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Housing Commission

Regular Meeting

Arlington Heights, IL · April 16, 2025

AgendaPacketMinutes

Minutes

APPROVED MINUTES OF A MEETING OF THE ARLINGTON HEIGHTS HOUSING COMMISSION VILLAGE OF ARLINGTON HEIGHTS, ILLINOIS APRIL 16, 2025 IN ATTENDANCE: Commissioners Present: Ken Kiefer Gabriel Nagy David Miller Janice Krinsky Commissioners Absent: William Delea Dave LoSavio Staff Present: Nora Boyer, Housing Planner/Staff Liaison Others Present: Keith Moens, Arlington Heights resident Fred Vogt, Senior Citizens Commission I. CALL TO ORDER The meeting was called to order at 7:00 pm by Chairman Kiefer. II. ROLL CALL Present: K. Kiefer, J. Krinsky, G. Nagy, & D. Miller Absent: W. Delea & D. LoSavio III. APPROVAL OF MINUTES A motion was made by Commissioner Krinsky, seconded by Commissioner Nagy to approve the minutes of the March 19, 2025 meeting. The motion was approved unanimously by voice vote. IV. REPORTS Ms. Boyer gave a status update on the Arlington Heights projects subject to Inclusionary Housing Ordinance. • Crescent Place – Opened in November 2023. • Grace Terrace – Approved by the Village Board. • Urban Street Group/International Plaza – Conversations have been going on with staff. A formal Plan Commission application has not yet been received. • 116-120 W Eastman – Demolition expected to begin this summer. • 5 N Douglas – A formal Plan Commission application is expected around May or June 2025. This project will return to the Housing Commission if the affordable housing component of the project has changed. • Arlington 425 – The developer has formally withdrawn the project. The entitlements expire on May 7, 2025. • Berkshire Arlington Heights – A project proposal is expected to go before the Conceptual Plan Review Committee sometime this summer. 1 • Old Arlington Heights Rd/County Lane Townhomes – This project has been approved by the Village Board. Approval of the ordinance is being scheduled. The development will include 1 townhome. V. OLD BUSINESS A. Single-Family Rehab Program There are two active applications. With respect to SFR Case 25-01, the homeowner participated in the Single-Family Rehab Program previously and obtained a loan for $19,462 The difference between that loan amount and the maximum loan amount for a home under the program of $25,000 is $5,538. The homeowner is requesting a loan for window replacements at his home. The cost is expected to be well over the $5,538 with one bid having been received so far which is for $12,600. He has owned the home since 2004. The homeowner receives Social Security as his source of income. Ms. Boyer said that the Housing Commission has made exceptions to the maximum loan amount of $25,000 twenty-seven times (5% of past loans) in the past. The current loan amount of $19,462 plus the bid amount of $12,600 would total $32,062 which is within the range of the exceptions approved previously. Ms. Boyer said that she was seeking informal feedback on whether the Housing Commission would consider a total in loans on this home over $25,000. She cautioned that a lead-based paint test of the home would be required. If lead-based paint is found it would increase the total cost for the project. There was general concurrence that the Housing Commission is willing to look at this request and asked that Ms. Boyer provide the information needed to review the project at a future meeting. SFR Case 25-02 was received the day before the meeting. Ms. Boyer said that it sounds like the house is not in good shape. Needs may include a new roof, electric work, plumbing work, and HVAC replacement. The house was built in approximately 1965 and the existing furnace is original to the house. Ms. Boyer said that she is in the process of doing the eligibility determination. B. Affordable Housing Trust Fund Ms. Boyer has been looking at some other municipalities’ trust fund programs and processes. She has suggested that the Housing Commissioners look at the Village of Oak Park’s process as a possible model. Their model includes a rubric with criteria for evaluating applications to the trust fund. The criteria would need to be written to be responsive to the Village of Arlington Heights priorities and policies. The model will be looked at in more detail at the next meeting. The Commissioners who had a chance to look at the Oak Park process before the meeting responded favorably to examining it further as a possible model. Ms. Boyer said that she has a meeting with a staff person at Oak Park to discuss their experiences under their process. Ms. Boyer asked if the Housing Commission would be interested in working on the request for applications for possibly a larger project and also looking as developing a program that would be smaller but on-going. Commission Miller suggested contacting the management companies at the older, existing affordable housing buildings in Arlington Heights to see if they have any needs that might be funded through the trust fund. Ms. Boyer said that she would reach out to the management companies. C. Village Board of Trustees 2026-2027 Strategic Plan A draft of the Housing Commission’s feedback concerning the Village Board 2026-2027 Strategic Plan discussion. 2 A motion was made by Commissioner Krinsky, seconded by Commissioner Miller, to approve the February 6, 2025 Memorandum to the Village Board for consideration during their 2026-2027 Strategic Plan discussion. The Motion: Passed Ayes: K. Kiefer, J. Krinsky, D. Miller & G. Nagy Nays: None Absent: W. Delea & D. LoSavio VI. NEW BUSINESS A. 2025-2029 Consolidated Plan and 2025 Annual Action Plan including 2025- 2026 CDBG Funding Applications There was a discussion of past CDBG funding requests from the Housing Commission and the amounts. Ms. Boyer provided information on the estimated revenue. Ms. Boyer said that staff is looking into possibly recommending that the administration of the Single-Family Rehab Program be contracted out to a non-profit agency such as the Northwest Housing Partnership in the hope that more homes. The Northwest Housing Partnership administers the single- family rehab programs for Schaumburg, Hoffman Estates, Mount Prospect, Des Plaines, and Skokie. A motion was may by Commissioner Nagy, seconded by Commissioner Krinsky, to recommend to the Village Board that CDBG funds be allocated for program year 2025-2026 for the Single-Family Rehab Loan Program in the amount of $100,000 and for the Group Home Rehab Loan Program in the amount of $110,000. The Motion: Passed Ayes: K. Kiefer, J. Krinsky, D. Miller & G. Nagy Nays: None Absent: W. Delea & D. LoSavio Ms. Boyer was asked to bring the results of the 2025 CDBG Community Needs Survey to the next meeting. B. Review of Arlington Heights Zoning Map Copies of the Village’s Comprehensive Plan and Zoning Map were brought to the meeting for examination by the Housing Commissioners. VII. OTHER BUSINESS A. NEXT MEETING DATE AND AGENDA Ms. Boyer said the Shelter Inc. is experiencing change orders for the fire alarm system/sprinkler system project at their shelter care home. The approximate amount of that the project is over budget by about $31,420. The original grant for the project cost is $43,332. Shelter Inc. called asking about the possibility of applying for more CDBG funds in the next program year (2025-2026). There may be issues with trying to use 2025-2026 funds retroactively to this program year. There are some unallocated funds remaining in the Group Home Rehab program for 2025-2026. There was concern on the Housing Commission about the amount of the change orders on top of the original project cost. If Shelter Inc. wishes to request additional CDBG funds, it was asked that a representative from Shelter Inc. attend the next Housing Commission meeting with information about the reasons for the increases 3 in cost. Commissioner Krinsky talked about the importance of this program for the young men served by the home. Shelter Inc. has said that they have been raising funds from other sources to cover part of the increased cost. Ms. Boyer said that she will invite Shelter Inc. to attend the next Housing Commission meeting to discuss their need and request. Topics for the Next Meeting: • Trust Fund process and application including additional information from the Village of Oak Park • Shelter, Inc. fire alarm system/sprinkler system project Commissioner Nagy mentioned the “Missing Middle Housing” workshop scheduled for May 1, 2025 10 am – noon in Oak Park. Commissioner Nagy and Ms. Boyer plan to attend. B. PUBLIC COMMENT Mr. Moens commented that the public services funding requests typically are double the amount of CDBG funds available for public services and asked if consideration is being given to funding higher levels of those requests. It was commented that the public service requests generally do not fall under the purview of the Housing Commission. The comment regarding additional funding for public services can be made before the Trustees at the public hearings on the Consolidated Plan and Annual Action Plan. VIII. ADJOURNMENT A motion was made by Commissioner Krinsky, seconded by Commissioner Nagy to adjourn the meeting. The motion was approved by voice vote. The meeting ended at 8:25pm. Next Meeting: Wednesday, May 21, 2025 at 7:00 pm 4

Agenda

AGENDA HOUSING COMMISSION Commissions Room, 2nd Floor Arlington Heights Village Hall, 33 S. Arlington Heights Rd. Arlington Heights IL 60005 April 16, 2025 7:00 PM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. March 19, 2025 IV. REPORTS A. Status Update on Inclusionary Affordable Housing Projects V. OLD BUSINESS A. Single Family Rehab Program Report B. Affordable Housing Trust Fund C. Village Board of Trustees 2026-2027 Strategic Priorities VI. NEW BUSINESS A. 2025-2029 Consolidated Plan and 2025 Annual Action Plan including 2025-2026 CDBG Funding Applications B. Review of Arlington Heights Zoning Map VII. OTHER BUSINESS A. Next Meeting Date and Agenda Items VIII. PUBLIC COMMENT Anyone wishing to speak on a subject not on the Agenda may speak at this time. Please limit your comments to three minutes. IX. ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact the Health & Human Services Department, at 33 S. Arlington Heights Road, Arlington Heights, IL 60005, healthmail@vah.com or 847/368-5760.

Packet

AGENDA HOUSING COMMISSION Commissions Room, 2nd Floor Arlington Heights Village Hall, 33 S. Arlington Heights Rd. Arlington Heights IL 60005 April 16, 2025 7:00 PM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. March 19, 2025 IV. REPORTS A. Status Update on Inclusionary Affordable Housing Projects V. OLD BUSINESS A. Single Family Rehab Program Report B. Affordable Housing Trust Fund C. Village Board of Trustees 2026-2027 Strategic Priorities VI. NEW BUSINESS A. 2025-2029 Consolidated Plan and 2025 Annual Action Plan including 2025-2026 CDBG Funding Applications B. Review of Arlington Heights Zoning Map VII. OTHER BUSINESS A. Next Meeting Date and Agenda Items VIII. PUBLIC COMMENT Anyone wishing to speak on a subject not on the Agenda may speak at this time. Please limit your comments to three minutes. IX. ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact the Health & Page 1 of 21 Human Services Department, at 33 S. Arlington Heights Road, Arlington Heights, IL 60005, healthmail@vah.com or 847/368-5760. Page 2 of 21 DRAFT MINUTES OF A MEETING OF THE ARLINGTON HEIGHTS HOUSING COMMISSION VILLAGE OF ARLINGTON HEIGHTS, ILLINOIS MARCH 19, 2024 IN ATTENDANCE: Commissioners Present: Ken Kiefer Dave LoSavio Gabriel Nagy William Delea Janice Krinsky David Miller Commissioners Absent: None Staff Present: Nora Boyer, Housing Planner/Staff Liaison Others Present: Keith Moens, Arlington Heights resident Fred Vogt, Senior Citizens Commission I. CALL TO ORDER The meeting was called to order at 7:00 pm by Chairman Kiefer. II. ROLL CALL Present: K. Kiefer, W. Delea, D. LoSavio, J. Krinsky, G. Nagy, & D. Miller Absent: None III. APPROVAL OF MINUTES A motion was made by Commissioner Miller, seconded by Commissioner Delea to approve the minutes of the February 19, 2025 meeting with typographical corrections. The motion was approved unanimously by voice vote. IV. REPORTS Ms. Boyer gave a status update on the Arlington Heights projects subject to Inclusionary Housing Ordinance. • Crescent Place – Opened in November 2023. • Grace Terrace – Approved by the Village Board. • Urban Street Group/International Plaza – Developer has reopened conversations with staff but nothing specific to report at this time. • 116-120 W Eastman – Demolition expected to begin this summer. • 5 N Douglas – They have begun re-engaging with staff. Nothing to report at this time. • Arlington 425 – Has been granted an extension of zoning entitlements to May 2025 and the developer has re-engage with staff. • Berkshire Arlington Heights – Developer is re-evaluating their plans and may pivot from and affordable senior building to a market-rate project. A Plan Commission Application has not yet been received. • Old Arlington Heights Rd/County Lane Townhomes – Expected to have one affordable townhome. Was recommended for approval by the Plan Commission and is being scheduled for a Village Board meeting 1 Page 3 of 21 Mr. Moens commented on the Memorandum of Understanding (MOU) for the Urban Street Group project. He said that the MOU states that if there is no development on the site by November that the Village will receive the slab where the senior building was proposed back to be development for affordable housing. Ms. Boyer said that she will look into this and report back. He pointed out that the project is not shown as having applied to IHDA for Low-Income Housing Tax Credits. V. OLD BUSINESS A. Single-Family Rehab Program One new application has been received that came in after the monthly report was prepared. It is for window replacements. The homeowner previously participated in the Single-Family Rehab Program. Applications are expected to pick up in the spring. B. Affordable Housing Trust Fund Ms. Boyer and Emily Rodman, Director of Planning & Community Development with the executive director, Richard Koenig, of the Housing Opportunity Development Corporation (HODC) to talk about factors currently affecting affordable housing development and own the Trust Fund might be used. HODC has developed new affordable buildings and has also rehabbed existing building to provide affordable housing. Mr. Koenig talked about the uncertainties at this time due to changes at the federal level. HODC recently applied for Low- Income Housing Tax Credits for a proposed development in Elk Grove Village on land sold to the HODC by the Elk Grove Village. Ms. Boyer mentioned that according to the Illinois Housing Development Authority’s website, 90% new construction affordable housing developments are being financed, in part, through the Low-Income Housing Tax Credit program. She mentioned that she was just on a Teams call with Cook County which went through the affordable housing projects it has in the pipeline. Cook County provides federal HOME funding for affordable housing developments sometimes in the $1m to $2m range. Ms. Boyer said that she provided the location of the Village-owned property off of Rand Rd. to Mr. Koenig. The HODC has done some innovative projects such as a building in Palatine for victims of human trafficking, and Ms. Boyer reported that Mr. Koenig said that he would look at the location off of Rand Rd. He emphasized the importance of evaluating sites according the point-system criteria. Ms. Boyer will get back to Mr. Koenig to ask for his evaluation of this site. Mr. Koenig said that affordable housing is financed in a multi-layer approach and the Trust Fund could be used as one of those layers. He said that a barrier to developing affordable housing is securing and retaining control of land for the amount of time (often years) that it takes to get approval and financing for an affordable development. Mr. Koenig mentioned that rental rehab of existing, naturally occurring affordable housing is important, but this type of project can be difficult and expensive especially if tenants need to be relocated during renovations. C. Aging-in-Place Follow-up Ms. Boyer reviewed information she received from the Department of Health and Human Services regarding senior aging in place needs. The Village nurse stated that homes are evaluated for hazards (especially trip hazards) and impairments to mobility (ex. stairs, laundry location, accessibility/safety in bathrooms) during home visits. She said that changes 2 Page 4 of 21 in vision are a frequent issue. Referrals to the Handyman Program at the Northwest Housing Partnership are made for smaller repairs and modifications (ex. installation of grab bars). A list or resources is provided to residents for larger projects. At the top of the list is the Village’s Single Family Rehab Program. Reported gaps in accessibility function include inability to climb stairs, to enter and exit showers, and inability to exit and enter the home for doctor appointments. She said that the seniors often struggle with the process of applying for assistance. Ms. Boyer said that she is scheduled to attend the Department of Health and Human Services’ March staff meeting. She said that she will give the staff in that department information about the Single-Family Rehab Program and discuss how to bridge the gap between the needs they are seeing among senior homeowners obtaining assistance through the Single-Family Rehab Program. Assistance to senior renters is something that needs to be addressed. Chairman Kiefer said that is sounds like for now the needs can begin to be addressed by the Single-Family Rehab Program and other sources of funding could be looked at if the demand exceeds the Single-Family Rehab Program as a resource. Chairman Kiefer expressed his concerns about possible changes in Federal funding including the CDBG program, and that the Trust Fund may need to be looked at for aging-in-place needs depending on what happens. Ms. Boyer said that the Senior Center will be promoting the Single-Family Rehab Program in the next Senior Center Newsletter with an emphasis on aging-in-place modifications. Ms. Boyer said the in addition to fees paid by developers in lieu of affordable units in new developments, linkage fees are paid in the instances of new single-family home construction. These linkage fees provide a flow of money into the Trust Fund at a rate that has been about $50k to $60k per year. This source of income could be Trust Fund resource used for an on- going aging-in-place program should the CDBG funds cease to exist. Ms. Boyer reviewed what she has read in the news about the impacts of the latest Continuing Resolution as it affects HUD programs and other potential changes funding changes for federal affordable housing program and reductions in HUD staff levels. She mentioned that under the prior administration of the current President, the President’s proposed budgets called for the elimination of the CDBG program. However, significant State and Local push-back occurred resulting in the continuation of the CDBG program. Commissioner Nagy brought up an article that he asked Ms. Boyer to distribute for him concerning the Land Value Tax (LVT) concept and its potential for spurring affordable housing development and aging-in-place. He offered to give a 5-minute presentation at the next meeting of the Housing Commission on a study he did on this method of property tax assessment. Under this concept the percentages of taxes applied to land and improvements would change to charge more of the assessment on land rather than the structures so that improvements to structures are not disincentivized. Commissioner Delea said that this was discussed the last Housing Commission meeting where it was said that this commission does not have power over taxation. He also said that a study cited in the article discussed negative of a LVT on older homes since the taxes assessed on the land increases but it assists new construction by developers, and he does not think we want to disadvantage retention of affordable older housing in favor of developer of new construction. Commissioner Nagy said that property tax is a part of housing affordability being informed on this topic can spur conversation at all levels. He stressed that access to land is a key element for affordable housing and taxes on that land makes a big difference. 3 Page 5 of 21 Chairman Kiefer said that he looked into the LVT concept. He said that it is a process of assessing the value of property based solely on the land irrespective of the structures on the land. He mentioned pro and cons that he read about the LVT system. He also said that there are few examples of this type of system in the U.S. He said that it is an interesting idea, but he did not see how the Housing Commission could affect the tax system in all of Cook County and Illinois and where the Housing Commission would go with this thought as a commission even if it had more information on the topic. He said that he reached out to State Rep. Marybeth Canty, as an individual not a member of the Housing Commission, to see if she is familiar with this type of taxing structure and its viability, but he has not heard back from her yet, Chairman Kiefer said that he is all for educating the commissioners regarding financing, taxing structures, etc., but he does not see a way forward for the Housing Commission would affect this. He said he did not see the Housing Commission researching this any further. Commissioner Miller agreed and said he did not see how the Housing Commission can influence this. He agreed that it is good to get educated on different things, but since the commissioners are all volunteers with limited time, he would need to know what the Housing Commission’s role would be before spending more time on this. Commissioner Nagy stated that changing the proportions of taxes on land and structures would have to go through the State level and would require a change in the State constitution. He said that it’s a huge effort but would be more sustainable and equitable in the long run. He said that it is being discussed in Minnesota, Denver, and Detroit. Commissioner Krinsky commented that it is understood that the property tax structure and supporting things like education is not equitable in this State. Chairman Kiefer said this is interesting information, and he does not want to stifle ideas, but he does not see the Housing Commission pursuing this under the Housing Commission’s charge. He said that his recommendation is to keep the topic out there and if any commissioners want to follow-up as individuals, they can do that. Commissioner Nagy suggested that one district, such as the Bears property, could be used as a test land tax district. He said that he thinks it is worth looking into as a commission. Commissioner Delea thinks this has nothing to do with the Housing Commission and that it’s a regressive tax, and he does not see promoting this in any way. Commissioner LoSavio said that Commissioner Nagy makes some good points, but based on the conversation last month, he thinks this is beyond the scope of the Housing Commission although commissioners could choose to learn more on their own. Commissioner LoSavio said the Housing Commission has a lot to do and to focus on and that this would take the Housing Commission way from other priorities that are closer to the commission’s mission. Commissioner Krinsky concluded that it sounds like the decision is not to pursue this at this time, and Commissioner Nagy said that he understood. Chairman Kiefer said that he appreciates that the commission is aware of this and there could be reasons in the future to revisiting this topic but not at this time. VI. NEW BUSINESS A. VILLAGE BOARD OF TRUSTEES 2026-2027 STRATEGIC PRIORITIES DISCUSSION Ms. Boyer reviewed the draft memorandum included in the meeting packet for consideration by the Housing Commission for sending to the Village Board as the Housing Commission’s input regarding the 2026-2027 strategic priorities. In the memorandum, it was recommended that the Village Board continue in 2026-2027 to list seeking, maintaining, and expanding 4 Page 6 of 21 affordable housing as one of the Village Board’s strategic priorities. The memorandum included: • A list of current Housing Commission activities • The list of designated affordable housing units in the Village including those created since the adoption of the Inclusionary Housing Ordinance • A list of the Housing Commission’s 2024 activities and accomplishments • A draft Housing Commission 2025 work plan The members of the Housing Commission made some suggestions concerning the 2025 Housing Commission workplan including: • Adding educating the public on the impact of the Inclusionary Housing Ordinance • Working to provide education on the meaning and need for affordable housing in order to address the existing stigma around this subject and in order to present factual information ahead of development project review • The possibility of promoting the programs and activities of the Housing Commission at local events/fairs • Monitoring and responding as needed to changes in federal funding for housing programs (ex. changes in funding for CDBG) including the possible need to look for alternative funding sources • Add a description to the document for persons who are unfamiliar with the CDBG program and funding B. FAIR HOUSING MONTH – APRIL 2025 Ms. Boyer said that she plans to publicize a fair housing workshop available on the Illinois Department of Human Right and information about the Housing Commission’s role as the Fair Housing Review Board. VII. OTHER BUSINESS A. NEXT MEETING DATE AND AGENDA Ms. Boyer stated that the Village is beginning the process of writing the next 5-year Consolidated Plan. She stated that there is survey concerning community needs on the Village website. The survey is scheduled to close on April 15th. • Final review of the Housing Commission’s input on the 2026-2027 Village Board strategic priorities • 2025-2029 Consolidated Plan and the Housing Commissions’ CDBG grant requests • Review of the Village’s Zoning Map B. PUBLIC COMMENT Mr. Fred Vogt thanked Ms. Boyer for attending the Senior Citizens Commission in February. He mentioned that the Senior Citizens Commission intends to approach the Village Board about property tax credits for senior citizens. The Village’s Single-Family Rehab Program and the NW Housing Partnership’s Handyman Program will be promoted in the Senior Center Newsletter. He said that the Senior Citizens Commission is interested in defining process to improve how commissions communication and coordinate with each other especially when they have overlapping missions. Mr. Keith Moens suggested that the Housing Commission add to its work plan to review the terms of the Inclusionary Housing Ordinance. He said that the percentages of affordable units required should be increased and senior communities should be included as developments to which the Inclusionary Housing Ordinance applies. 5 Page 7 of 21 VIII. ADJOURNMENT A motion was made by Commissioner Krinsky, seconded by Commissioner Miller to adjourn the meeting. The motion was approved by voice vote. Next Meeting: Wednesday, April 16, 2025 at 7:00 pm 6 Page 8 of 21 Housing Commission Meeting Date: April 16, 2025 SINGLE-FAMILY REHAB PROGRAM STATUS REPORT – October 1, 2024 to September 30, 2025 FILE # APPLICATION OUT TO SCOPE OF WORK STAFF PROJ CHANGE TOTAL PAID TO STATUS SUMMARY COST SUFFIX SUBMITTED BID ESIMATE COST ORDERS PROJECT DATE COST Work completed. 24-02 By Replace pipes in $10,000 $9,600 $9,600 $9,600 HE408 3/26/2024 Owner basement Determining eligibility. The homeowner has a prior 25-01 Replacement windows $12,000 BR2014 3/18/2025 loan of $19,461.10. Remaining amount available up to the max. of $25,000: $5,538.90. SFR LOAN PROGRAM - FINANCIAL SUMMARY 2024/2025 CDBG allocation: $62,688.00 SFR Case 24-02 - $9,600.00 Estimated balance $53,088.00 Loans Repaid CDBG Fiscal Year To Date: 10/1/24 – 9/30/25 Case # Date Paid Yrs to Repayment Amount Reason sold (if known) Page 9 of 21 Date: February 6, 2025 To: Mayor and Village Board of Trustees From: Arlington Heights Housing Commission Attachments: List of Designated Affordable Housing Units Housing Commission’s 2024 Activities and Accomplishments Housing Commission’s Draft 2025 Work Plan Background Village commissions were asked for feedback on what important issues related to their missions that their commission and the Village Board should consider discussing in 2026 and 2027. The suggestions are being provided, as requested, to assist the Village Board when they begin to develop strategic priorities for the community this summer. For 2024-2025, the Village Board adopted as a priority (Priority #9) “Seek, maintain, and expand affordable housing within the community.” At their February and March 2025 meetings, the Housing Commissioners recommended that it is important that affordable housing continue as a Village Board priority for 2026-2027. Issues The general issues/topics being discussed by the Housing Commission in 2025 are: • Inclusionary Housing Program: Continuation of the application of the Inclusionary Housing Ordinance and Guidelines for the creation of affordable housing units • Affordable Housing Trust Fund: Development by the Housing Commission of recommendations to the Village Board concerning uses for the approximately $1m in Trust Fund monies: o The type(s) of affordable housing to be recommended by the Housing Commission for (i.e., new construction, preservation of privately-owned affordable rental housing units, etc.) for support from the Trust Fund. Discussions have focused on need, feasibility, and potential impact. o Any priority population(s) that should be targeted with the initial allocations form the Affordable Housing Trust Fund (ex. senior aging-in-place, multi-generational housing, etc.). o The process by which specific affordable housing projects should be identified (ex. issuing a request for proposals). • Other Affordable Housing Development Resources (in addition to the Affordable Housing Trust Fund): Identification of affordable housing resources and opportunities (ex. Village- owned property, the redevelopment of Arlington Park, concepts for “missing middle” affordable housing, Township District 214 programs, and State and federal affordable housing programs). • Data Collection and Analysis: Improving the Village’s understanding of affordable housing needs and the locations of existing privately-owned affordable housing units by analyzing Page 10 of 21 the information being gathered via the affordability questions that have been added to the Multi-Dwelling License Application and other data sources. Further activities and details concerning the issues above are provided: • Attachment A: The Housing Commission’s 2024 activities and accomplishments • Attachment B: The 2025 Housing Commission Work Plan • Attachment C: The list of developments in Arlington Heights with dedicated affordable housing units and information on payments in lieu of providing affordable housing units Page 11 of 21 Attachment A 2025 Housing Commission Work Plan Inclusionary Affordable Housing • Review the affordable housing plans of any development proposals that come forward and are subject to the Inclusionary Housing Ordinance • Seek opportunities and provide input regarding opportunities for the creation of affordable housing including, but not limited to, those to which the Inclusionary Housing Ordinance would applies (ex. the redevelopment of Arlington Park) • If directed by the Village Board, review the effectiveness and impact of the Inclusionary Housing Ordinance Affordable Housing Trust Fund • Assess priority affordable housing type(s) (ex. new construction, affordable rental preservation, missing middle housing, etc.) to address priority populations (ex. senior aging-in-place) • Provide a recommendation to the Village Board based on the assessment above including a method for identifying projects such as a request for proposals Data Collection • Begin collecting and analyzing data from the affordability questions added to the Multi- Dwelling License Application Community Development Block Grant (CDBG) Funding* • Continue recommending and monitoring projects as funding allows • Promote CDBG-funded housing programs to the public including the Single-Family Rehab Program • Monitor and make recommendations to the Village Board in response to any changes in the availability of federal funding for affordable housing (including changes in CDBG funding) and look into alternative or additional affordable housing funding and other sources Other • Educate the public with respect to the Housing Commission’s role as the Village’s Fair Housing Review Board • Participate in educating the public regarding the meaning of affordable housing and the benefits of a balanced housing stock including housing for our low- and moderate-income residents * The CDBG stands for Community Development Block Grant, a federal grant program administered by the U.S. Department of Housing and Urban Development (HUD) to support community development projects, particularly benefiting low- and moderate-income communities. The CDBG program aims to develop viable urban communities by providing decent housing, expanding economic opportunities, and preventing or eliminating slums and blight. The Village of Arlington Heights receives an annual grant of CDBG funds formula basis. CDBG funds can be used for a wide range of activities, including housing programs, public services, public facilities, infrastructure improvements and economic development projects. The Village plans for the uses of its CDBG funds through a federally prescribed Consolidated Plan process. Page 12 of 21 Attachment B Housing Commission’s 2024 Activities & Accomplishments Inclusionary Affordable Housing • Reviewed and recommended approval of the affordable housing plan for the 3310 & 3255 Old Arlington Heights townhome development proposal. • Monitored the status of the following projects that include affordable housing units o Crescent Place Apartments, 40 affordable units, opened 11/2023 o 116-120 W Eastman, 7 affordable units o Arlington Gateway, 30 affordable units o Arlington 425, 16 affordable units o Grace Terrace, 25 affordable units • Monitored the status of the following tentative projects o 5 N Douglas, 6 proposed affordable units o Urban Street Group/TIF 4 proposed senior building o Berkshire Arlington Heights building Affordable Housing Trust Fund • Reviewed responses to the Request for Expressions of Interest (10 responses received) • Reviewed Village-owned property as a resource • Discussed and began investigating the need and programs to address preservation of existing, multi-family, market-rate rental housing including meeting with the Preservation Compact and Community Investment Corporation • Investigated senior aging-in-place need Data Collection • Worked with staff to add affordability questions to the Multi-Dwelling License Application to collect affordability data on privately owned rental housing. CDBG Funding • Made recommendations to the Village Board for CDBG funding of the Single-Family Rehabilitation Loan Program and Group Home Rehabilitation Grant Program • Monitored completion of 6 group home renovation projects approved in 2023 and 2024 • Approved 3 new group home renovation projects to be completed in 2025 • Approved and monitored 3 home improvement projects benefitting low/moderate-income homeowner households Page 13 of 21 Attachment C Arlington Heights Designated Affordable Units and Fees in Lieu Updated 3/20/2025 2 Development Name Affordable Total Affordable Approved Fee in Lieu of Units Units Provided Affordable Units Required by Village Federally Subsidized Buildings 1977 Albert Goedke Apartments 118 118 na (subsidized rental) 1979 Linden Place Apartments 190 190 na (110 units in senior building and 80 family townhomes, subsidized rental) 1985 Cedar Village Apartments 80 80 na (seniors/disabled, subsidized rental) Negotiated Inclusionary Housing (2004 – 2020) Development Name Affordable Total Affordable Approved Fee in Lieu of Units Units Provided Affordable Units Required by Village 2014 Timber Court Apartments 21 14* Na 2012 Arbor Lane Townhomes (for- 2 0 $30,378 in lieu of 2 affordable sale) units 2014 Parkview Apartments (rental) 7 41** Na 2016 Lexington Townhomes (for- 7 0 $120,000 in lieu of 7 affordable sale) units 2017 Heart’s Place Apts. – 2 18*** Na Permanent Supportive Housing (rental) 2017 4 N Hickory Apartments 11 0 $275,000 in lieu of 11 affordable (rental) units 2018 Residences at Payton Place - 13 9 $100,000 in lieu of 4 affordable Arlington Downs II (rental) units 2019 Arlington 425 Apartments - 24 16 Estimated $244,000 in lieu of 8 Construction not begun as of affordable units to be calculated 3/2025 (rental) and paid at time of permit. 2019 Sigwalt 16 Townhomes (for- 1.6 0 $120,000 in lieu of two affordable sale) units Inclusionary Affordable Housing Ordinance Approved (2020 to present) 2021 Crescent Place Apartment 4 40*** na (rental) 2023 116-120 W Eastman (rental) 10.125 7 Estimated $95,300 in lieu of 3.125 units to be calculated and paid at time of permit 2023 Arlington Gateway (rental) 30 30 na 2025 Grace Terrace – Permanent 3 25*** na Supportive Housing (rental) Under Review 5 N Douglas (rental) 6 6 proposed na Urban Street Group – TBD 37 senior building, na International Plaza proposed Page 14 of 21 Preliminary reviews in 2023 Old Arlington Row (rental 1.2 1 proposed Estimated $17,580 in lieu of .2 townhomes) affordable housing units to be calculated and paid at time of permit * Three buildings originally approved with 7 affordable units each (21), but only 2 buildings were built. Therefore, there are 14 affordable units. ** Parkview total number of units is 45. 41 are affordable are as required by public financing (low-income housing tax credits, Cook County HOME funds, etc.) to be affordable for a minimum of 30 years. 7 units are required by the Village to be affordable in-perpetuity *** Heart’s Place (permanent supportive housing), Crescent Place, and Grace Terrace - 100% affordable buildings. All units are required due to public financing to be affordable for a minimum of 30 years. The numbers of Village-required affordable units must be affordable in-perpetuity. The numbers of Village required affordable units are 10% of the total number of units or Heart's Place 2, Crescent Place 4, and Grace Terrace 3. Page 15 of 21 4/16/2025 Item: 2025-2029 Consolidated Plan and 2025 Annual Action Plan including 2025-2026 CDBG Funding Applications Department: Item Description: ATTACHMENTS: 1. 2025-2029 Condolidated Plan and 2025 Annual Action Plan Page 16 of 21 Date: April 2, 2025 To: Chairman and Members of the Housing Commission From: Nora Boyer, Housing Planner Background The Consolidated Plan is a document designed by HUD to assist local governments in assessing their affordable housing need, community development needs, and market conditions. This information is used to make decisions regarding how the local government will use its Community Development Block Grant (CDBG) funds and other resources to address the identified needs. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summaries of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. The Village of Arlington Heights has begun the process for creating the 2025-2029 Consolidated Plan including its 2025-2026 Annual Action Plan and Community Development Block Grant (CDBG) budget. The 2025-2026 Annual Action Plan covers the program year from October 1, 2025 – September 30, 2026. For the past several years, it has been the practice of the Housing Commission to make recommendations to the Village Board concerning CDBG allocations for: 1. The Single-Family Rehabilitation Loan Program 2. The Group Home Rehabilitation Grant Program The Housing Commission is not limited with regard to its funding recommendations provided that recommended projects are eligible under the CDBG laws and regulations. The Housing Commission is also invited to comment on the full draft of the 2025-2029 Consolidated Plan and the 2025-2026 Annual Action Plan when they are available. Key Dates for the 2025-2029 Consolidated Plan and 2025 Annual Action Plan April 1, 2025 Release of the CDBG Grant Application form for the 2025-2026 program year April 16, 2025 Housing Commission makes 2025-2026 CDBG funding recommendations April 30, 2025 Due date for CDBG Grant Applications June 9, 2025 First Public Hearing - Held at the Committee of the Whole meeting concerning the draft 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan including 2025-2026 the CDBG budget June 11, 2025 – Public Comment Period on the draft 2025-2029 Consolidated Plan and July 13, 2025 2025-2026 Annual Action Plan including 2025-2026 the CDBG budget Page 17 of 21 July 21, 2025 Second Public Hearing – Held at the Village Board meeting concerning the draft 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan including 2025-2026 the CDBG budget and scheduled adoption thereof August 15, 2025 Adopted 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan including the 2025-2026 CDBG budget are due to HUD HUD has not yet announced the amount of the Village’s 2025-2026 CDBG allocation. Staff is using as an estimate of projected revenue of: 2025 New CDBG Allocation: $315,000 Carry over of Prior Years CDBG Funds: $ 75,000 Total: $385,000 The allocations and project commitments for the past 5 years for the Single-Family Rehabilitation Loan and the Group Home Rehabilitation Grant Program are attached (Attachment A). The overall CDBG budget for the current (October 1, 2024 – September 30, 2025) program year is also attached (Attachment B). Recommendations: The Housing Commission may wish to make CDBG funding recommendations for the 2025-2026 program year at its April 16, 2025 meeting. Staff suggests the recommended funding amount of $75,000 for the Single-Family Rehab Loan Program and $110,000 for the Group Home Rehab Grant Program for projects to be undertaken during the 2025-2026 program year (October 1, 2025 – September 30, 2026). Page 18 of 21 Attachment A 5-Year History CDBG Allocations and Expenditures/Commitments CDBG Year Single-Family Rehab Group Home Rehab Grant Loan Program Program 2024-2025 Current Year to Date Allocation: $62,688 Allocations: $90,000 October 1, 2024 – September 30, 2025 Expenditures: $9,600 Committed: $75,954 2023-2024 Allocation: $ 34,314 Allocations: $115,000 October 1, 2023 – September 30, 2024 Expenditures $ 10,688 Expended/Committed: $102,816 2022-2023 Allocation: $100,000 Allocations: $68,240 October 1, 2022 – September 30, 2024 Expenditures: $ 6,089 Expended/Committed: $64,110 2021–2022 Allocation: $ 60,465 Allocations: $113,000 October 1, 2021 – September 30, 2022 Expenditures: $ 0 Expended/Committed: $104,175 2020-2021 Allocation: $ 39,310 Allocations: $ 25,000 October 1, 2020 – September 30, 2021 Expenditures: $ 9,699 Expended/Committed: $ 25,000 Page 19 of 21 Attachment B Page 20 of 21 4/16/2025 Item: Review of Arlington Heights Zoning Map Department: Item Description: ATTACHMENTS: None Page 21 of 21