Memorandum To: Housing and Homelessness Commissioners From: Sarah Flax, Housing and Grants Administrator Subject: February 4, 2016 HHC Meeting Cover Memo Date: February 3, 2016 Attached please find: The meeting agenda Item 2: Draft minutes of the January 7, 2016 meeting for approval Item 4: Affordable Housing Demolition Tax and Affordable Housing Fund, Section 4-18-1 through 4-18-5 and IHO Ordinance 60-O-15 Item 6: Draft Housing and Homelessness Commission Report for 2015 Considerations for updating the Affordable Housing Fund (AHF) description/purpose and its eligible uses include: Restructuring the definition of the Affordable Housing Fund to have the Demolition Tax as one of its sources of revenue. Currently fees in lieu of affordable units in developments covered by the IHO are not referenced in the Affordable Housing Fund description. Other sources of revenue for affordable housing that the commission will be evaluate and recommend as part of the 2016 work plan may need to be included. Consider if the current description of eligible uses of funds should be changed or expanded. Currently is “programs including, but not limited to: down payment and/or rental assistance; building rehabilitation and /or construction loans; property acquisition and disposition; and grants to nonprofit organizations that serve households that earn less than 100% of area median income.” Other considerations include: o Emergency/temporary/transitional housing for homeless individuals/families, and tracking and management systems such as the Homeless Information Management System (HMIS) that has been funded from the AHF to meet local matching requirements o Types of programs – landlord tenant, pre- and post-purchase housing counseling, renter training, landlord training, other o Use of funds for administration. The IHO states that up to 15% of the affordable housing fund may be used for its administration. Is this an appropriate level? Other considerations: compliance monitoring; evaluation of the effectiveness of the IHO and other affordable housing efforts. If services such as income certification and management of waiting lists are contracted, would this be categorized as program or as administration? o Consideration of other spending limits or requirements, such as a percent of funds for construction or rehab of housing units. Revising the household income for uses of the AHF to 120% from 100%, and the percent of monies reserved at specific income levels based on the income levels in the IHO. Consider adding periodic review and revision of income limits if needed to address changes in housing needs and City priorities. Revise the definition of affordable owner occupied housing to 31% of the house holds’ gross income per the IHO. Review Section 4-18-4 (B) Deferral of the Tax in the case of Recycling/Reuse of Materials for relevancy and consistency with Cook County requirements for recycling/reuse of materials from demolition. I look forward to seeing you on February 4. Page 2 HOUSING AND HOMELESSNESS COMMISSION Thursday, February 4, 2016 7:00 PM Lorraine H. Morton Civic Center, 2100 Ridge, Room 2402 1. CALL TO ORDER / DECLARATION OF QUORUM 2. APPROVAL OF MEETING MINUTES January 7, 2016 3. PUBLIC COMMENT 4. AFFORDABLE HOUSING FUND PURPOSE AND USES DISCUSSION 5. OTHER 2016 WORK PLAN ITEMS A. Additional Sources of funding for the Affordable Housing Fund B. Zoning Changes to Allow Rental of Coach Houses/Accessory Dwelling Units 6. NEW BUSINESS 7. STAFF REPORTS 8. ADJOURNMENT Next Meeting: March 3, 2016 at 7 PM in Room 2402. Order & Agenda Items are subject to change. Information about the Housing and Homelessness Commission is available at: www.cityofevanston.org/government/boards-commissions. Questions may be directed to Sarah Flax at 847.448.8684. The City of Evanston is committed to making all public meetings accessible to persons with disabilities. Any citizen needing mobility or communications access assistance should contact Sarah Flax at 847.448.8684. La ciudad de Evanston está obligada a hacer accesibles todas las reuniones públicas a las personas minusválidas o las quines no hablan inglés. Si usted necesita ayuda, favor de ponerse en contacto con la Oficina de Administración del Centro a 847/866-2916 (voz) o 847/448-8052 (TDD). DRAFT MEETING MINUTES HOUSING & HOMELESSNESS COMMISSION Thursday, January 4, 2016, 7:00 P.M. Lorraine H. Morton Civic Center, Room 2402 Present: Chair Suzanne Calder, Vice Chair Ellen Cushing, Noelle Gilbreath, Sandra Hill, Moika Long, Geri Palmer, Heather Soto, Ald. Mark Tendam, Absent: Sidney Caselberry, Rick Morgan Staff: Sarah Flax, Housing and Grants Administrator Other: Gail Schechter, Neda Brisport, Oliver Jury ________________________________________________________________ Call to Order and Declaration of Quorum Chair Calder called the meeting to order at 7:06 PM with a quorum present. Approve Minutes of November 20, 2015 meeting Sandra Hill moved approval of the minutes, Heather Soto seconded the motion and it was approved unanimously. Public Comment There was no public comment. Open Communities Request for Funding for Landlord-Tenant Services Gail Schechter, Open Communities Executive Director, introduced Neda Brisport and Oliver Jury, members of their housing team. Oliver Jury noted that Open Communities is the only organization providing housing education, advocacy and organizing in the north Chicago suburbs and provided an overview of their program and application for 2016 funding in the amount of $37,500 to continue it. He explained that he is the primary staff person for landlord tenant services; Neda, who is a lawyer, takes over in cases that involve fair housing. Open Communities works closely with City staff, particularly Property Standards, to provide advice and guidance on maintaining compliance with the City’s Landlord Tenant ordinance and to resolve issues relating to rental properties. In 2015, calls increased by almost 30% over prior year; 80% of Evanston cases were from tenants and 20% from landlords. Initiatives include: integration of Open Communities staff into the City’s 311 system, which expedites responses to and simplifies tracking of Evanston cases. Open Communities is the first external agency to test this expanded use of 311, which has resulted in an increase in the number of cases served with same level of staff resources. Open Communities staff also serve as negotiators/mediators, which can resolve cases without going to court. Mr. Jury responded to commissioners’ questions regarding their outreach process to Hispanics and to landlords. Gail Schechter responded to a question about the racial/ethnic composition of Open Communities’ board and staff and provided a brief Page 1 DRAFT overview of other Open Communities’ programs, which include fair housing testing and investigation; housing counseling and foreclosure counseling; Homesharing; and advocacy focused on engaging immigrants in civic affairs and leadership; affordable housing; community and tenant organizing; and the Justice Project. Heather Soto moved approval of the request for funding in the amount of $37,500 and recommendation of its approval to the Planning & Development Committee; Ald. Tendam seconded the motion and it was approved unanimously. 2016 Work Plan Discussion Chair Calder noted that the primary agenda item for the February 4 meeting would be item A. on the agenda, to update the description/purpose and eligible uses of the Affordable Housing Fund. She asked staff to re-send the current Demolition Tax and Affordable Housing Fund and the revised Inclusionary Housing Ordinance (IHO) that was passed in November to all commissioners in order to prepare for discussion at the next meeting. Vice Chair Cushing noted that implementation and evaluation of the IHO, and recommendations of other ways to fund affordable housing that would spread the financial responsibility for this need more broadly also need to be addressed. Chair Calder questioned if the commission should also address changing the three unrelated person occupancy limit in the City zoning code. Staff Reports Staff noted that applications for the Housing Planning and Policy Analyst position were being reviewed and interviews would be scheduled in January. Adjournment The meeting was adjourned at 8:21 PM. The next scheduled meeting of the commission is Thursday, February 4 at 7 PM in room 2402. Respectfully submitted, Sarah K. Flax, Housing and Grants Administrator Page 2 CHAPTER 18 - AFFORDABLE HOUSING DEMOLITION TAX AND AFFORDABLE HOUSING FUND SECTION: 4-18-1. - PURPOSE. The purpose of this Chapter is to provide a source of funding for the creation, maintenance, and improvement of safe and decent affordable housing in the City of Evanston in order to enhance preservation and maintenance of the City's cultural and economic diversity. (Ord. No. 139-0-05; Ord. No. 8-0-12, (48-0-11(exh. A, § 4-18-1)), 1-23-2012) 4-18-2. - DEFINITIONS. For the purposes of administering this Chapter: The fund established by City Council which can only receive and expend monies dedicated to the creation, preservation, maintenance, and improvement of affordable housing for households whose income is one hundred percent (100%) or less of area median income, with no less than sixty percent (60%) of all monies reserved for households that earn less than eighty percent (80%) of area median income. The City Manager or his/her designee may implement AFFORDABLE programs including, but not limited to: down payment and/or rental assistance; HOUSING FUND. building rehabilitation