January 17, 2017 Item No. 9

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1 January 17, 2017 Item No. 9 RECOMMENDATION TO EXECUTE 1) AN AGREEMENT TO ENTER INTO A HOUSING ASSISTANCE PAYMENT CONTRACT (AHAP) FOR A) BRAINERD PARK APARTMENTS, B) MARK TWAIN APARTMENTS, C) TIERRA LINDA APARTMENTS; 2) HOUSING ASSISTANCE PAYMENT CONTRACT (HAP) FOR A) BRAINERD PARK APARTMENTS, B) MARK TWAIN APARTMENTS, C) TIERRA LINDA APARTMENTS; AND 3) ALL OTHER DOCUMENTS AS MAY BE NECESSARY OR APPROPRIATE TO IMPLEMENT THE FOREGOING. Development Address Alderman Ward Brainerd Park Mark Twain 8900 S. Loomis Howard Brookins, Jr. 21 st Ward 111 W. Division Walter Burnett 27 th Ward Tierra Linda Scattered Sites (12) 1812 and 1929 North Drake Joe Moreno 1 st Ward 1802, 1822, North Sawyer 1858 North Spaulding North Kedzie 1421 North Artesian , and 1757 North Drake Roberto Maldonado 26 th Ward 3572 West Palmer Carlos Ramirez-Rosa 35 th Ward Presenters: Diana Liu, Chief Development & Construction Officer Kari Saba, Deputy Chief Development Officer 1

2 Recommendation: The Chief Executive Officer recommends that the Board of Commissioners of the Chicago Housing Authority (CHA) authorize CHA to execute 1) an Agreement to enter into A Housing Assistance Payment Contract (AHAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; 2) Housing Assistance Payment Contract (HAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; and 3) all other documents as may be necessary or appropriate to implement the foregoing. The requested action complies in all material respects with all applicable federal, state and local laws, and CHA board policies. Staff have completed all necessary due diligence to support the submission of this initiative. Property Summary Development Developer / Owner Target Population PRA Units Total Units % PRA Units Brainerd Park Full Circle Communities, Inc. (51%) Christian Community Health Center (49%) Families % Mark Twain The NHP Foundation (NHPF) Individuals % Tierra Linda Latin United Community Housing Association (LUCHA) Families % Contract Summary Development Funding Contract Term Brainerd Park Mark Twain Tierra Linda Housing Choice Voucher Program Housing Choice Voucher Program Housing Choice Voucher Program Contract Type 30 Years AHAP & HAP Contracts 30 Years AHAP & HAP Contracts 30 Years AHAP & HAP Contracts Initial Estimated Contract Total Estimated Contract Application Received $124,956 $ 5,069,225 June, 2016 $1,905,120 $77,287,059 August 2016 $123,204 $4,998,150 November 2016 Initial contract rents will be determined by market comparable and fair market rents applicable at the time the HAP contract is executed. All rent determinations will comply with federal regulations and CHA policy. 2

3 BRAINERD PARK APARTMENTS Property Profile / Building Amenities 36-unit, new construction building for families located at 8900 South Loomis in a Limited area in the Washington Heights community - approximately 8 blocks from an Opportunity Area. The surrounding area is a stable, predominantly single-family and low-rise, multi-family residential community. The property is located near the Brainerd Metra Station which is served by the Rock Island line and offers 20-minute service to the Loop. There is a new library within one block of the development. The building will consist of 36 total units, including 8 1-bedroom, 14 2-bedroom, bedroom, and 4 4-bedroom apartments. There will be 9 PRA units, consisting of 2 1-bedroom, 3 2-bedroom, 3 3-bedroom, and 1 4-bedroom apartments. Rents include all utilities. The target population for PRA units will be families from CHA waitlists. Building amenities include a community room; computer lab with library space and free internet; laundry room; as well as office space for management, social services and maintenance. On-site parking will be available for residents and their guests. A play area and community garden are planned. A dedicated Mobile Health Stand will be made available at the building which will include medical and dental services. On-site social services will be available to all residents, but will not be a requirement for occupancy. Christian Community Health Center (CCHC) will provide on-site social services and will lease 9 of the remaining units (25%) to clients through CCHC s supportive housing programs for homeless families. Property Owner Brainerd Park is co-owned by Full Circle Communities Inc. (FCC) and Christian Community Health Center (CCHC). FCC is a non-profit corporation, the managing member (51%), and will provide property management services. FCC is the owner/manager of Milwaukee Avenue located at 3064 North Milwaukee, which has eleven (11) PRA subsidies. CCHC is a non-profit corporation, a member of the General Partner (49%), and will provide sitebased social services. CCHC is a Federally Qualified Health Center and has operated HUD-funded Supportive Housing Programs for homeless families for more than 15 years. 3

4 MARK TWAIN APARTMENTS Property Profile / Building Amenities Mark Twain is a vintage, 5-story, elevator building that opened in 1932 and is located at 111 W. Division on the edge of the Gold Coast historic district. The redevelopment project is part of the City s SRO Preservation initiative and is located in a General Area in the Near North Side community. The Building has Orange designation by the Chicago Landmarks Commission, which notes that the property possesses architectural feature(s) or historical association that makes it potentially significant in the context of the surrounding community. The property currently contains 153 units. After redevelopment, 148 studio units will be available with eight (8) fully accessible and eight (8) adaptable units, all buildings systems will be repaired or replaced, and an improved security system with FOB keys and high resolution security cameras installed. All units will have newly installed kitchens and rehabbed individual bathrooms. PRA will assist 126 studio units. Rehabilitation will occur in a 2-phase process in which one-half of the tenants will be relocated to other buildings. Approximately 10% of the units are currently vacant. Existing residents will have right of first return. All vacancies will be filled from the CHA Waitlist. The ground floor consists of 9,600 square feet of commercial space that will be improved. The existing storefront signage will be removed, and new storefronts will meet the requirements of the Illinois Historical Preservation Agency (IHPA). The developer is working to attract new retail businesses that will enhance the community, including coffee shops, restaurants and smaller retail businesses. Building amenities will include a roof-top deck, community room, computer room with library area, laundry room, as well as offices for management and social services. All utilities will be included as part of the rent expense. Immediately across the street is an Opportunity Area which includes the Sinclair Building, a 390-unit, 35-story luxury apartment building with a new Jewel Osco, opening in hour on-site property management will be provided by Heartland Housing. Property Owner New Mark Twain, LLC sole managing member is The NHP Foundation (NHPF), a non-profit organization dedicated to making investments that preserve and create affordable multi-family housing for low to moderate-income families. 4

5 TIERRA LINDA APARTMENTS Property Profile / Building Amenities Tierra Linda will be a new construction, scattered site development on vacant lots in fully developed, residential areas in the Logan Square, Humboldt Park, and West Town communities. The sites are in General Areas, and are adjacent to Opportunity Areas. Latin United Community Housing Association (LUCHA) will build twelve (12) new construction buildings containing a total of 45 family units bedroom, 18 2-bedroom, and bedroom apartments. Construction consists of nine 3-unit and three 6-unit, 3-story buildings with brick or siding exteriors that complement the surrounding neighborhood. PRA will assist 11 units in 7 of the buildings bedroom, 5 2-bedroom, and 4 3-bedroom apartments. PRA units will assist families from CHA waitlists. Unit amenities include Energy Star rated appliances with in-unit washer-dryers, refrigerators, dishwashers, ranges, microwaves and ceiling fans. Off-street parking is planned for each property. Property Owner Tierra Linda Limited Partnership through Tierra Linda Limited Liability Corporation of which Latin United Community Housing Association (LUCHA) is the sole member. LUCHA is a non-profit corporation, founded in 1982 as a community-based, development corporation that has developed 153 units of affordable housing to assist low-income households. LUCHA will provide property management for the Tierra Linda. Respectfully Submitted: Diana C. Liu Chief Development & Construction Office 5

6 RESOLUTION NO CHA- WHEREAS, the Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated January 17, 2017 entitled Recommendation to Execute 1) an Agreement to enter into A Housing Assistance Payment Contract (AHAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; 2) a Housing Assistance Payment Contract (HAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; 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) an Agreement to enter into a Housing Assistance Payment Contract (AHAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; and 2) Housing Assistance Payment Contract (HAP) for A) Brainerd Park, B) Mark Twain, C) Tierra Linda ; and 3) all other documents as may be necessary or appropriate to implement the foregoing. Eugene E. Jones, Jr. Chief Executive Officer Chicago Housing Authority 6