HRA director talks future housing affordability, updates on current projects

Kirsten Wisniewski | July 2, 2024

June included a major groundbreaking for the Housing Redevelopment Authority (HRA). The Gunflint Vue housing project in now officially underway, but when Executive Director Jason Hale spoke with WTIP following the HRA board’s Jun. 19 meeting, the focus was on the other projects that the HRA is still working on.

Harborview Apartments

Hale announced that after seven months of negotiating, the HRA worked out an agreement with the owners of the Harborview Apartments. After the building changed hands last year, there was significant concern from residents and community members about what the future of the building could be. According to Hale, in a community with limited affordable housing, preserving the Harborview’s status as affordable senior housing, was paramount. He said that the HRA has officially reached an agreement with new owners for when the current Housing and Urban Development contract runs out in 2025. He said, “So at this point, for the next 12 years, the agreement has up to 22 units being reserved for Section Eight voucher holders for seniors.”

Utility allowances for future affordability agreements

While preserving the affordability of existing units has been a priority for the HRA, the board has also been concerned about including stipulations for the new construction project they group has supported. The agreements require that the developers rent some units in the building at a more affordable rate. On top of those agreement, Hale said that the HRA is exploring the idea of utility allowances. He said that utility allowances can vary; whether they are based on a percentage of utility costs or a fixed amount, and what utilities might be included in an allowance. No matter what the details are, the allowances aim to include the cost of utilities in the price of units designated as “Affordable” housing.

Hale said that at this time, none of the agreements around affordability that the HRA has made with developers currently working on projects in Cook County include a utility allowance. However, he added that the HRA is discussing the topic now in preparation for future agreements, when they may look to include utility costs in defining the terms of a contract for affordable units. Hale said that for the affordability agreements with developers of current projects, the terms are set, so it is too late to add a utility allowance.

Restrictive covenants to limit vacation rentals

Another way that the HRA is looking toward the future is by developing language for a restrictive covenant to make publicly available for homeowners looking to sell their homes. Hale said, “The notion with restrictive covenant is to provide homeowners who are selling, if they want to, to provide them a free tool, so to speak, that would restrict the future use of that property they’re selling so that it can’t be turned into a short term rental.”

Hale pointed out that though vacation rental properties do cut into the available housing stock for people looking to rent long-term, an even larger number of properties in the county are second homes. He added, however, that there isn’t a way to regulate whether a property is used as a second home, but that it is possible to restrict the use of a property as a business. Hale said that the HRA wants to offer “boiler-plate” language for homeowners or real estate agents to use in selling a house, if the owner is looking to ensure that the home remains a residence. He was careful to say, however, that the HRA is not looking to offer any legal advise, and that homeowners will need to consider what additional impacts a restrictive covenant might have on the selling process.

New development updates

While the HRA works through these longer-term or administrative projects and considerations, the efforts to support the building of more housing stock is also still underway. Hale gave updates on two of the housing projects that the HRA is supporting.

The Heights

Hale said that the developers of The Heights are make adjustments to their designs based on updated cost information. They have had to eliminate the underground parking element of the plan, and change the layout of the property to accommodate parking spots for residents. He said that the project’s developers are finalizing financing for the building. Once that step is completed, the HRA can close on a development agreement, which would allow the project to start in earnest. He added, “I suspect that will if it closes in the next couple of months here, which is the goal, they would do some site prep this this fall yet, and then the lion’s share of the construction happened in spring.”

Temperance Trails

In Tofte, the Temperance Trails developers are also doing some project redesigning. They are adjusting to accommodate power lines across the property. Hale said that plat approval for the development will go before the County Planning commission in August. The plan also includes the preservation of the Birch Grove campground and outdoor education area, keeping it available to the public and to students. If this all goes to plan, Hale said he expects the HRA to formally sell the property to the developer in September.

WTIP’s Kirsten Wisniewski spoke with HRA Executive Director Jason Hale after the Jun. 19 HRA board meeting.