ILLINOIS HOUSING DEVELOPMENT AUTHORITY June 17, Those present (unless otherwise noted below as absent):

Transcription

1 ILLINOIS HOUSING DEVELOPMENT AUTHORITY Pursuant to notification given June 15, 2016, the Members of the Illinois Housing Development Authority (the Authority ) met for a regular scheduled meeting on, at the offices of the Authority, 401 North Michigan Avenue, Suite 700, Chicago, Illinois. Those present (unless otherwise noted below as absent): BOARD: Karen Davis Cristina Castro Mary Kane Harlan Karp William Malleris Alyssa Rapp Sam Tornatore STAFF: Audra Hamernik Debbie Olson Kathryn Finn Nandini Natarajan Colleen Synowiecki Christine Moran Peter Selke Tracy Wortham Tim Veenstra Neil O Callaghan Vanessa Boykin Tara Pavlik Charlotte Flickinger John Chung Elizabeth Geer Keith Pryor Matt Rangel Derek Walvoord Jamie Campbell Andrew Nestlehut Monica Enriquez Rosanne Sepka GUESTS: Rachel Smith Tom Smith Larry Dillard Scott Schmitt Vice Chairperson Member Member Member (absent) Member Member Member Executive Director Chief of Staff Deputy General Counsel Chief Financial Officer Executive Coordinator Director, Multifamily Financing Director, Hardest Hit Program Director, Human Resources Director, Asset Management Director, Information Systems Controller Director, Homeownership Legislative Liaison Assistant Director, Finance Structuring Multifamily Programs Multifamily Programs Multifamily Programs Multifamily Programs Multifamily Programs Finance Systems Analyst Assistant Director, Community Affairs Compliance Supervisor, HHF Mayer Brown Greenberg BNY Mellon US Bank

2 Page 2 of 20 Ken Funk DLEC Lauren Lukoff DLEC Kevin Barney Kutak Rock LLP Jason Rosheire KPMG LLP Jackie Sippel KPMG LLP Brian Hollenbach Growth Sonia Berg Growth Katie Karifels UP Development Cullen Davis UP Development Renee Brownlee YWCA Kristen White YWCA Dawni Freeman Brinshore Chris Block Brinshore James Fessler DuPage Habitat Steve Teselle Security Properties Jacques Sandberg Related Ana Rounds BEDS Plus Pat Abrams CRN Julia Cowan OTR John McKean DeKalb Michael Coghlan DeKalb R. Cafarelli Zion Bank Sarah Brachle Wagner SBW Damen Duncan Housing, Elgin Julie Dagrova Habitat Lake County Larry Pusateri LGG With a quorum consisting of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. Tornatore being present, Vice Chairperson Davis called the meeting to order at 10:08 a.m. Executive Director Hamernik introduced the Authority s new Controller, Vanessa Boykin. 16-IHDA-061 Executive Director Hamernik introduced Item 1 on the Agenda: Resolution Approving the Minutes of the Meeting of the Members of the Illinois Housing Development Authority held on May 31, A motion to adopt the Minutes of the May 31, 2016 meeting was made by Mr. Tornatore and seconded by Ms. Kane; the Minutes were adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris, and Mr. 16-IHDA-062 Executive Director Hamernik introduced Item 2 on the Agenda: Resolution Authorizing Acceptance by the Authority of a Foreclosure Mitigation Counseling Grant through NeighborWorks America for Round 10 of the National Foreclosure Mitigation Counseling Program and Authorizing the Authority to Enter into Agreements with Sub-Grantees.

3 Page 3 of 20 Ms. Enriquez stated that pursuant to the Neighborhood Reinvestment Corporation Act, the Neighborhood Reinvestment Corporation, d/b/a NeighborWorks America ( NeighborWorks ) is authorized to establish neighborhood housing services programs throughout the United States, monitor their progress, and provide them with grants and technical assistance and that NeighborWorks has established the National Foreclosure Mitigation Counseling Program ( Program ), whereby state housing finance agencies and other approved housing counseling intermediaries, can apply for grants, from funds made available through the 2016 Consolidated Appropriations Act to provide mortgage foreclosure mitigation assistance to owners of owner-occupied singlefamily homes ( Homeowners ) located in areas with high rates of defaults and foreclosures in order to help prevent the foreclosure of mortgages that are in default or in danger of default. She then stated that the Authority has determined that it is in its best interest to participate in the Program and has applied to NeighborWorks for a grant in connection with the Program and received a contingent grant award in the amount of $409, ( Grant ) which is contingent upon the Authorities execution of the National Foreclosure Mitigation Counseling Program Round 10 Grant Agreement ( Grant Agreement ). Ms. Enriquez further stated that the Authority will enter into agreements (individually, an Agreement and collectively, Agreements ) with qualified housing counseling agencies ( Sub-Grantees ) in order to use the proceeds of the Grant to provide counseling services to homeowners. A list of Sub-Grantees and a summary ( Summary ) that sets forth the amount expected to be allocated to each Sub-Grantee for the provision of Counseling Services and related Program costs is described in Exhibit A attached to the Resolution. Ms. Enriquez requested authorization to accept the Grant and enter into the Grant Agreement with NeighborWorks, and to enter into Agreements with the Sub-Grantees for the provision of the Counseling Services to Homeowners. Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-063 Executive Director Hamernik introduced Item 3 on the Agenda: Resolution Authorizing the Illinois Housing Development Authority to Enter into Agreements with Sponsors for the Illinois Hardest Hit Fund Homeowner Emergency Loan Program. Ms. Sepka stated that the Authority submitted a successful proposal to Treasury for the use of funds allocated to the HHF Program to develop and implement the Illinois Hardest Hit Fund Homeowner Emergency Loan Program ( HHF HELP ) in order to help prevent foreclosures and stabilize housing markets in

4 Page 4 of 20 Illinois. She then stated that the Authority and Treasury entered into that certain Commitment to Purchase Financial Instrument and HFA Participation Agreement, as amended and as may be further amended from time to time (collectively, HFA Agreement ). Ms. Sepka then requested authorization to enter into agreements (individually, an Agreement and collectively, Agreements ) with the agencies described in the Resolution ( Sponsors ). She further stated that the Sponsors will assist the Authority in implementing HHF HELP through the screening and presenting to the Authority of eligible borrowers pursuant to the requirements of HHF HELP ( Eligible Borrower ) along with supporting documentation and a loan package in compliance with HHF HELP (collectively, Services ) and that Treasury has approved $ to be paid to each Sponsor for its Services for each Eligible Borrower it submits to the Authority which is comprised of a $ payment for costs and $ for each successful file, and Treasury may approve an increase in said payment (an Individual Sponsor Payment ). A motion to adopt the Resolution was made by Ms. Castro and seconded by Ms. Rapp; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-064 Executive Director Hamernik introduced Item 4 on the Agenda: Resolution Authorizing a Grant from the Trust Fund Program to the Chicago Rehab Network for Technical Assistance and Training Program. Ms. Flickinger stated that the Authority has been designated the program administrator of the Illinois Affordable Housing Program ( Trust Fund Program ) under the Illinois Affordable Housing Act. She then stated that the Chicago Rehab Network has requested to receive a grant from the Trust Fund Program ( Grant ) in an amount not to exceed $225, for the provision of technical assistance and training workshops to the Sponsor s nonprofit members and others ( Project ). She further stated that the proceeds of the Grant will be disbursed on a reimbursement basis based on established benchmarks evidencing continued progress and successful completion of the Project, until the full amount of the Grant is disbursed, but in no event beyond 24 months from the closing date of the Grant as described in Exhibit A attached to the Resolution. Executive Director Hamernik stated that these funds will be committed contingent upon the state budget and the passing of SB2038 and GOMB declaring this as essential. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice

5 Page 5 of 20 Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-065 Executive Director Hamernik introduced Item 5 on the Agenda: Resolution Authorizing Funds from the Trust Fund Program for a Single Family Rehab Program. Ms. Pavlik stated that the Authority desires to establish a homebuyer rehabilitation assistance program ( Single Family Rehab Program ) that will use $3,000, of funds from the Trust Fund Program to carry out the purposes of the Single Family Rehab Program. She then stated that the Authority will offer grants through the Single Family Rehab Program ( Grants ) to units of local government and non-profit organizations ( Sponsors ) which will provide financing to low-income households for rehabilitation of properties, as described in Exhibit A attached to the Resolution. She further stated that the Sponsors will be selected by the Authority through an application process and in accordance with the requirements set forth in the Exhibit A, and approval of such Sponsors will be subject to a resolution passed by a majority of the Members of the Authority. She then requested the Members authorization to establish the Single Family Rehab Program for a two-year term as set forth in the Exhibit A. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-066 Executive Director Hamernik introduced Item 6 on the Agenda: Resolution Authorizing Funds from the Trust Fund Program for a Home Accessibility Program. Ms. Pavlik stated that the Authority desires to establish an accessibility repair program ( Home Accessibility Program ) that will use $3,000, of funds from the Trust Fund Program to carry out the purposes of the Home Accessibility Program. She then stated that the Authority will offer grants through the Home Accessibility Program ( Grants ) to units of local government and non-profit organizations ( Sponsors ) which will provide financing to senior citizens and persons with disabilities for repairs that will allow them to remain in their homes, as described in Exhibit A attached to the Resolution. She further stated that the Sponsors will be selected by the Authority through an application process and in accordance with the requirements set forth in the Exhibit A, and approval of such Sponsors will be subject to a resolution passed by a majority of the Members of the Authority. She then requested the Members authorization to establish the Home Accessibility Program for a total of ten years

6 Page 6 of 20 to occur in two-year terms as approved by the majority of the Members of the Authority. Mr. Malleris stated that persons with disabilities have been united in their efforts for 16 years to get this program. This resolution will provide stability for people with disabilities to remain in their homes. Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-067 Executive Director Hamernik introduced Item 7 on the Agenda: Resolution Authorizing a Community Impact Fund Round 2 from the Trust Fund Program with Habitat for Humanity of Illinois. Ms. Pavlik stated that the Authority desires to partner with Habitat for Humanity of Illinois ( HFH Illinois ) and establish a fund ( Habitat for Humanity Community Impact Fund Round 2 ) that will use approximately $1,000, of funds from the Trust Fund Program ( Funds ). She then stated that the Authority will grant the Funds for the Humanity Community Impact Fund Round 2 to HFH Illinois ( Grant ) and, through HFH Illinois, the Authority will offer assistance, structured as five (5) year forgivable loans, to low and moderate income households to (i) offset construction costs over and above the appraised value of a home, or (ii) to buy down the sales price to ensure the mortgage loan for the acquisition of the home does not exceed 30% of the household s gross monthly income; the terms of the Habitat for Humanity Community Impact Fund Round 2 and the Grant are described in Exhibit A attached to the Resolution. She then requested the Members authorization to partner with the Habitat for Humanity of Illinois and the Grant be approved for the Impact Fund Round 2. A motion to adopt the Resolution was made by Ms. Castro and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-068 Executive Director Hamernik introduced Item 8 on the Agenda: Resolution Authorizing Funding Allocations for a Permanent Supportive Housing Development Program. Ms. Moran stated that the Authority has been designated the program administrator of the Illinois Affordable Housing Program ( Trust Fund ). Ms. Moran stated that pursuant to an Interagency Agreement ( IGA ) between the Authority and the Illinois Department of Commerce and Economic Opportunity ( DCEO ), $17,800,000 of taxable bond proceeds ( Bond Funds )

7 Page 7 of 20 were allocated by DCEO to the Authority to make mortgage loans and grant to developers for the construction and rehabilitation of affordable multifamily developments that serve low and moderate income households in the State. She then stated that pursuant to Resolution No IHDA-019, the Authority established a pilot program ( Building Blocks Pilot Program ) wherein the Authority used approximately $40,000,000 of State Capital Funds to offer financing for the acquisition and rehabilitation of abandoned or foreclosed properties and program income has been generated during the course of the Building Block Pilot Program ( Building Blocks Program Income ). She further stated that the National Housing Trust Fund ( NHTF ) was established under Title I of the Housing and Economic Recovery Act of 2008; funds from the NHTF may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities and the Authority is the state-designated entity authorized to run the HTF program within the State; and Ms. Moran then stated that the Authority desires to fund permanent supportive housing developments by offering financing for permanent supportive housing developments containing 25 units or less as described in Exhibit A attached to this Resolution (the PSH Program ) using up to $22,300,000 from the following sources: (i) (ii) (iii) (iv) Up to $12,000,000 of funds from the Trust Fund; and Up to $2,300,000 of Bond Funds; and Up to $4,500,000 of funds from the NHTF; and Up to $3,500,000 of Building Blocks Program Income; and She added that the Members of the Authority will from time to time be requested to review and approve specific projects that are identified to receive financing under the PSH Program. Mr. Malleris stated that he is pleased to see this type of approach to reach the smaller developments. Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. 16-IHDA-069A Executive Director Hamernik introduced Tab A under Item 9 on the Agenda: Resolution Authorizing a Credit Advantage Loan and FFB Risk Sharing Loan for El Zocoalo: LaComunidad de Brighton Park f/k/a Back of the Yards Residences (CA/FFB-11194), Chicago, Illinois.

8 Page 8 of 20 Ms. Geer stated that the UPD 47th St. LP has requested the Authority make the following loans for the acquisition, construction and/or permanent financing of the multi-family housing development known as El Zocalo; LaComunidad de Brighton Park (f/k/a Back of the Yards Residences) ( Project ): a. a first position construction loan under its Credit Advantage Program in an amount not to exceed $7,500, or 80% of the loan to value of the Project, whichever is greater ( Credit Advantage Loan ): i. One tranche in an amount not to exceed $1,792, that must be drawn down in full within the first six months after initial closing; and ii. One tranche in an amount not to exceed $5,707, b. upon construction completion, a first position permanent loan under the FFB/542(c) Risk Sharing Program from funds provided by FFB and credit enhanced under the FFB/542(c) Risk Sharing Program, in an amount not to exceed $1,792, or 87% of the loan to value of the Project, whichever is greater ( FFB Risk Sharing Loan ). Mr. Malleris stated that this project is an excellent form of integration of accessibility and adaptability. Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069B Executive Director Hamernik introduced Tab B under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (FTC/STC-11230) for LaGrange PSH, LaGrange, Illinois. Mr. Pryor stated that BEDS Plus Care, Inc. has applied to the Authority for FY2016 State Tax Credits in the amount of 348,649 in connection with the acquisition, construction and permanent financing of a multifamily housing development to be known as LaGrange PSH ( Project ), as described in Exhibit A attached to the Resolution. Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice

9 Page 9 of IHDA-069C Executive Director Hamernik introduced Tab C under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (FTC/STC-11197) for McCrory Senior Apartments, Chicago, Illinois. Mr. Pryor stated that McCrory Senior Apartments, LLC has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 930,000, in connection with the acquisition, construction and permanent financing of a housing development to be known as McCrory Senior Apartments ( Project ), as described in Exhibit A attached to the Resolution. Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069D Executive Director Hamernik introduced Tab D under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11316) for YWCA Evanston/Northshore Housing Project, Evanson, Illinois. Mr. Rangel stated that YWCA Evanston/Northshore has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 1,000,000, in connection with the acquisition and permanent financing of a housing development to be known as YWCA Evanston/Northshore Housing Project ( Project ), as described in Exhibit A attached to the Resolution. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069E Executive Director Hamernik introduced Tab E under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11228) for Highland Green, Urbana, Illinois. Mr. Rangel stated that Highland Green LLC has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 75,000, in connection with the acquisition, construction and permanent financing of a housing development to be known as Highland Green ( Project ), as described in Exhibit A attached to the Resolution. Mr. Malleris stated that this project represents an outstanding initiative using the single family duplex approach in regards to the accessible and adaptable units. Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice

10 Page 10 of IHDA-069F Executive Director Hamernik introduced Tab F under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11361) for Habitat for Humanity, Lake County, Waukegan, Beach Park and North Chicago, Illinois. Mr. Walvoord stated that Habitat for Humanity Lake County has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 510,123, in connection with the acquisition, construction or rehabilitation and sale of 6 homes to be known as Habitat for Humanity Lake County ( Project ), as described in Exhibit A attached to the Resolution. Mr. Malleris stated that the 100% adaptable units and construction numbers are excellent. Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069G Executive Director Hamernik introduced Tab G under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11362) for DuPage Habitat for Humanity Neighborhood, West Chicago, Bensenville, Hanover Park and Glendale Heights, Illinois. Mr. Walvoord stated that DuPage Habitat for Humanity has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 467,490, in connection with the acquisition, construction and sale of four homes and the acquisition, rehabilitation and sale of one home, to be known as DuPage Habitat for Humanity Neighborhood ( Project ), as described in Exhibit A attached to the Resolution. Ms. Castro stated that she appreciates funding Habitat projects because it brings families together. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069H Executive Director Hamernik introduced Tab H under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11364) for Employee Assisted Housing Phase IX, Rock Island, Illinois. Mr. Walvoord stated that Rock Island Economic Growth Corporation has applied to the Authority for FY2016 State Tax Credits in the amount not to

11 Page 11 of 20 exceed 339,587, in connection with the provision of grants and closing cost assistance to employees who work for participating employers for the purchase of homes, the homes will be at scattered sites in the Rock Island area to be known Employees Assisted Housing Phase IX, ( Project ), as described in Exhibit A attached to the Resolution. Mr. Malleris asked if disabled employees would be receiving more assistance. Mr. Hollenbach stated that RIEGC works with service providers to make sure needs are met for all individuals and families. Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069I Executive Director Hamernik introduced Tab I under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (FTC/STC-11205) for Midtown Crossing Apartments, DesPlaines, Illinois. Ms. Campbell stated that Midtown Crossing GP, LLC has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 325,000, in connection with the acquisition, construction and permanent financing of a housing development to be known as Midtown Crossing Apartments ( Project ), as described in Exhibit A attached to the Resolution. Mr. Malleris stated that the 100% accessibility in a PSH development is excellent. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-069J Executive Director Hamernik introduced Tab J under Item 9 on the Agenda: Resolution Authorizing State Tax Credits (STC-11355) for River s Edge Townhomes, Elgin, Illinois. Mr. Rangel stated that Bear Development, LLC has applied to the Authority for FY2016 State Tax Credits in the amount not to exceed 1,615,666, in connection with the acquisition, rehabilitation and permanent financing of a housing development to be known as River s Edge Townhomes ( Project ), as described in Exhibit A attached to the Resolution. Ms. Castro congratulated the developer. She stated that they are doing a great job in Elgin. She stated that the tenants wanted to thank everyone who is involved with the development and she stated that she will push to bring more low income housing to Kane County.

12 Page 12 of 20 A motion to adopt the Resolution was made by Mr. Castro and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Mr. Dean Frieders the DeKalb City Attorney participated telephonically for the following 3 resolutions. He dialed in on line XXX-XXX Vice Chairperson Davis stated that the next 3 Resolutions will be presented, the audience will then have an opportunity to speak about the project then the Members will vote on each Resolution separately. 16-IHDA-069K Executive Director Hamernik introduced Tab K under Item 9 on the Agenda: Resolution Authorizing a Loan for University Village Phases I and II (CDT ), DeKalb, Illinois. Ms. Campbell stated that DeKalb I Preservation LP has applied to the Authority for a Conduit Bond Loan in the amount not to exceed $43,000,000, in connection with the acquisition, rehabilitation and short term financing of a housing development to be known as University Village Phases I and II ( Project ), as described in Exhibit A attached to the Resolution. Mr. Malleris stated he was very pleased with the addition of the accessible units. 16-IHDA-069L Executive Director Hamernik introduced Tab L under Item 9 on the Agenda: Resolution Authorizing a Loan for University Village Phase III (CDT-11149) DeKalb, Illinois. Ms. Campbell stated that DeKalb 3 Preservation LP has applied to the Authority for Conduit Bond Loan in the amount not to exceed $12,000,000, in connection with the acquisition, rehabilitation and short term financing of a housing development to be known as University Village Phase III ( Project ), as described in Exhibit A attached to the Resolution. 16-IHDA-070 Executive Director Hamernik introduced Item 10 on the Agenda: Resolution Authorizing the Issuance of Not to Exceed $55,000,000 Aggregate Principal Amount of Multifamily Housing Revenue Bonds, Series 2016 (University Village Apartments). Mr. Chung stated that this Resolution will authorize the issuance by the Authority of not to exceed $43,000,000 aggregate principal amount of Multifamily Housing Revenue Bonds (University Village Phases I and II Apartments) Series 2016A and not to exceed $12,000,000 aggregate principal amount of Multifamily Housing Revenue Bonds (University Village Phase III Apartments) Series 2016B, together the Bonds. The proceeds of the Bonds will be lent to DeKalb 1 Preservation LP and DeKalb 3 Preservation LP, and the Borrowers will issue one or more Notes the aggregate

13 Page 13 of 20 principal amount of which shall equal the aggregate principal amount of the Bonds, requiring payments corresponding to principal and interest coming due on the. The proceeds of the Bonds will be used to finance or reimburse a portion of the cost of acquiring, rehabilitating and equipping multifamily residential properties to be located in the City of DeKalb, DeKalb County, Illinois. The terms of each series of the Bonds will be set forth in separate, but substantially similar, indentures, with the Bonds being issued pursuant to a Trust Indenture entered into between the Authority and Zions Bank, a Division of ZB, National Association, as trustee. The issuance of the Bonds is a conduit financing, not part of the multi-family pooled financing programs of the Authority. The Bonds will be special limited obligations (and not general obligations) of the Authority and the provisions of Section 26.1 of the Illinois Housing Development Act do not apply to the Bonds. The Bonds will be publicly offered by Stifel, Nicolaus & Company, Incorporated (the Underwriter ) pursuant to a Purchase Contract among the Underwriter, the Authority and the Borrower. The Bonds will be issued with fixed interest rates in each case not to exceed 5.00% per annum, and with maturity dates in each case not later than August 1, Authorized denominations for the Bonds shall be integral multiples of $5,000. This is a delegation Resolution. Issuance of the Bonds will require the use of volume cap in an aggregate amount not to exceed $55,000,000. Such volume cap will be allocated to the Bonds by the Authority. Ms. Davis introduced Mr. Michael Coglhlan and Mr. John McKean. Mr. Coghlan stated objections to the approval of this project. Including 1) requesting to view the Bond documents prior to the closing and to postpone the closing; 2) stating that the TEFRA hearing minutes had errors and 3) questions about the zoning decision. Mr. McKean made statements about the property assessment in relation to other properties. Mr. Frieders made statements confirming the validity of the zoning decision. A discussion ensued regarding the public hearings which took place in DeKalb. Mr. Smith confirmed compliance of actions with tax code requirements. Ms. Natarajan and Ms. Moran made statements about the Authority financial position in this project.

14 Page 14 of 20 A motion to adopt Resolution 16-IHDA-069K for University Village Phases I and II (CDT-11148), was made by Ms. Castro and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Rapp, Mr. Malleris, and Mr. Ms. Kane abstained from voting due to her involvement with the Underwriter on the bond issuance. A motion to adopt Resolution 16-IHDA-069L for University Village Phase III (CDT-11149) was made by Ms. Castro and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Rapp, Mr. Malleris, and Mr. Ms. Kane abstained from voting due to her involvement with the Underwriter on the Bond issuance. A motion to adopt Resolution 16-IHDA-070 Authorizing the Issuance of Not to Exceed $55,000,000 Aggregate Principal Amount of Multifamily Housing Revenue Bonds, Series 2016 (University Village Apartments) was made by Ms. Castro and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Rapp, Mr. Malleris, and Mr. Ms. Kane abstained from voting due to her involvement with the Underwriter. 16-IHDA-071 Executive Director Hamernik introduced Item 11 on the Agenda: Resolution Authorizing the Issuance of Not to Exceed $14,000,000 Principal Amount of Multifamily Collateralized Revenue Notes (Garden House of River Oaks II), Series Mr. Chung stated that this Resolution will authorize the issuance by the Authority of not to exceed $14,000,000 aggregate principal amount of Multifamily Collateralized Revenue Notes (Garden House of River Oaks II), Series 2016 (the Notes). This Resolution also authorizes the Authority to enter into a Funding Loan Agreement and a Borrower Loan Agreement. The Notes would be issued to provide funds to be applied to make a loan to GH River Oaks II Preservation, L.P. to finance the acquisition and rehabilitation of the Garden House of River Oaks II. The Notes will be purchased directly by PNC Bank, National Association. The Notes will be issued as variable rate notes. The Notes will be special limited obligations and will not be a general obligation of the Authority. This is a delegation Resolution. Issuance of the Notes will require the use of volume cap in an aggregate amount not to exceed $14,000,000. Such volume cap will be allocated to the Notes by the Authority. A motion to adopt the Resolution was made by Ms. Castro and seconded by Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice

15 Page 15 of IHDA-072 Executive Director Hamernik introduced Item 12 on the Agenda: Resolution Authorizing Agreements for the Provision of Cyber Liability, Crime, Property, General Liability, Automobile, Workers' Compensation, Umbrella Liability Coverage, Excess Liability Coverage and Force Placed Coverage. Ms. Natarajan stated that the Authority purchases crime, property, general liability, automobile, umbrella, excess liability, force placed coverage, workers compensation coverage and cyber liability coverage (collectively, the "Coverage") through agreements (the Current Agreements ) with Hartford Life and Accidental Insurance Company, Fireman s Fund, Great American Insurance Company, Lloyds of London and ACE ( Vendors ) to protect against damage to the Authority s property and to protect against various liability exposures. The Current Agreements for the Coverage expire on July 1, She then stated that pursuant to Resolution No IHDA-056, which is identical in substance to this Resolution, was presented to the Members on May 31, At that time the Members had certain questions that needed to be further researched. Therefore, the Members tabled Resolution No IHDA- 056 and this Resolution is being presented in lieu thereof. The Authority determined that it is in its best interest to enter into agreements with the Vendors to provide the Coverage at a cost not to exceed the quoted rates set forth in Exhibit A attached to the Resolution. Ms. Natarajan recommended the Members approval of the Resolution. Ms. Kane; and the Resolution was adopted by the affirmative votes of Vice 16-IHDA-073 Executive Director Hamernik introduced Item 13 on the Agenda: Resolution Authorizing Expenditure of Funds for Fiscal Year 2015 Financial Audit Expenses. Mr. Gajos stated that the State Finance Act allows the Auditor General to bill entities for the cost of audits, studies and investigations incurred on their behalf and to request that such entities reimburse the Audit Expense Fund (the Fund ). The Authority has received a request to reimburse the Fund in the amount of $296, in connection with the financial audit of the Authority for the fiscal year ended June 30, Mr. Gajos recommended the Members approval of the Resolution. A motion to adopt the Resolution was made by Ms. Kane and seconded by Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice Tornatore

16 Page 16 of IHDA-074 Executive Director Hamernik introduced Item 14 on the Agenda: Resolution Authorizing Agreement with Microsoft SharePoint 2013 Consultant. Executive Director Hamernik made introductory comments regarding document sharing systems. Mr. O Callaghan stated that the Authority requires the services of a consultant that can assist the Authority with the design and implementation of an electronic document management solution using Microsoft SharePoint 2013 ( Services ) and has determined that Agreeya Solutions, Inc. ( Agreeya ) is best able to provide the Services. He then stated that the Authority desires to enter into an agreement with Agreeya to provide the Services ( Agreement ) for the two year initial period from approximately July 1, 2016 through June 30, 2018 ( Initial Term ) at a total fee not to exceed $331, Upon expiration of the Initial Term, the Authority desires the option to renew the Agreement for one additional two year period ( Renewal Term ) at a total fee not to exceed $55,000.00; provided however, that any Renewal Term shall remain subject to a resolution passed by a majority of the Members of the Authority. Ms. Rapp asked asked where Agreeva is located. Mr. O Callaghan stated that they are in Folsom, CA and they are 100% BEP. She then asked why they were selected. Mr. O Callaghan stated that they received the most points, both technically and on price. He then stated that 98% of the states are using SharePoint. Ms. Rapp stated that it is critical to the Authority that this system operates effectively. Mr. O Callaghan agreed and stated that there are a lot of documents to index and document. A motion to adopt the Resolution was made by Mr. Tornatore and seconded by Ms. Rapp; and the Resolution was adopted by the affirmative votes of Vice Tornatore 16-IHDA-075 Executive Director Hamernik introduced Item 15 on the Agenda: Resolution Authorizing a Service Agreement with CounselorDirect. Mr. Selke stated that the Authority submitted a successful proposal to Treasury for the use of funds allocated to the HHF Program to develop and implement the Illinois Hardest Hit Fund Homeowner Emergency Loan Program ( HHF HELP ) in order to help prevent foreclosures and stabilize housing markets in Illinois. He then stated that, in conjunction with the Authority s administration of HHF HELP, the Authority desires to enter into an Agreement with Homeowner Toolbox, Inc. d/b/a CounselorDirect ( Vendor ), to host a webbased software application to manage the operation of HHF HELP ( Services )

17 Page 17 of 20 for a fee not to exceed $900, for the period from January 1, 2017 through December 31, 2019 ( Contract Term ). The Agreement terms will be: a) the total fee under the Agreement for the period from January 1, 2017 through December 31, 2017 of the Contract Term ( First Year ), shall not exceed $300,000.00; b) the total fee under the Agreement for the period from January 1, 2018 through December 31, 2018 of the Contract Term ( Second Year ), shall not exceed $300,000.00; and c) the total fee under the Agreement for the period from January 1, 2019 through December 31, 2019 of the Contract Term ( Third Year ), shall not exceed $300, A motion to adopt the Resolution was made by Ms. Kane and seconded by Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice Tornatore 16-IHDA-076 Executive Director Hamernik introduced Item 16 on the Agenda: Resolution Authorizing an Agreement with Powerseller Solutions LLC. Mr. Nestlehut stated that the Authority has identified the need for PowerSeller, a full-featured secondary marketing and risk management system ( Risk Management Software ) to enhance trade executions, increase risk management capabilities, and improve analysis of the Authority s single and multi-family pipeline. He then stated that the Authority desires to enter into an agreement ( Agreement ) with Powerseller Solutions LLC ( Vendor ) for the Risk Management Software at a total cost of not to exceed $50, for a 1 year term. A motion to adopt the Resolution was made by Ms. Rapp and seconded by Mr. Tornatore; and the Resolution was adopted by the affirmative votes of Vice Tornatore Committee 1 For Committee Report 1, Finance Committee Report, Ms. Kane presented the Finance Committee Report from the meeting. Ms. Kane recommended the Members approval of the minutes from the May 31, 2016 Finance Committee meeting. A motion to approve the Minutes was made by Ms. Kane and seconded by Ms. Castro and the Minutes were adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. Committee 2 For Committee Report 2, Audit Committee Report, Ms. Davis presented the Audit Committee Report from the meeting. Ms. Rapp recommended the Members approval of the minutes from the March 18, 2016 Audit Committee meeting.

18 Page 18 of 20 A motion to approve the Minutes was made by Ms. Davis and seconded by Ms. Rapp and the Minutes were adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. Closed Session: Open Session: 16-IHDA-077 At 11:30 a.m., Ms. Davis moved that the Board retire immediately to a closed session pursuant to the exception noted under Section 2 (c)(1), 2 (c)(5) and 2 (c)(11) of the Open Meetings Act to discuss appointment, employment and compensation of specific employees, the lease of real property for the Authority s use and litigation. Mr. Malleris seconded the motion and the Board approved the motion by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Ms. Rapp, Mr. Malleris and Mr. The Board reconvened in open session at 12:59 p.m. Vice Chairperson Davis stated that no action had been taken at the closed session. Executive Director Hamernik introduced Item 17 on the Agenda: Resolution Authorizing the Use of a Portion of the Additional Tenant Improvement Allowance. Executive Director Hamernik stated that pursuant to Resolution No IHDA-139, as amended by resolution No IHDA-027 (together, the Lease Resolution ) the Authority was authorized to enter into a Real Estate Lease (the Lease ) with IC 111 Building Company LLC (the Lessor ) in order to occupy 66,136 of rentable square feet of office space on the 10 th and 11 th floors of 111 East Wacker Drive in Chicago Illinois (the Office Space ). She then stated that the Lease provides that to the extent the Cumulative Cap (as such term is defined in the Lease) exceeds the final cost of the Cumulative Cap Items (as such term is defined in the Lease), the savings achieved under the Cumulative Cap shall be applied to the work being done in the restrooms in the Office Space. It is currently anticipated that the full amount of the Cumulative Cap will be needed for the contemplated Cumulative Cap Items and that no savings will be available to apply toward additional work for the restrooms in the Office Space. She further stated that pursuant to the Lease, minimal improvements will be made by the Lessor to the restrooms and the Authority desires to use a portion of the Additional TI Allowance for the purpose of the additional restroom work described on Exhibit A which is attached to the Resolution (the Additional Restroom Work ) in an amount not to exceed $170,000. Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Mr. Malleris, Ms. Rapp and Mr.

19 Page 19 of IHDA-078 Executive Director Hamernik introduced Item 18 on the Agenda: Resolution Authorizing the Execution of a Settlement Agreement. Executive Director Hamernik stated that pursuant to Resolution 2009-IHDA- 132, the Authority was authorized to centralize the servicing activities for certain single family residential mortgage loans to a single servicer. Therefore, the Authority entered into a Subservicing Agreement, dated as of February 8, 2010 with BAC Home Loans Servicing LP (the Servicer ) (the Subservicing Agreement ). She then stated that the Servicer defaulted under the terms of the Subservicing Agreement; on or about October 12, 2011, and the Authority exercised its right to terminate the Subservicing Agreement and the Authority has maintained, among other things, that losses have and will continue to be incurred as a result of the Servicer s defaults; although the Servicer disputes the Authority s claims, in an effort to resolve the dispute to the mutual satisfaction of the parties, the Servicer has presented settlement terms to the Authority. Executive Director Hamernik further stated that the Authority has determined it is in its best interest to enter into a settlement agreement (the Settlement Agreement ) with Bank of America, N.A. as successor-in-interest by July 1, 2011 de jure merger to the Servicer to resolve the matter in full; the terms of the Settlement Agreement shall remain confidential until such time as the Settlement Agreement is fully executed. Ms. Castro; and the Resolution was adopted by the affirmative votes of Vice Chairperson Davis, Ms. Castro, Ms. Kane, Mr. Malleris, Ms. Rapp and Mr. Written Report 1 Written Report 2 Written Report 3 Written Report 4 Written Report 5 For Written Report 1, Hardest Hit Fund Report, Vice Chairperson Davis referred the Members to the Board book material. For Written Report 2, the Human Resources Report Vice Chairperson Davis referred the Members to the Board book material. For Written Report 3, Authority Financial Statements, Vice Chairperson Davis referred the Members to the Board book material. For Written Report 4, Contract List, Vice Chairperson Davis referred the Members to the Board book material. For Written Report 5, the IHDA Investment Portfolio, Vice Chairperson Davis referred the Members to the Board book material. Mr. Malleris left the meeting.

20 Page 20 of 20 Presentation 1 Recap of Authority Programs Income Streams presented by Ms. Natarajan. Vice-Chairperson Davis adjourned the meeting at 2:00 p.m.