Board of Aldermen 09-28-2021 Page 9
Alderman Lopez
In keeping that a matrix like that up to date, what mechanism would you prefer because some of those amenities can
change drastically? Like within the past year, health care based transportation has skyrocketed but it's sort of flat lined
more recently because when it first became available, everybody was like, oh, wow, we can get actual transportation to
and from our doctor's appointments. But now, there's like a shortage of drivers. So would you suggest something that we
refer to as an index or would you refer a committee review that annually, or what would the way of keeping that matrix...?
Kyle Talente, President of RKG Associates
| think outside of a global economic shock like we've been experiencing for the past two years, reviewing that matrix every
year or every two years is a reasonable approach because while the world does change, it doesn't change as dramatically
as it has over the past 24 months. That being said, | think it makes sense in situations like this where maybe that review
of that matrix is a little bit more frequent. You know there are staffing costs and economic costs to doing that so | think it
would need to make sure that the stimulus that we're trying to understand is truly going to move the needle. But | would
say, you know, outside of a global pandemic economic situation like we're in, every year or two is more than reasonable.
Alderman Lopez
Thank you.
Alderwoman Kelly
Thank you and thank you for the presentation. Affordable housing is one of the things that I'm very concerned about as a
citizen and as an Alderwoman. So | really do appreciate this. My question you started to answer it was around the
payment in lieu of information. It sounded like you just mentioned that you would say that's really only in certain
instances, but my concern was that, for example, we do sidewalks in payment in lieu of but then we end up with not
enough money to then build those sidewalks. So | want to make sure that doesn't happen with affordable housing.
Kyle Talente, President of RKG Associates
And so that's one of the reasons why we calculated the value gap between a market rate unit and whatever income
threshold that we're trying to address because that then should be able to be applied in different housing developments.
And so instead of getting $3,000 a unit when the gap is really $36,000, you're getting the $36,000 so you know that you'll
be able to invest in that unit.
And to build upon the question | was just asked a moment ago, that is also something that should be reviewed every year
or two because market valuation changes, and price points change, and so the differential between a market rate unit and
a unit price that 80% of AMI for example, may go up or down. And so you want to make sure that if two years from now
its $42,000, you're not still stuck at that $36,000 threshold. So that is also something that you would want to revisit on a
semi-regular basis to be able to make sure that that is consistent so that to your point, that we are getting an amount of
money that is economically relevant to what we're trying to accomplish, which is, you know, exchange half a unit of money
to be able to develop that half a unit somewhere else.
Alderwoman Kelly
If | could follow on?
President Wilshire
Yes.
Alderwoman Kelly
Thank you. Just second questions. We put this in place. We think it's wildly successful. The housing trust funds going
great. At what point do we need to re-evaluate? | mean, | Know there's definitely flexes here, right. | don't think we'd be
in danger of bringing on too much affordable housing but at what point should we be looking at that and making sure that
we're looking at what housing is coming on the market and then readjust? | think you said two years but is that the same
point to look at that how affordable housing has changed our market?
