HRA talks funding for Birchwood Apartments and preparations for a busy 2024 construction season

The Cook County Housing Redevelopment Authority (HRA) met on Dec. 20 to discuss the status of the ongoing HRA projects.  The projects range from supporting renovations of existing buildings, to brand new builds, and span a wide range of planning stages as 2023 comes to an end. HRA Director Jason Hale spoke with WTIP about what progress the HRA made on the proposed projects, and what other issues were raised at the December meeting.

Existing housing concerns

The HRA received some good news for the Birchwood Apartments, an existing housing complex which is in need of major repairs and renovations. In March, WTIP reported on an evaluation conducted by the USDA earlier this year to identify the maintenance needs at Birchwood. At the Dec. 20 meeting, Hale reported that state funding for the renovations and repairs at Birchwood has been approved.

One Roof Community Housing, who will coordinate the building work, is set to receive $10.5 million to do what Hale describes as a relatively complete remodel. The HRA is not managing this overhaul directly, but Hale said, “My understanding is the funding really is going to be sort of a whole picture renovation. So from kitchens to flooring to electrical to plumbing, I’m not sure that there’s anything that won’t be renovated.”

Hale also commented on another existing building of public concern, the recently sold Harborview Apartments. While he could not give details on the plans or intentions of the new owners, he stated that he has been in contact with the Department of Housing and Urban Development (HUD) to learn more about what options the HRA might have for maintaining access to affordable housing in the community. He said that the HRA was looking at the possibility of transferring the HUD budget to different housing units, in the event that the new owners of Harborview choose not to extend their contract with HUD to accept Section 8 housing vouchers.  Hale stressed that this subject is still an ongoing conversation.

New building projects

Beyond the effort to navigate changes with existing housing in the community, the HRA has also had a busy year of work on new housing developments. Hale gave an update on four separate developments that the HRA is currently working on, in addition to the Switchback Apartments, set to break ground in the Spring.

The Heights is a 36-unit apartment project that will be located just East of Up Yonder on Highway 61. The planning effort has been lead by community members, but the HRA is in the process of applying for funding from the Iron Range Resources and Rehabilitation Board (IRRR). Hale stated that if that funding is granted, remaining support could fall into place. He said, “If that is funded, then it’s sort of a domino effect, where we can lock in a request and lock in other funding sources. And if all goes well, that means that they would be breaking ground 2024 and potentially wrapping up construction by the end of 2024.”

Another project that the HRA is requesting IRRR funding for is known as Bjorkberg. This 20-unit single-family townhome project would be built on a roughly 2-acre parcel on 3rd St between 6th and 8th avenues.  Hale stated that most of the homes would be slated for market-rate sales, however he also mentioned that the HRA is looking to reserve some units for more affordable options.

The Temperance Trails development is another proposed project that would include a mix of market-rate and affordable units. The 22 units are slated to be single family homes, with 25 percent of the lots reserved for homes that will cost $290,000 or less. The Cook County Board of Commissioners approved the HRA’s conditional use request on the property, which neighbors the Birch Grove School in Tofte at their meeting on Dec. 19. This allows the HRA to move forward with more detailed planning for the units. With that permit in place, Hale said that construction on the project is slated to begin when the weather allow in the spring.

One additional project that is still in the early planning phase would be built on two parcels on the Gunflint Trail near the Cedar Grove Business Park. The HRA is purchasing the land for the so-called Cedar Grove project for $1 from the Economic Development Authority (EDA). The specific plan for how many and what type of units will be built on that land is yet unknown. Hale said that with the sale and rezoning of the properties, planning can start in earnest. He said, “This is early in the process right now. Because it’s rezoned, we can have more serious conversations with folks about what can be done there, and what the what the community needs and how the HRA can support it.”

Looking forward

As Director Hale gave updates on the status of the HRA’s current projects, two concerns were raised about the new construction- sustainability and building materials.

Several of the HRA board commissioners expressed that they would like developers to consider sustainability in their planning. They raised the question of what kind of standards the HRA could set, or what a revue of the proposed plans from developers should be considering. Hale pointed to the initial higher cost as a deterrent for developers choosing sustainable options.

He said, “If they are more expensive to finance initially, who’s going to fill the gap of cost? We can build things into our agreements, indications, of course, with developers, to tell them this is a priority that we want to explore and how we partner with it. Maybe there are additional resources we can help them pursue.” Hale said that the Switchback Apartments project is an example of this type of conversation, where the developers and municipality are working to explore the option of an all-electric building.

Hale also explained an additional barrier that developers in the county face that can push up the cost of new buildings- sand and substrate. He spoke about what he learned from a meeting of septic and excavation contractors. He said that they indicated that there are issues with the supply and distribution of sand and substrate products, as well as skilled labor in the county.

The result is that in order to achieve large building projects, like those currently planned by the HRA, materials like concrete have to be brought in from Two Harbors, Duluth, or the Iron Range. This, in turn, drives the cost of those building materials up. Hale said, “Our logistics do really complicate and increase costs.”

2023 takeaways

2023 was a major planning year for the HRA, and the early part of 2024 is expected to include a lot of construction in the community. When asked to reflect back on 2023 for the HRA, Director Hale said that he was struck by two things. First, referring to two projects that he was hoping would have already begun construction, he received a “humbling reminder” that projects rarely go completely to plan. Second, he said, “The other thing that I that I take away from this year is how remarkable the Cook County community is. And this isn’t lip service, there’s so many people invested in this housing outcome.”

Looking toward 2024, Hale said, “It’s been a busy year. And now that it’s going to be busier, the first quarter of 2024 looks pretty hectic. I’m a little anxious about it. But I’m also excited.”

WTIP’s Kirsten Wisniewski spoke with HRA director Jason Hale about the HRA board meeting on Dec. 20, and about the status of several proposed projects in Cook County. Hale also reflected on what the HRA achieved in 2023 and what 2024 may look like. Full audio below.

Kirsten Wisniewski December 26, 2023