Chicago Housing Authority Board of Commissioners met May 16.
Here is the minutes provided by the Board:
The Commissioners of the Chicago Housing Authority held its Regular Meeting of the Board of Commissioners on Tuesday, May16, 2017 at approximately 11:20 a.m. at the CHA Corporate Offices located at 60 E. Van Buren in Chicago, IL.
Chairman Hooker called the meeting to order and upon roll call those present and absent were as follows:
Present: Matthew Brewer
Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Absent: Mark Cozzi
Also present were Eugene Jones, Chief Executive Officer; James Bebley, Chief Legal Officer; Chicago Housing Authority staff members and the General Public.
There being a quorum present, the meeting duly convened and business was transacted as follows:
Jack Markowski, Chairman of the Finance & Audit committee, then presented his report. Per Commissioner Markowski, the Finance & Audit Committee held its regular meeting at 8:30 a.m. today at the CHA Corporate Office. Commissioner Markowski chaired the meeting and the following committee members were present as well: Commissioners Brewer, Harte and Matos. Present also but not counted for the quorum were Chairman Hooker, Vice-Chairman Chico and Commissioner Washington. Committee members then voted to adjourn to closed session to discuss certain audit reviews and investigatory matters. Committee members then returned to open session and discussed, voted and recommended for approval the following two items.
(Item 1)-
The resolution for Item 1 approves the award of contracts to Yolaine Dauphin and Joel Skinner as Hearing Officers for the CHA Housing Choice Voucher Program. In December, 2016, the Board originally awarded contracts to twelve Hearing Officers and three Presenters. After these awards were issued, however, two Hearing Officer awardees withdrew from being hearing officers. In light of these withdrawals, the recommendation is that the next two highest ranking applicants for the Hearing Officer positions be awarded contracts to fill the above-referenced vacancies. Each of the original awardee contracts were for a one-year base term beginning January 1, 2017 through December 31, 2017. The contracts for the two new recommended awardees will be for the remainder of this same term, along with the same two one-year options for each contract. The aggregate not to exceed amount for each one- year term remains at $900,000 collectively for all hearing officers and presenters under this program.
Resolution No. 2017-CHA-43:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017, entitled “Authorizaton To Award Contracts To Two (2) Illinois Licensed Attorneys To Act As Hearing Officers For Housing Choice Voucher Administrative Hearings, Following The Withdrawal Of Two (2) Recent Hearing Officer Awardees.”
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That the Board of Commissioners (“Board”) authorizes that the Chief Executive Officer approve the award of contracts to two (2) Hearing Officers, Yolaine Dauphin and Joel R. Skinner, for the term of June 1, 2017, through December 31, 2017, which is the remaining portion of the base term of January 1, 2017 through December 31, 2017. Each contract will have two (2) one-year options. The aggregate not to exceed amount for each one-year term remains at $900,000 collectively for all hearing officers and presenters under this program. The Board delegates authority to the Chief Executive Officer to use his discretion to exercise the options. The Chief Executive Officer shall not exercise more than one option in any year.
(Item 2)-
The resolution for Item 2 approves the participation in the City of Chicago’s Contract No. 28364 with Canon Solutions America Inc. to lease multi-functional photocopiers, related products and services for a five year term beginning June 1, 2017 through May 31, 2022 in an aggregate amount of $1,118,721.00 to provide a total of thirty-eight multi-functional devices with the option to purchase the equipment at the expiration of the lease. The Authority currently owns copiers provided by several vendors governed by a variety of contracts. These multifunctional devices provide copy/print/scan/fax functionality at the CHA headquarters and the Family Investment Center sites. The current copiers experience frequent breakdowns and/or have expiring maintenance contracts. Maintaining the existing copier stock is neither cost-effective, nor capable of meeting the current and future business needs. The CHA needs to replace existing copiers to control costs, eliminate constant copier breakdowns and to produce quality documents.
Resolution No. 2017-CHA-44:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Authorization to Participate in the City of Chicago’s Contract with Canon Solutions America Inc. to Lease Multifunctional Photocopiers and Provide Related Products and Services”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to enter into contract with Canon Solutions America Inc. for the supply, lease and services of multifunction copiers in an amount not to exceed $1,118,721.00 for a term of five (5) years beginning June 1, 2017 through May 31, 2022, with the option to purchase the copier equipment at the end of the applicable lease term.
This award is subject to the Contractor’s compliance with CHA’s applicable MBE/WBE/DBE, Section 3 hiring and insurance requirements.
The Motion to adopt resolutions for Items 1 and 2 was seconded by Commissioner Brewer and the voting was as follows:
Ayes: Matthew Brewer
Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Chairman Hooker thereupon declared said Motion carried and said resolutions adopted.
Commissioner Meghan Harte, Chairwoman of the Tenant Services Report then present her report. Per Commissioner Harte, the Tenant Services Committee held its monthly meeting earlier today. Commissioner Harte chaired the meeting and the following committee members were present as well: Commissioners Chico, Harris, Matos and Washington. Although Chairman Hooker and Commissioners Brewer and Markowski were also present they were not counted toward the quorum. Committee member then discussed, voted and recommended for approval the two items appearing on the agenda.
On behalf of the Tenant Services Committee, Commissioner Harte presented an Omnibus Motion for approval of Items 3 and 4.
(Item 3)-
CHA residential moves are implemented by contracted moving companies and supervised by CHA’s Resident Services Division. Accordingly, CHA issued Request for Proposal (RFP) in December 2016 requesting qualified firms to provide moving services for CHA residents. A total of seven proposals were received by the proposal submission deadline. Proposals were evaluated by a three-person committee, Of the proposals received and evaluated, Aaron Brothers Moving System Inc.; Midway Moving & Storage Inc.; Midwest Moving & Storage Inc. and Smith Movers Inc.; were determined to be within the competitive range and are recommended for award. The resolution for Item 3 approves the award of a contract to Aaron Brothers Moving System Inc.; Midway Moving & Storage Inc.; Midwest Moving & Storage Inc. and Smith Movers Inc. for an aggregate not-to-exceed amount of $3,000,000.00 to provide moving services for CHA residents for a two-year base term and three one- year option terms. Contract oversight includes on-site monitoring of each move, regular performance reporting on metrics, quarterly performance reviews with the Contractor’s leadership staff and semi- annual quality assurance reviews of moving services files. Resident Services works closely with the residents to ensure that they are prepared and know what to expect prior to the move date. Based on current trends, Resident Services anticipates between fourteen and eighteen moves will occur per week utilizing contracted moving companies during the term of the Contract. The number of anticipated moves may vary based on planned rehabilitation or redevelopment activities at CHA properties or emergency moves.
Resolution No. 2017-CHA-45:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Recommendation To Award Contracts To Selected Respondents For Moving Services”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to award contracts for moving services to: Aaron Brothers Moving System Inc., Midway Moving & Storage Inc., Midwest Moving & Storage Inc. and Smith Movers Inc., each in an amount not-to-exceed $300,000.00 for a two (2) year base term and $150,000.00 per year for three (3) one-year option terms, for an aggregate not-to-exceed amount of $3,000,000.00. Each option term shall only be exercised individually.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE Section 3 hiring and insurance requirements.
(Item 4)-
The resolution for Item 4 approves acceptance of a grant award and execution of an Intergovernmental Agreement for a one-year base term with the Chicago Department of Family and Support Services (DFSS) in the amount of $1,160,000.00 for the Summer Youth Employment Program (SYEP). CHA has provided summer employment programming each summer since 2009 through grant funding from DFSS. This year, CHA has been awarded funding by DFSS to build on the success of the 2016 SYEP, which served 1,867 CHA youth, earning more than $1.7 million in wages. SYEP is a part of the Mayor’s One Summer Chicago initiative which ensures that youth have meaningful summer academic enrichment and work experiences. Participants receive on-going job readiness instruction and career exploration while working 140 hours over the course of seven weeks. 100% of the grant funds will be used to pay training wages to CHA youth. CHA’s participation in SYEP contributes to the One Summer Chicago overall goal of engaging approximately 31,000 youth in paid summer youth opportunities. In addition to the grant award from DFSS, CHA anticipates using up to $1,078,000.00 from the Resident Services budget to pay wages for youth participating in SYEP. These funds were previously approved by the Board as part of Resident Services 2017 budget.
Resolution No. 2017-Cha-46:
Whereas, The Board Of Commissioners Of The Chicago Housing Authority Has Reviewed The Board Letter Dated May 16, 2017 Entitled “Recommendation To Accept A Grant Award And Execute An Intergovernmental Agreement With The City Of Chicago Department Of Family And Support Services”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to execute an Intergovernmental Agreement with the Chicago Department of Family Support Services (“DFSS”) and accept a DFSS grant in the amount of $1,160,000.00 for Summer Youth Employment Program wages.
The Motion to adopt resolutions for Items 3 and 4 was seconded by Commissioner Harris and the voting was as follows:
Ayes: Matthew Brewer
Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Chairman Hooker thereupon declared said Motion carried and said resolutions adopted.
Matthew Brewer, Chairman of the Real Estate Operations Development committee, then presented his report. Per Commissioner Brewer, the Real Estate Operations Development Committee held its monthly meeting earlier today. Commissioner Brewer chaired the meeting and the following committee members were present as well: Commissioners Harris, Markowski and Washington. Although Chairman Hooker and Commissioners Chico and Harte were also present they were not counted toward the quorum. Committee member then discussed, voted and recommended for approval the items appearing on the agenda.
On behalf of the Real Estate Operations Development committee, Commissioner Brewer presented an Omnibus Motion for approval of Items 5, 6 and Items 8 through 16.
(Item 5) -
The resolution for Item 5 approves submittal of a Rental Assistance Demonstration (RAD) financing plans to HUD and enter into RAD Conversion Commitments with HUD for Lorraine Hansberry Apartments, Hilliard Senior 1 Apartments and Hilliard Senior 2 Apartments; commit CHA funds not to exceed $10,700,000 to fund (i) an initial deposit to the replacement reserve, rehabilitation, site work and transaction costs for Lorraine Hansberry Apartments; and (ii) a portion of the site work at Hilliard Senior 1 Apartments and Hilliard Senior 2 Apartments; execute Housing Assistance Payment (HAP) contracts; transfer ownership of the Lorraine Hansberry Apartments improvements to Chicago Housing Administration LLC and execute a 99-year ground lease for the land. Lorraine Hansberry Apartments located at 5670 W. Lake Street, is a 9-story building designated as senior public housing that after rehabilitation will contain 168 residential rental units that will be covered by the RAD housing assistance payment contract. The building needs minor rehabilitation including some exterior façade repairs, interior finishes replacement and elevator modernization. Longer range plans include more extensive rehabilitation over the next 20 years. At the RAD conversion closings, CHA will transfer ownership of the improvements to Chicago Housing Administration LLC and execute a 99-year Ground Lease for the underlying land. Hilliard 1 Senior Apartments, located at 2111 S. Clark Street, is part of a larger redevelopment of buildings originally constructed from 1963 to 1966. Led by the developer, Holsten Development, the complete rehabilitation of Hilliard 1 was completed in 2005. Hilliard 1 Senior Apartments is a 16- story building with 176 units of which up to 82 are subject to a HAP contract with CHA and the remaining 94 are presently public housing to be converted to RAD PBV. Hilliard 2 Senior Apartments, located at 30 W. Cermak, is also part of the larger redevelopment previously described. Led by the developer, Holsten Development, the complete rehabilitation of Hilliard 2 was completed in 2007. Hilliard 2 Senior Apartments is a 16- story building with 176 units of which up to 81 are subject to a HAP contract with CHA, one is a non-restricted management unit and the remaining 94 are presently public housing to be converted to RAD PBV. The CHA Board previously authorized the submission of a RAD financing plan to enter into a RAD Conversion Commitment with HUD for Hilliard 1 Senior Apartments, Hilliard 1 Family Apartments, Hilliard 2 Senior Apartments and Hilliard 2 Family Apartments in January 2016. However, subsequent to Board approval, it was determined that the family units should not transition to RAD and the senior buildings would better serve the residents if they were 100% PBV-subsidized units. RAD Physical Condition Assessments (PCAs) were prepared for the subject properties to determine the capital needs of the buildings over the 20-year term of the proposed initial HAP contracts. The total amount from the RAD budget based on CHA’s review of the PCAs and planning for common area projects was determined to not exceed $10,700,000.
Resolution No. 2017-CHA-47:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 requesting authorization to submit financing plans under the Rental Assistance Demonstration program as well as execute and deliver such documents and perform such actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Chief Executive Officer or his designee is authorized to submit Rental Assistance Demonstration Financing Plans to the United States Department of Housing and Urban Development for Lorraine Hansberry Apartments, Hilliard 1 Senior Apartments and Hilliard 2 Senior Apartments.
That, the Chief Executive Officer or his designee is authorized to enter into Rental Assistance Conversion Commitments for Lorraine Hansberry Apartments, Hilliard 1 Senior Apartments and Hilliard 2 Senior Apartments on behalf of the Chicago Housing Authority and Chicago Housing Administration LLC.
That, the Chief Executive Officer or his designee is authorized to execute Housing Assistance Payment Contracts under the United States Department of Housing and Urban Development Rental Assistance Demonstration program for Lorraine Hansberry Apartments, Hilliard 1 Senior Apartments and Hilliard 2 Senior Apartments on behalf of the Chicago Housing Authority and the Chicago Housing Administration LLC, and execute such other documents as may be required for the financing and operation of the properties on behalf of the Authority and Chicago Housing Administration LLC.
That, the Chicago Housing Authority is authorized to commit funds not to exceed $10,700,000 to fund initial replacement reserves and other rehabilitation costs as well as transaction costs for Lorraine Hansberry Apartments and site work for Hilliard 1 Senior Apartments and Hilliard 2 Senior Apartments.
That, the Chief Executive Officer or his designee is authorized to execute documents on behalf of the Chicago Housing Authority and Chicago Housing Administration LLC for Lorraine Hansberry Apartments in order to transfer title to the improvements and enter into a 99-year ground lease.
That, the Chief Executive Officer or his designee is authorized to execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
(Item 6)-
The resolution for Item 6 authorizes CHA staff to proceed with the application process for 6800 North Western and 4022 North Elston under the CHA’s Rental Assistance Demonstration (RAD) program portfolio award from HUD and authorize the CEO or his designee to execute the applications. The properties would be funded as RAD transfer of assistance properties from Lathrop Homes. The RAD project-based voucher (PBV) funding at the properties will allow for flexibility to leverage financing for property improvements as needs arise. The redevelopment of Lathrop Homes will result in more than 1,000 residential units of which 400 are planned to be RAD PBV units for public housing eligible residents. In addition to the 400 RAD PBV units planned for the Lathrop site, CHA is seeking 525 other units on the north side of Chicago to subsidize with RAD PBV assistance transferred from Lathrop Homes. 6800 N. Western is a planned mixed-use, mixed-income, new construction building. 4022 N. Elston is a planned mixed-use, mixed-income, new construction building. Both properties are considered Gautreaux General Area and CHA Opportunity Area. The developer for both properties is EREG Development LLC (EREG) an owner and manager of affordable housing.
Resolution No. 2017-CHA-48:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 requesting authorization to proceed with the application process for properties utilizing transfer of assistance under the Rental Assistance Demonstration Program as well as execute and deliver such documents and perform such actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Chief Executive Officer or his designee is authorized to proceed with the application process and utilize transfer of assistance for:
• Lathrop Homes:
o 6800 N. Western
o 4022 N. Elston
(Item 7 – This Number Not Used)
(Item 8)-
The CHA issued an Invitation for Bid (IFB) in March 2017 soliciting general contractors to complete the renovation of the non-dwelling property located at 1000 N. Sedgwick. A total of six responsive bids were received. CCC Holdings Inc. dba Chicago Commercial Construction submitted the lowest lump sum bid. Accordingly, the resolution for Item 8 approves award of contract to CCC Holdings Inc. in the firm fixed price of $4,246,102.00 plus a not-to-exceed amount of $254,766.12 in contingency strictly limited to potential change orders justified as discovered conditions or code compliance issues for a total not-to-exceed amount of $4,500,868.12. The facility is currently home to the By the Hand Club for Kids, a non-profit after-school program that serves CHA youth. The By the Hand Club for Kids is a comprehensive after-school program that provides healthy meals, academic mentoring, literacy support, eye and dental exams with follow-up care, mental health counseling, safe passage from schools and opportunities for kids to explore their talents and interests. This facility and the By the Hand Club for Kids program provide an important and invaluable service to CHA’s youth in the area. The facility is in need of a renovation to bring the property in line with overall CHA building standards, accessibility requirements and current building codes. This project will update finishes throughout and upgrade this facility’s major systems because they are beyond their effective useful life.
Resolution No. 2017-CHA-49:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Recommendation to Award a Contract for the Renovation of the Non-Dwelling Facility Located at 1000 N. Sedgwick Street”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to enter into a contract with CCC Holdings Inc. dba Chicago Commercial Construction for the complete renovation of 1000 N. Sedgwick Street in the firm fixed price of $4,246,102.00 plus a not-to-exceed amount of $254,766.12 in contingency (6%, which is in line with industry standards) strictly limited to potential change orders justified as discovered conditions or code compliance issues for a total not-to-exceed amount of $4,500,868.12.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE, Section 3 and insurance requirements.
(Item 9)-
The resolution for Item 9 approves submittal of a Disposition Application to HUD for the disposition of property comprising the Washington Park (45th & Cottage Grove) Phase I development site. In April 2010, CHA and The Habitat Company, in its official capacity as Receiver for the development of new, non-elderly public housing, issued a two-part solicitation, a Request for Qualifications-Request for Proposals to redevelop a CHA owned site at 45th and Cottage Grove as well as vacant in-fill city-owned lots in the general area of 44th Street and Langley Avenue. This CHA land formerly contained two public housing high rise buildings known as Washington Park Properties. Under the solicitation, the CHA aimed to restore the historic character of Cottage Grove with a vibrant new mixed-income, mixed- use property containing approximately 150-185 residential units, including 40 apartments for public housing families, and up to 25,000 square feet of retail/commercial space. In February 2011, CHA selected the Brinshore-Michaels development team to redevelop the 45th and Cottage Grove site. Presently, CHA seeks to proceed with the first phase of development contemplated under the redevelopment plan for 45th and Cottage Grove. The Phase I rental development will create 84 units including 21 CHA, 38 affordable and 25 market rate apartments. This disposition activity was identified in the Amended CHA FY2014 MTW Annual Plan approved by HUD.
Commissioner Chico abstained from voting on Item No. 9.
Resolution No. 2017-CHA-50:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled Authorization to: 1) Submit a Disposition Application to HUD for disposition of property comprising the Washington Park (45th & Cottage Grove) Phase I Development site; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Submit a Disposition Application to HUD for the disposition of property comprising the Washington Park (45th & Cottage Grove) Phase 1 Development site; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
This award is not subject to the Contractor’s compliance with CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 10)-
The resolution for Item 10 approves submittal of a Disposition Application to HUD for the disposition of property comprising Roosevelt Square Phase IIA for sale development site. Under the Plan for Transformation, CHA outlined a strategy for the redevelopment of the ABLA homes. The plan for the 90-acre site called for the creation of 2,441 new units. The plan promised 755 CHA units, 720 affordable units and 966 market rate units. By the end of 2006, 591 total housing units were delivered between two phases. Phase I for sale delivered 233 units and Phases I and II rental delivered 358 units. In 2005, CHA and its development partner Related Midwest executed the Roosevelt Square Phase II rental transaction and constructed 177 new units of public housing and affordable rental units immediately north and south of Roosevelt Road. The original Phase II plan called for a seamless development containing market rate for sale units adjacent to CHA and affordable rental units. Shortly after the completion of the rental portion of Phase II, the real estate market stalled and the Phase II for sale component was never completed. Today, vacant lots are interspersed with the rental development and the proposed Phase IIA for sale development will provide up to 60 units of market rate infill housing. Presently, CHA seeks to proceed with the for sale development activities contemplated under Roosevelt Square Phase IIA. The development area is generally bounded by Taylor Street on the north, Roosevelt Road on the south, Loomis Street on the west, and Racine Avenue on the east.This board action will provide authorization to proceed with the land disposition for Phase IIA development at Roosevelt Square, a portion of the former Robert Brooks homes site, which contemplates the construction of approximately 60 units of for sale housing.This disposition activity was identified in the CHA FY2003 MTW Annual Plan approved by HUD.
Resolution No. 2017-CHA-51:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled Authorization to: 1) Submit a Disposition Application to HUD for disposition of property comprising the Roosevelt Square Phase IIA For Sale Development site; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Submit a Disposition Application to HUD for the disposition of property comprising the Roosevelt Square Phase IIA For Sale Development site; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
This award is not subject to the Contractor’s compliance with CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 11)-
The resolution for Item 11 sapprove the Tenant Selection Plan, Lease and Lease Riders for Diversey Manor Apartments and amend the CHA Admissions and Continued Occupancy Policy. Diversey Manor Apartments will be located at 5525 W. Diversey within the Belmont Cragin northwest community area in an Opportunity Area. The developer, Metropolitan Housing Development Corporation (MHDC), will construct a three-story building to provide 98 new housing units and 45 parking spaces. The property will consist of 23-studio and 75 one-bedroom apartments, with 45 of the one-bedroom units for CHA residents. Rents for all 98 units will be set at affordable levels for households with incomes at or below 60% Area Median Income. It is understood that the developer has an interest and desire to implement its own lease forms and policy that encourages consistent community standards for the effective management of the development.
Resolution No. 2017-CHA-52:
Whereas, the Board of Commissioners has reviewed the Board Letter dated May 16, 2017 entitled “Authorization to: 1) Approve the Tenant Selection Plan, Lease and Lease Riders for Diversey Manor Apartments and amend the CHA Admissions and Continued Occupancy Policy to incorporate such documents as an addendum thereto; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.”
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Approve the Tenant Selection Plan, Lease and Lease Riders for Diversey Manor Apartments and amend the CHA Admissions and Continued Occupancy Policy to incorporate such documents as an addendum thereto; and 2) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
(Item 12)-
The resolution for Item 12 approves Agreements to enter into Housing Assistance Payments Contracts (AHAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 2) Housing Assistance Payments Contracts (HAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 3) Preliminary Commitment Letters for (A) Clark-Estes Apartments and (B) Sarah’s Circle Apartments. Initial contract rents will be determined by market comparables and fair market rents applicable at the time the HAP contract is executed. All rent determinations will comply with federal regulations and CHA policy. The Marshall Hotel received Preliminary Approval for an allocation of PRA units from the CHA Board of Commissioners at the June 2016 meeting to support their application to the Illinois Housing Development Authority (IHDA). The project is moving forward with approved IHDA financing. The Marshall Hotel is a 4-story, elevator building located at 1232 North La Salle Street in an Opportunity Area in the Near North community. The building currently holds 173 Single Room Occupancy (SRO) units without individual kitchens and bathrooms. The developer, The Michaels Organization, will reconfigure the building to 90 studio apartments each with individual kitchens and full bathrooms. PRA will assist 90 studio units. There will be 9 PRA units designated for State Referral Network and 5 units set aside for veterans from CHA’s waitlists. Vacancies will be filled from CHA waitlists. The owner is Marshall 1232 LLC, an affiliate of The Michaels Organization. Interstate Realty Management Company (IRM) will manage the property. Pullman Artspace Lofts received Preliminary Approval from the CHA Board in July 2016. The project is moving forward with financing from the Illinois Housing Development Authority. Pullman Artspace Lofts will be located at 11127-29 & 11137-49 South Langley Avenue / 704-706 East 112th Street in the Pullman Historic community in a Limited Area. The development will combine historic renovation of two three-story, blockhouses with a new construction infill building. The two historic blockhouses will each provide 6 units and the new construction building will provide 26 units for a project total of 38 units of affordable housing for artists and their families. Of the 38 units, 6 will be accessible and 2 units will be for persons who are audio or visually-impaired. CHA will have 3 one-bedroom and 3 two-bedroom PRA units. Target population for the 6 PRA units will be veterans from CHA waitlists and services will be coordinated with Catholic Charities. PRA assistance will provide quality affordable housing in an improving area of Pullman to veterans. Pullman Artspace Lofts is a joint venture among Artspace Projects Inc., Chicago Neighborhood Initiatives (CNI), and Pullman Arts. The Hayes-Gibson International Inc. (HGI) will serve as the property manager. Clark-Estes Apartments is located at 7070 N. Clark Street in a General Area in the Rogers Park community and is less than one block to an Opportunity Area. The building is located at the corner of a strong commercial artery surrounded by a thriving residential community and is steps away from the Clark Street bus and Metra North - Rogers Park / Lunt Avenue station. The 4-story, new construction, mixed-use development for families will contain 54 total residential units: 15 studios, 21 one-bedroom units, and 18 two-bedroom units. PRA will assist 10 one-bedroom and 5 two-bedroom apartments. Clark-Estes Apartments will seek the Enterprise Green Communities certification which will include Energy Star appliances, windows and light fixtures. The first floor of the building will offer 3,350 square feet of retail space, as well as a community room and office space for the social service partner, Trilogy Inc. Trilogy will provide social services to tenants from the State Referral Network. All other tenants will have access to these services as a part of their lease, but will not be required to participate. Tenants will come from CHA waitlists for 10 PRA units and the remaining 5 PRA units will be available to members on the State Referral Network. Unit configuration will be assigned at the time of the HAP in order to best serve the CHA Waitlist. Ross Financial Services (RFS) is the managing partner and will provide property management services. Sarah’s Circle Apartments received Preliminary Approval at the May 2016 CHA Board meeting and requests CHA preliminary support renewal. The development has moved to a new location at 4654 N. Sheridan Road, adjacent to Sarah’s Circle administrative offices. Sarah’s Circle Apartments will be a 6-story, elevator building located in the thriving residential community of Uptown in a Limited Area less than three blocks from an Opportunity Area. The new construction, multi-use property will contain 38 studio units of Permanent Supportive Housing (PSH). PRA will assist 18 of these 38 PSH studio units. The target population for all units, including the 18 PRA units, will be women at-risk of homelessness. PRA tenants will come from the CHA Waitlists. Supportive services will be available to both PSH and Interim Housing residents through Sarah Circle’s Daytime Support Center which provides meals, case management, educational programming, and clinical services for any woman in need. Sarah’s Circle Apartments, LLC’s managing member is Sarah’s Circle Apartment Manager, LLC comprised of Brinshore Development, LLC and Sarah’s Circle Development Corporation.
Commissioner Chico abstained from voting on Item 12.
Resolution No. 2017-CHA-53:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Recommendation to Execute 1) Agreements to enter into Housing Assistance Payments Contracts (AHAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 2) Housing Assistance Payments Contracts (HAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 3) Preliminary Commitment Letters for (A) Clark-Estes Apartments and (B) Sarah’s Circle Apartments; and 4) all other documents as may be necessary or appropriate to implement the foregoing.”
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to execute 1) Agreements to enter into Housing Assistance Payments Contracts (AHAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 2) Housing Assistance Payments Contracts (HAP) for (A) The Marshall Hotel and (B) Pullman Artspace Lofts; 3) Preliminary Commitment Letters for (A) Clark-Estes Apartments and (B) Sarah’s Circle Apartments; and 4) all other documents as may be necessary or appropriate to implement the foregoing.
(Item 13)-
The resolution for Item 13 authorize the CEO or his designee to: 1) Commit Chicago Housing Authority funds not to exceed $22,000,000 for Concord at Sheridan; 2) Submit a Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to HUD and enter into a RAD Conversion Commitment for Concord at Sheridan; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for up to 65 units; 4) Approve the Tenant Selection Plan, lease, and lease riders for the Concord at Sheridan; and perform such actions as may be necessary to implement the foregoing. Concord at Sheridan (Concord) will be located on the site of an existing parking lot formerly owned by CHA and currently owned by Chicago Housing Administration LLC at 6418 N. Sheridan. The site is located in Rogers Park, in a general area, across the street from an opportunity area. Three Corners Development, the master developer of the site, was selected by CHA through its Pre-Qualified Development Team process and approved as the developer for 6418 N. Sheridan Road at the June, 2016 CHA Board Meeting. The development team is in negotiations with CHA for a 99-year ground lease. Concord at Sheridan will be a 7-story new construction mixed-use, mixed-income building with 111 residential units above approximately 136 parking spaces and approximately 30,000 square feet of ground-level retail space. There are residential amenity spaces located on the second floor. Directly south of the building will be a newly constructed community room and roof terrace solely for the benefit of the Caroline Hedger residents. The residential unit mix includes 65 one bedroom units and 46 two bedrooms. Concord plans to provide up to 65 RAD-assisted units and 46 market rate units. The RAD units will be affordable to residents earning up to 60% AMI. Concord Sheridan L.P. is the ownership entity for the residential component. Concord Commercial, LLC is the ownership entity for the retail component. The Three Corners affiliate and its principal shall solely provide recourse and all necessary guarantees and be solely responsible for any and all funding deficits in the development and/or operation of the project and the venture. The not-to-exceed total CHA funding of $22,000,000 will provide funds for the residential project. The total estimated residential project budget is $42,826,521 and CHA plans to provide approximately $20,475,000, or $315,000 per CHA unit. The development budget is subject to HUD RAD rents, an Illinois Affordable Housing Tax Credits award and soft funds, and the construction contract. The resolution also to approves the form of Tenant Selection Plan, lease, and lease riders to be used for the Concord development. It is understood that the developer has an interest and desire to implement its own lease forms and policy that encourages consistent community standards for the effective management of its development.
Resolution No. 2017-CHA-54:
Whereas, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Authorization to 1) Commit Chicago Housing Authority funds not to exceed $22,000,000 for Concord at Sheridan; 2) Submit a Project- Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to the United States Department of Housing and Urban Development (HUD) and enter into a RAD Conversion Commitment for Concord at Sheridan; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for up to 65 units and execute such other documents as may be required for the financing and operation of Concord at Sheridan; 4) Approve the Tenant Selection Plan, lease, and lease riders for the Concord at Sheridan; and 5) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.”
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, The Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Commit Chicago Housing Authority funds not to exceed $22,000,000 for Concord at Sheridan; 2) Submit a Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to the United States Department of Housing and Urban Development (HUD) and enter into a RAD Conversion Commitment for Concord at Sheridan; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for up to 65 units and execute such other documents as may be required for the financing and operation of Concord at Sheridan; 4) Approve the Tenant Selection Plan, lease, and lease riders for the Concord at Sheridan; and 5) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 14)-
The resolution for Item 14 authorize the CEO to: 1) Commit Chicago Housing Authority funds not to exceed $25,000,000 for The Winchester; 2) Submit a Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to HUD and enter into a RAD Conversion Commitment for The Winchester; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for 74 units perform such actions as may be necessary to implement the foregoing. The Winchester will be located within the Lincoln Square community area in an Opportunity Area. The site boundaries are: W. Wilson - north, N. Wolcott - east, W. Sunnyside - south and N. Winchester - west. The co-developers, Evergreen Real Estate Services and Synergy Construction Group, will rehabilitate and reconfigure the former Ravenswood Hospital into two separate senior facilities: an Independent Living Facility (ILF) and a Supportive Living Facility (SLF) for low income seniors. The development plan is to create a “continuum of care” facility which will provide all required services of a Supportive Living Facility, while at the same time dedicating upper floors for independent living. The complex will include a total of 193 units with 105 parking spaces located in the 4501 N. Damen Garage Condominium approximately 400 feet from the development. The Independent Living Facility portion of the building will provide 100% of the 74 housing units for CHA residents and will be the portion of the development for which CHA provides financing. The Supportive Living Facility portion of the building will consist of 119 units. The ILF and SLF will have separate but adjacent entrances on W. Sunnyside Avenue. Rents for all units will be set at affordable levels for households with incomes at or below 60% Area Median Income. The Winchester project is being co-developed by Evergreen Real Estate Services, LLC, a CHA Pre-Qualified Development Team approved in September 2017, and Synergy Construction Group. The total estimated project budget for the 74 unit Independent Living Facility portion of The Winchester is approximately $29.7 million. The not-to-exceed $25,000,000 CHA loan will provide funds only for the 74 CHA units in the ILF. CHA plans to provide approximately $23,976,000, or $324,000 each, for the 74 CHA units in the ILF development project budget.
Resolution No. 2017-CHA-55:
Whereas, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Authorization to 1) Commit Chicago Housing Authority funds not to exceed $25,000,000 for The Winchester; 2) Submit a Project- Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to the United States Department of Housing and Urban Development (HUD) and enter into a RAD Conversion Commitment for The Winchester; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for 74 units and execute such other documents as may be required for the financing and operation of The Winchester; and 4) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, The Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Commit Chicago Housing Authority funds not to exceed $25,000,000 for The Winchester; 2) Submit a Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to the United States Department of Housing and Urban Development (HUD) and enter into a RAD Conversion Commitment for The Winchester; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for 74 units and execute such other documents as may be required for the financing and operation of The Winchester; and 4) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 15)-
The resolution for Item 15 approves the disposition of CHA property located at 3726-28 West Flournoy, Chicago, Illinois, to North Lawndale Employment Network (NLEN). During the late 1970’s at CHA ceased utilizing the property for housing and allowed the property to be converted and used as a child- care and community center. In 2002, CHA leased the property to NLEN for $100 per month. NLEN is a 501(c)3 nonprofit organization that provides job training/opportunities and other services that promote economic self-sufficiency to CHA and community residents, returning citizens, and other hard-to- employ job seekers. During NLEN’s tenancy, the agency has assumed all responsibility for maintenance and repair to the property. In accordance with applicable provisions of the Illinois Housing Authority Act and Chicago Municipal Code, CHA published an advertisement in area newspapers for bids to purchase the subject property. NLEN was the only respondent to the CHA’s published bid advertisements. CHA shall convey the property to NLEN for nominal consideration. In exchange for the property, NLEN has also made a commitment to serve at least 50 CHA participants per year to participate in their job readiness and placement services. NLEN enthusiastically remains committed to serving CHA residents and supporting their employment needs for as long as they are in the business of providing workforce development services.
Resolution No. 2017-CHA-56:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Request for Authorization to 1) Dispose of CHA property located at 3726-28 West Flournoy; and 2) Execute and Deliver such other documents and perform such actions necessary to implement the foregoing.”
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) dispose of CHA property located at 3726-28 West Flournoy in Chicago, Illinois, to North Lawndale Employment Network (“NLEN”); and 2) execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.
(Item 16)-
The resolution for Item 16 approves a new Lease Agreement with the Illinois Institute of Technology (IIT). The proposed new Lease Agreement will be for a base term of one year in an amount not-to- exceed $399,084.81 with two one-year extension options in amounts not-to-exceed $411,096.56 and $423,463.97, respectively. An additional $200,000 will be held as a contingency to cover associated costs for minor office repairs & other expenses, for aggregate total amount of $1,433,645.34. CHA’s current lease with IIT expires on May 31, 2017. The Housing Choice Voucher Program has almost 47,000 participants and 14,000 landlords over in the City of Chicago, of which, approximately 20,704 participants are served from the HCV South Regional Office located at 10 West 35th Street. In order to provide uninterrupted service and access to Special Programs included in the Housing Choice Voucher Program, the CHA has decided to continue the Housing Choice Voucher Program Regional Office on the South side of the City of Chicago. This site is used by CHA/Contractors staff to assist clients with recertification and briefings paperwork. The Regional Office team is on hand to respond to inquiries from both tenants and landlords and refer families to supportive services. The HCV Department believes that this new Lease Agreement is necessary to ensure the continuation of the program operations and provide consistent services.
Resolution No. 2017-CHA-57:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Recommendation To Execute A New Lease Agreement With Illinois Institute Of Technology”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to execute a new Lease Agreement with IIT for a base term of one (1) year in an amount not-to-exceed exceed $399,084.81 with two (2) one-year extension options in amounts not-to-exceed $411,096.56 and $423,463.97, respectively, with an additional $200,000 to be held as a contingency to cover associated costs for minor office repairs & other expenses, for aggregate total amount of $1,433,645.34.
The Motion to adopt the resolutions for Items 5, 6 and Items 8 through 16 was seconded by Commissioner Harris and the voting was as follows:
Ayes: Matthew Brewer
Craig Chico (Abstains from voting on Items No. 9 and 12 only)
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Chairman Hooker thereupon declared said Motion carried and said resolutions adopted.
Upon Motion made by Chairman Hooker and properly seconded by Commissioner Chico, the Commissioners adjourned to Closed Session. Chairman Hooker announced that pursuant to the Open Meetings Act, 5 ILCS 120/2, the Board would adjourn for approximately 60 minutes to discuss personnel related matters; purchase, sale and lease of real estate property; pending, probable or imminent litigation; review of closed meeting minutes and audit reviews.
Following Closed Session, Commissioners reconvened in Open Session.
Chairman Hooker called the meeting to order and upon roll call those present and absent were as follows:
Present: Matthew Brewer
Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Absent: Mark Cozzi
There being a quorum present, the meeting duly convened and business was transacted as follows:
Upon motion made and properly seconded the Closed Meeting Minutes of February 21, 2017 and Regular Meeting of March 21, 2017 was approved as submitted.
Chairman Hooker then announced that during Closed Session Commissioners discussed Items 17, 18 and 19. An Omnibus motion to approve Items 17 through 19 was presented by Commissioner Harris.
(Item 17)-
Resolution No. 2017-CHA-58:
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated May 16, 2017 entitled “Recommendation to 1) Execute a Purchase and Sale Agreement for property located at 4618-4636 South Ashland Avenue and 4615 South Marshfield Avenue, Chicago Illinois; 2) Submit an acquisition package to the United States Department of Housing and Urban Development; and 3) Execute and deliver such other documents and perform actions as may be necessary or appropriate to implement the foregoing.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to 1) Execute a Purchase and Sale Agreement for property located at 4618-4636 South Ashland Avenue and 4615 South Marshfield Avenue, Chicago Illinois; 2) Submit an acquisition package to the United States Department of Housing and Urban Development; and 3) Execute and deliver such other documents and perform actions as may be necessary or appropriate to implement the foregoing.
This award is not subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE/Section 3 hiring and insurance requirements.
(Item 18)-
The resolution for Item 18 ratifies the following personnel actions: 30 offer of employment; promotion of two current employees and termination of two employees.
Resolution No. 2017–CHA-59:
Whereas, the Board of Commissioners has reviewed the Board Letter dated May 16, 2017, entitled “Approval of Personnel Actions”:
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners hereby approves the requested personnel actions.
(Item 19)-
Resolution No. 2017-CHA-60:
Whereas, the Board of Commissioners has reviewed the Board Letter dated May 16, 2017 entitled “Authorization to Enter into a Fourth Amendment to Office Lease Agreement for 60 E. Van Buren Street, Chicago, Illinois”.
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority:
That, the Board of Commissioners authorizes the Chief Executive Officer or his designee to execute a Fourth Amendment to the Office Lease Agreement for 60 E. Van Buren Street, Chicago, Illinois (“Fourth Amendment”). Under the Fourth Amendment, the initial lease term shall be for 15 years commencing January 1, 2022 and expiring December 31, 2037 with the initial annual rent amount of $3,504,600 ($292,050.00 monthly) plus expenses and pro rata share of real estate taxes. CHA may exercise one (1) option to renew the Lease for an additional term of five (5) years.
The Motion to adopt the resolutions for Items 17, 18 and 19 was seconded by Commissioner Washington and the voting was as follows:
Ayes: Matthew Brewer
Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Jack Markowski
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Chairman Hooker thereupon declared said Motion carried and said resolutions adopted.
There being no further business to come before the Commissioners, upon Motion made by Commissioner Chico and seconded by Commissioner Washington, the board meeting of May 16, 2017 was adjourned.
http://www.thecha.org/assets/1/20/May_16,_2017.pdf
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