Disposition of non-performing assets
@CHIdocumenters The meeting has technically started, but jumped straight into a closed session at 830
@CHIdocumenters At 9:00 the meeting will readjourn with the business section of the Finance and Audit Committee meeting, before rolling into the Real Estate Operations Development Committee, the Tenant Services committee, and the general board meeting. https://t.co/CY05B8wVnr
@CHIdocumenters Some notes on this agenda.
Item 2: The solar applicants have not been made public, nor any documentation from them has been submitted along with the agenda
@CHIdocumenters Item 3: This is a request to HUD to allow Chicago’s Housing Authority to remove vacant assets. This is a requirement from federal law.
Item 4: This is a request from the city to get federal rental assistant grants for the luxury development at 900 W Randolph.
This will have 60/300 housing units in the complex receiving rental assistance from the federal government.
https://www.related.com/our-company/properties/900-w-randolph
Item 5: is the Grace Manor apartments, which is a parcel of land currently owned by the city. A site is being developed there called Grace Manor
This site is planned to be 100% affordable, with 19 of the units receiving federal rental assistance. https://t.co/hcYzflLAYZ
For item 5, the city already has this money from a packet from the federal government, but designated for another site which remains vacant, and they are requesting to move the money to this site.
Item 6 is a large senior living development at 3030 W 21st Pl and 3700 W congress.
This request is for a CHA Loan not to exceed 18,000,000. The total cost of the project is 122,000,000. Of these every unit would be federal assistance qualified.
The first item, and the only official item for the Financial and Audit committee meeting, is the item to submit their financial records and audit report to HUD.
From here we go to public comment. Of the 3 folks who signed up, only 2 are present.
The first Mr.Blakemore, while in the meeting, is not answering his requests to comment.
Next up is Herman Bonner, who has also left the meeting suddenly.
After several attempts to contact them, Jackie Page, the commenter initially not in the call, has been reached.
Jackie Page comments that she believed that the budget was supposed to be moving towards RAD project based vouchers. However, this current budget still has most funding spending being placed on resident services/public housing based stock
She requests that more spending be made towards the voucher program.
The other two speakers were unable to be reached. With that the public comment section is ended.
With that, the audit and finance report is submitted, and the Finance and Audit Committee meeting is adjourned.
We now move into the Real Estate Operations Committee Meeting
All commissioners in this committee are present.
We start with Item 2 presented by Eric Garrett Property Chief and Officer:
To award contracts totaling $9 Million to 3 vendors. These vendors would be allowed to establish renewable energy on CHA sites
Eric Garrett references a table of vendors that has been not made available to the public.
Commissioner Washington asks which projects specifically are being proposed
Garrett explains that this is not a specific list of projects, but allowing specific developers to make specific project recommendations.
Commissioner Washington asks who is responsible for making sure installation is done correctly as per section 3.
Eric Garrett says that all contractors will be in compliance with section 3.
Commissioner Washington asks for a specific person to be held responsible
Garrett says that they do not have a specific person identified.
Commissioner Parker asks where the project will fall inside of the CHA’s Property Management division.
Garrett says that this project will be directly under the CHA, and if the project is on property management property it would fall under the Property Management.
Garrett clarifies, that this is not new money, this is money established in the current utility budget.
Commissioner Parker asks if these firms have Chicago based offices.
Garrett clarifies that all of these vendors have current project sites inside the city.
Next is Item 3 presented by Garrett. This is the submitting of 13 properties to HUD. These are all non-performing (aka vacant) assets. And the Property Management Division wants to remove them from their property portfolio. https://t.co/HSdCaoYSvy
Commissioner Brewer asks about the non-residential unit.
Garrett explains that the unit at 6225 - 45 s Wabash, in Washington Park, was the old Boys and Girls Club. He explains there is a buyer already interested.
Commissioner Mantaky asks about the 6 unit property off independence avenue.
Garett explains that the cost to renovate would be $2.6 million.
Mantaky, suggests there is an error, as “there is no way we are spending $2.6 for a 6 flat, we could build a new one for that much
Garrett explains that this is not the cost to renovate, but the cost to redevelop
Mantaky, still expresses concern as “we are still losing 6 units”
Commissioner Parker expresses concern that the public/residents do not have a say in who these are being sold to.
Garrett explains that residents have the “right to first refusal”
Parker rebuttals that that is almost never used.
Here is an article about how this is almost never used by residents. https://www.chicagotribune.com/news/ct-xpm-2001-04-29-0104290196-story.html
CO Scott explains that this is not a sale resolution, just that federal law requires that CHA submit properties to HUD that the city would like to sell, prior to starting any sort of process as to their sale/disposition.
Commissioner Washington asks which of these properties should or should not be demolished.
She says that she knows all of these properties, That she remembers that the building at “1309 Independence was built when I was a teenager”
Garrett explains that for each of these properties CHA had resident meetings and talked to residents. This was all formally part of the plan, along with nearly 80 other properties, were approved for disposition.
Commissioner Washington explains that leadership, (Comissioners?) were not made aware of these applications ahead of time. She explains that tenant meetings were not had.
Commissioner Mildred, asks for a detailed list of properties in the area.
Commissioner Mantaky, says that he will support the disposition, however he is greatly concerned at the renovation cost of 250$/ft that was presented in the disposition.
Next up is item 4, presented by Anne McKenzie Chief Development Officer.
This is a request for RAD money to subsidize around 1/5th of the apartments. This is a 43 story, 300 unit site at 900 W Randolph.
This is $1,174,130 in rental assistance per year. With the units to be finished in 2023. Unlike many of these projects, there is no request for capital funds from the developer.
Commissioner Washington talks about how upset she is at the destruction of the Lathrop site.
Commissioner Parker asks if Lathrop residents will get priority.
Commissioner McKenzie, explains that those folks are on a voucher waiting list, but the distance from the old Lathrop site, means that those folks are properly not going to those old residents.
Commissioner Washington talks about how 500 units were promised to Lathrop residents and they have been waiting for 5 years for nothing.
Next up is item 5, for the planned construction in North Lawndale at the Grace Manor site. The plan is for a 6 story, 64, unit building on a city lot.
Of these units, 19 are requested to be subsidized via rad funds. As mentioned previously, these funds are already approved by HUD but for a different site, and this is a request to transfer those funds.
Commissioner Mantaky asks about the amenities for the residents.
Commissioner McKenzie, does not have them right now, but says that she will bring them when she comes to the committee for financing
Commissioner Mantaky says that it looks like a “dead office building?
Next up is Item 6. Albany Terrace, and Irene McCoy Gaines, are apartments owned by the Chicago Housing Authority.
These apartments are in desperate need of rehab.
The total cost of this project is $85 million. This is mostly coming from Low Income Housing Tax Credits and loans. This is a request for 18,000,000 in loan from the CHA
The process for this is to create separate entities who will take on the ownership of these sites, and receive the loans. This new entities will be 100% owned and managed by the CHA
Commissioner Mildred asks about the relocation plan for the residents.
CDO McKenzie, explains that due to planed vacancy, units will be rehabbed, then residents will be moved to rehabbed units on the same floor.
Commissioner Washington comments on the poor state of Albany Terrance, she talks about the amount of mildew and mold, and stresses the need to move residents ASAP.
Commissioner Brewer asks why we are spinning off this into two separate entities.
CDO McKenzie, explains that if they are separate entities. The entities can utilize the asset value in the loan and get the loan from a traditional lender.
Commissioner Mantaky comments that “Ann McKenzie can renovate a space for 150,000 a unit, a reference to the previous discussion around the 6 flat with the over $2,000,000 cost
Next up is item 7. This is the Oak and Larrabee site. This is part of the former Cabrini plot.
The CHA is working with Brinshore-Michaels Development on the site. This is a pre-development loan not to exceed 1,000,000.
This site would have 30 RAD sites, 10 low income sites, and 38 market rate sites. https://t.co/ES3IDNkhFi
Commissioner Washington asks for clarification on the costs.
CO Scott. Explains that the estimated loan for the total project is around $8 million, that the pre-development loan will be rolled into the permanent loan as a part of the financing discussion.
Commissioner Parker raises issues with the Michaels development group, she talks about how they have developed a large portion of the South and West side.
She explains that over the last 15 years they have left little behind in the community.
She raises issues that they are not a Chicago development group, that these funds are not staying in the city.
Commissioner Washington says that the Micheals group is good about hiring residents to work for their management group.
Next up is Item 8, This is the Lake Park Crescent in Oakland off 1061 E 41st Pl.
So the following are proposed.
1. To sell the property to an entity known as Standard Communities.
2. To extend and modify the loan. This would extend the loan of 13.5 million, repay around $2 million
3. Approve the tenant selection plan.
4. Submit a RAD request for 60 units
Commissioner Harris has asked who Standard Communities are, and has requested more information in general for these entities.
McKenzie has stated that they are the management for the Maplewood site on the former Carbrini land. They have received project based vouchers before to relatively high success.
Last up is Item 9, this is for Ogden Commons, 1351 S Washtenaw in North Lawndale.
This is on CHA owned land, right next to Sinai Hospital.
This would be a joint venture between Cinospace, Sinai, and the Habitat company.
This would be a 4 story elevator building, and a 3 story walkup. It would be a 110 unit site, with 44, RAD and 55 affordable. https://t.co/3oYqA3QBHN
This would cost $518,329 in RAD funding
CHA would provide a $12,000,000 loan, and a $510,000 equity loan.
The only comments on this are from Commissioner Parker who expresses concern at section 3, specifically the way that “union contracts are taking up the work”
Next to Public Comment. 2 speakers have registered.
Jackie Page and George Blakemore neither of which have responded, though both speakers are in the meeting.
Next up there is a vote on the items.
An Omnibus motion is presented. The motions all pass unanimously.
At 1032 the real estate committee adjourns. We move to the Tenants Committee.
Chair of this committee is Commissioner Harte.
First is an approval of the previous minutes which passes without hesistation
First up is Mary Howard, Chief Resident Services Officer.
She is asked by Commissioner Harte, for her walk up song today.
She responded with “I am alright” &ab_channel=KennyLogginsVEVO
Commissioner Herlock recuses herself from this item.
This first item is for the Homeownership Counseling and Legal Services for the Housing First program
There are 3 providers presented, The Neighborhood Housing Services of Chicago, The Latin United Community Housing Association, and the YWCA.
Homeowners will choose their counselor, so these funds are not set for each provider.
This is for the Choose to Own program. Essentially public housing residents are given a voucher that assists them in purchasing a home. They are then given legal and purchasing counseling during the process.
Here are the backgrounds of the providers https://t.co/lZR7r5mOPg
Commissioner Harris, suggests a trolley bus tour for the CHA and investors, to tour the homes purchased through the chose to own program.
Commissioner Harte asks for the credit score for the applicants
. Howard responds that she likes credit score to be 630
Next up is item 11. This is a project funded by the American Rescue Plan Act Funds. This is an expansion of the Emergency Housing Voucher. These will be available till 2030.
To ensure that EHV’s assist families in most need, CHA does not choose the applicants. Instead it comes from community partners as a part of the Chicago’s Continuum of Care.
HUD also has made available $3,500 to assist in security deposit, housing search assistance, moving expenses and furniture.
Commissioner Washington expresses concerns about the requirements to eligibility.
Commissioner Parker asks what the Continuum of Care (CoC) plan is.
Howard says that the CoC is the organization that handles everything from temporary housing, to bridge housing, to permanent housing.
There are no other comments so now we are going to Public Comment.
Due to technical issues there are none
Item 10/11 are approved and the Tenants Committee is adjourned.
Now we are up to the CHA Annual Board Meeting. Which is called into order at 11:03
Commissioner Harris starts the annual meeting, with a centering thought on encouraging reflectors.
Scott is up first with a report. She talks about the opening of outdoor spaces at buildings, but that she is still restricting indoor spaces at public spaces.
She follows up with items from the May meeting. She talks about the importance of the CTC. That based on income they will receive around $3000 through December. Half will be made available now, the rest will be made available after taxes are filed.
Scott then talks about the Emergency Housing Vouchers. The City received around 11,000 of these.
Either folks that are
A) Homeless
B) At Risk of homeless
C) Fleeing domestic violence
D) Recently homeless.
Chicago Continuum Of Care will handle the referring, but the CHA will handle the vouchers.
Next Scott brings up the flights of Blue Origin and Richard Branson, she talks about how the world “belong to all of us, and it is the work of us and our partners to make housing accessible to ‘all of us”
Next up is Commissioner Chico, who gives the report from the Finance and Audit Committee. Talking about the submission of the audit report to HUD that occurred earlier this meeting.
Next up is Commissioner Brewer from the Real Estate Committee which is summarizing the agreements made earlier in the meeting.
We have the omnibus measure of all items from the committee. They all pass unanimously.
Commissioner Harte now summarizes the tenants committee matters.
The two items are put to the general floor, they pass unanimously.
Due to technical difficulties, there are no comments. The chair says she will reach out to the commenters. https://t.co/dZTiNgcnxe
Chair Harlock says that the next meeting will be held in person.
The board now goes into closed session for item 12 to discuss personnel matters. https://t.co/CbbejYjbtE
After 1230 the stream ended without an official adjournment so I will assume it adjourned in closed session