill Foster and Andrew mutton. They have been incited to share with the Comittee their experiences with respect to low income housing. Warshaw indicated that Dan Lauber, a planner -attorney, indicated to her that he also would like to be in attendance and provide some input to the Comssittee. Warshaw also indicated that Lauber would supply to the Committee in advance, some material for their reviw. Warshaw indicated that she received a call from a constituent who indicated that the North Suburban Housing Center informed her that they will no longer provide service to City of Evanston senior residents since the City declined to aid in the funding of the Center. Jane Volberding, Director of the Evanston Commission on Aging was present and confirmed that that was the current policy of the North Suburban Housing Center. Sue Brady requested that a memo be drafted by Volberding and forwarded to the City Council explaining f the current situation with the North Suburban Housing Center, I� Upon review of the summary of housing related programs Bush questioned whether there were actually four thousand (4000) clients being served by the General minutes U Mayor's Commni t tee on Special Hogs i n g Fund January 13. 2987 Assistance Program. Chairman Vold indicated that she would request a miamo from Director of health i Numan Services, Bolen scCarthy, explaining the number of clients served by the general Assistance Program. Laurel ?alkiaaton briefly reviewed the staff report regarding tho affordable housing needs isidicaters that stem from a report commissioned by the Illinois swains, Devoinpomst Authority to university of Illinois to study various housing soeds througbest the State. ?he Committee discussed the section of the report titled 'pepalatioa and iscome Characteristics' with particular attention to the number or elderly mad single family heads of households in the City of tvowtem. The Committee expressed interest is that the elderly consist or a/lcosiastely 1ri of the total population of the City in 19i0 and composed mare than 22'L or the households within Rvanstou. The Committee discussed what may or may sot be affordable monthly rents for elderly and single family beads of household. Warshaw suggested that when the Committee focuses on various types of funding that it would be important to address a mechanisms that can be combined with tax credits for low income housing provided under the new federal tau low. Varsbsw, indicated that in some instances to obtain tar cuts a minimum of 20L or lam income residents must reside in the project. She stated that utilising the tax credits increases significantly the economic viability of various projects and that the Committee should review the various proposals with an eye toward tax credits. 41-00 1` 0 Chairman Hold snggested that the Committee focus on what type of housing the Committee wants to address at future meetings. Brady stated that she has been Influenced by the recently released Homeless Report. She stated that she previously was in favor of utilizing the money for long-term housing uses. and still maintains that position, but would like to leave a portion of the stoney for transitional housing. She feels that the Committee should not close the door on transitional housing and should leave that discussion on the table for future consideration. She feels that `y reviewing the homeless report in addition to the staff materials submitted to the Special Housing Fund Committee, she finds that there is an overwhelming need for transitional housing for women with children and single family heads of households. Drommor questioned whether the City of iivanston would got into the housing managsment business or would other private non profit agencies fill that role? Brady stressed that any transitional housing would be utilized by clients for only a temporary basis and not viewed as permanent housing. Brady also stated that it is her intention that any funding sot aside for transitional housing only be used for capital expenditure (purchase or rehab) and not for operational budget. Newman questioned whether under Brady's proposal would clients be restricted on the basis of income? Newman expanded that thought by expressing his concern that there may be a need to provide transitional housing for battered women and that income restrictions could eliminate that use which he would not favor. Bush questioned whether V r2_ t1 0 Minutes Mayor's Committee am Special Housing !'tend January 13, 1987 transitional bomsing could be limited to City of Ivanston's residents. Brady stated that she felt if further discussion of transitional housing de►elope the Committee should consider bringing in experts to aid in developing criteria for transitional housing. Warshaw agreed and felt that possibly outside grasps could cast to the Mayor's Special Housing fund Committer to *sprain is greater detail transitional housing. now. Curry stated that be has beeor sure that through the various amoral Assistance and City of 1wasston`s programs that 671L of the money disbursed is being utilised for temale reads of households. Re►. Corry reiterated his feelings for the needs for affordable rental housing since a review of dsmegraphic data indicates that the rental population is the most economically deprived within the City of nmotem. M feels that renters, more than oasroMers. live is crowded housing as evidenced by the report supplied by City staff (Mowing goods Indicators, page a). Rev. Carry further O*basisrd that he rintaias his position that affordable long -tare rental housing should be the major empbasise of this Committee. Ross indicated that possibly transitional housing is mace of a human services issue and not one to be greatly emphasised by this Committee. He fools that the focus of this Committee once more should be on long-term affordable hoeing. Be expressed his concern for targeting special populations, but rather should emphasize long torm-housing. Newman goestiosed if the Committee would set aside dollars for transitional hoeing or other housing who would pickup operation costs on an ongoing basis.' Chairman Weld indicated that she fools that the Committee should not fund the operation cost but only capital expenditures. She also felt that the Committee should not fund social service needs but may provide dollars to acquire baildings in the fors of grant or low interest loans. Drummer stated that possibly the Committee could emphasise leveraging dollars to have a greater impact as any projects. Spieth stated that be has a different view than some of the sobers of the Committee, but one that is not contrary to the goals of the Committee. No stated that he feels most of the dollars should be used for long term affordable housing such as addressing the board -up issue and getting those property back on the tax role. He stressed that the Committee should look for a balance in using the money for housing but that a substantial portion should be provided to a project where there is a payback to the City. He further stated that at tonight's meeting the Committee should not try to pin -point too accurately what projects or areas the Committee wants to focus on, but wait until the invited experts have an opportunity to share their experiences with the Committee at the meeting of January 20, 1987. titer. Curry reiterated that he is in favor of bringing the transitional housing issue back oa the table for the Ccmmitteo to discuss, but that he still maintains the need for long-term affordable housing. Warshaw indicated that she has sons experience with low -equity co-ops and is familiar with a successful one when operated by Bethel Housing. She feels that the Committee should review the low -equity co-ops since they appear to -3- minutes Sayor's Committee on Special Housing fund January 13, 1997 try allow ownership and management by the owner. Chairman Vold indicated that she In more sympathetic to rehabilitation versus now construction, but is willing to loot at now construction projects. !lash indicated that since the City has approximately one million dollars, which is not a tramondous amount of money to address all housing ills, that the Committee should direct the dollars to rehab units that will be lived in and occupied for a long period of time by the ewers. Be further reminded the Committee that it was the consensus at the last meeting that the fords may sot be used for very low income but for low-nMwat• tomanta sisee very for probably would not be able to own &ad maintain duellist emits. Ross stated that he fools that a significant +roast of the dollars should be sod for rehab mad that a specific mnoust could be used to address board -a". Ross reviewed a list of board -ups within the City end spaciZatod that if there were me milliom dollars, to utilise and based at the number of board -ups, approximately fifty thousand dollars could be allocated per beard -up bone to purchase and rehab. Ross felt that fifty thousand should be *monk to purchase and rebabilitate those anits. Warshaw suggested that with respect to board -ups any action taken should try to Incorporate board -ape with the, current City of Evanston Single Dully Rehab Program. Warshaw questioned whether the Committee should encourage the Research Part management to contact the Illinois Housing Development Authority wad enter into new housing construction at the Research Park sines bossing is sappose to be a segment of the Research Park. Drummer ozpiainod a proposal with respect to board -ups where possibly the Citio- of Evanston could purchase the property, sell to a qualified buyer for a ■inimsm amount, thus allowing the buyer to obtain a suall mortgage from the private sector, and them allow the buyer to obtain a very low interest rehab loan from the City. 8o felt that this would offer an incentive to rehabilitate boarded -up, abandoned and dilapidated structures. Charlotte Walker, Executive Director of the Evanston Community Development Corporation was present and stated that low income applicants and rehab clients often have a difficult time in dealing with banks since the banks often want rehab dollars committed prior to the bank making a mortgage commitment. Wold questioned whether the Committee should attempt to get banks more involved with rehabilitation projects within the City! Ross stated that possibly the Committee could negotiate with Evanston banks to participate in mar program developed by this Committee. Brady suggested that possibly the Evanston banks could form a 'risk pool" to loan money to qualified, low and moderate income City of Evanston residents. Vold summarized that as a result of the past two (2) meetings it appears to be the consensus of the Committee to focus on affordable housing and boarded -rep housing. The nezt meeting of time Mayor's Special Housing fund Committee is scheduled for 7:30 p.m., Tuesday, January 20, 1967 in Room 2401 at which time invited speakers will share their views on developing low income housing with the Committee. The meting adjourned at 9:20 p.m. Staff: o artRudd 34(9n2) rh HiNtrrES Mayor's Committee on the Special Housing Fund January 20, 1987 7:30 P.M. Members Present: S. Brady. R. Bush, Rev, M. Curry, D. Drummer, A. Newman. C. Ross, M. Wold Members Absent: L. Spietb, R. Warshaw Staff Prosont: L. Talkington. R. Rudd, J. Fox, W. Morin Presiding Official: M. Wold Minutes of January 13. 1987 S. Brady moved. R. Bush seconded that the Committee approve the minutes of the January 13, 1987 meeting as submitted. Committee unanimously approved the minutes. X9W BUSINESS Chairman Wold introduced Saul Klibanow, of Rescorp, Dan Lauber, local planning consultant, and Bill Poster, Executive Director of the Chicago Rehab Network. Klibanow provided some background regarding Rescorp, which is supported by and made up of numerous savings and loans in the Chicagoland area. Klibanow stated that Rescorp originally started by addressing deterioration and abandonment in the inner-city. Rescorp's main function was able to rehab multi -family buildings and attempt to establish a stable core area in numerous inner-city neighborhoods. He cited examples in South Shore, Logan Square, and Rogers Park (Horthpoint). Klibanow stated that Rescorp was able to rehab based on various tax mechanisms that were available in the past. Many of these are no longer available with the recent 1986 Tax Reform Act. Klibanow stated that Rescorp would undertake a project from beginning to end. This included acquisition, architectural services, supervisory services, arranging financing, negotiating with various government bodies and relocation. He stated that the numerous projects undertaken by Rescorp led to spinoff neighborhood rehab which enhanced a wide area. Some of the subsidies utilized in past projects were the 236 Program, which provided a buy -down of mortgage interests for developer and the Section 8 Program. Klibanow stated that the purpose of the rehab was not to gentrify but rather to keep local residents in the community. Klibanow stressed that new tag laws make '-vestments less advantageous for development, but there are ways to develop and rehab housing for low and moderate income. He suggested use of existing Section 8's; working with City to buy down mortgage interest rates with the developer participating with Illinois Housing Development Authority and FHA, and reviewing the Chicago Equity Fund which consists of corporations making investments in a community. He felt that this may be possible in the City of Evanston. Klibanow stated that Rescorp primarily • Minutes ' Mayor's Committee on special Housing Fund January 20, 1987 forms limited partnerships and acts as a general partner in most of their projects. The limited partners often consist of corporations. bill Foster, Executive Director of Chicago Rehab Network stated that his agency has been in existence for approximately ten years and is composed of a coalition of various community groups in the City of Chicago. The purpose is to work with not -for -profit groups that develop low-income housing. He stated that the Chicago Rehab Network provides technical assistance services and more recently has architectural, financing, accounting and tenant training programs. Foster stated that bit agency currently is heavily invested in the development of low-income coops. Foster further stated that the Chicago gohab Network is participating in the Cook County Multi -Family Tax Reactivi:ation Program which allows individuals or corporations to obtain tax delinquent properties of six or more units which have five or more years of tax delinquent bills. • program operated by the Chicago Rehab Network, Neighborhood Lending Program, cooperates with three banks in the City of Chicago. The program's efforts are concentrated on multi -family and ■ix -use development loans. Foster stated that in conversations with the three banks he is familiar with, two of the banks indicated that they would favorably look at participating in a similar manner in communities such as Evanston. No stated that the program is open to individuals and partnerships and provides low interest rates and minimizes carrying costs. He further stated that under the program there are no rent restrictions, however the program does monitor rents by serving to avoid steep increases. It the landlord or owner would have a significant increase in rent, the Rehab Network will not Callow a second loan to that individual. Foster cited his familiarity with City of Maw York low-income coops that have been successful in recent years. Dan Lauber, local planner/attorney, was present and strongly advocated low -equity coops. Lauber stated that low equity cooperatives are essentially the same as any other housing cooperative: householder purchases share in a housing cooperative corporation; the share entitles the household to occupy dwelling unit; each month the household pays an assessment to cover the household's share of the monthly mortgage payment. In a low -equity coop the resale price of the share is restricted by the non-profit housing cooperative's bylaws to some rate of interest less than market rate or the rate of inflation. Some low -equity coops do not allow any increase in resale value of a share. Lauber feels that low -equity coops return housing to its primary purpose; to serve as a shelter for people. not from taxes and inflation. Lauber feels that by taking housing out of the speculative inflationary resale market, low -equity coops keep the housing affordable to the same type of people for which it was originally targeted. The various speakers spoke of low -equity coops with which they are familiar. These coops are located in Montgomery County, Maryland; Madison, Wisconsin; New York City, New York; Chicago, Illinois; Park Forest, Illinois; and Minneapolis, Minnesota. All speakers to some degree felt that low -equity coops may be viable in the City of Evanston if the proper variables in the development process were put together. Foster stressed that a coop needs a strong training and marketing element for the tenants. He has observed that with training the operation and maintenance costs of co-ops are dramatically -2- Dal minutes Mayor's Committee on Special Housing Fund January 20, 1987 lower than other forms of subsidized housing. Klibanow stated that the economic issues are the same at the outset whether the development be coops, condom or multi -family developsient. Of concern of all of the Committee members and speakers was the low vacancy rate in the City of Evanston in addition to the high property values. Klibanow stressed the short-term benefits of rental housing since with the City's housing fund and private dollars can be leveraged and thus create more dollars. Klibanow suggested that the Comittee contact city corporations to Interest than in investing in the City of Evanston's housing program similar to what Rescorp does in the City of Chicago and elsewhere. All the speakers stressed that based on the potential one million dollars for the housing fund a tremendous awount of Mousing to not going to be addressed in the City. The Comimittee discussed that possibly 40 +/- units could be purchased and significantly rehabbed. Committee merger Bush questioned whether in the City of Evanston there is an incentive to maintain property by the tenant of a lox equity coop if the tenant will not gain from the future sale of his or her shares. Lauber stated that he did not understand exactly why the coops work but it appears that pride of ownership and the ability to keep rents affordable are prime reasons why low -equity tenants maintain the property. Klibanow stated that ham -ownership is not a panacea to deteriorating structures and that low -equity coops have had their share of failures but on the balance, the experience of the coops has been good. Bev. Curry questioned whether law -equity coops would work in Evanston based on the issues cited previously. He also questioned whether it was the job of the Housing Fund Comsittee to develop a technical assistance agency and whether the Cosasittee should review such proposals from outside groups. Foster stated that the Chicago Rehab Network could provide technical assistance to low-income housing groups in the City of Evanston. Klibanow suggested that the Committee should review potential developments in cooperation with corporations to best utilize the new tax laws. He also suggested that the Housing Fund Coz:nittee may want to consider ,pending some of the money now and keeping some until later to better take advantage of tax laws and possible changes in the future. Klibanow again urged the Committee to consider City of Evanston corporations as partners to invest in low -to -moderate low-income housing. He felt that combining existing tools such as the Section 8, local resources, and possibly in cooperation with Illinois Development Housing Authority projects could be put together. Lauber suggested that local banks should be asked to become involved in housing. He felt that if local banks were threatened with withdrawal of City of Evanston deposits that possibly this would convince those banks to participate in housing programs. Sid Ross indicated that he met with John Taylor, of State National Bank, who informed Ross that he may be interested in participating in a housing program. Chairman Hold indicated that the City of Evanston prefers not to assume the role of developer or landlord, but rather to facilitate the development of low and moderate income housing through this housing fund. The Committee and speakers reviewed various formulas and estimates for purchasing boarded -up buildings providing buy -dawn -3- • Minutes ' Mayor's Committee on Special Housing Fund January 20, 1987 C. mechanisms on the interest rate or principal, and various subsidises to tenants such as Section S. Rased on some rough formulas, the Committee concluded that for $1 million approximately 40 units could be purchased and rehabbed for law -to -moderate income tenants. The Committee thanked the speakers for their valuable input and continued further discussion of this issue to the next regular meeting of the Mayor's Special Housing Fund Committee scheduled for January 27, 1987 at 7:30 P.N. The seating adjourned 10:OS P.N. Staff4e4l .4artTI.�Crd 4(9/13) -4- --..� minutes mayor's Special Housing Tend committee January 27, 1987 0I' mssdters Present: S. Brady, S. Bush, f. Curry, A. Ueran, C. toss, L. Spaeth, a. Varshaw and R. Vold members Absent: D. Drummer Staff Present: L. Talitingtoo and it. tadd Presiding Official: 11. Yeld Rixu;ejof Janearl 126 1987 Ald. Brady wowed and Ald. Yarshar seconded that the Committee approve the wisates of the special met ing of the mayor's Ross iag fund. Committee of January 20, 1987. CamnIttee Voted unanimously to approve the ■inot.s as submitted. Chaicsan Vold discussed with the Committee the development of an interim findings or status report to inform the City council as to what issues the Housing fund Committee will address. Ald. Warshaw recommended that the report, in addition to providing a status of the Committee's action also contain a goal statement. A review of the December 9, 1986 meeting found that the Committee had narrowed at that time the issues to "significantly substandard housing" which will include board -ups and also 'affordable rental housing' (long term). Chairman Vold questioned members of the Housing fund Committee whether they should exclude special populations from consideration. Ald. Brady suggested that if there was only to be $1,000,000. to be allocated by the Committee that possibly only the two above programs could be developed. She felt that if there was more than $1.000.000 that possibly special program dealing with special populations and issues could be provided. Spaeth agreed that funds greater $1,000,000 could be set aside for special projects. Warshaw questioned bow the process developed by the Housing Fund Committee would work to satisfy goals. Spietb questioned whether funding from the refintacing or restructuring should be set aside for capital Improvements such as curb and gutter replacement as was mentioned at a City Council meeting. The Committee raised several questions, such as should the isoney be used for grants or loans, should City rehab dollars from the current Rehab program be utilised with housing fund dollars (purchase), and is it clear that the dollars would be used for low and moderate income households? Ross questioned whether proposals that would utilize City of Evanston Rehab funds would be in conflict with current guidelines! Staff explained to the Comsmittee that any of the guidelines could be changed or variations could be granted by the Rehab O Appeals Board. Newman posed the problem of implementation citing that the Committee may want to consider those proposals that have the bast chance of success. Newman further stated that he feels that it is necessary to find out 0 Mayor's Special Housing Fund Committee ;rvrJJl r January 27, 1987 what parties will actually undertake projects under this rand to see if they are even interested. Hoe. Cart questioned the Comittee as to whether the Bossing Fund would rule out new construction! Will dollars be set aside for now construction in addition to rehabilitation! Chairman Vold indicated in her opinion that new construction was not being reeled out by the Comittee, although to date the Committee has primarily talked about rehabilitation. some suggested that the committee needs to dorise the process and whet will be included is the process. Be suggested that once the Housing Fund Committee develops its findings sad recommendations that it is possible to turn over the iaplsirRtatioe to the Bossing Cowiasion since that body includes a number of .dents and is a valuable resoug a to the City and is charged with the overall responsibility of reviewing Aouiag issues. Vold a■pbuised the so" to clarify to City Council and to the residents what are the priorities of the Bossing Fund Committee. Brady proposed that is% of the first $1,000,000. be not aside for special housing and the remainder be utilized for the other programs decided an by the Committee. Warshaw stated that she agreed with setting aside a specific amount and suggested that the Comittoe needs to address questions as to the feasibility of new construction; would the use of dollars for new construction be to the detriment of preserving existing construction; and looking into new manufactured houses. Newsea questioned whether there was enough money to undertake now construction! Lose suggested that the Committee should not exclude now construction, but that now construction crust be tied to another agency that would be putting in a significant amount of dollars and greater than those dollars allocated by the Housing Fund Committee. Ross agreed that possibly an amount of approximately 15% of the total could be set aside for special projects to be decided later. Numerous proposals were set forth by the C,mitts* members regarding percent to be utilized for set aside, special populations, etc. Rev. Curry suggested that a tine limitation be imposed on set asides so that the money is reallocated if not used. Warshaw suggested that low equity coops and affordable housing could be lini4i�d and developed together. Rev. Curry questioned whether the Committee scanted to set a future date to allow the public to speak and discuss various proposals that slay be coming to the Committee at a later date. Chairs" Vold set aside an opportunity at the next Housing Fund Committee meeting on February 10, 1987 to allow Charlotte Walker of RCDC to mate a presentation. Bruce Copeland of the ACORN Agency was present and provided some information to the Committee with respect to marketing. Copeland suggested that the request for proposal (R.F.P.) from the Committee contain a goal statement and that the goal should be to provide grants and low interest loans totaling approximately $900,000. Copeland suggested that the Committee allow projects for rehabilitation and now construction in addition to sale or rental property and ownership by not -for -profit corporations. Types of uses should be low -2- M ID Zia is Special nou2a Fund Committee January 27, 1987 equity coops. mutual bowing associations, or private ownership. Copeland further recanmsnded that priority consideration be given to proposals which best soot the goal and sake the mast off iciont use of the toad provided. He suggested that the proposal should use the CD proposal type format. Ross stated that be agues with that approach and questioned Copeland as to how slawy applications the City Oight expect. Copeland stated that at this point it was not possible to estimate. Brady questioned wbether the goals established by the Committee should set a specific swebw of wits to be rehabbed. Spieth recommended that the Comittes lean open the nrmbee of units, bat that it would be understood that tie bait of the dollars be given to board ups with the lesser smoant to special projects. Warshaw recommended that a specific want be set aside foe as administrative roe to reviw programm. The Committee discussed various percentages ranging from S -15% for administration of the program. Vold questioned Committee mothers as to their expectations -of a time period within which to accept applications. She stated that the dousing fund Committee's recasmeadations may be for a period beyond an additional six weeks. She stated that she felt the Housing finance Comittee will not mats allocations and that this Committee will have a limited life and purpose. She oxpeeted the overall process to take between six and nine months beyond the initial two month Rousing land Coa■sittee. Warshaw stated that she thought the purpose of the Housing Fund Committee was to decide how the dollars were to be spent on an on -going basis. Rev. Carry stated that he agrees with Warshaw and that he supports long-term affordable housing. Newman stated that he agrees with Warshaw. Ross indicated that the housing Cosamission is available to deal with this issue and that the City mould be wasting a valuable resource of the Rousing Cas•ission by not using then. She Comittee set as an agenda item the pros+station by 9CDC and continued discussion of goals tad issues for the February 10, 1987 meeting at 7:30 p.m. "Journs"U t She wsting adjourned at 9:00 P.S. Staff : zV eabert Rudd 33(9/11) -3- 011 Numbers Present: Ambers Absest: Starr Prrs*mt: Others Protest: Presiding Official: NU its Atyor's special sousing February 10, 7:30 P.M. Fund Committee 1987 S. Draft E. Mush, R. Curry, A. xo%s , R. Warshaw, D. Derr and U. Wald C. loss end L. Spieth L. Talkingtos, f. McCarthy, J. tax. J. Thasw a" a. load C. Walker and Arse* Copeland R. Wald n" "Jiti on br l t„G.�. CC s - lotrd*d Out t, o" Charlotte Walker or l.c.D.c. we presest with a slid* show depicting all of the board -ups os a list snppliod by I.C.D.C. The Ca ittee posed various questions to Walter with respect to states of some of the boarded -up houses shoamt. Walkar also presented to the C*Mdttee a stow with a list of board -ups dated January 16, 2987 in addition to other material discussing revolting funds and programs in outer cities. Helen McCarthy, Director of Hoalth i Hoeft Services for the City of Evanston was present as was Joyce Thomas of that department. Ms. Freda Richmond and Larry Jones of lsmily locus were also present. Ms.'McCarthy gave a brief presentation regarding the current status of homeless families within the city of Evanston. She distributed to the Comittee a "statement of need for homeless families" that was previously submitted to the City Council. describing the citywide problem, size of the problem, and a summary stating the need for additional units of low priced transitional housing within the City of Evanston. Fir. Jones, Ms. Richmond and Ms. Thomas presented to the Committee brief descriptions of various cases that they are currently handling. In summary the group indicated that at this time there are fifty-one (51) homeless families in the City of Evanston. They requested the Mayor's Special Housing C--1ittee set aside dollars specifically for transitional housing. The group indicated that transitional housing Mould be operated on a 24-hour basis; residents could reside there from between three (3) and twelve (12) months. The transitional housing operation would also provide on -site support services and it was expected that a not -for --profit operator would be sought to manage the facility. Ald. Druz r questioned Ms. McCarthy with respect to what would be the size of the facility! McCarthy indicated that a facility should be able to handle anywhere between five (5) t and six (6) families. McCarthy further indicated that in seeking a transitional housing facility that both private and public fund#ng �ro ul be sought. Rev. Curry questioned whether the group was presently looking or a Mayor's Special Bossing Fund Cammmittee - Minutes February 10, 1987 specific site. McCarthy indicated that at this time so specific site was under consideration. now. Carry further questioned "bother a transitional bossing operatics weld address scale boneless in Ivanstoa. McCarthy indicated that there was a scale homeless problem within the City but that one alternative for males would be the IFICA. The greatest problem appears to lie with females with depeadasts. Chairman Vold indicated that the Housing Fund CaNRittee would keep its sled apes to transitional housing problems and would discus set amides is the future. Ald. Brady questioned whether the current provisions of the City of Mtvanstos Zosiag 0rdisaace allomd for transitional housing. She requested that staff prepare a report to determine whether the current ordinance addressed transitional housing and if not what steps would need to be takes to allow for transitional bossing. Bev. Curry suggested that the term "transitional housing" not be used since it often has a negative connotation. He suggested that McCarthy and the Committee develop an alternative term. The Cosmsittoe thanked the representatives from the Hoalth i Human Services Department, Fsad ly Focus and B.C.D.C. for their presentations and saved on to discussing overall honing issues. Coatis" Q115388192 of Noggins Issues Ald. Warshaw indicated that she likes Bruce Copeland's reeamnesdation gives at the previous meeting to solicit R.F.P.'s. Nowma stated that be aeries with the R.F.P concept. The Cowittee briefly reviewed a memo dated February 4, 2987 from Joel Amprooth to the Administration i Public Works Committee, indicating that the City would be entering into negotiations with Prudential Bache to seek a refinancing for the 1979 mortgage bond revenue bonds which would allow not proceeds of approximately $2,500.000 to be used for housing. Ald. Brady questionod whether this substantial increase from the originally anticipated $1,000,000 changes the issues. She stated that she feels that with this substantial increase the money should be used for a long-term program, and to take advantage of leveraging with the private sector. She further felt that possibly the long-term disbursement of those funds was not one to be handled by this Committee but rather by a now organization. bush suggested that possibly the Housing Fund Committee needs to develop a program to allow for the long-term administration and distribution of the funds, a more permanent Committee. Ald. Brady suggested that the Housing Fund Committee concentrate on leveraging the $2.500,000 with private sector dollars. She fools that developing a specialized committee consisting of housing professionals, bankers and corporate officials from the City would be the proper method. Ald. Warshaw Indicated that she feels that an outside board such as proposed should include realtors in addition to the banks and local corporations. Newsman stated that he agrees with the idea of developing this outside board to administer and disburse the funds. Ald. Wold questioned N -2- lkyor's Special Bossing rand Committee - Hinutes February 20, 2987 the ,group as to what the committee could do to cause the creation of such a group. She questioned as to whether an organisation such as that which was developed for Iaventure could be constituted for the administration of the subject housing rand! The Committee ties entered into a discussion with respect to bow such moaey should be set aside for ear t seeds stub as boarded -ups and how well should be allocated for the awe housing fund. It was suggested that as such as 81,000,000 could be allocated for current problems and the ramaisder left for the now housing r►nd group. The Committee then discussed problems iavolved with evalsatiag the board -ups and attempting to determine which ones would be feasible to rebah. Start discussed with the Committee souls of the problems Involved with respect to cost efrectivowas and that to demolish various structures without a strategic to construct now buildings could result is vacant lots throughout the City. The Committee pat off for a future meeting the discussion of "is -rill' strategies which would address vacants lots. Bmto Copeland, a repnsentativ+e of ACOhM was prevent and'offered the services or a professional arch itect/emgiaeer general contractor to aid is evaluating board -ups. Chairman Weld summarised the request that staff toms back to the Committee with a proposal for assessing the condition of the board -ups, developing X.P.P's for the $abject board -ups, and a recommendation for the creation of an outside board to administer the proposed housing fund. The Committee further developed a meting schedule for the months of Narch and May. the Committee a=rood to meet on March 3, 10 and 31, 1987. The Committee left the month of April open and would establish meting date for that month later. The Committee tentatively set Nay S and 12, 1987 for future meeting data$. �, jd oarmment The meting adjourned at 9:30 P.M. Starr: be+rt T,�Wd 33(13/ZS) -3- iL7 f • • ` NINY1W Mayor's Special housing Fund Committee February 24, 1987 r 7:30 P.M. Ms■bers Present: S. Brady. R. Rush, R. Warshaw, C. Ross and N. hold Uembers dbsest: N. Carry. A. Remnant, D. Drtumer and L. Spieth start Present: L. Talkingtos, J. Polberding and R. Redd Others Present: C. Walker and R. Copeland !residing official: N. Wold GreteS Of ►.bcsart 20a 19R7. Brady scored and Warshaw seconded that the Committee approve the minutes or the February 10, 2"? of the Mayor's Special Sousing fund Committee as submitted. Committee voted 5-0 to approve the minutes. Co�seicatiors foundation Information fro§L.T*arae Four. fzecutive Director of Keotal �alth Board. The Committee reviewed information submitted from Jeanne Fos. 1pmeless and Transitions.; sousing Information from Ald. Warshaw. The Committee received without comment information from Ald. Warshaw regarding hosreless transition. 91jopqrstion Between banks and Developers from Candace Schafer from Housing Cosssission. Rush indicated that be will follow-up on the this material since it originated with the Single Family Subcommittee of the Housing Commission and will share furtber information with the Housing Fund Committee at a later date. Wald indicated to the Committee that she and Rudd will meet with Son fysiak of Evanston In venture to discuss the formation of a overall committee to handle the Housing Fund dollars. Brady provided staff a copy of a graph of the Chicago Housing Partnership which she requested to be copied and forwarded to the Housing Fund Committee. Ross indicated that be would contact representatives of the haclrthur Foundation, to see if there is any interest in providing funds In addition to the Housing Fund Committee dollars. 0 Minutes 0 )Mayor's Special Housing Fund Committee February 24, 1987 DUiLDraft RAF • Chairman Vold initiated roviewY of a draft request for proposal submitted by Laurel Talkingtom to the Committee regarding board -ups and other expected projects. Vold gmrstiosed whether the press release in the RAP would be fornarded to local papers and Chicago's papers! The Committee suggested that the notice be saint directly to all members of the Chicago Rskab Network Is o"ItIce to media distribution. Bradt questioned whether the press release should be reworded with respect to grants and loans. Vold also questioned wbothor the amount of dollars to be allocated should be included. Brady suggosted that the phrase "low interest" should be dropped and that grants and loans should be redrafted into two different sentences. Warshaw suggested that the press release and the UP conditions should not be too restrictive, but rather should'be open enough to allow for creative proposals. Boss Questioned whether in the baetgrouad section of the RFP whether criteria that the Housing Fund Committee will use is evaluating proposals should be more specific, particularly with respect to leveraged proposals. The Cmiittee continued with discussion about the overall I" with the result to direct staff to redraft, particularly the "press release', and to boor -up this section wtth more detsll regarding the history of the program and also to contact professional public relation waiters to review the final press release. Staff indicated that a redraft of the press release would be undertaken and that the editors of the City's newsletter would be contacted to solicit a cost for their editing of any gross release. The Committee discussed briefly how much money should be utilized for this initial request for proposals and bow such money should be left for the "Iwnventure type' committee that may be established later. Brady suggested to the Committee that any kind of RFP or press release should indicate that developers should have 'sits control' at some point In time before any dollars are disbursed. Committeo agreed that this should be a clear understanding. The Committee discussed further a concern that all proposals should address lows and moderate income residents and that this should be clear in any RFP. Warshaw stated to the Committee that developments such as this may create displacement probleam and that all proposals. if there is displacement, should contain a displacement policy. The Committee discussed the length of time needed for RFPs. Brady felt that it was impossible for any developers to provide an RFP within thirty (30) days and that it could possibly be twice that -2- • minutes r) mayor's Special Rousing Fund Comeitteo February 24, 1967 time period. Ross suggested that the Committee should have a starting period for ow mittal for ow instead of an ending date. ausb felt that there is is hood for a timetable. Ross questioned that maybe the entire smount.of money should be turned over to the 'Invosture type" organisation that the Committee was attempting to form. Other embers indicated that that stay be what happess, but that in previous Housing Fund Comisittee meetings the Committee had decided to allocate sons money for sore ia■sdiato needs. no C=W tteo agreed to continue this discussion at their next meeting of lkrch 3, 1987 at 7:30 p.m. ijdioarnrst The meeting adjourned at 9:00 p.m 3d(21/23) IN -3- CA o Members Present: 8"ors Absest: Start Present: otber>s Presen t : Presiding otficial: ID Ninutes ■aror's Special Housing Fund Committee /VrW 3 -+w +. 1987 Rossi 2402 - 7:30 P.M. S. Brady, !. Bush, R. Wareham, L. Spieth, D. Dru r, A. Nora• and M. void N. carry and C. Ross L. Talkington and R. Rudd C. Walker and B. Copeland N. Weld Hinates of Feb[SM 24. 1907. The Committee approved the iLinestes at February 24, 1967 meeting as sahseitted. Chairman wold reviewed with the Carittee a meeting hold with Ras Rysiak of Rvaastas Investure of Friday, February 27, 1987. Rudd and void described to the Ca■sittwe the discussion which centered around establishing a "housing partnership' or Iavestsre type corporation to administer the 7.5 million dollar fund with respect to housing projects within the City or Evanston. Brady suggested that the corporation could tale a similar structure as that of then Chicago Partnership. Vold reiterated iysiak's doubts with respect to hat mach involvement City of Evanston's banks may take is the loan process. Discussed with E7oiak was the *stsblishment of a "housing partnership' or 'corporation" where applicants would appear before the corporation seeking a loan with various conditions and also seek City of Evanston Rehab dollars and then go to the private sector to attempt to obtain a small first mortgage. It was felt that by securing *equity' dollars from the "corporation," in addition to low interest rehabilitation dollars. a loan proposal would be more acceptable to the private sector. The Cossaittee discussed the possible creation of such an satiLy and raised questions as to how Evanston banks could be made to becoise more involved, could Mortbwestern University became involved, would foundations such as the Kc,rtbur Foundation provide funds and finally whether it was legal to transfer the Housing Fund dollars to such a not -for -profit organization. With respect to the last question, the Committee directed staff to obtain from bond counsel or legal counsel whether the creation of such a not -for -profit corporation to be funded by the subject dollars was legal. Review Craft RFP The Cossiittee to continued to review the RFP which began at the meeting of February 24. 1987. Chairman Vold Questioned the Committee as to when the Committee .should begin to receive proposals or should there be an ending period for proposals. Drussaer suggested that possibly a 60 day period be allowed to review proposals. Warshaw questioned whether the first proposal would only be preliminary so that the Committee could give a 'reading" to the applicants so that final proposals could be made more detailed if there was Minutes Rayor's Special Housing Fund Committee February 24, 1987 Q Interest by the Committee. Bradt stated that she we not ready to review just gay proposal but rather those proposals that were "ready to go'. The Committee discussed at length what proposals would appear to be ready for review. hush questioned whether the Committee was on the right tract in talking about review of proposals or should the Committee concentrate on developing this other "partnersbip" entity. He stated that he is becoming frustrated by serving on both the Housing Commission and Subcommittees and the Bossing Farad Committee which are both discussing the same issue. Bush questioned whether the discussion should focus on the Housing Fund Committee's future or the future development of a separate entity to oversee the funds. Bwmtn stated that he agreed and felt that it doesn't matter what the committee is called but that the Housing Fund Committee, while still in existence, should continue to focus on how the dollars will be spent within the near future. Bush suggested that the Housing Fund Committee should decide now and focus their efforts. It was the consensus of the Housing Fund Committee to continue developing an KFP to entertain proposals in the immediate future with respect to board -ups and other projects and at the sue time to develop the concept of a "partnership corporation". Warshaw recommended to the Committee that they continue in an aggressive manner to request proposals for projects in the "first round' and that the Committee continue toward the creation of a corporation. Chairman Vold recammeaded to the Committee that notices for KFP's be made , public on or about April 1, 1987 and that proposals will be accepted from that point until June 30, 1987. During that time period Vold proposed that the Housing Fund Committee aggressively work toward the creation of 'an Kvanston Housing Partnership'. Brady suggested that upon receipt of all the applications on .Tune 30, 1987 that the Housing Fund Committee continue in existence froia July I through September 1. 1967 to review the proposals and male recone ndations to the City Council. It was the consensus of the Housing Fund Caaisittee that efforts would be made to have established. and in place, the 09vanston Housing Partnership" on or about September 1, 1967 at which time the Hayor's Special Housing Fund Committee would cease existence. The Committee then proceeded to review the `request for proposal' with discussion centering on eligible applicants for the "first round" of the Housing Fund dollars. The Committee agreed to accept and review the proposals on a first -come first -serve basis during the time period of April 1 through June 30, 1937. Brady suggested that some criteria to be contained in the request for proposals that all, properties must be brought up to code. Warshaw suggested that all major systems be brought up to code and beyond the minimum code so as to provide an extended life to the system, i.e. plumbing, electrical, roofing, etc. Her concern was that unless major systems were provided extended life or brought up to a level beyond code that in many of these types of developments the not -for -profit organization or low moderate individuals lack reserves to address problems at a later date. The Committee ND. -2- Minutes Mayor's February X Spacial Housing fund Committee 24, 1987 also agreed that any improvements would have to be energy efficient and that a part of the proposal would require that the applicants had "site control•. Start questioned whether the Committee ~sated to distinguish applicants that are eligible for this program from those applicants that are eligible for the City of Rvanstoe Single family Rehab. Multi family Rehab and HUD Rental Rehabilitation Program! The Committee's conclusion was that all applications would be accepted by this Casiaittee with an effort to match applicant's with two various existing programs in addition to using Housing Fund Commission dollars for primarily acquisition, although rehabilitation would also be considered. Cuarlotte talker of R.C.D.C. was present and made numerous comments with respect to the inability of certain not -for -profit groups and low and moderate Income persons to obtain loans frost banks. Walker also stated that sot -for -profit entities cannot receive loans because according to t.C.D.C.'s accoustast and the IRS, such not -for -profit entities would lose their tax exempt status. Walker stated that not -for -profit entitiee can only accept grants. Several members of the Housing fund Committee took exception to this position and stated that they wars aware of not -for -profit organisations that accepted loans and did not lose their tax exempt status. Vold suggested that sane aspect of the R.F.P male clear that the Housing Fund Committee would 'loop favorably upon leveraged" proposals. It was the consensus of the Committee that leveraged proposals would receive a more favorable review than none leveraged. The Committee, discussed at length, in an attempt to focus the RFP, what types of developments would be reviewed. It was the conclusion of the Committee to accept proposals for (1) board -up structures for rehab and acquisition dollars. (2) acquisition and rehabilitation dollars for multi -family rental structures and (3) transitional sousing. Walker questioned whether it was the Committee's desire to have board -ups occupied by low and moderate income and wbother rents should be fair market. It was the consensus of the Committee that rents for board -up structures would not be required to be fair market. For the next meeting of March 10, 1987, staff indicated that a redraft of a RFP would be provided for further discussion that night. The press release would be determined after the RFP was developed. The next meeting of the Mayor's Special Housing Fund Committee will be March 10, 19D7 at 7:30 P.M. �onrmsent The meeting adjourned at 5 P.M. Staff: obert T : Kdd11 ('GO 39(10/12) -3- AIMVTRS Rayor's Spacial Housing ftad Committee 1 parch 10, 1957 `._ Room 2402 - 7:30 P.R. Members Prosemt: S. Brady, A. Meram, C. Ross, and R. Warshaw Members Absent: R. Mesh. L. Spioth, S. Vold, D. Drummer and S. Carry Staff Present: L. Talkisgton and R. Rudd Others Present: Mole Presiding Official: C. Ross 7 The Committee moved to approve the minutes of March 3, 1957•as submitted. Ueosted Time Tabi The Committee received a copy of the time table for review of proposals a" establishment of 'Rvanston sousing Partnership'. W Diicassion The Committee reviewed a second draft of the request for proposals submitted by staff. Items suggested for revisions to the proposal were as follows: 1. Renumber the order of the three (3) areas of interest as follow; affordable multi• -family housing, boarded -up structures, and transitional housing. 2. Revise the sackaround statement per suggestions of committee. 3. Redraft the Goals statement on page 2 of the subject proposal and indicate the following three goals: a. to improve/increase the supply of decent, safe and sanitary housing within the City of avanston. Lprovement of housing includes ensuring that structures are brought -up to established housing codes, are energy efficient mad the life of all major systems (e.g. electrical, plumbing, heating) are extended. b. To increase the supply of affordable housing for low/moderate income residents, c. To address other community housing needs unmet by the public sector. 0 10 f Minutes Mayor's Special Housing land Committee March 10, 1987 The Committee discussed at length as to whether to include the addresses of the boarded -up structures in the RIP. Staff was directed to obtain from Corporation Counsel as opinion as to whether there were legal problems with Including the addresses. Us Committee changed the term 'geseral criteria" as pair 6 of the proposal to osubmission docwrseats". The Committee approved time 1ol.oction of Pr"Nsals section. Womerous other changes worn ends throughout the RlP during the course of the msstiag. Staff Indicated that a redraft of the proposal would be prepared and forwarded to the entire Committee within the nest week. It wins requested that the Ca■mittee swa■bers review the draft and be prepared to make final changes at the ne=t meeting of the Comittoe on March 31, 1987 at 7:30 p.m. in order to have a final RlP ready for distribution is early April. A. ■owmao requested that the question of notifying intent to focus an their peoperties be placed on an Indicated that this matter would be placed under a 31, 1987 agenda. "Journmpnt The meeting adjourned at 9:20 p.m. Staff gZP/ - •db * "rt ?. Rudd 32(4!S) -2- board -rep owners of the upcoming agenda. Staff w business on the March C NINUTIS Mayor's Special Housing Fund Committee Narch 31, 1987 _ Roan 2403 - 7:30 P.N. 41 Nembers Present: S. Brady, X. Bush, N. Carry, D. Drammer, A. Nemman, C. toss, L. Spieth, and N. Vold Numbers Absent: t. Warshaw Staff Present: Powers and L. Talkington Others Preseat: me" Presiding official: N. Vold I.Q9SjLqratjon of ft,2M The suing was called to order at 7:40 p.m. II. fflaates of Rare# 10. 1997. The minutes of March 10, 1917 were aecepted as submitted. 111. Communications CJ A. doacd•UV 029110 Brady recommended that the City prepare and send a latter to the taxpayers of record of the board -up houses. In this letter the City would ask the owner if they would consider selling the property. Also included in the letter would be reference to code violations and the policies of the City an the boarded -up issue. In her opinion the letter should stern be but not threatening. As a result of the letter, the City and the Comittee would be aware of those owners who are willing to sill their properties. She stated that the letter nay result in driving up the prices of the houses. Dennis Drummer agreed with !Brady. However, he believes that owners should first have the opportunity to rehabilitate the properties themselves. Therefore. copies of the 8FP should be sent with the letter to the owners of record. Powers cosmented on the fact that the City may not want to send one of these letters to owners of all twenty-four properties listed in the report. In at least one case the City is preparing to go into demolition court and it would be inappropriate to send this owner a letter and a copy of the RFP. Members then discussed the possibility of the City acquiring rt� properties, rehabilitating the hors, and reselling them. It was -' Drummer's opinion that the City could do this very efficiently since • Minutes 011. 0 Mayor's Special Housing Fund Committee March 31, 1487 the City has a tract record with doing rehabilitation. Nowmn stated that the City any want to begin with one, two or three houses and see how the process novas along. It my not be necessary for Um City to do a total of twenty-one houses. Chairman Mold suggested that further discussion on City involvement with the boarded -up Louses be delayed until the Committee reviews the response to the RFP. Vold then instructed staff to send letters to the taxpayers of record and attach copies of the Request For lropesal. Brady than suggested that the City may rant to incorporate now legislation for citing moors of boarded -rep houses. This issue was referred to the Housing Commission. B. gemorsndme from Ron f1stak. avanstan Inventult Staff distributed a letter that was sent to Chairman Bold and Robert Ladd from Ron Cysiak of Rvanston Inventura concerning the establishment of a housing trust fund. Vold stated that it is still sot clear if the City can utilize a portion of the 2.5 million dollars to set up a housing trust fund. The Committee is still waiting for a written legal opinion on this subject. Therefore, Vold suggested that farther discussion on this issue be delayed until the Committee has received the opinion from the Legal Department . IT. Old business A. Continue Review of the A" A second draft of the Request For Proposal was distributed to Committee prior to the seating. Members had the opportunity to review and suggest any changes to the document. Vold asked if there were any further changes; there were none. Ross moved and Drmtmer seconded that the Request For Proposal be accepted as revised. The motion passed unanimously. T. Now Business A. Transitional Housing - Zonintt Issues Members of the Mayor's Special Housing Committee agreed that zoning ordinance amendments are needed so that transitional housing can be Incorporated into the Zoning ordinance. It In necessary for the Committee to request that the Planning t Development Committee refer this item to the Zoning Amendment Committee for their review and recommendation. Vold will refer the subject of the transitional 0 -2- 0 GI. Minutes .; mayor's Special Sousing Fund Comsittes march 31, 1987 hosing zoning ordinance sstssdssst to the City Council at the April 15 mseting. Hsrbers agreed that it would be necessary for the Planning i Development Cassaittee to refine the referral before it is sent to LC. I- Press Rele a -for the Reayelt„19r-fr000slj Talhla:toa explained that before the, press release for the RFP can be written, the Committee needs to sake some, decisions concerning the distribution of this doc+smeet. Ross stated that be would like to see the Committee widely distribute the IF? in the Chicago Metropolitan area. It was kis opinion that we should attempt to attract as may persons as possible. Spieth agreed with his. Ross reiterated that he believes that a press conference should be sadertakes by the City. Vold stated that she discussed the idea of a press conference with the Mayor and the City Nanager. The Mayor and City Manager have certain reservations about holding a press cosferesco. Specifically. the RFP slay turn out to be not very nears worthy; it will not result in getting attendees to the press conference; and it would be ssrbarrassment if no one attended the press conference except for the local press. Draft stated that she is not in favor of a prose conference but agrees with the substance of what Ross was stating. It is her belief that the City should contact the Urban Affairs and Real b tate editors of the Chicago San Times and the Chicago Tribune. Saran stated that he agrees with Brady's approach. He believes that it is also possible that the Request for Proposal slay get the attention of local television stations. All members agreed that this is a unique undertaking and that there should be developers and Interested parties who desire to prepare a proposal for these funds. Following are list of publications that the Corittee ■sabers believe should receive a copy of the press release: Crate Chicago Business Chicago San Tines Chicago Tribune Illinois Issues Illinois municipal Review The header The Evanston Review The North Shore Examiner The Nsigbborhood Yorks The News Voice The Network News Lerner Publications Paddock Publications members then discussed organisations which should be notified of the RFP's and be sent an individual sailing: R.C.D.0 Family Focus -9- Evanston Housing Coalition YMCA Kinates . ilayor' s Special Hous i n ' d Cori ttoe Karch 31, 1987 0 MCA The Ninisterial Alliance A.A.A.C.P. Rescorp Tbo Rvasston Rcumenieal Action Coalition Brady then suggested that the developers who are sent proposals for the Church/Chicago project should also be sent a copy of this RFP. Staff requested that if ■ tubers have additional publications or persons who they believe should be seat a copy of the RFP that they tele"ono their suggestions to staff as early as possible. ■esters agreed that with the publications. especially the Chicago Seim Tissue. Chicago Tribune. The New Voice and the Rvanston Review, telephone calls can also be r►de so that we maximize the opportunity for receiving adequate press coverage for the RFP. Members agreed that they would divide up the list and assist in taking on the responsibility of mating the follow-up telephone calls. Staff agreed to prepare the list and distribute it to the Committee so that they could divide up this responsibility. loss stated that the press release needs to be clever. The pass release seeds to stress the uniqueness of the program. In preparing the pass release staff should pick out two or three itnas that will create interest. C+os•ittee members agreed that the release should stress the RAP is locally funded, that there is not state or federal anion tied up in the proposals. The press release should be no longer than one page and should have a two hundred and fifty word ` mule oma. Staff agreed to prepare the press release, and :nail the release to the Ccomm itt*e for their cosmmants by Monday. In summary. staff will prepare the press release, make sufficient copies of the Request For Proposal, prepare a mailing list and mail out all of the information by April 13, 1987. 111 interested parties should then has* copies of the proposals by April 1S, 1907. ■1. Comsat$ R. Curry discussed a project in Washington, D.C. with samb*rs of the Committee. The usmme of the project is Resurrection Square and it is being sponsored by th* national Low Incom* Housing Coalition. The project includes alternative housing arrangeswnts. A portion of the project will be devoted to transitional housing. VII. kdJournment The Meting was adjourned at 9:00 p.m. The next meting of the Kayor's Special Housing fund Comittee will be Kay 5, 1987 at 7:30 p.m. Staff: j 4irs►� Laurel Talking ono 91{1/4} MINUTES Mayor's Special Housing Fund Committee may 5, 1987 1 Room 2402 - 7:30 P.M. Members Present: S. Brady, R. Bush, ff. Curry, A. Naman, C. Ross, R. Warshaw and M. Wold Members Absent: D. Drummer and L. Spieth Staff Present: L. ?alkington and R. Rudd Others Present: Mole Presiding Official: M. Mold Minutes of Narcb 31. 1987. Bush moved and Brady seconded that the Committee approved the minutes of March 31. 1987 as submitted. Committee voted 7-0 to approve the minutes. Communications t� Chairman Wold indicated to the Committee that a request was made at the City Council meeting of May 4, 1987, that copies of minutes of past Special Housing fund Committee meetings in addition to future meetings be forwarded to City Council. Staff has been so directed to provide that material on a regular basis to all City Council members. Old Business None New 'Business Assessment of Boarded -Up Structure. Rudd reviewed with the Committee a memo dated April 30, 1987 regarding a proposal for assessing the various boarded -up structures. Ald. Warshaw suggested that single family homeowners that are not familiar with rehabilitation should not be required to subunit a sophisticated proposal. It was felt that not -for -profit groups skilled in the area of applications and rehabilitation projects should be expected to have a more detailed proposal and that the less detailed and less skilled proposals should received technical assistance from City staff in making their application. Newman expressed concern that it was possible many of the boarded -up structures would not be subjects of proposals and that the Committee should be sure that dollars were left in the Housing Fund to address the remaining boarded -up structures either through demolition or to rehabilitate. Ald. Brady questioned the issue of feasibility of the proposals that would be received and how would the Housing Fund Committee determine feasibility. A discussion minutes mayor's Special May 5, 1987 0 Housing Fund Committee *VMNP '"ftb ensued regarding the after rehab value of the projects and the percent of rehab versus the value of the projects. Ross felt that a key to the feasibility is the value after rehab. Curry questioned they need to assure sane longevity of rehab work to avoid situations that would require additional rehab work or repair of rehab work at a later date. He also felt, Ilk* mewman. that the boarded -up structures that were not subject to proposals should be addressed by the Comittee and not neglected. Ald. Brady stated that the Cowmrittoe needed to determine the fair market value after rehab and whether it was practicable or feasible based on the percent of deterioration of the boarded -ups as to proceed with rehabilitation. Ross recossmended that a rehab write-up (assessment) be developed and that upon completion of this document an after rehab appraisal be provided to the Housing Fund Comittee to aid in waking their recossaendation. The Comittee discussed the merits of involving private lending institutions in the process. Warshaw suggested that to help pay for gone of the cost of the review of the proposals that the Comittee consider at save point an application fee. ftman questioned what information the Comittee needed to slake a decision. it was the consensus of the Comittee that a rehab structural report in addition to an after rehab appraisal were necessary before any final decision could be made. Curry questioned whether the Committee wanted to review proposals on a preliminary basis first and then if the proposals were found somewhat acceptable solicit the appraisal and rehab evaluation. The Committee concurred with this process. The Comittee discussed at length the review of proposals and final packaging of loans and projects. Ald. Brady felt that in many instances this process takes anywhere from six to nine months. it was felt by the Committee that the total process in this instance could be greatly reduced but there should not be expectations of only a few weeks. The Committee reviewed their deadline of June 30. 1967 for all proposals and clarified that decisions could be made prior to June 30 on a first come first serve basis and that all decisions on proposals received prior to June 30 would be completed by August 30, 1987. The Committee also agreed that proposals submitted by the June 30 deadline could be, after review, resubmitted with additional information at the request of the Housing Fund Committee. Discussion continued regarding what documentation would be needed for the Housing Fund Committee to make a recommendation. Brady and Warshaw agreed to develop a check list of material that they are familiar with and submit it for applications of rehab proposals. With respect to the assessment of boarded -up structures the Committee directed staff to develop a guideline detailing what would be analyzed in a rehab review and to bring that back to the Committee as soon as possible. After the Committee finalize their review of the rehab analyses staff would 0 a -2- s minutes 0 Mayor's Special Housing Fund Committee may 5o 1987 solicit mom* proposals from outside architectural firsts to provide this service. After this step was completed a recommendation mould be made to the City Council to approve the expenditure of funds to provide this service to the City for applications made with respect to this fund. Both Warshaw and Vold reiterated to the Committee a previous understanding that there would be tam administrative cost, such as the rehab analyses, for the program. Chairman Void ask for comment from the audience with respect to the issues being discussed. Roger Parris, a principal at Manchester Realty and applicant for various boarded -up structures was present and requested that the Committee act expeditiously in deciding upon his request. Mr. Parris was inforoed that the Cosmmittee would start reviewing the requests at the next meetiuk on Way 12. 2987, but that a decision most likely would not be forthcoming that night. Parris emphasized that time was or the essence and that he needed a decision by May 20, 1987. The Committee indicated that most likely he could not be accommodated since City Council would have to make final decisions as to the expenditures of fonds. Mr. Parris stated to the Committee that that being the came he would at this time withdraw his proposals. Kay Muller, a representative of the Evanston's Housing Coalition was present and emphasized to the Committee that the Housing Coalition proposal was quite different from the others in that it is such further along since the Housing Coalition has been involved for many months getting funding from different sources such as the C. D. Committee. !fuller emphasized that the Housing Coalition differs from some of the other proposals and that it was a not -for -profit organization. The proposal was for a large project (three buildings, eight units each) and that the project was already underway with the purchase of one of the three buildings. Bruce Copeland, a representative of the Evanston's Housing Coalitions was also present and cautioned the Housing Fund Committee in trying to reinvent the wheel with respect to proposals. Copeland felt that the Housing's Coalition's proposals should be viewed differently than some of the other proposals as submitted due to the points stated above by Ms. Buller. Brian Icing, an applicant for a proposal at 1016 Garnett Place questioned the Committee as to the time frame for feed back. The Committee indicated to Mr. Ding that the Committee would undertake review of his proposal at the meeting on Way 12, 1987 and would be able to provide some information at that time. The Committee also requested that Mr. king supply to them a more detailed breakdown of exactly what rehabilitation work is being requested. No. Barren indicated that she would be submitting a proposal and questioned as to what form the Committee recommended her proposal take and what would be the time frame. The Committee directed Ms. Barren to obtain from City staff the request for a proposal and suggested that she follow the directions with respect to information to be submitted. -3- Minutes Mayor's Special Housing Fund Committee May 5, 19a7 Chairman Vold stated that the Committee would spend most of their time at the Nay 12 meeting reviewing the two remaining proposals. 01scussion of "Housing Partnership Corporation". Chairman Wold suggested that the Cossaittee discuss briefly the future structure of the successor to the Housing Fund Committee. At previous meetings discussions centered around the creation of "Housing Partnership Corporation", a not -for -profit organisation that would administer the distribution of !lousing Fund dollars for rehabilitation in the City of Evanston. Brady suggested that the Committee explore contacting an expert in the area of non-profit rehabilitation organizations such as Mr. Andrew Ditton of the Ford Foundation who is also a resident of the City of Evanston. It was felt that fir. Ditton's expertise could be obtained to provide direction to the Housing Fund Committee regarding this future structure. Warshaw Indicated that she would contact Mr. Ditton in an attempt to have him appear at a future Housing Fund Committee meeting. The Committee agreed to establish the following meeting dates: May 26, June 9 and 23, July 14 and 28, August 11 and 25. AdJ ournmen t The meeting adjourned at 10:00 p.m. The next meeting will be May 12, 1987 at 7:30 p.m. S tali . zAr�� Robert T. Rudd 39(15-1a) -4- 01 minutes !Mayor's Special Housing Fund Committee May 12, 1987 7:30 P.R. Kegs Present: S. Brady, R. Bush, A. Newman, C. Ross, R. Warshaw, D. Drussaer and R. Wold Members Absent: L. Spieth and M. Curry Staff Present: R. Rudd Presiding Official: R. gold 11aotes of May S. 1987. Brady moved and Ross seconded that the Committee approved the minutes of May 5, 1987. Committee voted 7-0 to approve the minutes as submitted. Commanications Chairman Wold indicated to the Committee that on their desk was a proposal from Manchester Realty for 1747 Hartrey. Chairman Wold indicated that this proposal was withdrawn by the applicant at the May 5, 1987 meeting, but has now been resubmitted. Since the Committee has not had an opportunity to review the proposal for discussion at the May 12, 1987 meeting this matter would be placed under "old business" for review at the May 26. 1937 Special Housing Fund Committee meeting. Old Business 1016 Garnett Place (King i Sons)_ Brian King, a representative for the applicant was present and briefly reviewed the subject proposal. King indicated that the current nonconforming two -unit building would be converted into a three to four bedroom single family home. He indicated that he expected to maintain rents at the Section 8 guideline level (approximately $625.00 per month, first year). King further indicated that a $20,000, 15 year personal loan would be obtained by the applicant in addition to the request for the $40.000 Housing Fund Committee request. King indicated to the Cosmnittee that he had submitted for review, per the request at the May 5, 1987 meeting, an Estimate and Discussion of Repsirs. Brady questioned why the applicant desires to change the two -unit building into a single unit' King indicated that the current structure was nonconforming and that the layout was not conducive to being maintained as a single family home. It was also thought that to accomplish major remodeling that the zoning ordinance would not permit the structure to be maintained as a two -flat. Warshaw questioned why King proposed a personal loan versus a first mortgage! King indicated that it was his opinion that it would be difficult to obtain a first mortgage until after rehabilitation. He stated that possibly after rehabilitation he could refinance the personal loan into a mortgage. Warshaw questioned Appendix II which contained an alternative for a low interest proposal. King stated that even with a 30 year City loan the Minutes Mayor's Special Housing Fund Committee May 12, 1987 proposal would not work. Warshaw questioned King as to whether he looked at other alternatives. King stated that all other financial alternatives have been reviewed and that the grant is the only feasible proposal. King further Indicated that he was committed for 10 years to have affordable rents as proposed, assuming that other costs stayed the same. King proposed that the Committee consider forgiving the $40.000. grant at a rate of 10% per year (t4,000) and observed that the difference between the rent that he would be charging and the rent of neighboring structures is equivalent to approximately $3,900. per year. Warshaw questioned King whether he would consider a title transfer loan. King indicated that he would consider a title transfer loan as long as it would be 0% interest, King asked the Committee what would happen if Section 8 rents were abolished and there would be no guidelines for him to follow. Brady explained that there are other alternatives to determine Section 8 equivalents. Ross questioned King as to why no depreciation was shown in the proposal. King stated that based on the way the financing would be structured, and in light of the new tax laws. that it was not practicable to develop a depreciation schedule. Warshaw agreed that the new tax laws minimize the depreciation in a project such as this. The Committee questioned King with respect to the proposal which did not show a reserve. Xing indicated that that was correct but that the proposal would not be feasible if any further cost, such as a reserve fund, was a factor. Newman questioned whether King could supply additional background regarding his Company. The Committee directed staff to develop for review a list of addresses and types of work completed by the King & Sons Company within recent years. Xing reviewed with the Committee some of the items on the work list which would be contracted out to other than the King's Construction Company which anticipates acting as the general contractor. Brady proposed that the Committee consider approval of the proposal by King b Sons with the following conditions: (1) that the loan be a title transfer with 01 interest; (2) that the rents for the life of the loan be limited to Section 8 guidelines. Discussion ensued with the applicant with respect to whether there would be a review period, possibly after five (5) years, to discuss the maximum amount of rents to avoid a situation where operating costs outstrip the limited rents. By a straw vote of the Committee (7-0) staff was directed to prepare a write-up for this proposal with the aforementioned conditions in addition to providing a clause that would allow for a five (5) year review of the rent proposal. Warshaw also requested that the applicant supply to the Committee a disclosure of all real estate owned in the City of Evanston. -2- Minutes Mayor's Special Housing Fund Committee May 12, 1987 2014-2018-1024 Veslev (Evanston Housing Coalition). gay Mullen, Project Task Force Chairman for the Evanston Housing Coalition was present and provided background to the Committee. Muller indicated that the Evanston Housing Coalition was dedicated to supporting neighborhood efforts to upgrade housing for limited income families and individuals. The Coalition is a not -for -profit agency founded by representatives from Evanston's religious community in conjunction with neighborhood representatives and community groups. Muller revived the three (3) eight -unit buildings in the 2000 block of Wesley. She stated that as a result of the EHC's rehabilitation and responsible management, the twenty-four units will provide decent, affordable housing for Evanston residents in addition to having a significant positive economic and social impact on the larger neighborhood and the whole community. Muller stated that it is the Housing Coalition's position that the City of Evanston is in a period of housing crisis with large segments of the housing stock in jeopardy. She highlighted for the Community thnt a review of the HHC proposal indicates that there is not a development fee associated with it since this is a not -for -profit organization. Newman questioned the EHC as to whether people would be displaced' Muller Indicated that the EHC will follow all legal requirements and utilizes the standard rental lease. Brady questioned why in the proposal EHC used 35% of income instead of the Section 8 equivalent of 301' Bruce Copeland of EHC Indicated that 35% was not directly related to the Section 8's 301 but rather reflects what is a standard among the lending institutions regarding percent of income to be utilized for housing costs. Brady further questioned what amounts were being requested through the Rental Rehab Program. Muller indicated that a $120,000 grant reflected the Rental Rehab and that amount would allow them to obtain 24 Section 8 Certificates. Newman questioned the significant differences in the two (2) appraisals by EHC. There was some concern that EHC may have overpaid for the buildings based upon the low appraisal. Brady expressed an area of concern in that upon review of the EHC proposal that the housing was made affordable only because over 801 of the funds necessary for the entire project came from the public sector. She questioned why a higher percentage could not be obtained from the private sector. Muller stated that the City of Evanston was getting a bargain because the not -for -profit organization was solving a community problem and that 807. was not unreasonable. Brady stated that she still had a major philosophical problem since of the 80%. 68% would be an outright grant and never returned to the City. Ross indicated that his review finds that the EHC proposal costs approximately $ 40,000 per unit which is the same as the Xing proposal. He questioned why the loan could not be a title transfer versus a grant' Muller suggested that the Committee may want to view the dollars requested by EHC as "seed money" since the Coalition may go on to other projects. Newman expressed concern that the project was not leveraging much money but felt that the overriding factor was that the neighborhood problems needed to be -3- Minutes Mayor's Special Housing Fund Committee May 12, 1987 addressed. He felt that the City needs to be Involved financially in this natter. Brady stated that she was in favor of the proposal but believes that the Coalition needs to at least explore private sector mortgaging. Brady questioned whether the City of Evanston could guarantee a private sector mortgage. She felt that there currently was not enough leverage in the proposal of non-public money. The Commmittee and representatives of HNC discussed at length numerous alternatives in an attempt to utilize more private sector dollars and less public sector dollars. In all instances EHC countered that any private sector dollars or loan repayment would result in unacceptable rent increases and thus defeat the purpose of the proposal. Rev. R. Thompson was present and indicated that he had four major concerns: (1) The average annual income for the subject census tract is approximately $14,000 per household; (2) that the block in question had received only 20% of the City's services that is actually due the area; (3) that the EHC has invested in expertise, effort and time that cannot be measured in dollars and (4) that the payback comes in monetary ways, in addition to non -monetary ways such as the stabilization of a neighborhood. Warshaw indicated that she sees the proposal for a very distressed area and that the Committee should make all efforts to try to make the project work. Drummer cautioned the Comittee in not reverting to being in the banking business. He felt that the Committee at its earlier meetings had agreed that the Committee would utilized these funds to try to make projects work and not necessarily hold as a top priority the repayment of the funds. He felt that if anyone. such as EHC, is willing to tackle this neighborhood problem, the City should be excited. He stated that he was in favor of granting the funds requested. Newman stated that he agreed with Drummer as long as the rents would not increase, but questioned why the money could not come back to the City of Evanston such as in a title transfer loan and be utilized by EHC or some other party? Drummer concurred that if the money could he provided in a manner where it would not increase the rents or make the project infeasible then he would agree to a loan arrangement where the money could come back to the City. Warshaw stated that if a (M title transfer loan were approved that the City Council at some future date could always forgive that loan at the point of title transfer if the Council found that EHC would use the sale money of the proposal in other worthwhile projects. The Committee offered various alternatives such as deferring a loan in the amount of $ 430,000 at a 0% amortizing to the six year. EHC stated that that would make the project impossible to develop. Bush suggested that EHC and the Committee consider splitting the $430,000 into a $215,000 at 0% loan and $215.00 into a title transfer loan. The advantages he felt were that such a split would create a minimum increase in rent and would result in the money eventually returning to the City to be utilized again for housing. Newman questioned that the 0% amortizing loan in the amount of $215.000 would be an -4- Minutes Mayor's Special Housing Fund Committee May 12, 1987 insignificant amount of money returned to the City monthly with respect to overall City budget. He felt that the money could be better utilized by not having the amortizing loan and thus not increasing the rents. Copeland suggested modifying the Bush proposal by requiring that half of the $215,000. at 0% amortizing loan be phased in at year six and the other half be phased in in year eleven and the other $215,000 would be a title transfer loan. It was the consensus of the Committee that $430,000 could be funded but that a decision would have to be made on how the $430,000 would be provided. Newman indicated that he was opposed to splitting the $430.000 as proposed by Bush. Be stated that he was concerned with building in a future rent increase. Brady stated that she could not accept granting $430,000 and not having it return for at least thirty years. She stated that she would support the Bush 50150 proposal. Chairman Yold called for a straw vote on the Bush proposal (4 In favor). In response to a proposal for $100.000 title transfer and $330,00 grant (the vote was 3 in favor). After a brief discussion the Committee suggested that BHC consider the various alternatives proposed by the Commaittee and that the discussion would continue at the next meeting of the Special Housing Fund scheduled for liar 26. 1987. Staff Proposal with Solicitation for Services for the Evaluation of Housing Proposals. The Committee reviewed a staff proposal to utilize outside consultants to begin review of the proposals. The Committee voted to make a request to the City Council at the meeting of May 18. 1987 that the Council authorize the City Manager to expend an as+aunt not to exceed $10,000 for professional services to allow for review of the proposals. Committee voted 7-0 to slake the recommendation to City Council. Ross moved and Bush seconded that the Committee also approve the process as set forth in the aforementioned memorandum from staff. Committee voted 7-0 to approve staff recommendation. &djournment The meeting adjourned at 10:30 p.m. The next meeting of the Mayor's Special Housing Fund Committee will be Tuesday, May 26, 1987 at 7:30 p.m. in IM 2402. Staff: Robert T. Rudd 39(16/20) -5- MINUTES Mayor's Special Housing Fund Committee May 26. 1987 Room 2402 - 7:30 P.M. Members Present: S. Brady, R. Bush, M. Curry, D. Drunn r, A. Homan, C. Ross. R. Warshaw and M. Wald Members Absent: L. Spieth Staff Present: C. Powers. and R. Rudd Others Present: None Presiding Official: M. Vold Minutes of Mar 22. 1987. S. Brady moved and D. Drummer seconded that the Committee approve the minutes of the Mayor's Special Housing Fund Committee of way 12, 1967 as submitted. Committee voted 5-0 to approve the minutes (M. Curry, A. Homan and R. Warshaw absent). Cosmrnnications ProDorties Owned by Ring & Sons. The Committee received ■ listing of properties owned by King & Sons located within the City of Evanston per the request of the Committee at a prior meeting. Rudd explained briefly to the Committee that due to an increase in interest rates the original expected proceeds from the bond sale will no longer be $2.5 million, but will be slightly more than $1.8 million dollars. Brady stated that she feels that this reduction in money (approximately $700,000.) creates a change in her thoughts with respect to the Housing Fund Committee since there originally was a significantly larger amount of dollars. Old Business 1747 Hartrey (Manchester Realty). Roger Parris, Principal of Manchester Realty, was present and provided the Cosmtiittee a summary of the property at 1747 Hartrey. Parris indicated that the structure has been boarded -up for quite some time. Damages to the property such as frozen pipes are needed to be repaired in order bring the property up to code as well as the necessary changes required in order to make the building more attractive, more practicable, more energy efficient and to increase living space. Parris indicated that when the work is completed it is expected to give the building an economic life of approximately twenty years, Minutes Mayor's Special Hour: ink Fund Corm t tee May 26, 1987 and a market value of approximately $80,000-90,000. Parris submitted to the Committee a work proposal indicating that the repairs would total $40,000. Brady questioned Parris about the incomplete pro forma which he supplied in the handout. She expressed concern about the lack of a development budget, operating budget, and repair budget. Parris indicated that since he was purchasing the property for $36,000 free and clear of any loans, he could withstand any unbudgeted expenses. Parris further stated that he did not expect to need repairs in the future since the work will entail extensive rehabbing. 1l www questioned Parris as to why he felt he needed the Housing Fund Comittee's dollars since he would own the property free and clear and would appear to be able to obtain a rehab loan. A partner of Parris', Mr. Daniel Codner was present and stated that the income generated by the property (approximately $9,000. per year) was not sufficient enough to cover a mortgage. Drummer stated that the issue was not whether Parris could do the project entirely by himself but whether the Committee could develop an Incentive to have Parris and other developers clean-up the boarded -up houses within City. Chairman Wold questioned Parris as to how long he expected to maintain the rents at $450 and $550 for the two units in questions. Parris stated that it was up to the Committee to decide later. Warshaw posed several questions to Parris regarding the rehab specs and was concerned that the construction costs were exceptionally low. Parris stated that the amounts budgeted were sufficient and that he was capable of absorbing any increases. Drummer reminded the Committee that Parris, in addition to being a realtor, also owned a construction company and that the work would be done by that company. Parris stated that he feels that he could do the work for the amount requested. Rev. Curry stated that he has viewed another project that Parris had rehabbed on Fowler and finds that the work is exceptional. Parris stated that the same contractors would do the work on Hartrey that did the rehabbing on Fowler. Warshaw continued to express concern that the rehab figures were extremely low. Brady stated that she was interested in reviewing a complete rehab budget and expressed a concern that she felt the applicants should not be cutting cornars. Parris suggested that a band be put in place to guarantee the work will be done to alleviate this concern of the Committee. Brady reminded the applicant that on all projects the City of Evanston will have an appraisal and an architectural review to determine whether the cost and the scope of the work to be completed is sufficient. Ross stated that he was inclined to go ahead with the project and not get bogged down in differences in cost which should be resolved through the City's architectural and appraisal review. Newman stated that he understands that one goal of the Housing Fund Committee is to support projects not economically feasible. He questioned whether with a $9,000 annual income this project is feasible in the private market' Newman questioned for what amount other buildings on the block were selling' He further stated that the Committee was not against applicants making money on a project; however if sufficient income is generated to construct the project privately, he would not feel that it would be eligible -2- Minutes Mayor's Special Housing Fund Committee Nay 26. 1987 for Rousing fund dollars. Carry reiterated that one of the goals of the Cosmittee was to address board -ups and to encourage and provide incentives for proper rebabbing. Re felt this project accomplished those goals. Brady proposed that staff proceed with a rehab evaluation and appraisal conditioned upon a more complete pro forma to be submitted by M. Parris. Vold also suggested that the applicant address the length of time for holding the rents at the proposed =4S0.00 and $550.00 levels. Newman requested that Mr. Parris supply to the Committee a listing of all buildings managed and owned by Manchester Realty witkin the City of Evanston. Staff was directed to place the item back on the Housing Fund Committee agenda upon receipt of the City's architect and appraisal reviews in addition to the pro forma information requested of Mr. Parris. 1016 Garnett Place (Xing i Sons) The Committee reviewed a ebeck list of documents submitted by King i Sons. This mutter will rmme.in on bold until such time the City contracts for architectural and appraisal inspections. This item, in addition to the liartrey item, would be placed back on the agenda when that information is gathered. 2024 - 2018 - 2024 Yesle L (Evanston's Housing Coalition). Kay Muller introduced numerous speakers on behalf of the Evanston Housing Coalition. Betty Palmer. treasurer of the Coalition briefly stated that the three buildings have been a source of much trouble to the neighborhood over the past several years. She stated that the Evanston Housing Coalition has helped the neighbors in trying to formulate an effective plan to stabilise the area. She stated that with this recent effort some of the problem people in the neighborhood have left the area. Dr. Larry Murphy, Vice President of the Evanston Housing Coalition indicated that than -es in the logistical and philosophical approach of the Coalition are being represented in a meted submitted to the Housing Fund Committee dated May 21. 1987. He indicated that the Coalition continues to struggle with the title transfer issue and that due to a revamping of the funding, the Coalition is now requesting an additional $75.000 grant for a total of :505,000 from the Housing Fund Committee. Rev. Robert Thompson, a s►ember of the Housing Coalition, spoke and emphasized a need for community investment in the 2000 block of Wesley. He stated that the Housing Coalition warts to continue on other projects within the City and this would be a stepping -stone. Drummer questioned a remark by Ms. Muller with respect to the City not taking a second mortgage. Rudd indicated that in all cases the City attempts to obtain a first mortgage but in the current rehab program often takes a second and sometimes a third position. Ross stated that he finds a title transfer -3- Minutes Mayor's Special Housing Fund Comittee Max 26, 1987 concept perfectly appropriate for a not -for -profit organization such as Evanston Housing Coalition. and questioned why the Coalition was not utilizing Section 8 Certificates for this project. Muller stated that in her opinion the title transfer raises a red flag to the westside neighbors in the Stb Ward who have expressed to bar a feeling that there may be a conspiracy to oust them from the City. Ross stated that it is obvious that this is not true since this is an integral part of the current rehab programs and the City has no history of tatting anyone's hosre. He stated that it is his feeling that it Is the responsibility of the Evanston Housing Coalition to inform the neighborhood of these facts and to educate thew with respect to the title transfer concept. Muller stated that ■he has been informed by an alderman and by the Mayor that it is their feeling that some people may have to seek housing outside of the City and maybe in Chicago. Vold stated that she feels that that remark was unfair. She stated that the remark wade by Muller was taken out to context and not accurately depicted. Muller stated that in response to Ross's question of Section a's, that it was the Coalition's opinion that it was not in the best interest of the neighborhood to concentrate Section 8 Certificate holders in the three buildings. Brady posed some questions to representatives of the Housing Coalition with respect to $36,000 contingency reserve which appeared to be a construction reserve. Bruce Copeland, of the Coalition, indicated that the $36.000 was an operating reserve and not a capital reserve. Muller stated that she feels that the Housing Fund Committee should assume that any future projects developed by the Housing Coalition would cone before the City for review and future funding and that there would be no need to require a title transfer. She stated that she believes that it is not necessarily true that an appointed commission, such as the Housing Fund Comm ttee, can boat assess housing needs of the City of Evanston in the future, whereas a group as the Housing Coalition might be better suited. Merman stated that it is his opinion that Muller's comments with respect to title transfer were completely unfair. He further stated that the Housing Fund Committee at their previous meeting did decide to invest $430,000 in the neighborhood. He felt that comments with respect to the forcing out of the westside residents was also unfounded. He stated that he was under the opinion that it the Coalition agreed to a title transfer he would support the project but would oppose it if the entire amount was to be supplied in the form of a grant. Finally, Newman stated that it was unrealistic to expect that the City of Evanston would invest one million dollars in the Housing Coalition project without any controls. Ross stated that he is very much in favor of the project but feels that Section 8 Certificates should be utilized to make the project feasible. He continued to question why Section 8 Certificates were not desirable and not -4- Minutes Mayor's Special Housing Fund Committee Hay 26, 1987 proposed in the project, at least to a limited extent. Muller stated that she would not commit to saying that there would be no use of Section 8's, but that the Coalition opposed a total Section 8 population (24 units). Betty Palmer stated that it is difficult enough to attract good tenants because of the bad neighborhood, and the Section B would exacerbate the problem. Bush stated that in his opinion the Coalition was weakening their request by asking for an additional S75,000 as detailed in the flay 21. 1987 memo. Huller stated that the Coalition had an extensive philosophical discussion on the issue of title transfer versus grant and feels strongly that a grant is in order. She stated that at the previous meeting gld. Drummer had also indicated that he was in favor of a grant. Julian Nessler, President of the Evanston Housing Coalition, was present and stated that he understood the title transfer concept but felt that it was something that could not be sold to the neighborhood. He suggested the Committee consider a "forgiving grant" such as the CD Committee. Hessler further stated that the Evanston Housing Coalition has nurtured significant neighborhood confidence and feels that a title transfer would weaken that trust. Brady questioned the Coalition as to whether they have raised their budgeted amount of S11S.000. Muller stated that the Coalition has raised approximately $60,000 and would expect to raise the $115,000 total within the first year. Curry questioned the Committee as to whether it is the opinion that a grant would be approved by the City Council. The Committee discussed the merits of the grant versus title transfer loan. Drunmer stated that the burden is on the Evanston Housing Coalition to convince people of the title transfer appropriateness. The Committee discussed at length changing the term title transfer to another phrase such as "non -amortizing loan". Brady suggested that the Committee (1) decide on the project and (2) discuss the fact that the project has obtained no money from a local lending institution. Brady proposed that a small percent of the overall project be received from a local bank with possibly the City of Evanston paying interest and guaranteeing the loan. Comittee members questioned what could be accomplished by this method? Brady stated that by doing what she has proposed the City would have dollars to loan out to other projects in addition to helping the Evanston Housing Coalition to get a head start on the second project by working with the financial institution in gaining a credit history. Muller stated that the Housing Coalition has had contact with local banks such as State National which has refused loans or discussed loans at an interest rate that made the project unfeasible. Bush reviewed once more the philosophy of the Housing Fund Committee with respect to this project and others. He stated that it was his understanding that projects should give something back to the City so that another project could be started to aid other aroas. He suggested that the Housing Coalition -5- minutes mayor's special Housing Fund Comittoe May 26, 1987 should not necessarily be, looking at the private sector but should restructure, their most current request. Newman moved that the Coamittee approve the original proposal of the Evanston Housing Coalition which called for a $330,000 title transfer loan and a $100,000, thirty year at O1 fixed payment loan. Bush seconded the motion. Drujoer proposed a substitute motion that would allow a $200,000 reducing grant, a $130.000 non -amortizing loan, and a $100,000 thirty year fixed payment loan. The substitute notion failed for lack of a second. Chairman Vold called for a vote on the original nation from Newman which was for a $330.000 title transfer (01 non -amortising loan) and a $100.000 repayment (thirty year at 0% fixed payment to start in the third year). Noting Aye: Brady, Curry, Neuman and Ross. Voting May: Drummer, Wold and Warshaw (Bush absent). After a brief discussion the Committee informed the !lousing Coalition that upon the City hiring an architect and appraisal for the review of their project, and the result of those studies, this scatter would be placed back on the Housing Fund Committee agenda for review. The Housing Coalition was requested to forward to staff a revised pro forma per the Housing Fund Cossaittee funding roe oasmendations. Adiournment The meeting adjourned at 11:00 p.m. The next meeting of the Housing Fund Committee will be June 23. 1967 at 7:30 p.m. in room 2402. Staff: AOAMLOn;4�6w' Robert-T. Iftid 22(9/14) -6- MINUTES Mayor's Special Housing Fund Committee June 23, 1907 Room 2402 - 7:30 P.M. Members Present: S. Brady, R. Bush, M. Curry, D. Drummer, A. Newman. C. Ross, R. Warshaw and M. Wold Members Absent: L. Spieth Staff Present: C. Powers and R. Rudd Others Present: None Presiding Official: M. Vold Minutes of May 26. 1987. Newman corrected the minutes regarding the vote taken on the Evanston Housing Coalition project as indicated on page 6 of the minutes. The correct vote should be voting aye: Brady, Curry, Newman, Ross, Wold and Warshaw. Voting nay: Drummer (Bush absent). The minutes were approved as amended. Communications Sun Times Article re Mayor's Special Housint Fund Committee's Funds. Committee received the above captioned article contained in the June 7, 1987 edition of the Chicago Sun Times. New Business 2020 Brown Avenue (Over the Rainbow). Sue Gustafson and Gerri Boone, board members of Over the Rainbow agency, and Mitchell Milner, Housing Consultant and staff member of the agency, were present and provided background to the Committee. Mrs. Gustafson indicated that the Over the Rainbow agency was founded in 1974 to provide housing for disabled family members and physically handicapped adults. Mr. Milner stated that the current project is funded by a HUD 202 direct loan. The project is also partially funded by a $150,000 Community Development Block Grant provided by the City. Milner indicated that the entire project would cost approximately $1.4 million (HUD loan comprising $1.18). Milner indicated that the $150,000 CD grant still left a short fall between $73,000 and $75.000. Brady questioned what Over the Rainbow would do if the Committee did not recommend funding the $75,000 request' Milner indicated that Over the Rainbow would go to lesser -grade items and eliminate the computer area. Brady questioned whether the $75,000 would be used for residential purposes' Milner Indicated that the money would be utilized to address residential construction associated with the project. Newman questioned whether other dollars have been received from different agencies or groups. Milner indicated that funds for operating uses have been received from other sources. Newman questioned how many residents would be utilizing the facilities. Milner indicated that a Mayor's special Housing Fund Committee June 23. 1987 minimum of thirty-three (33) residents would be living at the rehab facility. Milner further indicated, in response to a question from Chairman cold. that there would be no full-time staff on site. The Committee discussed the original request by Over the Rainbow to the CD Committee which was for $225,000. The CD Committee agreed to fund $150,000 and suggested that Over the Rainbow come before the Mayor's Special Housing Fund Committee to make up the difference. Milner indicated that Over the Rainbow was applying to numerous foundations that support handicapped efforts. In response to a question from the Committee regarding the need for the facility in Evanston, Milner indicated that the agency is aware of one hundred and fifty (150) wheelchair people in the City that could use the facility. Milner further stated that his agency has an elaborate marketing plan targeted to City of Evanston residents and in the application to HUD provides for a minimum of 501 City of Evanston residents. He further stated that the plan calls for a racial and sexual mix of residents. Bush questioned Milner about security for the handicapped people on the site since there would be no permanent staff. Milner indicated that the buildings would have security devices to protect the residents. Drummer stated that he feels that the project is a good one and is innovative and needed. Brady stated that she would like to support the project, but cautioned the Housing Fund Committee that they may be stretching the criteria on this project. Brady expressed concerns that special population groups any feel that a precedent is set. Ross disagreed and felt that this project fit within the guidelines and even if it was to be an exception, fulfilled a need in the community. Newman felt that this was not an exception and that it did fit the criteria based on the neighborhood and that the current facility is boarded -up and similar to the boarded -up single family structures. Brady asked the Committee to consider whether this would be a grant or a title transfer (Over the Rainbow requested a grant)' She Committee discussed at length whether the Committee should consider a title transfer loan thus assuring that the money would be returned to the City if at sometime the Over the Rainbow organization sold the property. After discussion it was the consensus of the Committee to recommend funding Over the Rainbow in the amount requested and also direct the agency to contact HUD for an opinion as to whether a 01. title transfer loan would create a problem with the HUD first mortgage. Over the Rainbow was directed to return to the Committee once a response was obtained from HUD. Slide Presentation of Boarded -Up Structures. Arthur Newsman and Ald. Korshat presented a slide show of numerous structures In various stases of disrepair throughout the Wesley Street area. Several of the slides represented the boarded -up structures in addition to the Evanston Housing Coalition 's throe building project. -2- Mayor's Special Housing Fund Committee ,tune 23, 1987 Comments McArthur Diggs, a City employee was present and stated his interest in developing affordable housing in the City. Mr. Diggs was directed to contact staff to obtain a copy of the Request For Proposal. The Committee was informed that the King's project on Garnett had reach a point where the King b Sons Company had expended their original $20,000 in rehabilitation. Staff indicated to the Committee that the City's architect was currently reviewing the project and would hope to have the architectural review and appraisal done in the near future. In order to expedite this project the Committee voted to conduct a special sleeting on Wednesday, duly S, 1987 at 7:30 p.m., If the King & Son Company review was completed. Ad,iournment The meeting adjourned at 9:20 p.m. Staff: )Robert T. Rudd 22(16116) -3- RINUTRS Special meeting Mayor's Special Housing Fund Committee July 8, 1987 Room 2402 - 7:30 P.R. Members Present: S. Brady, R. bush, N. Curry, D. Drm■ser, A. Moran, R. Warshaw and f. Wold Members Absent: C. Ross and L. Spieth Staff Present: R. Rudd Others Present: Mane Presiding Official: ff. Wold Minutes of June 23. 19876. Bush scared and Brady seconded that the minutes of the Mayor's Special Housing Fund Committee be approved as submitted. Committee voted 7-0. Chairman_ Wold - Review of Future sleeting Schedule and A ends Items. Wold recommended that the next meeting of the Committee be held as scheduled on July la, 1987 and that the .Tull 28 sooting be cancellod and that a special meeting be held on Wednesday, July 22, 1987. The Committee approved the revised meeting schedule. Vold also indicated that at the next two (2) meetings of the Housing Fund Committee, the Committee would review all of the proposals that have been submitted. It was the consensus of the Committee that representatives of the proposals could be present to answer questions, but that at this time no presentation would be accepted. 1016 Cornett Place (xin& & Son L Varshaw suggested that the Committee make a determination as to what group would review the rent structure on the King proposal in the future. It was suggested that the Housing Commission could be the reviewing body. Brady recommended that the Housing Fund Committee make a decision before disbanding regarding what committee would pick up the work or issues left behind by the Housing Fund Committee. It was the consensus of the Committee that an entity would be recommended by the Housing Fund Committee and approved by the City Council to handle remaining business. The Committee discussed a length the proposal from King g Son regarding the proposed rent structure. At the conclusion of the discussion, Newman moved that the Committee approve rent guidelines equal to 1001 of the Section 8 fair market rents established by HUD minus heating and lighting. The current HUD guidelines would allow for a four (4) bedroom unit, a maximum $858.00/month minus the aforementioned heating and lighting costs ($114.00) the maximum minutes Neyor's Special Housing Fund Committee July 8, 1987 allowable rent mould be $744.00. Brian Xing, applicant we present and agreed with that determination. The Committee also clarified that there would be no 3 3% increase annually for rents as originally proposed since the applicant would be following the HUD guidelines which are revised periodically. Newman questioned whether a mechanism should be established for annual review of the upkeep of the various facilities that will be subject to loans or grants by the Housing Fund Committee. Brady suggested that staff provide an annual report based on an annual on -site inspection of the different properties. It was the consensus of the Comittee that an annual report be provided to the Rousiog Commission regarding the successful applicants from the Committee. Rev. Curry questioned whether the Committee should discuss at this point administrative cost for handling the Special Housing Fund. Warshaw agreed that a certain percentage of the funds should be set aside and allocated for administrative costs. Chairman Vold directed staff to prepare a so" for the Cohmmittee making a recommendation for administrative costs. Newnan moved that the Housing Fund Committee recommend to the City Council approval of a $40,000 title transfer, 01 loan for the King i Son project and that fair market rents do not exceed HUD's Section 8 guidelines for a four i41 bedroom unit. Committee voted 7-0 to recomaend to City Council approval of the request. Brian King suggested that the Committee establish a review period to allow for consideration of additional rent increases if due to extraordinary circumstances the need arises. Brady suggested that as part of the agreement on the rent limits that a boiler -plate statement be developed and included in the contract. Ad ourrament The sheeting adjourned at 8:50 p.m. Staff RoArt.rI;d 39(20/21) -2- MINUTES Mayor's Special Housing Fund Committee July 14, 1987 Roost 2402 - 7:30 P.M. Members Present: S. Brady, D. Drummer, S. Newnan, L. Spieth, 2. Warshaw and M. Wold Members Absent: R. Bush, M. Curry and Ross Staff Present: C. Powers and R. Rudd Presiding Official: M. Wold Minutes of July 8. 1987 Warshaw saved and Brady seconded that the Committee approve the minutes as submitted. Committee voted S-0 to approve the minutes (Drummr absent). Communications The Committee received a memo from City Manager Joel Asprooth regarding past action and interest in boarded -up and abandoned structures. Old Business Evanston Housing Coalition Proposal. Rudd provided a review of the architectural report submitted by the City consultant Criezis Architects. Of particular importance was information contained on pages 9 and 10. Rudd reviewed with the CommiLtee a list developed by the architect which indicated that an additional amount of work totaling $233.795 should be added to the applicant's estimated work amount of $547.984. The architect indicated that based on the applicant's proposal the rehab would average approximately $16.00 per square foot. It was the Criezis report's opinion that average renovations of this type require $30.00 per square foot. Additionally, the Criezis report indicated that in many instances the applicant's architect under estimated the cost of other work. In summary, the Criezis report indicates that the overall rehabilitation of the three (3) buildings at 2014, 2018 and 2024 Wesley would total $849,640, This left a discrepancy in rehabilitation costs of approximately $300,000. Members of the Mayor's Special Housing Fund Committee stated that they needed an opportunity to review the report since they received the report at tonight's meeting. Ray Muller, a representative of the Evanston Housing Coalition, was present and indicated that the Criezis report called for rehabilitation above the minimum code requirements (such as 100 amp service versus 60 amp service). Rev. Bob Thompson, a member of the Evanston housing Coalition was present and indicated his frustration with the timing problem in trying to purchase two of the three buildings. He further stated that the current tenants are living in unsatisfactory conditions and that without an expeditious decision by the Housing Fund Minutes Mayor's Special Housing Fund Committee July 14, 1987 Cossaitte* the other two properties could be lost. Thompson requested of the Committee to think of a creative war to solve this problem. Chairman Wold indicated the difficulty with meeting schedules and that the Housing Fund Committee could not recommend this to City Council until such time a resolution was developed regarding the $300.000 discrepancy in rehab costs. Brady stated that the Committee was trying to be creative but that the Housing Coalition should review the architectural report and meet with staff to try to resolve any discrepancies. She also indicated to the Housing Coalition that tb*y could take the Criezis report back to the owners of the property in an attempt to bargain on the purchase price or receive an extension. Brady also suggested that the Housing Coalition consider going to a private source and suggested that the City of Evanston could possibly guarantee a private loan. thus holding down the interest rate and providing security to the private lending institution. Muller stated that the problem was not one of the Evanston Housing Coalition's but one the City of Evanston has created. Newman indicated that he disagrees with that position. He explained that the Housing Fund Committee has a duty to take precautions such as having an architectural report before expending over $400,000 to purchase a building and another $400,000 to rehab. He stated that it is not always an easy or expeditious process In dealing with public dollars but it is necessary that the public interest and public dollars are protected and various assurances are supplied. Muller explained her experiences in Arlington Heights (where she previous served on the Plan Commission) with respect to substantial public commitments of dollars to various projects without sufficient review). After further exchange of thoughts, Chairman Wold suggested that the applicants meet with staff and the consultant architect to discuss this issue and make an attempt to place this back on the Wednesday, July 22, 1987 Housing Fund Committee agenda. New Business The Committee proceeded to review the various proposals on the agenda. 2031 Cleveland (Mr. & Mrs. Samuel Gibson) Mr. b Mrs. Samuel Gibson were present and presented some background on the subject site. Currently the home is in boarded -up condition with the Gibson having placed a bid with State National Bank to acquire the property. Brady indicated that it appears that the rehabilitation could be handled through the Single Family Rehab programs, if they are able to acquire the property. and would reside at 2031 Cleveland. Warshaw stated that she is of the opinion to leave this proposal on the list for further consideration and that possibly a title transfer loan could be developed versus a grant. Staff was directed to contact State National Bank to determine the exact status of the Gibson's bid. It was the consensus of the Committee to continue consideration of this matter at a later date. -2 - Minutes Mayor's Special Housing Fund Committee July 14, 1987 Sherwin Management Proposals Warshaw stated that she is concerned with the problem of displacement and the six (6) year subsidized rent limit (being too short). Rudd indicated that proposal number 2 (on Clyde) was eligible for Rental Rehab and Multi Family and that an application has been submitted for those funds. It was felt that this proposal should be removed from the Mayor's Special Housing Comaittee since it was eligible in a different program. The Committee concurred with removing this from consideration. Brady stated that she concurs with Warshaw comments regarding displacement and the six (6) year limit on subsidized rents and could not approve proposal 1 on that basis. Chairman Wold indicated that she feels that for proposal 1 a minimum of a ten (10) year subsidized rent should be considered. Rev. Thompson was present and stated that the Public Ministry was in the early stages of negotiating with Sherwin Management to operate the transitional housing aspect of proposal 1. A review of proposal 1 indicated that. Sherwin Management was requesting $520.000 for subsidization of twelve (17) units. The Committee was concerned about the large number of dollars for the limited number of units and the time period that rents would be frozen. Warshaw stated that she was still troubled with displacement and that that Issue must be thoroughly reviewed for her to support the proposal. Brady reminded the Committee that originally the intent was to fund a single transitional housing proposal and preferably with a capital expenditure for a purchase and/or rehab of a single site. Spieth indicated that he was apposed to proposal 1 because of the potential of the building cited. He felt that the building identified should be left to the open market and not be utilized for transitional housing. Brady felt that proposal 3 should be dropped from further consideration since it appears that there is not a significant enough impact for the amount of dollars requested. It was the consensus of the Committee to drop proposals 2 and 3 and to allow for further consideration of proposal 1 at a later meeting. 1804 Greenwood Warshaw indicated that upon her review of this proposal she concludes that the City would be subsidizing a substantial amount of rent for the project. After a discussion with the applicant it was the consensus of the Committee to leave the proposal in for further consideration and to review alternative financing schemes at a later meeting. Thresholds Chairman Vold stated that in her opinion this proposal was not what the Housing Fund Committee was expecting. Brady concurred with those thoughts. Warshaw indicated that the proposal did not meet the guidelines (e.g., site control). It was the consensus of the Committee that due to significant deficiencies regarding the criteria that this proposal should be dropped from further consideration. -3- Minutes Mayor's Special Housing Fund Committee July 14, 1987 Brady suggested that when the Housing Fund Committee disbands that a report be supplied to City Council regarding unmet housing needs that were discovered by the Committee. Ivanston/North Shore YWCA Brady questioned Laura Baron, a representative of the YWCA as to whether a proposal will be made to HUD for a substantial amount of this funding. Baron indicated that a proposal would be submitted by the HUD deadline of August 7, 1987. She further stated that the YWCA would definitely have site control by the time of the HUD application. Chairman Wold suggested that this matter be kept for consideration and rescheduled for the August 25, 1987 Housing Fund Comittee meeting. Baren requested that a letter of support for the project be forwarded to HUD from the City. Brady directed Baron to draft a letter for her review which she in return would discuss with the Mayor. 1500 Dewey Avenue Applicant [ton Hllett was present and indicated that he purchased the property in May, 1987. Brady stated that she could not support a grant request but might consider a different financing scheme (title transfer). Newman suggested that this proposal be kept for further consideration since the neighborhood needs the support of rehab dollars and that this is the purpose of the Housing Fund Committee to address the problem such as the subject proposal. Brady reiterated that if any money is allocated to this project that it should be in the form of a loan. It was the consensus of the Committee to consider this proposal at a later date. 2018 Groenbay Road Applicant Jim Slingo was present and indicated that he currently owns the building though it is occupied by a single parent household with three (3) children. It was the consensus of the Committee that much more information was needed, such as a pro forma, rent structure, rehahilitation cost, etc. The Committee directed Slingo meet with E.C.D.C. to obtain technical assistance in developing a more thorough proposal. The Committee also requested staff to contact the Planning Department to determine if the subject area was being considered for redevelopment in the form of a commercial use since the property is zoned C. It was the consensus of the Committee to keep this proposal for further consideration pending response from the applicant. 139 Ashland Grady stated that upon review she finds that there is not site control by the applicants. Warshaw expressed concern that this is the wrong building for the concept. She also felt that if this proposal would be funded that t result would be massive displacement. She indicated that the proposal -4- Minutes Mayor's Special Housing Fund Committee July 14, 1987 indicates that the building is currently occupied by low/moderate incowe residents which would be displaced. It was the consensus of the Committee to drop this proposal from further consideration due to lack of site control and displacement problems. The Coawsittee briefly discussed what the alternatives are to addressing boarded -ups structures that are not subjects of proposals. The Committee decided to discuss at a later date attempts to package several boarded -up structures for redevelopment by a single contractor. This matter is scheduled to be placed on the August 25, 1987 agenda for further exploration after a review of all of the current proposals has taken place. Adiournment The sleeting adjourned at 10:00 p.m., the next sleeting of the Mayor's Special Housing Fund Committee is Wednesday, July 22, 1987 at 7.30 p.m. Staff: Hobert ?. $udd 91(8/12) -5 - !MINUTES Mayor's Special Housing Fund Committee July 22, 1987 Room 2402 - 7:30 P.M. Members Present: S. Brady, R. Bush, D. Drummer, A. Newman, C. Ross, R. Warshaw and M. Vold Members Absent: M. Curry and L. Spieth Staff Present: C. Powers and R. Rudd Presiding Official: C. Ross Minutes of Jul, 1987. Warshaw moved and Brady seconded that the Committee approve the minutes as submitted. Comnittee voted 5-0 to approve. Communications. The Committee received a memo from staff indicating that the sale of the revenue bonds generated Sl,585.776.66. Over the Rainbow The Committee also received a letter submitted by Over the Rainbow Association from HUD which stated that "the mortgagor is prohibited from encumbering the mortgaged property without the written approval of HUD. Such written approval of a second mortgage as proposed here would be very difficult to obtain". In light of this restriction on the Over the Rainbow Association project. Brady moved and Warshaw seconded that the Committee recommend to City Council the approval of a grant in the amount of $73,000 to Over the Rainbow Association to allow for completion of the project. Committee voted 5-0 to recommend to City Council approval of the trant. Evanston Housinx Coalition Proposal. Rudd stated that staffs of the Coalition and the City met on Monday, July 20, 1987 to review the discrepancies in the scope of the rehab project and the associated dollar amounts. Rudd stated that attempts were being made to refine the numbers and to narrow the gap in the dollar amounts. Rudd also indicated that he met with Bruce Copeland. a consultant to the Evanston Housing Coalition, and representatives of a local bank to discuss some private financing for a portion of the project. It is anticipated that once the Housing Coalition obtains further details regarding the rehabilitation and conducts additional meetings with the bank, the project will come back to the Mayor's Special Housing Fund Committee. 139 Ashland Avenue. The Committee received a memo regarding 139 Ashland Avenue proposal but took no action pertaining to the request for a rehearing. Minutes Mayor's Special Housing Fund Committee July 22, 1987 New Business Homestead Builders & Developers, Ltd. Representatives Sue and Scott Walton were present to provide information to the Committee. Chairman Ross indicated that he perceived the project of requesting of the City approximately $285.000 in the form of a line of credit to purchase factory -built housing for in -fill sites in the City. The proposal states that "the housing monies are to be provided by the City of Evanston would be used as seed money for project that would become self sustaining. Homestead Builders is requesting a loan for this purpose, so that the usefulness and cost effectiveness of modular factory -built houses maybe demonstrated". The Homestead's proposal is requesting a market rate construction loan from the City at the prime interest rate plus 2%. The loan will be secured by first mortgage and will be used initially to acquire land and to erect two factory -built modular townhouses in one duplex building. Walton stated that the end result of the project, in terms of what City government may expect, is more housing, of newer and better quality. Questions arose as to whether the factory built housing would meet BOCA Code and other City codes. The Walton assured the Committee that the buildings would meet BOCA. Staff and the Committee requested that written verification that the proposed factory -built structures would meet BOCA Code be obtained by the applicant for review. Questions also arose as to whether the applicant had as yet gained site control. Mr. Walton indicated that his organization does not have site control but could gain site control in the near future. Brady stated to the applicant that the Committee could not recommend the project to the City Council until site control Was obtained. The Committee directed the applicant to -L'urther discuss with staff regarding additional information to be supplied (e.g. site control, BOCA certification, etc.). Once additional material was supplied this matter will be brought back before the Mayor's Special Housing Fund Committee in August. 1737 Brown Avenue. The Committee reviewed a proposal requesting a low interest loan (6%) for $48.000 for the acquisition of a home at 1737 Brown Avenue in addition to a $15,000 grant to rehabilitate the property. The applicant, one Ms. Alberta Davis of 1321 Pitner Avenue, indicated that she would reside in one of the two units on the property when rehabbed. The second unit would be rented out and act as a form of income to Ms. Davis. A review of the materials submitted found that under the proposal Ms. Davis would be paying approximately 42% of her gross monthly income to housing costs. A representative of the real estate firm selling the property was present and indicated that the property was being foreclosed and that the current owner at this point wishes to sell. -2- .. Minutes Mayor's Special Housing Fund Committee July 22, 1987 The Committee expressed concern regarding unknown information pertaining to Ms. Davis' financial soundness and the exact status of the property which the Ci ittee was informed was being foreclosed by General Finance. No. Davis was directed to meet further with staff and to provide staff with a telephone number and contact person with General Finance in an attempt to determine the exact status of the property. It was the direction of the Committee that once further information was obtained that this matter could be placed back on a Committee agenda. E.C.D.C. Rehabilitation. Charlotte Walker, Director of E.C.D.C., was present and provided the Committee with information regarding the proposals for 1818 Emerson , 2015 Emerson, 1928 Foster Street, 1815 Foster and 2010 Emerson Street. In response to a question from the Committee, Walker indicated that E.C.D.C. has site control of 1818 Emerson and could obtain site control of 1928 Foster (vacant lot). The Committee expressed concern that the owner of 1815 Foster and 2010 Emerson should apply to the City and if in need of assistance, could obtain technical assistance from E.C.D.C. It was the consensus of the Committee that knowledge of the owners of those properties would be required and that applications could not just be made under E.C.D.C. Ross indicated his feeling that there was a need for more specific costs and a more detailed financing plan. He felt that more specifics on the overall project was necessary, particularly financial information on the individuals. Newman stated that it would be necessary that E.C.D.C. acquires site control on any proposals that they would submit. walker indicated that E.C.D.C. will acquire site control on 1818 Emerson, 2015 Emerson and 1928 Foster. Brady stated that she would be willing to consider the proposals if the details were provided on individual projects. She also stated that it was her opinion that dollars loaned to 11.C.D.C. should be returned to the City so that they can be rechanneled into other mousing projects. Under the E.C.D.C. proposal, the funds ($400,000.) would be disbursed to E.C.D.C. and utilized in the E.C.D.0 acquisition -venture program. Walker explained that these funds would be recycled and redistributed by E.C.D.C. and not the City under the current proposal. Warshaw stated that she feels that there needs to be a more detailed breakdown on each project. Walker stated that E.C.D.C. views the project as providing an injection of funds into the the existing acquisition -venture program, however, the proposal could be structured so that dollars would come back to the City versus going back to E.C.D.C. Newman stated that he felt a need for a more detailed budget on a project by project basis. It was the consensus of the Committee that once E.C.D.C. provided more details on each proposal, the matter could be brought back to the Housing Fund Committee. -3- Minutes Mayor's Special Housing Fund Committee July 22, 1987 S.C.D.C.- Planned Unit Development Site. The Committee reviewed a proposal from E.C.D.C. requesting that the Housing Fund allocate a $400,000. grant to help fund a planned unit development site for multi -family housing. The Committee reviewed a report funded by ■ $10.000. CD Committee grant to E.C.D.C. which identified two (2) potential sites for a residential planned unit development project. Brady stated that she feel a need for additional information and details on each specific site (ownership, financing plans, etc.). Warshaw stated that upon her review of the proposal she finds that conflicts with the zoning ordinance and the overall general plan of the City exists. As with the prior proposal, the Cosmmittee directed E.C.D.C. to develop on a site -by -site, full-length proposals with more specific details. It was the consensus of the Committee to review both E.C.D.C. proposals in the future once additional information was supplied to the City. Interfaith Housing Development Corporation. Warshaw questioned representatives of the Interfaith Housing Development Corporation regarding displacement and rents (current and future). Marianne Rosen, Director of Interfaith Housing Development Corporation stated that the goal was not to displace any current residents. Rosen indicated that two (2) of the proposed units would be Section 8, the remaining below Section 5. Ross observed that under the current proposal requesting over $200,000 that a $2,500 per unit rehab would appear quite low. The Committee expressed concern that the proposed building to be purchased (101 Ashland) was in little need of rehab. Concern was also expressed that the building was possibly a six (6) unit building and not a seven (7) unit. It was suggested that the Interfaith Housing Development Corporation review City records to make a determination as to exactly how many legal units are located at 101 Ashland. Rosen indicated that the Development Corporation may consider having one (1) unit for transitional housing. Concern was expressed by the Committee that on -site support services would not be available. Rosen was questioned as to whether her organization had reviewed other sites for purchase. Rosen indicated that at the time the Interfaith Housing Development Corporation was looking for a multi family site only three (3) were on the market. The subject site is the only one that meets the requirements of the Development Corporation. Newman expressed concern that the main problem with the proposal is that the site appears not to need rehab. Ross observed that though the applicant stated no increases in rent, the proposal appears to detail a 5% annual increase. It was the consensus of the Committee to further discuss this proposal at a future date. 1815 Hartre . Mrs. Louise Mayfield was present and informed the Committee that the property In question (1815 Hartrey) was no longer under her control. She stated that -4- Minutes Mayor's Special Housing Fund Committee July 22, 1987 the VA has received a bid higher than hers and thus she would need to soak another property. The current proposal of Mrs. Mayfield's requeats a grant from the Committee for $65,000 to purchase the property at 1815 Hartrey. The Committee expressed concern regarding the financial information submitted by Mrs. Mayfield and directed Kra. Mayfield to initially meet with City staff and than meet with E.C.D.C. to obtain technical assistance in providing the Information needed to make a decision regarding her proposal. Once this material is obtained this matter could be brought back to the Committee regarding a different parcel. 427-29 Sherman Avenue (Mr. S Mrs. Stephen Frazier). Warshaw questioned whether the requested rehab dollars could be obtained from current City programs. Staff indicated that rental rehab or multi family dollars would be available for this proposal. With the availability of the current programs the $140,000 could be reduced to $110,000 to cover the purchase. Steve Frazier indicated that he does not as yet have site control but hopes to have control in the near future. Warshaw questioned Frazier as to whether he would consider a blend of City of Evanston mortgage dollars in addition to some private dollars. Frazier indicated that he would consider such a proposal. Brady stated that she felt that the applicant should try to leverage some private dollars for a first mortgage. Newman expressed concern that there was a need for more income data regarding the applicants and the pro forma for the proposal. Ross expressed concern also, that the applicant should be looking for some private dollars since it appears that this may be a bankable project. Ross stated that he would think the project, as proposed, could leverage some private dollars. Newman stated that under the current proposal he would oppose the project since it appears to him the project could be totally financed with a first mortgage for purchase and that the City could provide a loan to cover rehabilitation. The Fraziers were directed to meet with staff to attempt to develop a proposal including private dollars. Manchester Realty (1927 Jackson, 1832 Lemar, 1834 Hartrey and 1747 Hartrey). The Committee reviewed the proposal from Roger Parris, Manchester Realty, requesting a $300,000 amortizing loan at 0% interest for a twenty-year (20) term for the purpose of rehabbing boarded -up properties. Mr. Parris indicated that he was investing over $150,000 and would anticipate that the proposal would generate positive benefits to the surrounding neighborhood. Brady questioned Whether the properties would be rehabbed and rented or rehabbed and sold. Parris indicated that either situation could take place. Newman questioned Parris as to whether any properties are owned or managed by Manchester Realty were in Housing Court for violation. Parris indicated that none of the properties owned or managed by Manchester are in Housing Court. After a discussion regarding the proposal to provide 01 interest amortizing loans to the project Brady recommended that the Committee direct staff to -5- minutes Mayor's Special Housing Fund Comittee July 22, 1987 obtain architectural and appraisal reports on all of properties. It was the direction of the Committee to obtain this information as soon as possible. The Committee directed staff that upon receipt of the architectural and appraisal items that the subject properties be placed on a future Housing Fund Cosmitte9 agenda for further discussion. Since the 1747 Hartrey project was earlier discussed and that an architectural report is currently in hand, staff was directed to obtain an appraisal on 1747 property and bring back as soon as possible. Comments Rudd updated the Housing Fund Committee with respect to the meetings with Mr. L Mrs. Gibson (2031 Cleveland proposal). Rudd stated that the Gibsons and staff met with representatives of State National Sank on Tuesday, July 21, 2987 to re►iew possible private mortgage gooney. After a brief discussion the Housing Fund Committee voted to meet for an additional meeting on Tuesday, August 18, 1987 at 7:30 p.m. in an attempt to re►iew the various housing proposals. Adiournment The meeting adjourned at 10:45 p.m. Staff. Robert x. Rudd 14(1b/21) -6- MINUTKS Mayor's Special Housing Fund Committee August 11, 1987 Roost 2402 - 7:30 P.M. Members Present: S. Brady,, A. Newman, C. Ross, R. Warshaw and M. Bold Members Absent: R. Bush, M. Curry, D. Drummer and L. Spioth Staff Present: C. Powers and R. Rudd Others Present: None Presiding Official: W. Vold Winston of July 22. 1987 Warshaw moved and Newman seconded that the Comittee approve the minutes. Chairman Wold requested that the minutes be awed" to reflect that she was not present at the July 22, 1987 meeting. Cossaittee approved the minutes as amended. Cosmiun i c a t i on s 139 Ashland Proposal Freda Richmond a representative for the subject proposal was present. under discussion by the Committee was a request from Rev. Norwood of Mt. Zion Church that the Committee rehear the subject proposal since he was unable to be at meeting at which it was originally discussed. The Committee reviewed the reasons for dropping the proposal for further consideration due to the substantial amount of displacement and the lack of site control. Ms. Richmond indicated that the applicant may have site control in the near future. Warshaw stated that this proposal had some of the sane problems as with some of the other proposals in that working in a tight time -frame applicants were unable to obtain site control. Brady suggested that possibly this applicant should consider making application during the second round of hearings which would allow an opportunity to gain site control. It was the consensus of the Cosmmittee to direct the applicant to consider a second round application or to have supplied information documenting site control and addressing the displacement issue no later than the Special Housing Fund Committee's meeting of August 25, 1987. Ms. Richmond indicated that she would notify Rev. Norwood of the deadline of August 25, 1987 or the second round application process. Old Business Interfaith Housing Develovment Corporation Proposal. Marianne Rosen, Director of the Interfaith Housing Development Corporation, was present and indicated to the Committee she has yet to clear up the issue as to whether the basement unit is a legal unit. She discussed with the Committee a survey of rents in the area and the relevance of those rents with Minutes Mayor's Special Housing Fund Committee August 11, 1987 the proposed rest of the Interfaith project. Rosen review" with the Committes the basic philosophy of the organization and stated that it was not Intended for the very low income residents to be located in the subject project. She stated that she think that there are a lot of creative things that can be done by a non-profit group and that Interfaith Housing is attempting to accomplish one of these. She agreed with the Commute• that it appears that the subject building does not need much rehabbing but that the project is sound. Ross questioned Rosen regarding the displacement issue. Rosen indicated that under the current proposal that there would not be any displacement but change in tenancy would be due to attrition. Newman felt that the project, though quit• worthy, missed the target of the Special Housing Fund Committee and that it was not addressing a rehabilitation need of certain structures. It was the consensus of the Committee that the agency applying was certainly desirable to have within the City of Evanston but that the wrong building was chosen as a part of the application. The Committee urged the Interfaith Housing Development Corporation to continue looking and to wake a submittal possibly in the second round with a more desirable building. 1500 Dewy Applicant Ron Ellett was present and supplied the Committee with two alternatives (2) for financing. The first alternative sought a $50,000 loan at O1, amortized over twenty (20) years with an annual lump sing payment. The applicant proposed to obtain from the City a $15,000 grant in the Rental Rehab Program. The second alternative proposed was a S40.000 title transfer loan. This project also would apply for a $50,000 Rental Rehabilitation grant. In both instances the applicant agreed to maintain rents at or below fair market rents as established by HUD for a nine (9) year period. The Committee directed staff to proceed with architectural and appraisal reviews of the subject project and to bring back to the Committee when those were completed. 1747 Hartre■ The Committee reviewed the City consultant's architectural report which Indicated that the basic rehabilitation cost would be approximately $72,000 which was essentially the sum as proposed by the revised application submitted by Manchester Realty. Concerns was expressed by the Committee with respect to the appraisal submitted by the City's consultant which indicated that the market value mould be $75,000. Questions aroused as to whether the appraisal addressed an after -rehabbed project. Staff indicated that they would clarify this with the appraiser and would bring this matter back to the Committee as an item on the August 18, 1987, Mayor's Special Housing Fund Committee agenda. With respect to maintaining rents, Roger Parris, principal at nanchaster Realty, was present and stated that he would agree to maintain rents at or below Section 8 fair market level. -2- Minutes Mayor's Special Housing Fund Committee August 11, 1987 Now Business Prealntation by Andrew Dittos Sur Brady introduced Andrew Dittos, Director of LISC and reviewed Mr. Ditton's qualifications. Mr. Dittos reviewed with the Coassittee several prograsts of which his organization is involved. He indicated that in the Chicagoland area, and throughout the country, now uses are been made of the tax law incentives for corporation investstents in low and moderate intone housing. He offered that the Cammittee may want to explore City of Evanston creating a fund with Housing fund dollars and corporation contributions. He highlighted that such a fund is advantageous to publicly owned corporations since they can accrue significant tax advantages. Mr. Ditton further discussed with the Committee a second program of working with Fanny Mae. Ditton stated that LISC guarantees a portion of a Fanny Mae loan thus making it more acceptable. LISC, or the City could explore posting a letter of credit guaranteeing a portion of the Fanny Mae loan and thus creating a bankable loan. A1d. Brady questioned Ditton as to whether the City of Evanston could participate with LISC in the City of Chicago. Ditton stated that the lending criteria are not the same and that LISC in the City of Chicago program will only work with not -for -profits. He also felt that it would not be to the advantage of the City of Evanston to join with the Chicago program. Ditton explained to the Committee that to set up a fund with corporate contributions may require start-up costs of anywhore between $50,000 and S80,000. He also stated that such a fund takes on different responsibilities (fiduciary) and the associated limitations. Ditton reviewed with the Committee the advantages of using dousing Fund dollars to syndicate with private dollars the various proposals before the Committee. Several ideas wore exchanged with Mr. Ditton regarding other uses of the Housing Fund dollars. The Committee concluded with thanking Mr. Ditton for his valuable input and directing that this matter of "future financing schemes" be placed on the August 18, 1987, Mayor's Special Housing Fund Committee agenda. 1737 Brown The Committee reviewed the 1737 Brown proposal by Mrs. Davis and concluded that with the current financial constraints of the applicant that it would not be appropriate for the City to continue discussing the Housing Fund Committee providing first mortgage dollars. It was the Committee's policy decision to not consider proposals of a similar nature where the applicants was seeking purchase money. This would eliminate the 1737 Brown application in addition to a previous application for 191S Hartrey and 2031 Cleveland. -3- Minutes ' Mayor's Spacial Housing Fund Committee August 11, 1987 The Committee requested that staff provide a status report of the remaining applications before the Special Housing Fund Committee. tW OUZ nt The seating adjourned at 20:00 p.m. Next sleeting of the Mayor's Spacial Housing Fund Committee, Tuesday, August 18, 1987 at 7:30 p.m. Staff : Robert T. Rudd 24(19/22) -4- MINUTES Mayor's Special Housing Fund Committee Tuesday, august 18, 1987 7:30 P.M. Menders Present: S. Brady, R. bush, D. Drummer, A. Xomman, C. Ross. R. Warshaw and M. Wold Members Absent: M. Curry and L. Spieth Staff Present: C. Pours and R. Rudd Presiding Official: M. Wald Minutes of August 11. 1981. Ross moved and Warshaw seconded that the Cosmmittee approve the minutes of August 11, 1967 meeting. Cosssittoe voted 6-0 to approve the minute■ as submitted (Drummer absent). Commsun i c a t i on s Status Report of Proposals The Committee received a status report of the various proposals submitted to the Committee. Old Business 1747 HartreT Roger Parris, a principal of Manchester Reslty the applicant, was present and stated that he would comply with the City's architectural consultant's report regarding the work list. Rudd reviewed with the Committee a question raised at the last meeting about the City's appraisal report which indicated a value of $75,000. At the prior meeting it was questioned whether that appraisal was based on an after rehab situation. Rudd stated that the City contacted the appraiser who in turn stated that the $75.000 market value was based an an after rehab structure. Warshaw indicated that it was quite possible to have an after rehab appraisal valued at less then rehab coat and purchase price since there were no comps available for the appraisal. Brady questioned whether the applicant had submitted a revised pro forma Indicating a ten (10) year period for the subject structure. Mr. Winfield, a representative of Manchester Realty, indicated that a June 29 memo provided a one (1) year pro forma. The Committee directed the applicant to submit a revised pro forma and to cover a ten (10) year period which would lock -in specified rents. After a brief discussion regarding the term of the loan Warshaw suggested that the Committee consider a $500.00 per month rent with a 5% annua increase but a cap preventing any annual increase to exceed Section 8 Fair Market annual increases. Brady suggested that as part of any loan agreement that Section 8 income levels be required of tenants and that annual Minutes Mayor's special Housirt Fund Committee August 18, 1987 verification be supplied by Mr. Parris. Neuman stated that he was opposed to a 0% amortized loan since a review of the one (1) year pro forma Indicates that Mr. Parris will be making a $3,200 profit. Mr. Winfield reminded the Committee that a $3,200 profit was only a 7% return on the project which will be minimum at best. ;toss questioned what a fair income would be. Me stated that a 7% profit was not unreasonable. Brady suggested that the City should also have some return and not provide a 0% amortixed mortgage. Warshaw suggested that any City loam agreement should be a first mortgage. She waraed that the City should not take a second position to Mr. Parris' equity position (approximately $37,000 purchase price) since if the City provided a loan of $72.000 and the value of the property was 375,000, upon sale of the property the City could be minus approximately :25,000 to $30,000. Ross stated that he felt that the developer was automatically in a losing position and that the Committee had already decided that in many instances of board -ups a dollar loss could be expected on return but the City would have a rehabilitated structure. Warshaw stated that her review of the proposal finds that if the City takes a second position it would be encouraging Mr. Parris to sell the property and take a profit and leave the City with a loss. Warshaw suggested that the Committee recommend a 01, twenty year (20) mortgage; a ten (10) year commitment to rent not to exceed Section 8 levels; and maintain a first position. Mr. Parris questioned the Committee as to whether they would consider a first position that would be transferable! Warshaw stated that the City must have total control over what party would take over the mortgage. She expressed a concern that the City would not want to be in a position to have to foreclose on a mortgage. Newman requested that Parris provide documentation with respect to up-to-date payments on property taxes. In summary, the Committee directed Parris to provide staff with a new pro forma for a ten (10) year period covering the aforementioned rent guidelines. After the proper agreements are drafted this matter will come back to the !Mayor's Special Housing Fund Committee on September 8, 1987. 1804 Greenwood The Committee reviewed a revised pro forma submitted by Nancy Starkman for the subject property. Warshaw questioned whether a portion of the requested $27,800 rehab loan could be funded through a current City program. Catherine Powers, Director of Housing Rehabilitation and Property Maintenance, stated that up to $7500 could be granted through the Rental Rehab Program leaving approximately S20,300 to be funded through the Housing Fund Committee. Drummer questioned Ms. Starkman with respect to utilization of minority youth on the project. Starkman stated that she has registered -2- Minutes Mayor's Special Housing Fund Committee August 18, 1987 with various youth agencies within the City for jobs such as yard work and clean-up. Drummier stated that he had hoped for minority youth to act in apprentice positions. Starkman stated that she has worked with Neighbors At York and currently has a carpenter from Evanston on the job. She stated that she intends to use local tradesman from the City of Evanston. Ross questioned Starkman with respect to the current $51,500 first mortgage based on a personal loan. Starkman stated that by July, 1988 she would be required to refinance a first mortgage and anticipates obtaining a 10%, thirty (30) year amortised loan in the amount of $76.000. The Committee questioned Starkman as to why she would refinance a first mortgage for $76,000 when she would only need $51.500. After further discussion with Storkman regarding the proposed refinancing of the first mortgage the Committee directed Starkman to try to obtain a long term commitment for the first mortgage and to discuss with staff a revision to the current proposal and allow for a $7500 Rental Rehab grant and thus necessitating only a $20,300 Housing Fund Committee loan. it was the intent of the Committee by reducing the Housing Fund Committee loan and also urging Starkman to obtain a smaller first mortgage immediately rather than wait for a year so that the projected deficit could be reduced or possibly eliminated. The Committee also directed staff to proceed with architectural and appraisal reports for the subject property and attempt to bring this back to the Committee for the September 8, 1987 meeting. Homestead Builders & Developers. Ltd. Rudd explained to the Committee that he and Powers toured some of the factory -built housing units proposed by the applicants. Rudd stated that it appears, by a brief review, the structures would most BOCA Codes but that further certification would be required. Rudd explained that the applicant bad obtained site control (via a contract to purchase) on a parcel at 1615 Lake Street. The applicant has proposed to construct four (4) townhouse units on the subject site. Rudd explained that to do so would require at a minimum either rezoning of the site (currently R3 zoning) or obtaining a use variation. Additionally, lot size and possibly side yard or floor area ratio variations would be required. At this point the exact extent of all of the variations could not be determined since thorough plans have not been submitted. Drummer stated that he recalled that the lot had a restrictive covenant on it which would not allow such a development. Other members of the Committee expressed severe reservations about seeking Housing Funds prior to obtaining necessary zoning relief. Some members of the Committee stated that they would oppose funding any project that needed zoning relief. Chairman Wold questioned the applicant. Sue and Scott Walton, whether they had attempted to have a line -of -credit, such as that requested -3- Minutes Mayor's Special Housing Fund Committee August 18, 1987 of the City, from private lending sources! Scott Walton indicated that they had not attempted to obtain a line of credit from private sources since he felt that they would not be able to obtain it since they do not have a track record and were too shall of an organization (consisting of Sue and Scott Walton). It was the consensus of the Committee that they would not entertain the proposal as long as it was tied to the site at 161S Lake Street. The Committee informed the applicants that they could resubmit no later than the September 6, 1967 meeting if they obtained a site which did not need zoning relief. New Business Future Financing Scheme Ross indicated that he had spoken with representatives of First Illinois but due to recent organisational changes was unable to establish a meting at this tine to discuss ideas proposed at the last meeting by Andrew Ditton. He stated that he would continue to attempt to establish a meeting with First Illinois. Warshaw stated that she had spoken with a representative of Harris Bank who stated that possibly the City of Evanston could be considered in the Neighborhood Lending Program. Ross indicated that he would inquire with Northern Trust as to whether the City could participate in that program. The Committee requested that future material be supplied to the Commmittee in advance of the meeting and not delivered to the Committee the night of the meeting due to difficulties in digesting complex financing schemes in a brief time period. Staff indicated that applicants are always requested to supply materials in time for the packets but in the past have not done to and elected to bring the material the night of the meeting. The Committee directed staff if material was not available for mail -out in the packets that the respective item should be removed from the agenda. Vold indicated that she would follow-up on a discussion at the last meeting and try to obtain from Ron Xysiak a list of home corporate offices located within the City of Evanston with the intent of contacting these corporations about participating in a program as described by Andrew Ditton. John Norwood was present and stated to the Committee that he was in the process of having a contract drafted by Cyrus Realty for control of the property at 139 Ashland. Chairman Weld reminded Norwood that the Committee rejected the proposal on the initial review because of lack of site control and the issue of displacement. She stated that at the August 11 meeting a Norwood representative was informed that if additional information was -4- Minutes Mayor's Special Housing Fund Comaitte• August 15, 1987 supplied the matter could be placed on the August 25, 1987 agenda, or that the applicant could apply in the "second round" to the successor of the Housing Fund Committee. Newman questioned Norwood as to the condition of the units in the 139 Ashland building. Norwood stated that for the most part the dwelling units are in very good condition and that the remainder are in need of minor repairs. Norwood stated that basically the rehab work is cosmetic in nature. Norwood further stated that there is no intention of displacement and that any change of occupancy will only be through attrition. Norwood stated that the proposal calls for a full service, transitional housing project in which it is expected that approximately one-third of the tenants will be in need of social services. Ldj ournmen t The meeting adjourned at 9:20 p.m. Next meeting of the Mayor's Special Housing Fund Coswittee is Tuesday, August 25, 1987. Staff /bbert T! Rudd 33(15/19) -5- MINU?ES Mayor's Special Housing Fund Committee August 25, 1987 Room 2402 - 7:30 P.M. Members Present: S. Brady. R. Bush, M. Curry, D. Drussser, A. Newman, C. Ross, R. Warshaw and M. Wold Members Absent: L. Spieth Staff Present: C. Powers and R. Rudd Others Present: None Presiding Official: M. Vold Minutes of August 18. 1987. Bush sowed and Newman seconded that the Committee approve the minutes of the Mayor's Special Housing Fund Committee meeting of August 18. 1987. The Committee voted 5-0 to approve the minutes as submitted (Vold, Drummer and Ross absent). Communications Chairman mold indicated that Roger Parris of Manchester Realty has requested that the proposal for 1727 Jackson, 1832 Lemar and 1834 Hartrey be postponed to a later date for discussion. Chairman hold also indicated that she had spoken with Rev. Norwood regarding the 139 Ashland proposal and Norwood indicated that he would have material available for the Committee to review on the September 8, 1987 meeting. Old Business Evanston Housing Coalition Warshaw indicated that she spoke with Bill Foster of the Chicago Rehab Network about making the Evanston Housing Coalition eligible for a loan through the Harris Bank. She stated that she was encouraged by the conversation and that it was felt that the Evanston Housing Coalition might be eligible for a loan. Ray Muller of the Evanston Housing Commission was present and stated that their discussion with First Illinois Bank indicated that the bank would only provide a thirty-year loan if the City guaranteed it. Other members of the Evanston Housing Coalition present were Paul Kapczuk, George Sample and Bruce Copeland, to review the most recent Evanston Housing Coalition proposal. Newman questioned the Committee as to whether the new multi family guidelines would help the Evanston Housing Coalition proposal. Staff indicated that the new multi family guidelines (which would allow for a 30% of prime currently resulting in approximately 31 loan) would be helpful to the Housing Coalition. A 3% loan would reduce the debt service for the $108,000 multi family loan by approximately 3%. Minutes Mayor's Special Housing Fund Committee August 25, 1987 The Cosssitt** discussed at length the merits of a 100 asap service versus a 60 amp (approximately $20,000 cost). Warshaw suggested that the Housing Coalition attempt to find a corporate partner or syndicate for the proposal to allow for the low income housing tax credits to be taken advantage of. Copeland stated that the Housing Coalition has evaluated the syndication option but feels that the current proposal is the best route, since this is the Housing Coalition's first project. Brady suggested that the Committee consider modifying Option A as proposed in the Housing Coalition letter dated August 18, 1987. Brady suggested that the Coemittee drop the 60 amp service and the resulting $21.000 cost; adjust the interest rate on the $108.000 multi family loan from 6% to 3%; and revise the private mortgage from 11% to approximately 8 112%. Brady also suggested that the Housing Coalition consider adjusting the pro forma to allow for tenants to pay 35% of their Income for housing expenses. With heat included, instead of the current 30% calculation. Copeland indicated to the Committee that the Housing Coalition is experiencing cash flow problems which could increase over the next couple of months. He stated that the Housing Coalition originally projected eight (8) vacancies but now expects to have thirteen (13) vacancies by October 1, 1987 thus cutting severely into cash flow. Vold continued the discussion regarding a 100 amp service requirement. The Committee discussed whether a 1010 amp service is merely a convenience or is necessary due to the ability of the general population to acquire various elecLronic appliances, and questioned whether it was worth #21,000. In response to a question from the Committee, Paul Kapczuk, architect for the project. indicated that he has discussed with electricians as to whether 100 amp service was necessary or whether 60 amp was sufficient. He stated that his findings are that the 60 amp is sufficient though electricians have indicated that with the arrant of alterations that are taking place it may well merit putting in the 100 amp service at this time. Rudd Indicated that the Committee should not expect the electrical service to be upgraded to 100 amp service In the future if it is not done during the remodeling. He stated that though the 60 amp service may be adequate at times additional appliances such as mico-waves. and air conditioners could very well necessitate a 100 amp service. To forgo installing a 100 amp service during the remodeling would most assuredly preempt upgrading the system later due to lack of funds. Newan stated that he was reluctant to approve more than $430,000 from the Mayor's Special Housing Fund Committee. He stated that his review of the project finds that it does not make financial sense but he is only supporting it because of the dedication of the members of the Housing Coalition and the dire need in the neighborhood of a project such as this. He reminded the Committee and members of the Housing Coalition that by the Committee approving -2- Minutes Mayor's Special Housing Fund Committee August 25, 1987 $430,000 in special housing fund, an additional $430.000 is leveraged through a rental rehab grant and 3% multi family dollars. He stated that any approval by the Committee should be qualified with the condition that no further City dollars would be supplied to the Housing Coalition for any work on this project since almost all of the million dollars will be low interest or grant and public monies. The Committee reviewed the three (3) options submitted by the Housing Coalition and the projected rents. Curry stated that he had some reservations about the project and was concerned with the projected rents and the ability of low and moderate income households being able to afford those rents. He stated that he is concerned about the failure of the project due to the extensive amount of public money placed in the project. The Committee discussed with the Housing Coalition the $115,000 to be generated by the Coalition. Copeland and Muller indicated that the Coalition has not raised the full S115,000 but would obtain a line -of -credit prior to the City disbursing any funds which would allow for the project to be fully funded. Copeland further stated that the Coalition, with the approval of the City funds would attempt to obtain grants from various sources. Bush stated that he is in favor of the project but is concerned since the City is providing a substantial amount of the dollars to the project and wants to be more comfortable with the other funding sources. Chairman Wold suggested that the Committee recommend approval of Option A as presented by the Evanston Housing Coalition with the following modifications: 1. The special housing loan at 0%, non -amortizing (title transfer) would be increased from S330,000 to $350.000. 2. The 100 amp service be included in the project. 3. That the private bank mortgage be negotiated at 8 1/4%. 4. That a re►ised pro forma reflecting the new figures and projected rents be provided. S. That the Housing Coalition contact the Harris Bank in an attempt to negotiate the above mentioned 8 1/4% mortgage. Other conditions of Option A would be the same as contained in the Evanston Housing Coalition proposal with the exception of requiring the 100 amp service instead of the requested 60 amp service. -3- Minutes Mayor's Special Housing fund Commmittee August 25, 1987 The Committee proceeded to discussed other options in an attempt to maintain the lowest possible rents. After discussion Carry moved and Drusmmer seconded that the Committee recommend approval of the Evanston Housing Coalition loan request as outlined by Chairman Void. The Committee voted 8-0 to recommend to City Council approval of the subject project. The Committee further directed that a final report be placed under "co smmunication" for the meeting of September B. 1987, and that the matter be placed on the September la, 1987 City Council agenda. Adjournment: The meeting adjourned at 10:00 p.m. Staff: obert T. itudd� 24(22/25) -4- MINUTES Mayor's Special Housing Fund Committee September 8, 1987 Room 2402 - 7:30 P.M. Members Present: S. Brady, R. Bush, M. Curry, D. Drummer, A. Newman, C. loss, R. Warshaw and M. Wold Members Absent: L. Spieth Staff Present: R. Rudd Presiding Official: M. Wold Minutes of August 25. 1937. Brady moved and Warshaw seconded that Mayor's Special Housing fund Comittee Kerman and Drummer absent) . Communications the Committee approve the minutes of the meeting of August 25. 1987 (Ross, Evanston/North Shore YWCA Chairman Wold reviewed with the Committee a letter from the Executive Director of the Evanston/North Shore YWCA indicating that the previously submitted proposal is being withdrawn at this time. The Committee directed that the YWCA be notified that if at a later date there is still interest in making a proposal the YWCA should make an application to the successor group to the Mayor's Special Housing Fund Committee. 427-29 Sherman (Frazier) The Committee received from the Fraziers at the meeting a revised financing scheme for the original proposal. Chairman Wold indicated that since the material was not submitted in a timely manner and that the Committee had not had an opportunity to review the now financing plan that no action would be taken at this meeting. Newman questioned why the Frazier proposal could not be reviewed at the September 8. 1987 meeting since their original proposal was submitted several weeks ago! The Committee discussed at length the merits of discussing the Frazier proposal in light of the fact that material was only delivered to the Committee by the Fraziers at tonight's meeting. Newman moved and Warshaw seconded that the Committee leave the Frazier proposal until the last item on the agenda and if there was time, have the Committee review the request. Committee voted 6-1 to discussed the Frazier proposal at the and of the September 8, 1987 meeting (Voting nay: Wold). Evanston Housing Coalition Rudd passed out to the Committee the report that will be forwarded to the City Council for the September 14, 1987 meeting detailing the Commmittee's recommendation to approve, in the form of an amortizing loan and a title Minutes Mayor's Special Housing Fund September 8, 1987 transfer loan, the amount of $450,000 to the Evanston Housing Coalition. Rudd indicated that the Cosimittso could review the report and requested that any changes be phoned in to his office by 5:00 p.m. on Wednesday, September 9, 1987. far duller of the Evanston Housing Coalition was present and objected to the fact that a memo send by her to the Housing Fund Committee was not as yet presented to the Cosraittee. Rudd indicated that all of the attachments to the aforementioned memo were part of the report and the the substance of the two page letter to the Committee, drafted by Muller, was included in the report that vas submitted to the Committee for review. After a discussion the Committee agreed to review the report and notify staff by 5:00 p.m. on Wednesday, September 9, 1987 as to any Committee members desires to have additional documentation attached to the report. Old Business 1804 Greenwood Chairman Wold indicated that she had been informed by staff that Ms. Nancy 5tarkman has withdrawn her proposal at this time. 139 Ashland Chairman Wold questioned whether representatives for the proposal were present. Some members of the audience indicated that they were present to review with the Committee materials submitted by Rev. Norwood. Chairman Wold stated to the representative that no material was supplied the Committee by Rev. Norwood and t%arofore since the Committee did not have copies of the material cuuld not review the matter. Representatives were notified that the Committee would take no action on this proposal. 1500 Dewey Mr. Ron Ellett, Applicant, was present and reviewed with the Committee his revised proposal. A review of the file indicates that the City's architectural consultant found the scope of the work and the dollar amount to be extremely close to air. Ellett original projection (within $1300). The Committee reviewed Ellett's alternatives 4 and 5 which were submitted at the prior Committee meeting. Brady requested that Ellett develop a ten year cash flow and pro forma rather then the single year as has been submitted. Ellett indicated that he would provide this information to City staff. Ross indicated that it was important that the applicant understand that there would be a ten year (versus a proposed nine year) commitment to maintaining rents at HUD levels. Ellett stated that he has agreed to do that at the nine year and would amend his proposal to agree to a ten year rent structure. Warshaw stated that she prefers the D% amortizing loan as long as there is sufficient Income to pay back the loan. The Committee discussed briefly an alternative -2- Minutes Rayor's Special Housing Fund September 8, 1987 presented by Ellett which requested a title transfer grant. It was clarified that the applicant actually was asking for a title transfer loan. Warshaw Indicated that she could support the title transfer since it would be a loan and not a grant. Bush stated that he felt that the title transfer loan would be more beneficial since the City would be receiving a larger lump sus at some point in the future and thus be able to allocate that money for a project at that time versus the trickling in of funds over a long period of time. Ellett indicated that either was acceptable. It was the consensus of the Committee to recommend the City Council approve a 01, $40.000 title transfer loan for rehabilitation and as a requirement that a ten year rent structure following HUD guidelines be part of the agreement. The Committee voted 7-0 (Drummer absent) to recommend to City Council approval of this proposal. 2018 Greenbay Road Hr. James Slingo was present to review with the Commmittee recently submitted work estimates for his proposal. The Committee questioned the increase in scope of work from the original proposal (=17,000 versus $29,000). Slingo indicated that upon discussion with ECDC, and their recommended contractor, that the most recent proposal (approximate $29,000) addresses all of the code violations on the property. The Committee discussed with Slingo the necessity for a pro forma for his proposal. The Committee also questioned Slingo regarding the exact amount that he was requesting of the Committee. Slingo indicated that he would like as much money as the Committee would approve and was unsure as to his exact financing proposal. Slingo discussed possibly some title transfer or a 07. amortizing loan blended with some private or personal financing. Chairman cold told Mr. Slingo that the proposal was incomplete and additional work would be needed to allow the Committee to properly evaluate the proposal. Newman suggested that Mr. Sliago be directed to go back to ECDC and actually request ECDC to help him draft the proposal. Chairman cold indicated that she would be willing to meet with staff, Slingo and representatives of ECDC to aLtempt to give proper direCLion to Br. Slingo so that he could complete his proposal. Newman stated that he believes ECDC is funded to provide technical assistance and that they are required to help draft this proposal. Curry questioned whether the Housing Fund Committee would recommend this proposal to its successor group when it is completed! Chairman Wold stated that the Housing Fund Committee could recommend to the successor group that earlier proposals be first items addressed by the new group but that Housing Fund Committee at this time cannot anticipate what the guidelines for the new group would be. Warshaw questioned whether the proposal would be more appropriate for the Single Family Rehab program! Rudd Indicated that a problem exists that Kr. Slingo does not reside at the subject address and that it is a single family rental property at this time. Slingo Indicated that he may in the near future reside for a short time at the -3- Minutes Mayor's Special Housing Fund September 8, 1987 property and thus asked whether he would be eligible for the single family loan! Rudd stated that if he did reside at 2018 Greenbay Road and was the owner of the property he could be eligible but that if it was anticipated to be a short terse occupancy that upon leaving the property all of the loan would be required to be paid back at that tine. Rudd indicated that this would not be appropriate for the Single Family Rehab program if that was Mr. Slingo intention. Newman moved and Warshaw seconded that upon completion of the proposal, with the aid of SCDC, that this natter be moved on to the Housing Fund Committee successor group for early action. Committee voted 8-0. Nanchester Realty Proposals Chairman Vold noted that she has not had any contact with Roger Parris of Manchester Realty or his legal counsel regarding the resolution of some legal issues. Drummer stated that he has been informed that there is no change in the status of the current problems and that Mr. Parris has requested that 1747 Hartrey be recommended by the Housing Fund Committee to it successor group as soon as the new group is foamed. Drummer moved and Bush seconded that the natter be forwarded to the now group upon its creation. During discussion Rev. Curry stated that he feels the problems need to be resolved first prior to making a recommendation for approval. Brady stated that in addition to the legal issues there still appears to be a substantial dollar difference regarding the scope of the rehabilitation to be undertaken. Brady moved and Newman seconded a substitute motion proposing the.t applications not acted upon by the Housing Fund Committee would be forwarded to the Committee's successor group and requested to be acted upon first, prior to any new proposals. Chairman Wold clarified that proposals going to the new group were not to Include those that the Housing Fund Committee has already rejected, Committee voted 8-0. 427-29 Sherman (Frazier) Bush questioned the Fraziers as to whether they needed only $4,000 or S6,000 versus $32,000 or $22,000 as indicated on the submittal of September 8, 1987? Frazier indicated that the purchase could be addressed through their own conventional funding and that the rehabilitation was proposed to take place either through the Rental Rehab program and/or the Multi Family program. After a discussion regarding the most recent submittal Brady moved and Bush seconded that the Committee recommend to the City Council a title transfer loan not to exceed 110,000 to cover the interim period when rents would not be collected due to the rehabilitation efforts contingent upon the Fraziers qualifying for the Rental Rehab and/or Multi Family Rehab loan program. Committee voted 8-0 to approve the recommendation. The Fraziers were directed to contact staff and make the appropriate applications for one or both of the rehabilitation programs. -4- Minutes mayor's Special Housing Fund September 8, 1987 now Business Update on Future Financing Schemes Brady recommended that staff be directed to develop a program to address the remaining boarded -up structures in the City. She suggested that such a program be developed for review which would provide for the City purchasing the property, obtaining clear title, and either demolishing or offering for sale, rehabilitation. or redevelopment of the properties. Chairman Vold agreed and felt that the City should review some plan to address the remaining board -ups. Warshaw indicated that she is currently working on a neighborhood lending plan and feels that the City needs a long range program. Drummer reminded the Committee at one of the earlier meetings both he and Curry had discussed the same issue. Chairman Vold directed that an agenda item for the next meeting (September 29, 1987) under new business be development by the staff of a strategy for handling board -ups and also some infill strategies. Curry questioned whether a summary article would be developed by the Housing Fund Committee to inform City residents about the activities of the Committee. He stated that he is disappointed that all of the board -ups were resolved and feels that the Committee has fallen short of their original goal. Committee discussed how to provide information to the public about the activities of the Committee. The matter was left for further discussion at a future meeting. The Committee set as agenda items for the September 29, 1987 meeting the aforementioned staff report on board -ups and also the neighborhood lending program. Adjournment The meeting adjourned at 9:55 p.m. Staff:_ /_Z� Zx�_ Robert T. Rudd 14(19/23) -5- MINUTRS Mayor's Special Housing Fund Committee September 29, 1987 .Room 2402 - 7:30 P.H. Members Present: S. Brady, M. Curry, D. Drummer. A. Newnan, C. Ross, R. Warshaw and M. Wold Members Absent: R. Hush and L. Spieth Staff Present: R. Rudd Presiding Official: M. Wold Minutes of September S. 1987. The minutes of the September 8, 1987 meeting were approved as submitted. Neilthborhood Lending Proxram Warshaw provided the Committee with a revs"ew of the meetings that she has been involved regarding the Community Reinvestment Act challenge to the purchase of State National Bank by a Detroit bank. Warshaw reviewed with the Committee the issues being discussed with the intent to require an agreement with State National whereby the bank would cooperate with the City of Evanston in an attempt to leverage City of Evanston housing dollars with bank mortgages. Warshaw indicated that in her opinion little progress has been made to date. She stated that the CRA challenge is attempting to develop a written agreement since such an agreement would be necessary if City of Evanston fund's are utilized in some program. Warshaw also stated that a review of HKDA information has produced problems regarding conflicting information supplied by State National. Ross indicated that a meeting is being set-up with himself, Chairman Wold, and Rudd to meet with John Taylor of State National Bank to pursue an earlier meeting regarding developing a strategy to address boarded -up homes in Evanston. 1500 Dewey Proposal Ron Ellett, applicant, was present and requested the Committee to subordinate a previously approved title transfer loan for the property at 1500 Dewey. Ellett's letter to the Committee stated that if the title transfer loan is not subordinated, the applicant would be forced to seek a second mortgage on the property possibly with a higher interest rate. He stated the unconventional nature of the project and the restrictions on assignment of leases would make it more difficult to obtain a second mortgage on the property. Ellett's request included a Subordination clause in the title transfer loan in addition to another clause which would limit the amount of the first mortgage to $ 45,000. After a brief discussion Newman moved and Warshaw seconded that the Housing Fund Committee recommend to City Council approval to subordinate the $ 40,000 title transfer loan and to limit the amount of the first mortgage to $45,000. Committee voted 5-0 to recommend to the City Council this change in the proposal. minutes Mayor's Special Housing Fund Committee September 29, 1987 Board-Up/Infill Strategy Brady suggested that the Committee discuss a funding level to limit the amount of money utilized for board -ups. The Committee discussed generally how many units could be purchased and/or rehabbed with the remaining $1 million dollars In the fund. The Committee discussed the recent experiences where applicants have had difficult times gaining site control due to title problems. Brady suggested that the Committee agree to set a funding level not to exceed $500,000 and to proceed with the stops identified as one (1) through seven (7) in the staff sAwo to the Committee dated September 22, 1987. Drummer stated that in his opinion the City sho,lld attempt to purchase and rehab several of the boarded -up structures and provide some method of mortgage for moderate income residents. Rev. Curry questioned whether efforts should be made to initiate a community effort to provide directions on how the City should address board -ups' Warshaw stated the City needs to provide stricter code enforcement in attempts to cause the board -ups to be rehabbed or demolished. Drummer stated, as at the last meeting, that he is disappointed that the board -up problem still exists ten (10) months after this Committee was formed. Newman stated that if it was the intent of the Housing Fund Committee to go out of existence at this meeting, he feels that there is a need to continue to address the boarded -up issue in some form. The Committee discussed the possibility of combining members of the Housing Fund Committee With the current Housing Commission. Ross, Chairman of the Housing Commission, stated that the Housing Commission was established to address housing issues just like the boarded -up problem. Brady stated that the Housing Commission is a logical group to handle this issue and could Incorporate members of the Housing Fund Committee on the Housing Commission roster. Warshaw questioned whether a liaison structure could be developed and some how incorporated in the Housing Commission. Brady Was concerned with the possibility of incorporating Housing Fund Committee members on the Housing Commission which would result in as many as four (A) aldermen on the Housing Commission. Her concerned was that four (a) aldermen may strongly influence the decision making process on the Housing Commission. Wold stated that as she sees the issues there is still a need to develop a proposal on board -ups and she would be willing to discuss the expansion of the Housing Commission with Mayor Barr and finally, to established a maximum of $500,000 of the Mayor's Special Housing money to be utilized for board-up1. The Committee discussed the justification for merging three (3) members of the Housing Fund Committee (Warshaw, Drummer and Rev. Curry) on the Housing Commission since other committees that approve expenditures of large sums of City dollars (CD Committee) also have four (A) aldermen. Committee members felt it would be consistent to have the additional aldermen sitting on an expanded Housing Commission since they would be making recommendations for expenditure of funds to the City Council. Newman moved and Drummer seconded that the Committee -2- Minutes Mayor's Special Housing Fund Committee September 29, 1987 recommend to the City Council to direct staff to (1) begin implementing the Identification and acquisition of the boarded -up structures set -out in the process contained in the September 21. 1987 memo; (2) to expend a maximum of S500,000 for the analyses and acquisition of the boarded -up properties; (3) to recommend to the City Council to amend the Housing Commission ordinance to expand the Housing Commission to include three (3) additional members from the Housing Fund Committee. and (4) that the expansion of the Housing Commission would be reviewed at the next three year review period of the Housing Coamission (March. 1988). Rosa also requested that the recommendation contain a statement setting forth the goal of the Housing Fund Committee and the Housing Commission which would be to obtain the maximum degree of leverage possible with Evanston financial institutions whenever City of Evanston housing dollars are utilized. Committee voted 7-0 to recommend the aforementioned points to the City Council. Brady also recommended that the Committee allocate the remaining $500.000 for affordable housing to be developed by a not -for -profit organization and that the aforementioned =500,000 allocation would not exclude a transitional demonstration project. The Committee voted 7-0 to also make this recommendation to City Council. Chairman Vold indicated that she would develop with staff a final report to the Mayor and aldermen regarding all of the activities of the Housing Fund Committee since at this point and time the Committee would go out of existence with the adjournment of this meeting. Attempts would be made to provide the final report to City Council in late October or early November after all of the projects have been disposed of by the City Council. Adjournment: The meeting adjourned at 9:30 p.m. Staff: Robert T. Rudd' 17(15/17) -3-