Chicago Housing Authority Commissioners met June 20.
Here is the minutes provided by the Commission:
The Commissioners of the Chicago Housing Authority held its Regular Meeting of the Board of Commissioners on Tuesday, June 20, 2017, at approximately 10:35 a.m. at the CHA Corporate Offices located at 60 E. V in Chicago, IL.
Chairman Hooker then called the meeting to order and upon roll call those present and absent were as follows:
Present: Mark Cozzi Craig Chico Dr. Mildred Harris Meghan Harte John Hooker Jack Markowski Cristina Matos Francine Washington
Absent: Matthew Brewer
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 Offices. Commissioner Markowski chaired the meeting and the following committee members were present as well: Commissioners Cozzi, 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 voted to Recess the meeting and re-convened at the conclusion of the Real Estate Operations Development Committee. Immediately after the conclusion of the Real Estate Committee meeting the Finance and Audit Committee re-convened and discussed, voted and recommended for approval the following three item.
(Item 1)
The resolution for Item 1 accepts the Single Audit Report, Financial Statement Audit and Comprehensive Annual Financial Report for The Year Ended December 31, 2016, and authorize the o submittal of such document to HUD. HUD requires public housing authorities to annually publish a complete set of financial statements presented in conformity with generally accepted accounting principles and (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. For the year ended December 31, 2016, the Authority engaged
Ernst and Young to audit its results and issue the Comprehensive Annual Financial Report in accordance with HUD requirements. The Authority is required to submit the Financial Statement Audit and Financial Report to HUD by September 30, 2017.
Resolution No. 2017-CHA-61
Whereas, the Board of Commissioners has reviewed the Board Letter dated June 20, 2017 and attached hereto entitled “Recommendation to Accept and Submit to HUD the Chicago Housing Authority’s Single Audit Report, Financial Statement Audit and Comprehensive Annual Financial Report for The Year Ended December 31, 2016
Therefore, Be It Resolved By The Board Of Commissioners Of The Chicago Housing Authority
THAT, The Board of Commissioners hereby accepts the Authority’s
• 2016 Single Audit Report, and
• Financial Statement Audit and Comprehensive Annual Financial Report for The Year Ended December 31, 2016
That, The Board of Commissioners hereby authorizes the Chief Executive Officer or his designee to submit the Single Audit Report, Financial Statement Audit and Comprehensive Annual Financial Report for The Year Ended December 31, 2016 for to the U.S. Department of Housing and Urban Development.
(Item 2)
The resolution for Item 2 approves a Cooperative Purchasing Agreements with the State of Illinois, acting by and through the Illinois Central Management Services department, to utilize and enroll under the Microsoft Enterprise Agreement between the State and Microsoft for the provision of Microsoft software products, maintenance, support and premium services through CDW Government, LLC, beginning July 1, 2017 and ending September 30, 2019, in an amount not to exceed $2,077,336.00, and further to utilize and enroll under the Microsoft Select Agreement between the State and Microsoft for the supply and delivery of Microsoft software on an “as needed” basis, through CDW, beginning July 1, 2017 and ending September 30, 2019, in an amount not-to-exceed $100,000.00. The CHA extensively utilizes Microsoft software in its daily operations. The CHA's computers interchange information via software operating systems, electronic mail and word processing programs. Microsoft productivity applications (Word, Excel, PowerPoint, Outlook), MS Exchange and Windows Professional are some of the standard licensed software programs used by the CHA staff to perform their duties in an efficient manner. Through the requested Cooperative Purchasing Arrangements, the CHA gains rights and benefits available under the Microsoft Enterprise and Select Agreements, such as the most favored government discount level, cost consideration for application licenses not included in the standard portfolio and annualized software assurance, which is a form of maintenance and support for licensed software. The State's Microsoft Agreements are renewable, multi-year contracts. The discount level for Microsoft software under the State's Microsoft Agreement is the highest discount level that is offered by Microsoft Utilizing the State’s Master Agreements for acquisition of Microsoft licenses and services through CDW provides an advantageous discount to the CHA, far greater than the CHA could obtain directly.
Resolution No. 2017-CHA-62
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Authorization To Enter Into Cooperative Purchasing Agreements With The State Of Illinois To Utilize And Enroll Under Its Microsoft Select Agreement With Cdw Government For The Supply And Delivery Of Microsoft Software, Llc, And To Utilize And Enroll Under Its Microsoft Enterprise Agreement With Cdw Government For Maintenance, Upgrade 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 enter into Cooperative Purchasing Agreements with the State of Illinois so that the CHA can enroll as an affiliate under the State's Microsoft Select and Microsoft Enterprise Agreements with CDW Government, LLC, beginning July 1, 2017 through September 30, 2019, in an aggregate amount not-to-exceed $2,177,336.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 3)
The resolution for Item 3 approves the exercise of the one-year extension option term, effective from July 1, 2017 through June 30, 2018, with Pugh, Jones and Johnson, P.C. for services as the CHA Ethics Officer and Equal Employment Opportunity (EEO) Officer. The CHA’s Ethics Policy establishes the position of Ethics Officer to be appointed by the CHA’s Board of Commissioners, with preference given to an independent contractor outside of the CHA. Pursuant to the CHA’s Ethics Policy, the CHA Ethics Officer is responsible for monitoring and performing services in the administration and enforcement of the Ethics Policy. The CHA’s Equal Employment Opportunity (EEO) Officer’s role and duties are described and identified in the CHA Employee Handbook and the EEO Policy, and include the responsibilities to assist with the resolution of employment matters, including but not limited to, those involving discrimination, harassment and accommodations made for employees with disabilities. Contract No. 11770 with Pugh, Jones and Johnson was entered into effective as of July 1, 2016, with an expiration date of June 30, 2017 for the base term. Subsequent services performed under this amendment shall be subject to the annual appropriated budget for the Office of the Chief Legal Officer applicable to all aggregated Legal Services Agreements.
Resolution No. 2017-CHA-63
Whereas, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Recommendation to Exercise the One Year Extension Option with Pugh, Jones and Johnson, P.C. for Ethics Officer and EEO Officer 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 an amendment to Contract No. 11770 with Pugh, Jones and Johnson, P.C. exercising the one-year option term, effective from July 1, 2017 through June 30, 2018, to continue the vendor’s performance of Ethics Officer and Equal Employment Opportunity Officer services to the CHA. Services performed under the amendment to
Contract No. 11770 shall be subject to the annual appropriated budget for the Office of the Chief Legal Officer applicable to all aggregated Legal Services Agreements.
This award is subject to the Contractor’s compliance with the CHA’s applicable MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
The Motion to adopt resolutions for Items 1 through 3 was seconded by Commissioner Cozzi and the voting was as follows:
Ayes: Craig Chico
Mark Cozzi
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.
Since Chairman Hooker was going to recuse from voting on Item No. 5: Contract extension with Constellation New Energy, he temporarily left the meeting in session. Vice-Chairman Chico then continued to chair the meeting.
Vice-Chairman Chico then presented the report of the Real Estate Operations Development Committee. Per Commissioner Chico, the Real Estate Operations Development Committee held its monthly meeting earlier today. Commissioner Chico chaired the meeting and the following committee members were present as well: Commissioners Harris, Markowski and Washington. Although Commissioners Harte and Matos 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 Chico presented an Omnibus Motion for approval of Items 5 through 14.
(Item 4 – This matter did not leave committee due to a failed Motion.)
Multi-Project Labor Agreement with the Chicago and Cook County Building and Construction Trades Council. Per Vice-Chair Chico, the Board may entertain this matter, after Closed Session.
(Item 5)
The resolution for Item 5 approves an amendment to exercise the final one-year extension option under Contract No. 11319 with Constellation New Energy Services Inc. (as the successor to Integrys Energy Services Inc., pursuant to a merger) for the supply and delivery of electricity to various CHA residential sites and facilities in an amount not-to-exceed $3,499,748.00, resulting in a new aggregate compensation in an amount not-to-exceed $18,832,068.00. In July 2013, the Board of Commissioners approved the award of an agreement for a base period of two years. The base term of the contract began on August 1, 2013 and expired on July 31, 2015. The CHA has exercised the first and second extension options and this approval is to use the third and final one-year extension option. The Electricity Supply and Delivery Agreement offers CHA the opportunity to purchase its electrical needs at wholesale instead of retail, and enables the CHA to hedge against potential market price fluctuations through use of multi-tiered price/risk management options. The CHA is planning to utilize this contractual capability to lock in favorable electricity rates for the final year of the contract, a one-year period, in an effort to decrease our exposure to market volatility. Market indicators suggest that the electricity commodity rates are expected to increase into 2018. Under this contract, Constellation provides the supply and delivery of wholesale electricity to the Chicago central utility gate. Com Ed then delivers this electricity to all CHA properties in the CHA traditional public housing portfolio.
Chairman Hooker recused from voting on Item 5.
Resolution No. 2017-CHA-64
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Authorization To Exercise A One- Year Extension Option With Constellation New Energy Services Inc. (As Successor To Integrys Energy Services Inc.) For The Supply And Delivery Of Electricity To Various Cha Residential Sites And Facilities”.
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 contract amendment exercising the third one-year option reserved under Contract #11319 with Constellation Energy Services Inc. (as the successor to Integrys Energy Services Inc., pursuant to a merger) for the period from August 1, 2017 through July 31, 2018 to purchase electricity supply and delivery services and to increase the existing not-to-exceed compensation amount under Contract #11319 by an amount not-to-exceed $3,499,748.00, resulting in a new aggregate compensation in an amount not-to-exceed $18,832,068.00.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE/ Section 3 hiring and insurance requirements.
(Item 6)
Item No. 6 approves submittal of Rental Assistance Demonstration (RAD) financing plans to the HUD and enter into three RAD Conversion Commitments with HUD for Elizabeth Davis, Patrick Sullivan and Zelda Ormes Apartments; commit CHA funds in a total amount not to exceed $26,568,400 to fund an initial deposit to the replacement reserve, rehabilitation, site work and transaction costs for Elizabeth Davis, Patrick Sullivan and Zelda Ormes Apartments; execute Housing Assistance Payment (HAP) contracts as may be required for the financing and operation of the listed properties; transfer ownership of Elizabeth Davis, Patrick Sullivan and Zelda Ormes Apartments improvements to Chicago Housing Administration LLC and execute a 99-year ground lease for the land. Elizabeth Davis Apartments, located at 440 N. Drake Street, is a 14-story building designated as senior public housing that, after rehabilitation, will contain 148 residential rental units that will be covered by a RAD Housing Assistance Payment (HAP) contract. The building is located on a 1.5- acre site and was built in 1964. The building has an in-slab radiant heating system. Based on experience at other buildings, the radiant heating system needs to be replaced before it starts to leak. The building also needs some rehabilitation including limited exterior façade repairs, interior finishes replacement and elevator modernization. Longer range plans include more extensive rehabilitation over the next 20 years. Patrick Sullivan Apartments, located at 1633 W. Madison, is a 22-story building designated as senior public housing that, after rehabilitation, will contain 478 residential rental units that will be covered by a RAD HAP contract. The building is located on a 3.6-acre site and was built in 1963. The building was substantially rehabilitated a few years ago but the in-slab radiant heating system was left in place. Since that rehabilitation, the heat distribution pipes have been leaking. The building also needs some common area work and elevator modernization. Zelda Ormes Apartments, located at 116 W. Elm Street, is a 13-story building designated as senior public housing that, after rehabilitation, will contain 264 residential rental units that will be covered by a RAD HAP contract. The building is located on a 1.1-acre site and was built in 1973. 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. The total amount from the RAD budget determined necessary based on CHA’s review of the Physical Conditions Assessments and planning for common area projects was determined to not exceed $26,568,400.
Resolution No. 2017-CHA-65
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 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 Elizabeth Davis, Patrick Sullivan and Zelda Ormes Apartments.
That, the Chief Executive Officer or his designee is authorized to enter into Rental Assistance Conversion Commitments for Elizabeth Davis, Patrick Sullivan and Zelda Ormes 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 Elizabeth Davis, Patrick Sullivan and Zelda Ormes 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 in a total amount not to exceed $26,568,400 to fund initial replacement reserves and other rehabilitation costs as well as transaction costs for Elizabeth Davis ($7,180,000), Patrick Sullivan ($10,980,000) and Zelda Ormes ($8,408,400) 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 Elizabeth Davis, Patrick Sullivan and Zelda Ormes 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 7)
The resolution for Item 7 approves commitment of CHA funds not to exceed $12,500,000 for John Pennycuff Memorial Apartments; submit a Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plan to HUD and enter into a RAD Conversion Commitment; and execute a PBV RAD Housing Assistance Payment (HAP) Contract for 47 units. John Pennycuff Memorial Apartments will be located within the Logan Square neighborhood in an Opportunity Area. The triangular site is at the intersection of N. Milwaukee and N. Campbell. The CTA Blue line has a stop two blocks from the site, and numerous CTA bus stops are along N. Western, W. Armitage, and N. Milwaukee Avenues - all within two blocks of the Development site. The 0.31 acre site currently is used as a parking lot. The new property will be a seven-story elevator-served building. It will include an on-site management office and secured entry. The property will be served by a common laundry area, furnished lobby, mail room, community room for residents’ use, and an outdoor picnic area. Additionally, the developer is planning to construct approximately 2,500 square feet of commercial space on the first floor. The co-developers, Metropolitan Housing Development Corporation (MHDC) and Southern Illinois Healthcare Foundation (SIHF), will construct a seven-story building to provide 88 new housing units consisting of 28 studio units, 48 one-bedroom units, and 12 two-bedroom units, with 18 parking spaces. All 47 CHA units will be family units. Rents for all units will be set at affordable levels for households who have incomes at or below 60% Area Median Income. MHDC is a Pre-Qualified Development Team approved in September 2015. The not-to-exceed $12,500,000 of CHA funds will cover a portion of the project construction costs and other RAD costs. CHA plans to provide approximately $12,090,000, or $257,234 per unit for the development of each of the 47 CHA units.
Resolution No. 2017-CHA-66
Whereas, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June, 2017 entitled “Authorization to 1) Commit Chicago Housing Authority funds not to exceed $12,500,000 for John Pennycuff Memorial Apartments; 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 John Pennycuff Memorial Apartments; 3) Execute a PBV RAD Housing Assistance Payment (HAP) Contract for 47 units and execute such other documents as may be required for the financing and operation of John Pennycuff Memorial Apartments; 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 $12,500,000 for John Pennycuff Memorial Apartments; 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 John Pennycuff Memorial Apartments ; 3) Execute a PBV RAD
Housing Assistance Payment (HAP) Contract for 47 units and execute such other documents as may be required for the financing and operation of John Pennycuff Memorial Apartments; 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 8)
The resolution for Item 8 approves commitment of CHA funds not to exceed $11,500,000 for the Northtown Apartments and $11,500,000 for the Independence Apartments; submit Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plans to HUD and enter into RAD Conversion Commitments for the Northtown Apartments and the Independence Apartments; execute PBV RAD Housing Assistance Payment (HAP) Contracts for approximately 30 RAD units for the Northtown Apartments and for approximately 30 RAD units for the Independence Apartments; execute a Ground Lease for CHA land for Northtown Apartments; and execute a Ground Lease for CHA land and convey improvements by deed for Independence Apartments. The developer, EREG Development, LLC, will construct a 4-story building on what is currently a vacant lot. The project combines a Chicago Public Library and affordable housing. The ground floor will include a 16,000 square foot library space with community meeting rooms, children’s area, Youth Media, and other programming spaces. The ground floor will also include a residential entrance and property management office for the residential floors above. The second floor will include an exercise room, a laundry room, and an outdoor space for residents. The library community rooms will be available to residents outside of library hours. The apartments on floors 2 through 4 will be affordable to seniors at or below 60% of AMI. A part-time social service coordinator will connect residents with community services. The site is located on a CTA Bus route and is less than a mile from the Rogers Park Metra station. The site is directly across from Warren Park, which has nearly 90 acres of parkland, providing special attractions for every season. The Independence Apartments site will be located in the Irving Park community area along Elston Avenue. The project is new construction of a 6-story building on a site that currently includes a vacant funeral home and parking lot. The ground floor of the development will include a 16,000 square foot library space with community meeting rooms, children’s area, and various seating. The second level of the library will include a teen/media room, a laptop bar, and adult reading areas. The ground floor of the development will also include an on-site property management office, and residents will have access to the library community rooms outside of library hours. The apartments, located on floors 3 through 6, will be affordable to seniors at or below 60% of AMI. A part-time social service coordinator will connect residents with community services. The second level of the residential portion will include a roof deck over the street level parking, an exercise room, and laundry facilities. The site is next to a CTA bus route and is less than half a mile from CTA Blue Line and Metra line tracks. A full-service grocery store, pharmacy, restaurants and many other amenities are within walking distance from the site. Disney Magnet School is two blocks south of the site. In addition, Independence Park is three blocks south and several child care facilities are nearby. The total estimated project budget for the 60 total units of CHA housing at the Northtown Apartments and Independence Apartments is approximately $38.1 million. The not-to-exceed $23,000,000 CHA loan will provide funds only for the 60 CHA units at the Northtown Apartments and the Independence Apartments library branches. CHA plans to provide approximately $21,000,000 ($10,500,000 for each project), or $350,000 per unit, for the total 60 CHA units within the two project development budgets. The Developer will guarantee each project owner’s completion of construction as part of the documentation of any loans to the projects from the CHA.
Commissioner Harte recused from voting on Item 8.
Resolution No. 2017-CHA-67
Whereas, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Authorization to 1) Commit Chicago Housing Authority funds not to exceed $11,500,000 for the Northtown Apartments and $11,500,000 for the Independence Apartments; 2) Submit Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plans to the United States Department of Housing and Urban Development (HUD) and enter into RAD Conversion Commitments for the Northtown Apartments and the Independence Apartments; 3) Execute PBV RAD Housing Assistance Payment (HAP) Contracts for approximately 30 RAD units for the Northtown Apartments and for approximately 30 RAD units for the Independence Apartments, and execute such other documents as may be required for the financing and operation of the Northtown Apartments and the Independence Apartments; 4) Execute a Ground Lease for CHA land for Northtown Apartments; 5) Execute a Ground Lease for CHA land and convey improvements by deed for Independence Apartments; and 6) 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 $11,500,000 for the Northtown Apartments and $11,500,000 for the Independence Apartments; 2) Submit Project-Based Voucher (PBV) Rental Assistance Demonstration (RAD) Financing Plans to the United States Department of Housing and Urban Development (HUD) and enter into RAD Conversion Commitments for the Northtown Apartments and the Independence Apartments; 3) Execute PBV RAD Housing Assistance Payment (HAP) Contracts for approximately 30 RAD units for the Northtown Apartments and for approximately 30 RAD units for the Independence Apartments and execute such other documents as may be required for the financing and operation of the Northtown Apartments and the Independence Apartments; 4) Execute a Ground Lease for CHA land for Northtown Apartments; 5) Execute a Ground Lease for CHA land and convey improvements by deed for Independence Apartments; and 6) 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 9)
The resolution for Item 9 approves a Demonstration Program for Re-Entry Housing Special Initiative and individuals who have been diagnosed with HIV/AIDS. This resolution also approves the execution of Housing Assistance Payments Contracts (HAP) with St. Andrew’s Court, Garden View Apartments, and Phoenix House. 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 Re-Entry Housing Special Initiative is in addition to the Re-Entry Pilot which explores the provision of stable housing against recidivism. Many individuals leaving incarceration are committed to getting their lives back on track but struggle to find adequate, affordable housing. This special initiative preserves the existing housing for current and future participants who are participating in re-entry services to continue their positive re-integration into society. CHA believes that the stable, affordable housing it offers is a springboard for residents who are committed to improving their lives, including the ex-offenders in this special initiative. With the assistance of PRA, St. Andrew’s Court will house 30 male participants who transition from St. Leonard’s House (the first stop post-incarceration) or those who meet the Tenant Selection Plan (TSP) from CHA’s waitlist. Living with HIV/AIDS Special Initiative explores the provision of stable housing for those diagnosed. Many individuals have been able to reduce the need for emergency medical services and improve life expectancy when able to secure safe housing. This special initiative preserves the existing housing for current and future participants of Garden View Apartments and Phoenix House. CHA believes that the stable, affordable housing offered can be an opportunity for the residents to better maintain their health and increase their longevity. Garden View Apartments and Phoenix House will provide PRA rental assistance to 48 households diagnosed with an HIV/AIDS. Households on CHA’s waitlists that meet the tenant selection plan criteria may qualify should they meet program eligibility requirements. Participants will be screened by waitlist order when vacancies occur. It is anticipated that all current residents of Garden View Apartments and Phoenix House Apartments will qualify for PRA benefit. Tenants will be identified from the City’s Central Referral System (CRS) who meet the HOPWA eligibility requirements. The CHA waitlist will be cross- referenced with CRS and will be given priority.
Resolution No. 2017-CHA-68
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled, “Recommendation to 1) Approve Demonstration / Special Initiative Programs for (A) Re-Entry Housing Special Initiative and (B) Living with HIV/AIDS Special Initiative; 2) Execute Housing Assistance Payments Contracts with (A) St. Andrew’s Court, (B) Garden View Apartments, and (C) Phoenix House; and 3) 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 1) Approve Demonstration / Special Initiative Programs for (A) Re-Entry Housing Special Initiative and (B) Living with HIV/AIDS Special Initiative; 2) Execute Housing Assistance Payments Contracts with (A) St. Andrew’s Court, (B) Garden View Apartments, and (C) Phoenix House; and 3) all other documents as may be necessary or appropriate to implement the foregoing.
(Item 10)
The resolution for Item 10 approves a Preliminary Commitment Letters for 5150 Northwest Apartments, Warren Apartments, and Roosevelt Road Veteran’s Housing; an Agreement to enter into Housing Assistance Payments Contracts (AHAP) and Housing Assistance Payments Contracts (HAP) with Illinois Accessible Housing Initiative-Irving Park and Lincoln Park Community Shelter – Permanent Supportive Housing. 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. 5150 Northwest Apartments: is a new construction, 7-story masonry, elevator building is located in an Opportunity and General area at 5150 N. Northwest Highway in Chicago’s Jefferson Park community. The development will consist of 100 total units: 10 studios, 22 one-bedroom, 17 two-bedroom, and 51 three-bedroom units. 10 units will be accessible and all units will be adaptable and sensory adaptable. PRA will assist up to 30 units: 4 studios, 9 one- bedroom, 7 two-bedroom, and 10 three-bedroom units. The target population for the PRA units will be CHA waitlist families with a preference for veterans and persons with disabilities and then other households from the CHA waitlists. Property amenities include on‐site management and leasing offices, a controlled entry system, outdoor deck with a play area on the 2nd floor, a community garden, picnic area, and dog run. A ground level retail / community space will be created. 62 parking spaces will be available for the residential and commercial tenants. Unit amenities include condo quality finishes, dishwashers, balconies/patios, Energy Star appliances, and some units will have an in-unit washer/dryer. Supportive services will be available to all residents of the building through a full-time, on-site service coordinator. The property Manager for this property is Full Circle Management, LLC, (FCM) that has been in business for 15 years. FCC will provide an on-site service coordinator and will link residents to area programs that support education, health, financial awareness, insurance, and VA benefit assistance. Full Circle Communities Inc. is the sole and managing member of FCM. Warren Apartments: is a new construction, 7-story, elevator building located at 1533 West Warren Boulevard and 1542-1554 West Madison Street in the Near West Side community. Warren Apartments will contain 75-units: 13 studios, 49 one-bedroom units, and 13 two-bedroom units. 3 units will be accessible, 12 units will be adaptable, and 2 units will be available for persons who are audio or visually impaired. PRA will assist 19 units: 12 one-bedroom and 7 two-bedroom units. The site is located in a Gautreaux General Area, in a revitalizing community with excellent access to public transportation. Warren Apartments will be located adjacent to Heartland’s award winning property, Harvest Commons Apartments. Property amenities will include a roof terrace, laundry facilities, community/party room, and bike storage. The building will have on-site property management, as well as security features including front desk staff and cameras strategically placed throughout the building. Unit amenities include individually controlled heating and cooling and Energy Star appliances. Heartland Housing Inc. will be managing the property. They currently manage over 1,100 affordable units. Their portfolio consists of multi-family buildings ranging in size from 4 units to 197 units in a single building. Roosevelt Road Veteran’s Housing: a 100 residential studio units for veterans in a new construction building to be located at 2920 West Roosevelt Road in the North Lawndale community in a Limited area. Roosevelt Road Veteran’s Housing was awarded 75 project-based VASH vouchers by HUD in November, 2016. VASH combines Housing Choice Voucher (HCV) rental assistance for homeless veterans with case management and clinical services provided by the Department of Veteran Affairs. The remaining 25 units will be market rate housing with a veteran’s preference. 10 units will be accessible, 10 units will be adaptable, and 2 units will be available for persons who are audio or visually impaired. The development was selected for the CHA PRA program using the second method of the HUD-allowed selection process which permits approval when the development was selected through an independent competitive process. Property amenities include on- site, supportive services, a computer room, classrooms, laundry room, and a meeting room. 16 outdoor parking spaces will be provided. Unit amenities include individual kitchens and bathrooms. All utilities are provided by the Landlord, including heat, cooking gas, and electricity. The property manager is KMA Property Management Services Inc. is A Safe Haven’s property management arm and has experience in the management of multi-unit, residential, supportive housing developments. Illinois Accessible Housing Initiative-Irving Park: will purchase 5 residential condominium units in Park Place Towers located at 655 West Irving Park Road in an Opportunity area in Chicago’s Lakeview community. This is the third phase of the initiative. The property contains a total of 901 condominium units with both owner-occupied and rental units. The building is elevator-serviced with on-site laundry, management and meeting rooms. There are 4 additional PRA-assisted units in the 655 building also owned by Home First Illinois LLC under the second phase of the initiative. The units will be purchased with loan funds from the Illinois Housing Development Authority. PRA will assist the 4 one-bedroom and 1 studio units. HFI will complete substantial rehabilitation to the units, including fully accessible kitchens and bathrooms, to meet Section 504 requirements. PRA-assisted units will assist disabled applicants that are Colbert Class Members referred through the State of Illinois. Any applicant that is on the CHA waiting lists will be given priority preference. Supportive services are provided through the State to members of the Colbert class. The property manager is Affordable Property Management Specialists who has managed affordable housing for low-income households since 2006. Lincoln Park Community Shelter – Permanent Supportive Housing: will be located at 1521 N. Sedgwick and will create 20 new permanent supportive housing units in an Opportunity Area in the Near North community of Chicago. The property is located in a growing residential and commercial area that is within walking distance of public transportation and the Old Town community. The new construction, 5-story, elevator building will contain 20 studio units of Permanent Supportive Housing and will be adjacent to LPCS’s new, 48-bed shelter program for interim housing. Building amenities include computer, fitness, community, and laundry areas. PRA will assist 20 studio units (100%). Each unit will contain individual bathrooms and kitchenettes. Residents will come from the CHA waitlists that have been cross-reference with Chicago’s Central Referral System for homeless individuals. 5 units will be designated for individuals on the State Referral Network (SRN) / Section 811. LPCS will coordinate with the CHA for applicants. Both men and women will be eligible to apply. Residents will have access to LPCS comprehensive supportive services, including case management, employment readiness, and financial literacy. The property manager is Carlton Management Company who has been managing affordable housing developments since 2010.
Commissioner Harte recused from voting on Item 10.
Resolution No. 2017-CHA-69 Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled, “Recommendation to Execute 1) Preliminary Commitment Letters for (A) 5150 Northwest Apartments, (B) Warren Apartments, and (C) Roosevelt Road Veteran’s Housing; 2) Agreement to Enter into Housing Assistance Payments Contracts and Housing Assistance Payment Contracts with (A) Illinois Accessible Housing Initiative – Irving Park and (B) Lincoln Park Community Shelter – Permanent Supportive Housing; and 3) 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) Preliminary Commitment Letters for (A) 5150 Northwest Apartments, (B) Warren Apartments, and (C) Roosevelt Road Veteran’s Housing; 2) Agreement to Enter into Housing Assistance Payments Contracts and Housing Assistance Payments Contracts with (A) Illinois Accessible Housing Initiative – Irving Park and (B) Lincoln Park Community Shelter – Permanent Supportive Housing; and 3) all other documents as may be necessary or appropriate to implement the foregoing.
(Item 11)
The resolution for Item 11 approves providing CHA funds in an amount not to exceed $2,320,000 to the City of Chicago acting through the Department of Fleet and Facility Management to renovate and make capital improvements to the Chicago Bee Library located at 3647 S. State Street; and to execute an Intergovernmental Agreement with the Department memorializing the provision of such CHA funds. In 2016, CHA and the City of Chicago entered into discussions related to enhancing community amenities for residents of the City of Chicago including CHA residents. One such project is the renovation of, and construction of major capital improvements to, the Chicago Bee Library. The existing 7,200 square foot library was built in 1929 and is a landmark building. The proposed renovation and construction of capital improvements includes an expansion of one floor of the building which will add 3,400 square feet bringing the total building square footage to approximately 11,000 square feet; envelope repairs including tuck pointing; window and roof repairs; fire alarm upgrade; new HVAC controls, upgraded lighting and installation of lighting controls; creation of an early learning center on the 1st floor; creation of a YOUmedia digital lab; upgraded technology in the building; upgraded community room and restrooms; new flooring and painting; and upgraded circulation desk. The Chicago Public Library staff will provide new services/programs with the addition of the early learning center and YOUmedia lab to enhance programing for CHA youth in the area. Participation in these activities is associated with autonomy and identity development, positive social relationships, learning conflict resolution, academic success, mental health, and civic engagement.
Resolution No. 2017-CHA-70
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Authorization to: 1) Provide CHA funds in an amount not to exceed $2,320,000 to the City of Chicago acting through the Department of Fleet and Facility Management (the “Department”) to renovate and make capital improvements to the Chicago Bee Library at 3647 S. State Street; 2) Execute an Intergovernmental Agreement with the Department memorializing the provision of such CHA funds; and 3) Execute 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: 1) Provide CHA funds in an amount not to exceed $2,320,000 to the City of Chicago acting through the Department of Fleet and Facility Management (the “Department”) to renovate and make capital improvements to the existing Chicago Bee Library at 3647 S. State Street; 2) Execute an Intergovernmental Agreement with the Department memorializing the provision of such CHA funds; and 3) Execute all other documents as may be necessary or appropriate to implement the foregoing.
(Item 12)
The resolution for Item 12 approves the submission of a de minimus demolition application to HUD for the demolition of a two-unit dwelling structure located at 736 N. Throop and to demolish said property upon receipt of approval from HUD and demolition contract award. The demolition of this dwelling structure is included in the FY2017 Annual Plan approved by HUD on February 1, 2017. The Capital Construction Department (CCD) was requested to complete a structural assessment of the building located to determine its structural stability and make recommendations as to its viability for occupancy. The assessment revealed significant settlement and deterioration of the foundation on the north side of the building. As a result, the second floor joists are sinking and no longer properly supported. In addition, gaps between building components are visible and extensive mold damage was observed. Because of the deteriorated condition and life safety issues of the building, it has been determined that the architectural and rehabilitation costs needed to make the building viable for habitation exceed the Total Development Costs (TDC) allowed by HUD for these types of structures. The demolition of this property qualifies under HUD’s de minimus rule which provides that in any five-year period, a Public Housing Authority may demolish 5% of its dwelling units or five dwelling units, whichever is less by submitting an abbreviated demolition application. Within the last five years, the CHA has demolished only two units under HUD’s de minimus rule and three additional units are permitted. CHA is recommending to utilize the de minimus demolition application process for the two-unit property located at 736 N. Throop Street because it is in an Opportunity Area and CHA plans to demolish and rebuild a new two- unit dwelling structure at the same location. HUD’s acknowledgement and approval of the request allows the PHA to proceed with the demolition.
Resolution No. 2017-CHA-71
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Request for Authorization to Submit a De Minimis Demolition Application to the U.S. Department of Housing and Urban Development for the Demolition of a Two (2) Unit Scattered Sites Dwelling Unit Located at 736 N. Throop 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 submit a de minimus demolition application to the U.S. Department of Housing and Urban Development (“HUD”) for the demolition of a two (2) unit dwelling structure located at 736 N. Throop Street and to demolish said property upon receipt of approval from HUD and demolition contract award.
(Item 13)
The resolution for Item 13 approves award of contract to Old Veterans Construction for the demolition of Blocks 11, 12 and 13 at Altgeld Gardens in the firm fixed price of $4,730,180.00 plus a not-to- exceed amount of $283,811.00 in contingency strictly limited to potential change orders justified as discovered conditions or code compliance issues for a total not-to-exceed amount of $5,013,991.00. The CHA issued Invitation for Bid in May 2017 to solicit general contractors to demolish Blocks 11, 12 and 13 at Altgeld Gardens. CHA solicited 11 vendors along with 388 Section 3 businesses. A total of three responsive bids were received before the due date. Old Veteran Construction submitted the lowest lump sum bid. Altgeld Gardens and Philip Murray Homes are located on 169 acres and house approximately 2,000 residential units. Since 2004, the CHA has prioritized the redevelopment and revitalization of the entire Altgeld/Murray community by making significant financial investments in rehabilitating residential units, community facilities and demolishing longstanding vacant housing blocks. Under the Plan for Transformation from 2004 to 2010, CHA undertook a massive reinvestment in the development by rehabbing 1,323 units. Subsequently in 2014, the CHA reinvested approximately $62 million dollars by rehabbing the Management Office and an additional 218 units within Blocks 7 and 8 (which units were completed in the Fall of 2016). The goal of CHA’s continued financial investments in the Altgeld/Murray development is to create a strong, healthy and vibrant community. In the near future, the CHA has plans to renovate and construct additional community facilities, as well as to create, as needed and appropriate, additional open space and recreational amenities. Blocks 11, 12 and 13 of Altgeld Gardens are comprised of 244 units in 26 two-story buildings which have been vacant since 2007. As a result, both the exterior and interior of these buildings and their units are in an advanced state of deterioration such that they are unsuitable for their intended purposes of providing decent, safe and sanitary housing without full rehabilitation and other improvements to bring them into compliance with current building codes. The project is expected to be completed in five months. Upon completion of the demolition, blocks 11, 12 and 13 will be used as opportunity areas to expand recreational facilities and green space. The demolition of Altgeld Blocks 11, 12 and 13 represents another milestone in accomplishing the goals set forth in the Master Plan. CHA received HUD approval to proceed with the demolition of Blocks 11, 12 and 13 on June 2, 2017 through a conversion/transfer of assistance in the RAD Program.
Resolution No. 2017-CHA-72
Whereas, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated June 20, 2017 entitled “Recommendation to Award a Contract for the Demolition of Blocks 11, 12 and 13 at Altgeld Gardens”.
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 Old Veteran Construction for the demolition of Blocks 11, 12 and 13 at Altgeld Gardens in the firm fixed price of $4,730,180.00 plus a not-to-exceed amount of $283,811.00 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 $5,013,991.00.
This award is subject to the Contractor’s compliance with the CHA’s MBE/WBE/DBE, Section 3 and insurance requirements.
(Item 14)
The resolution for Item 14 approves the selection of The Habitat Company LLC, Sinai Health System (SHS) and Cinespace Chicago Film Studios (Cinespace) as the development team for the redevelopment of Lawndale Complex and Ogden Courts East; and approves a Redevelopment Agreement for Lawndale Complex and Ogden Courts East. On February 17, 2017, the CHA released a Pre-Qualified Development Team (PDT) Opportunity Notice of Proposal for mixed-use/mixed-income development for property located at 1401 South Washtenaw, 2600 West Ogden Ave and 1321 South Washtenaw. The notice invited submissions of proposals for the site from Pre-Qualified Development Teams approved under PDT Programs RFQ #1583 (2016) and RFQ #14-01301 (2015). The deadline for final responses was April 18, 2017. CHA received five proposals. A three-member evaluation team evaluated the proposals and recommends the development proposal to create a mixed- income/mixed use development to be known as Ogden Commons, submitted by The Habitat Company LLC, Sinai Health System and Cinespace Chicago Film Studios. As part of its proposal, Habitat is partnering with SHS and Cinespace, two leading stakeholders and property owners in the community. Together, SHS and Cinespace are adding an additional 5.5 acres of adjacent land to the redevelopment target area, doubling the footprint of the development program. Three acres are owned by SHS and 2.5-acre parcel of land owned by Cinespace. With the addition of privately-held land to the east and west of the CHA site, Ogden Commons development proposal encompasses a total of 10.9 acres. The $55,000,000 development contemplates 220 mixed-income rental units and 34 mixed-income for sale townhomes and flats. The development would also contain 60,000 square feet of commercial space and 18,000 square feet of retail space. SHS and Cinespace would be the primary commercial tenants and DePaul Film School and Lagunitas Brew Pub would likely be other potential tenants. Additional improvements include a streetscape between Kedzie Avenue and Western Avenue.
Resolution No. 2017-CHA-73
Whereas, the Board of Commissioners has reviewed the Board Letter dated June 20, 2017 entitled “Authorization to 1) Approve The Habitat Company LLC, Sinai Health System and Cinespace Chicago Film Studios as the development team for the redevelopment of Lawndale Complex and Ogden Courts East; 2) Negotiate and enter into a Redevelopment Agreement for Lawndale Complex and Ogden Courts East; and 3) 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 Habitat Company LLC, Sinai Health System and Cinespace Chicago Film Studios as the development team for the redevelopment of Lawndale Complex and Ogden Courts East; 2) Negotiate and enter into a Redevelopment Agreement for Lawndale Complex and Ogden Courts East; and 3) 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.
The Motion to adopt the resolutions for Items 5 through 14 was seconded by Commissioner Markowski and the voting was as follows:
Ayes: Craig Chico
Mark Cozzi
Dr. Mildred Harris
Meghan Harte (Recused from voting on Items 8 & 10)
John Hooker (Recused from voting on Item 5)
Jack Markowski
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Vice-Chair Chico thereupon declared said Motion carried and said resolutions adopted.
Chairman Hooker then returned to the meeting in session and invited residents and the public at large to address the Board.
Upon Motion made by Chairman Hooker and properly seconded by Commissioner Washington, 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 45 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: Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Cristina Matos
Francine Washington
Absent: Matthew Brewer
Mark Cozzi
Jack Markowski
There being a quorum present, the meeting duly convened and business was transacted as follows:
(Item 15)
The resolution for Item 15 ratifies the following personnel actions: 5 offers of employment; 4 promotion of current employees; 2 reclassifications and 1 salary adjustment for current employee.
Resolution No. 2017–CHA-74
Whereas, the Board of Commissioners has reviewed the Board Letter dated June 20, 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.
The Motion to adopt the resolution for Item 15 was seconded by Commissioner Harte and the voting was as follows:
Ayes: Craig Chico
Dr. Mildred Harris
Meghan Harte
John Hooker
Cristina Matos
Francine Washington
Nays: None
There being no questions or discussion, Chairman Hooker thereupon declared said Motion carried and said resolution 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 June 20, 2017 was adjourned.
http://www.thecha.org/assets/1/20/June_20,_2017.pdf
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