Chairperson Cobb called the meeting to order at 7:02 p.m. Connie Eldridge called the roll. A quorum was present.

APPROVED by CD Commission 1/22/13

COMMUNITY DEVELOPMENT COMMISSION MEETING Tuesday, November 27, 2012, City Council Chambers

400 South Vine Street, Urbana, IL 61801 Call to Order: Chairperson Cobb called the meeting to order at 7:02 p.m. Roll Call: Connie Eldridge called the roll. A quorum was present.

Commission Members Present: Fred Cobb, Janice Bengtson, Chris Diana (arrived 7:08 pm), George Francis, Gregory Hayes, Jerry Moreland, Brad Roof, Anne Heinze Silvis Commission Members Absent: None

Others Present: Kelly H. Mierkowski, Jennifer Gonzalez, Jenell Hardy, Randy Burgett and Connie Eldridge, Community Development Services; Katrin Klingenberg, Ecological

Construction Laboratory (eco-lab); Aaron P. Smith, Homestead Corporation of Champaign-Urbana; Sheila Dodd, Habitat for Humanity of Champaign County.

Approval of Minutes: Chairperson Cobb asked for approval or corrections to the September 25, 2012 minutes. Commissioner Roof moved to approve the minutes, and Commissioner Diana seconded the motion. The motion carried unanimously.

Petitions and Communications: None.

Staff Report: Ms. Mierkowski reviewed the staff briefing memorandum dated November 20, 2012. The Fiscal Year (FY) 2011-2012 Consolidated Annual Performance and Evaluation Report (CAPER) was submitted to the Department of Housing and Urban

Development (HUD) on September 28, 2012. The City of Urbana was assigned a new HUD representative, Amy Hudson, on October 29, 2012. Fall Neighborhood Cleanup was held on Saturday, October 20, 2012.

Old Business: None.

New Business: FY 2013-2014 Annual Action Plan (AAP) Schedule – Kelly Mierkowski reviewed the AAP schedule. Due to changes in the Community Development Block Grant (CDBG) and HOME Improvement Partnerships (HOME) programs, the Community

Development (CD) Commission will not hold two meetings in January. The HOME Program now has rolling applications, and the City of Urbana is not offering CDBG funding for public facilities due to anticipated reduction of funding. Commissioner Francis questioned the decision not to offer public facility funds to the social service agencies. He preferred to follow past

practice, make funding commitments, and then retract funding based on Congressional decisions. Jen Gonzalez noted the AAP would need to be amended in either case. There was discussion on the amount of CDBG funds, the effect on social service agencies, and how the decision was reached. Ms. Mierkowski noted that CDBG funds have been reduced by over $150,000 in recent

years. In response to Commissioner Francis, Ms. Mierkowski stated the City would not borrow funds to supplement cuts in CDBG funding.

Commissioner Roof requested that future AAP schedules include two CD Commission meetings in January, and Commissioner Diana agreed. Commissioner Diana also remarked that the City must work within the constraints of its budget and federal funding.

Update on Grants Management Division (GMD) Grants & Programs - HOME Investment Partnerships (HOME) Program –

Urbana HOME Consortium Member Projects - Ms. Gonzalez explained the distribution of HOME funds from HUD to the Urbana HOME Consortium, which is composed of the City of Urbana (lead entity), the City of Champaign, and Champaign County. The funds are allocated as follows: 10% administration; 15% Community Housing Development Organization (CHDO) project funds; 5% CHDO operating, and 70% divided among the three entities based on population. Each consortium member determines how to use its HOME funds in its own

jurisdiction. The City of Champaign uses its HOME funds for a Tenant Based Rental Assistance (TBRA) Program and is also planning to redevelop Bristol Park. Champaign County directs its funds to its TBRA No Limits Program. The City of Urbana uses its funds for rehabilitation of owner-occupied homes within the CD Target Area. The Consortium also has three CHDOs. CHDO – Ecological Construction Laboratory, LLC (eco-lab) – Katrin Klingenberg reviewed eco-lab’s history from creation in 2004 to the current Lease/Purchase project at 1302 West Dublin Street, Urbana. The renter is cleaning up her credit and hopefully will be able to

purchase the home within the next 12 months. Ms. Klingenberg stated, “eco-lab has learned our lesson that larger projects are beyond our capacity.” After eco-lab realized its Kerr Avenue Proposal was not working, they decided to reorient toward offering energy efficiency consulting for larger CHDOs. Brinshore Development and Chicago DCEO are interested in working with eco-lab on multi-unit projects. Also, eco-lab may offer training to local builders.

In response to Commissioner Roof, Ms. Klingenberg stated eco-lab must remain a CHDO until the house at 1302 West Dublin is sold. Due to the many challenges, she felt it would be better for eco-lab to give up its CHDO status and help other nonprofit organizations do similar work. CHDO – Homestead Corporation of Champaign-Urbana (Homestead) – Aaron Smith, Executive Director, reviewed Homestead’s history since its creation in 1993. Homestead has constructed the Homestead Apartments, a Single Room Occupancy (SRO) building, with a waiting list of 42 persons. Other projects were rental rehabilitation, construction of 13 new single family homes, and Crystal View Townhomes. One current project is construction of a four bedroom rental unit at 510 East Beardsley in Champaign to be donated to Center for Women in Transition. Other projects are a homeownership project at 1107 North Gregory, Urbana and one at 1304 Williamsburg in Champaign. Homestead is currently looking for qualified homebuyers with good credit.

Homestead had hoped to work with Brinshore Development on the Kerr Avenue Development Project, in a similar partnership as the Crystal View Townhomes. Because it is not likely that tax credits will be available in the immediate future, Homestead will continue with its homebuyer program. Another project would be an affordable rental project similar to the SRO or a

partnership with another organization similar to the Beardsley project. Unfortunately, the likelihood of any project receiving Project Based Rental Assistance Vouchers is very low. Noting the affordability gap keeps getting wider, Commissioner Roof asked about the final cost of the Beardsley project. Mr. Smith replied that the final costs were higher than originally budgeted. Homestead received additional grants from other sources of $5,000 and $1,000. Rather than affordability, the bigger issue is credit. Homestead has worked with past

homebuyers to find additional subsidies, but now most applicants have credit issues and are not approved for a mortgage.

Commissioner Roof suggested Homestead rehabilitate existing housing. There was discussion on housing inventory, rehab costs, and affordability. Again the concern is a homebuyer being approved for a mortgage. Commissioner Francis raised the issue of the cost of a mortgage versus rental payments. Commissioner Roof hoped that rehabbing a house would help anchor a neighborhood. Mr. Smith did not think rehabbing one home would make a big difference. Rather, the redevelopment of Douglass Park in Champaign is an example of an improved neighborhood. Mr. Smith discussed the possibility of purchase/rehab versus new construction. Randy Burgett discussed the City’s Purchase/Rehab/Resell (P/R/R) Program and past efforts by Homestead and Urban League. The City is always looking to acquire properties, whether for P/R/R or demolition and donation. There was discussion on the possibility of CHDOs using HOME funds for a P/R/R Program. Because there are so many constraints such as lead based paint, asbestos and time constraints on HOME funds, the City uses its CDBG funds to purchase and demolish dilapidated properties and then donate the lots. Properties that might be acquired for this program are very quickly purchased by local landlords. In response to Commissioner Francis, Mr. Burgett stated over the past 12 years, only one out of 25 new homes built in the CD Target Area was not subsidized through the City of Urbana. Commissioner Diana remarked the CD Commission must acknowledge if these programs were profitable, the private market would be building new homes in these areas. Because these programs incur loss, the CD Commission must determine if funds are available and if they should be used for these programs.

CHDO – Champaign County Neighborhood Alliance for Habitat (Neighborhood Alliance) – Sheila Dodd, Executive Director of Habitat for Humanity, stated CCNAfH, which is a

subsidiary of Habitat for Humanity, has been a CHDO for only 18 months. Their housing program is similar to Homestead’s, but they also provide financing. Homebuyers in the 50-60% Median Family Income (MFI) range receive mortgages at 0% interest. In 2013 Neighborhood Alliance’s goal is to build four homes in Champaign County and then build six homes each in 2014 and 2015. They have partnered with lenders that receive foreclosed homes and may do a rehabilitation/resell program. Neighborhood Alliance has also received homes through estates. In the next three to five years. Habitat will review its services and possibly become a

Neighborhood Revitalization Affiliate, in order to offer different products to the community. Partnering with the Cities, Habitat may provide services that federal funds will not allow, such as tree trimming to save a roof.

In response to Commissioner Roof, Ms. Dodd explained that Neighborhood Alliance requires applicants provide 200 hours of sweat equity and receive 30 hours of financial education. While sweat equity does not reduce the cost, it requires the homeowner get involved. Habitat for Humanity has partnered with many companies and trade unions for cost savings.

City of Urbana Owner-Occupied Housing Rehabilitation – Mr. Burgett stated this City program uses HOME funds to rehabilitate five to seven owner-occupied homes in the CD Target Area per year. This program, which provides up to $25,000 for rehabilitation, has existed for many years. Participation in either the Grant/Deferred Loan (GDL) or Grant/Installment Loan (GIL) Programs is based on household income. In the GDL Program, a deferred loan (mortgage) with no payment and no interest is placed against the property. It is due upon sale or transfer of title. There was discussion on the mortgage database and the cost of tracking this. Mr. Burgett described the waiting list, prioritization process, and how emergencies can be addressed with other programs while homeowners wait for this program.

Commissioner Roof inquired about shifting HOME money to programs deemed more effective. Ms. Mierkowski stated that HOME CHDO funds cannot be used for the City’s programs. While the AAP lists several possible programs, the City is currently using all of its HOME funds for this program.

Community Development Block Grant (CDBG) Program –

Housing Rehabilitation - Emergency Grants (EG) , Access Grants (AG) and Senior Repair Service – Mr. Burgett described these city-wide programs. To qualify for EGs and Senior Repair, total gross household income cannot exceed 50% Median Family Income. Access Grants have an 80% limit. Last fiscal year the City completed six AGs (four wheelchair ramps and two bathroom renovations). Of the ten EGs, six addressed plumbing & heating, one electrical, and three roofs. The City completed 19 Senior Repair projects, which vary from replacing storm doors, addressing household leaks, and installing accessible toilets. While funding for these programs has been reduced, the City has not yet had to turn people away. In response to Chairperson Cobb and Commissioner Roof, Mr. Burgett explained the application and verification process. There is no waiting list because the City tries to process these as soon as possible. Self-help is not permitted. All contractors must be certified, have workmen’s compensation, and meet other regulations. Also, the City completed three Shed-A-Way projects last year.

Property Acquisition – Mr. Burgett stated there are four buildable lots in the City’s inventory. The City is prepared to donate a lot when a CHDO has a shovel-ready project. The goal of property acquisition is to acquire and eliminate blighted structures. This helps stabilize the neighborhoods.

Public Service – Jenell Hardy explained that only 15% of CDBG funds may be used for this category:

Neighborhood Cleanup – Mr. Burgett stated this is one of the most popular programs in the CD Target Area. Men’s SAFE House has volunteered for many years at King School. Neighborhood Cleanup has made a big difference in the neighborhoods, especially with keeping the alleys cleaner. Last fall 38 seniors participated in the Senior Junk Pickup, which allows them to place their junk on the curb for pickup. Mr. Burgett has tracked participation and cost over 12 years, and 50% of households in the CD Target Area have participated.

Consolidated Social Service Funding (CSSF) – Ms. Hardy explained that the CSSF is composed of $9,000 CDBG funds, $204,400 City General Funds, and $100,000 Cunningham Township Funds, for a total of $313,400. The funds go to social service agencies that provide help for Urbana residents. They help many Champaign County agencies stretch their dollars. Ms. Hardy monitors the agencies’ quarterly reports.

Transitional Housing (TH) Program – Ms. Hardy stated the TH Program is more than housing—it helps homeless families with dependent children become self-sufficient. The program operates five houses within the City of Urbana; three owned by the City and two rented from Carle. The program receives referrals from different agencies. Ms. Hardy mentioned the application and interview process. Families pay rent based on their income, with utilities covered by the program. Families may remain in the program up to two years, with some moving out early into permanent housing.

Public Facilities & City Infrastructure Projects – Ms. Hardy noted that public facility funds have been awarded to social service agencies to make improvements to their buildings.

Community Elements, Center for Women in Transition, and Developmental Services Center have received these funds in the past. Regarding City infrastructure projects, Grants

Management staff collaborates with the Urbana Public Works Department in using CDBG funds in addition to other City funds for capital improvements that fall within the CD Target Area. The most recent example is the addition of two new streetlights at the corner of Hunter and Lanore Streets and the corner of Hunter Street and Austin Drive. A major constraint with federal funds is that projects must meet prevailing wage regulations. City staff must determine whether or not the use of CDBG funds is appropriate. In response to Commissioner Roof, Ms. Hardy clarified the City will not offer public facility funds to the social service agencies; rather, funds will be used for City infrastructure projects. These are carryover infrastructure funds and include match from capital improvement.

Supportive Housing Program (SHP) – Homeless Families in Transition – Ms. Hardy reviewed this federal government grant, which is administered by the City of Urbana and distributed to subrecipients. One subrecipient is The Center for Women in Transition (CWT), which has a Homeless Families in Transition (HFT) Program at their Evans & Forbes House in Champaign and a program at their domestic violence shelter. The other subrecipient is The Salvation Army, which has three single family houses for their HFT Program. This is Year 17 of a 20-year program. Ms. Hardy monitors the program through progress reports. Funds are used for operating expenses, with agencies providing a 25% match for supportive services and operating expenses, and receive administration funds.

Chairperson Cobb asked how the program was publicized and how applicants learned about the program. Ms. Hardy explained the Continuum of Care (CoC), which has a 10-year goal to end homelessness, applies for the SHP grants. Social service agencies in the Champaign/Urbana area that provide services to the homeless are members of the CoC, with the Champaign County Regional Planning Commission (RPC) as lead agency. The CoC submits one large application in response to HUD’s Notice of Funds Available (NOFA). Within the large application there are eight projects. Besides this SHP project, agencies such as Community Elements have their own project applications. This is a renewable competitive grant; however, funding will decrease this year. Agencies that wish to submit an application must be a member of the CoC.

Veterans Affairs (VA) Contract – Ms. Hardy described how this started as an emergency contract between the Salvation Army and the Department of VA to provide shelter for single homeless male veterans. Due to federal regulations, the City of Urbana was asked to administer the grant as a pass through agency. The Salvation Army submits reports and requests for

reimbursements to the City. The contract, which was extended to the end of November 2012, has not been renewed. While the original contract was an emergency basis, the new contract for the base year is not, and the Salvation Army is not ready to commit to the additional regulations. The Department of VA is looking for an agency to run the program. Chairperson Cobb asked if the Department of VA had plans for female veterans. Ms. Hardy mentioned another grant for veterans’ families, which is similar to this program. Chairperson Cobb commented there are female veterans at his American Legion Post and that his daughter is a female veteran.

Commissioner Silvis remarked that the flow charts helped to understand the funding process. Adjournment: Chairperson Cobb adjourned the meeting at 8:49 p.m.

Recorded by Connie Eldridge

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