MINUTES OF THE REGULAR MEETING OF THE OAK PARK HOUSING AUTHORITY TUESDAY, MAY 13, 2008 7:30 A.M.
OFFICIAL RECORD PRESENT: Commissioners Blackman, Chapman, Pospisil, Smith, Vietti, & Chairman Taren EXCUSED: Commissioner Barbosa ALSO PRESENT: Edward Solan, Executive Director; Richard Martens, Attorney; Linda Hill; Visitor; Jill Augustine, Jim King, Ken Southward, and Rhonda Doyle, Staff. QUORUM The meeting was called to order at 7:36 A.M. by Chairman Taren. Chairman Taren welcomed Marc Smith, new Commissioner approved by the Village Board, to fill the unexpired term of Edy Burton. APPROVAL OF MINUTES OF REGULAR MEETING OF MARCH 11, 2008 It was moved (Chapman) and seconded (Blackman) to approve the minutes of the March 11, 2008 regular meeting. The motion was passed by unanimous voice vote. Commissioner Pospisil and Ms. Hill arrived at 7:38 a.m. Chairman Taren reported that effective May 14th, Commissioner Pospisil is resigning from the Board. He read Commissioner Pospisil’s resignation letter, thanked him, and said he appreciated his contributions to the Board. Commissioner Chapman added that it was a pleasure to know him. RESOLUTION AUTHORIZING PARTICIPATION IN A STATE-FUNDED HOUSING NEEDS ASSESSMENT Mr. Solan reported that David Boulanger, the Township Supervisor, was approached over a year ago by Township Trustee Eric Davis regarding the possibility of submitting a $15,000 Local Assistance Grant application to the State of Illinois to assess the affordable housing needs of senior citizens in Oak Park. Mr. Davis also approached the Village of Oak Park to become a co-sponsor. Mr. Solan said that he recently met with Mr. Boulanger and Mr. Davis regarding the possibility of the Housing Authority also cosponsoring the study.
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Mr. Solan recommended that the Housing Authority agree to co-sponsor the study. He said he believes there is not a tremendous need for more independent living units for lowincome seniors. He believes that this need is adequately met by current facilities. He indicated that he believes that there is a need for affordable assisted living facilities which would fill the gap between independent living and nursing home care for lower income seniors. He also said he believes another gap involves affordable housing for moderate income seniors whose assets and income are too high to qualify for Federally-subsidized housing. The study will assess these needs. The study sponsors will issue an RFQ for researchers to conduct the study. Commissioner Chapman asked if Senator Harmon could help regarding legislation or facilitating funding. Commissioner Pospisil asked Mr. Solan if he would be working with Mr. Davis on the RFQ. Mr. Solan answered that he would probably assist in writing the RFQ. It was moved (Pospisil) and seconded (Smith) to approve the resolution authorizing the Housing Authority’s participation as a co-applicant along with Oak Park Township and the Village of Oak Park in a state-funded housing needs assessment for additional housing for seniors in Oak Park. The roll call vote was as follows: AYES: Commissioners Blackman, Chapman, Pospisil, Smith, Vietti, & Chairman Taren NAYS: None ABSENT: Commissioner Barbosa RESOLUTION AUTHORIZING MORTGAGE LOAN FROM PARK NATIONAL BANK FOR 324-26 NORTH AUSTIN Chairman Taren reminded the Board that the refinancing was previously authorized by the Board. He turned the discussion over to Mr. Solan and Mr. Solan brought the Board up to date on the refinancing of 324-26 North Austin which matures on June 1st. He said it is a 5 year balloon loan of $185,000 at an interest rate of 5% with 25-year amortization. The outstanding balance is $173,000 so the additional $10-12,000 will be used to make some needed capital improvements to the exterior of the building. The Bank committed to the loan but Mr. Solan has not yet received the loan documents. Mr. Solan asked for the Board’s authorization for the Officers and/or the Executive Director to execute any loan documents necessary to close on the financing. Mr. Solan informed the Board that he is also applying to Cook County to have the property taken off the tax rolls. The County Assessor is optimistic the exemption will be approved and that we will receive a refund of the property taxes for 2007 paid in 2008.
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Chairman Taren stated that we would get back $16,000 and asked Mr. Solan what the Authority would do with the money. Mr. Solan stated that he would place the funds back in the general corporate reserves account. Lastly, Chairman Taren inquired about the lease extension with Vital Bridges. Mr. Solan explained that Vital Bridges entered into an extension until December 31, 2008. Once the County rules on the property tax exemption, the parties will negotiate a longer extension. It was moved (Chapman) and seconded (Vietti) to authorize the execution of a loan agreement for the refinancing of 324-26 North Austin, Oak Park, Illinois. The roll call vote was as follows: AYES: Commissioners Blackman, Chapman, Pospisil, Smith, Vietti, & Chairman Taren NAYS: None ABSENT: Commissioner Barbosa PRESENTATION OF THE YEAR END FINANCIALS Mr. Solan turned the discussion over to Ms. Augustine. Ms. Augustine reviewed the statements with the Board members, highlighting the following: MILLS PARK TOWER Ms. Augustine reported that we received notice from HUD that the CY 2007 funding amount is approximately 4.3% higher than CY 2006. She stated that Teletrac cancelled their contract for the roof rental antenna at Mills Park Tower. Commissioner Pospisil asked about promoting rooftop space. Mr. King explained we have two companies interested and we are waiting for figures. Ms. Augustine said that legal expenses increased due to tenant issues, and landscaping/snow removal expenses also increased. Non-routine expenses were $2,900 under budget. The year produced a loss of $133,000 after depreciation of $245,000. BUSINESS ACTIVITIES For 12 months ended, there is a $39,900 surplus. The 2008 budget forecasts a $51,000 surplus. Commissioner Pospisil asked Mr. Solan about his strategy for the extra monies for 324 N. Austin. Mr. Solan answered that he believes it will come down to a Board policy decision, after the County acts upon the tax exemption application.
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HOUSING CHOICE VOUCHER PROGRAM Ms. Augustine reported that the Village was billed $42,000 to cover the administrative shortfall for FY 2007. For operating expenses, utilities and office supplies increased. Commissioner Chapman asked why supplies increased. Ms. Augustine answered that she underestimated the costs. SUMMARY OF HUD FUNDING VS HAP PAYMENTS Ms. Augustine reported that we have an accumulated excess of $232,000 in HAP monies plus we have $130,632 more in reserve from prior years. She said we should have enough reserves if we need it. Chairman Taren asked if in mid 2008 we will look at the surplus and adjust. Ms. Augustine answered that we would. RECONCILIATION OF CONTRACT BUDGET TO ALLOCATED COSTS Ms. Augustine reported that at the end of 12 months, the Authority realized a savings of $38,000 due to the reorganization of HCV staff. Chairman Taren thanked Ms. Augustine for a job well done. DEPARTMENTAL REPORTS MILLS PARK TOWER Mr. King reported that in March, there was an unusual number of deaths which created vacancies but that the units are being turned over very quickly. Mr. King referred to the Resident Satisfaction Survey which was attached to his report and said that a high rate of satisfaction and performance was indicated on the report. Mills Park Tower scored higher than the national average in all areas. A score of 10 out of a possible 10 was received. Commissioner Pospisil congratulated Mr. King on the overall response to the survey. Mr. King reported that the number of vacancies for April was the same as March. Although we had three move-outs, we also had three move-ins. It was a difficult first quarter with regard to tenant move-outs. Mr. King stated that the PHAS (Public Housing Assessment System) scores were released. Mills Park Tower scored a 91 out of a possible 100 points to maintain a High Performer Status. The Board congratulated Mr. King and staff. Commissioner Pospisil asked Mr. King for an update on the kitchen modernization Project. Mr. King said that there were 35 units completed and the tenants were extremely
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happy with the finished product. He believes all the units will be completed by August, 2008. HOUSING CHOICE VOUCHER PROGRAM Mr. Southward reported that for March, there is a total of 431 vouchers leased in the regular program and 51 in the Mainstream Program. He explained that there will be a lower number in May. In reviewing preapplications from the 2004 waiting list, the number on the list continues to decrease mainly due to ineligibility findings based on false claims of a residency preference. Mr. Southward pointed out that on the March monthly report, “Demographics” page, there is a total of 545 participants in the Housing Choice Voucher Program. Mr. Southward reported that for April, there were 429 vouchers in use. He reported that there are 1455 applicants remaining on the 2004 waiting list, 545 of which were determined ineligible. The number of informal hearings increased from 7 in March to 11 in April. The number will continue to increase due to the residency preference issue. Mr. Southward reported that the Housing Choice Voucher Program received a SEMAP score of 104 points. This preserves the Housing Authority’s “High Performer” designation. The Board congratulated Mr. Southward and his staff for achieving the high rating. OLD BUSINESS Mr. Solan talked about the decision by West Suburban Hospital to close the clinics at The Oaks and Mills Park Tower. He added that he wrote a letter to the editor of the Wednesday Journal and Oak Leaves. He encouraged the Board to also write a letter. Mr. Solan informed the Board that President Pope spoke with Mr. Kreuser and Mr. Kreuser said he would provide the exact services at the hospital as provided by the clinics. Mr. King indicated that many seniors will be reluctant to schedule services at the hospital. Mr. Solan said that if West Suburban Hospital does not accommodate us, we will look at another operator such as Oak Park Hospital or Loyola because he believes it is a necessary community service. Commissioner Pospisil then suggested that Chairman Taren draft a resolution and send it out on behalf of the Board. Chairman Taren said that he was unsure of the effectiveness of a resolution. He thinks other options should be explored.
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Discussion ensued among the board members ranging from drafting a resolution to West Sub condemning their decision, a follow up letter to the press, and meeting with the Village. Chairman Taren said he would contact Mr. Pope and ask what kind of leverage the Village Board could exercise on our behalf. Lastly, Chairman Taren suggested that if someone would draft a letter to West Suburban, he would be in favor of that option. Commissioner Chapman said she would draft the letter. NEW BUSINESS None ADJOURNMENT It was moved (Vietti) and seconded (Chapman) to adjourn the meeting at 9:05 A.M. The motion passed by unanimous voice vote.
Respectfully Submitted,
Perry Vietti Acting Secretary
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