DuPage County Home Advisory Group met October 3.
Here is the minutes provided by the Group:
1. Call to Order
11:30 am meeting was called to order by Chairman Tim Elliott at 11:30 am.
2. Roll Call
Present: Anderson, Berley, Broder (11:32 am), Chaplin, Chassee, Elliott, Grill, Krucek, Wiley
Absent: Bastian, Chrisse, Grasso, Tornatore
Staff Present: Mary Keating, Community Services Director; Jennifer Chan, Community Development Administrator; Christine Pedersen, Senior Accountant/Community Services Manager; Christopher Ragona, Community Development Manager; Julie Hamlin, Sr. Community Development Specialist; Therese Witkus, Community Development Specialist; Christopher Donovan, Community Development Specialist, and Dorin Fera, Community Development Specialist.
State’s Attorney - Patrick Collins.
Others Present: Dave Neary, Executive Director - DuPage Habitat for Humanity; Kenneth Coles, Executive Director - DuPage Housing Authority; Barbara Chen, Finance Director - DuPage Housing Authority, and Caleb Jewell, Attorney for Vitus Inc. - Applegate & Thorne-Thomsen.
Chairman Elliott took this time to welcome Kevin Wiley back after performing his military duty in serving the Country.
3. Public Comment
4. Approval Of Minutes
A. Home Advisory Group - Regular Meeting - Sep 5, 2017 11:30 Am
There were no questions or corrections. On a voice vote, the September 5, 2017 Minutes were approved.
Result: Accepted [Unanimous]
Mover: Kevin Wiley, District 6
Seconder: Elizabeth Chaplin, District 2
Ayes: Anderson, Berley, Broder, Chaplin, Chassee, Elliott, Grill, Krucek, Wiley
Absent: Bastian, Chrisse, Grasso, Tornatore
5. Action Items
A. Action Item -- Recommendation for approval of the Tenant Based Rental Assistance (TBRA) Policy Revision #4.
Chan gave a brief review of the program. Using HOME funds for this project is a very beneficial way to assist extremely low-income households within DuPage County.
There were no questions.
On a roll call vote, the motion passed.
Result: Approved [Unanimous]
Mover: Kevin Wiley, District 6
Seconder: Elizabeth Chaplin, District 2
Ayes: Anderson, Berley, Broder, Chaplin, Chassee, Elliott, Grill, Krucek, Wiley
Absent: Bastian, Chrisse, Grasso, Tornatore
B. Action Item -- Recommendation for approval of Modification One to Agreement HM16- 02 with Habitat for Humanity to allow for the acquisition, rehabilitation, and resale of an additional eligible address, and allow the Director of Community Services to authorize modifications to the agreement for the addition of eligible addresses in the agreement pending funding availability.
Chan informed the committee that Dave Neary, Executive Director with DuPage Habitat for Humanity, was in the audience.
The HOME rule has made it difficult to administer projects using HOME funds to acquire, rehabilitate and then resell dwellings. The need to wait for completion of the Environmental Review Record (ERR) has seriously delayed projects by loss of housing stock.
Keating said that the County Board approves the overall project. This change will allow the Director of Community Services to sign off on address agreement modifications. Before this revision in the HOME regulations took place, it was permissible for an agreement to state the number of dwellings to be acquired, rehabbed and then resold. Now the HOME regulations require that each property address be listed in the agreement. This means that each street address addition/change would have to be brought back before the HOME Advisory Group, followed by the Health and Human Services Committee approval, then final approval by the County Board. By allowing the Director to sign off on this type of agreement modification, it streamlines the current process. (All other modifications including time extensions, funding increase requests, and scope of work changes would still need to go through the Committee approval process.) Berley asked how long it takes for an Environment Review to be completed. Chan stated 60 to 90 days, and these homes do not stay on the market that long.
Wiley understood that by allowing this request, it would streamline the process, but where would the County Board have the control in the location of the property. He wanted to make sure County Board not abdicate its responsibility. Keating stated that County Board has the say in the overall project which is in the Greenbrook neighborhood of Hanover Park. This project is part of the neighborhood revitalization program between DuPage Habitat for Humanity and the Village of Hanover Park. Currently the request is for five properties in this neighborhood. If Habitat could not locate the five properties within this area and chose to change location, the request would have to come back to this Committee.
There were no other questions or further discussion.
Result: Approved [Unanimous]
Mover: Kevin Wiley, District 6
Seconder: Elizabeth Chaplin, District 2
Ayes: Anderson, Berley, Broder, Chaplin, Chassee, Elliott, Grill, Krucek, Wiley
Absent: Bastian, Chrisse, Grasso, Tornatore
C. Action Item -- Recommendation for approval of the sale of Ogden Manor Apartments in Naperville, IL to Vitus Group Inc., to include payment and restructuring of County project loans CD05-20f and HM06-04.
Keating informed the Committee that the presentation of this item was a culmination of many months of discussion with the DuPage Housing Authority (DHA). Ken Coles and Barbara Chen were in attendance.
The housing authority purchased the Ogden Manor property many years ago. The DHA approached the County notifying them of their desire to sell the property and requested early forgiveness on the loans that had a 20-year forgivable period. The County was not in favor of this because only 10 years of the 20-year mortgage and forgivable note period had passed. This began a series of discussions and negotiations. Keating felt that from this, a very viable solution was reached.
The DHA is selling to the for-profit developer, Vitus Communities of Opportunity. Previously, two of the loans would have been forgiven after 20 years. With the restructure of the liens to Vitus, all of the funds will be repaid; nothing forgiven. Upon closing, DHA will pay back the remaining balance of the loan which required annual payments, and the developer will pay one-third of the other loans. The other two-thirds owed will have a term loan equal to the length of the tax credits and the other financing. This went from having approximately $900,000 in forgivable to getting $328,000 back immediately and having a $600,000 loan on the property.
Keating thanked the housing authority for working though this noting that Ogden Manor will continue to be high quality, affordable housing.
Elliott, as well, thanked Coles and Chen for their willingness to work together on this. He was involved in a number of the discussions and strongly supportive of this sale and loan restructuring. This arrangement would keep the property serving a population it was intended to for long term. It also protects the County’s financial stake and assured a financial return in which these funds can be invested in similar projects in other areas of the County.
This was the first time in a long time working with a for-profit developer. The County wanted to make sure that this arrangement would not increase the for-profit’s bottom line by using taxpayer money to the benefit of its owners and shareholders. He felt that this deal does a nice job for all the parties involved.
Krucek asked if there already is a project for the use of these funds. Keating stated that some of the money is Community Development Block Grant. The Department is currently in the process of accepting applications for the 2018 program. The funds come back as program income and have to be spent before entitlement funds. It is more than likely that these funds will be rolled into the 2018 funding recommendations. The HOME funds are program income as well and will be in the annual action plan.
Wiley asked for clarification on the loans. Keating said that originally one loan required repayment while two others would have been forgiven after 20 years. The majority of the funds were to be forgiven; now none would be forgiven.
There were no further questions.
Result: Approved [Unanimous]
Mover: Elizabeth Chaplin, District 2
Seconder: Janice Anderson, District 5
Ayes: Anderson, Berley, Broder, Chaplin, Chassee, Elliott, Grill, Krucek, Wiley
Absent: Bastian, Chrisse, Grasso, Tornatore
6. Other Business
Berley stated that 2018 applications were to be taken, when 2017 funds have not been received. Was it wise to back up the projects and double the work load. Especially if the funds are not received. Keating stated the County just received the 2017 grant agreements with HUD late last week. The County does not have a choice on the timing because the program year starts on April 1st and the Action Plan has to be submitted a set number of days before the beginning of the grant year.
Berley voiced his concern about the lateness in receiving the funds and the impact it has on the start time and additional cost to the infrastructure projects. Keating stated that generally the agreements are structured for 12 months but can be adjusted. Keating found this frustrating as well. This was probably the latest grant agreements have been received.
Keating reminded the Committee that the President’s proposed 2018 budget completely eliminated CDBG and HOME. However, the Congressional markups have CDBG at level funding and HOME at about a 10% reduction. Keating said we are working on a Continuing Resolution right now. Using the Congressional markup as a guide, hopefully CDBG and HOME will both be funded in 2018.
There was no other business.
7. Adjournment
Chaplin made the motion, seconded by Wiley, to adjourn the meeting at 11:47 am. On a voice vote, the motion passed.
8. Next Meeting Date - November 7, 2017
http://dupage.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=6158&Inline=True
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