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This little f****** a******.
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like confirming everybody, there's like a list of names.
Yeah.
So, he comes in like right before the meeting.
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Good morning.
Can I have your attention please?
Ladies and gentlemen, at this time, please take your seats.
The Joint Committee for housing and finance will convene
momentarily. Please take your seats and silence your
listening devices. Thank you.
Good morning.
Please take a seat.
Good morning, everyone. Good morning, please. Take a seat.
Before we start the meeting, I just want to clarify. This
is a joint committee meeting between the finance and the
housing committee that was recess, um, and will come, will
come back to, or will resume, so there will be no, public,
comment, that public comment in this committee already
happened, but there will be public comment for the regular
city council meeting that will start shortly after just 1
to clarify that just so there's no misunderstandings. And
with that, I would like to officially reconvene or join
committee on the housing and real estate. And the committee
on finance now is officially called to order.
Down.
Thank you, chairman.
Uh, we will now have a roll call to establish quorum.
Vice chair Conway.
Vice chair Mitchell.
Alderman laspada.
Alderman Hopkins.
Alderman. Harris, Alderman Beal.
Alderman. Lee.
Alderman Ramirez.
Alderman Quinn.
Alderman Lopez.
Alderman Moore.
Alderman. OSHA
Alderman Rodriguez.
Excuse me Alderman, Taylor.
Alderman Rodriguez here. Alderman, tabaris.
Alderman Scott.
Alderman Fuentes.
Alderman Bernett.
Alderman. Ervin.
Alderman. Talia Farrell.
Alderman, Cardona.
Alderman, Wagers bat.
Alderman, Rodriguez, Sanchez.
Alderman Quezada.
Alderman. Vagus.
Alderman spaz.
Alderman Vasquez.
Alderman. Reilly
Alderman kutson.
Alderman clay.
Alderman. Martin.
Alderman. Mana hoppenworth
Alderman Haden.
Alderman Silverstein.
Chair CEO Lopez is here, chair. Dowel is here. We have a
Alderman, Lee we have you Alderman Martin is here, Alderman
mitts see you
We have a quorum. We have third.
Alderman Robinson is here. Yes.
Alderman Gardner, you are not a member of the committee,
I got you as being here. We have a quorum. We have 32
members present. Um, Alderman Hall has requested to
participate. Remotely at today's committee meeting for
reasons, under provision of rule, 59,
Can I have a motion to allow Alderman Hall to participate
this way?
So moved by Alderman, Quinn.
Thank you so much. All those in favor signify by saying I
opposed opinion of the chair, the eyes have it and the
motion carries uh,
Alderman Hall, are you with us?
Yes, I am. Thank you so much. Thank you very much,
chairman, CEO Lopez. Thank you, chairwoman.
And I just asked if you can, please just lower your voice
as a little bit so we can uh, quickly move on this item.
Uh, we I think
Okay, Alderman to bars is here. We will count you as part
of Quorum just would like to uh, acknowledge all the min.
Alderman newent.
Alderman Gardner.
As being here but not part of the committee. Thank you.
Thank you. Chairwoman the item before the joint committee
is on the agenda, we have 1 item, uh this morning, um this
this is the substitute ordinance, amending Municipal Code
chapter 2-44, but adding a new section, 2441, 170
establishing a non-for-profit residential Investment
corporation to address housing needs by financing acquiring
owning and operating permanently affordable, mixed income
and environmentally sustainable housing. Subsidy, the
ordinance is 2025.000 15560. Um, there's a substitute
ordinance that has been amended and has been prepared and
handed out to all the committee members. Is there a motion
to accept the substitute ordinance, as amended, so moved by
Alderman, laspada, all those in favor. Say I I all those
opposed, the name and opinion of the
Share the ice habit, with the exception of aldermen, um,
Lopez.
In the opinion of the chair, the eyes have it. The
substitute ordinance has been amended is not before the
joint committee and will be explained by the commissioner
of housing commissioner Casa Commission.
Good morning.
After our last uh, conversation in this chamber. Uh
regarding the ordinance. We went back and had some further
conversations with labor partners and others. Um, and Jung
Eun from the mayor's office will now walk through the
substitutions.
thank you, madam chair, thank you, chairman
Thank you, commissioner, for the record. My name is Jeong.
Eun chief of policy.
Before you, you should have a substitute as amended. And
I'm going to walk you through the changes that have been
uh with continued feedback from members of this body as
well as our labor Partners to highlight the changes before
you
On page.
On Page 6.
In response to questions of Ethics. We have added to
section g conflicts of interest, subsection 5,
the provision that reads all directors shall be subject to
the provisions of chapter 2-15 and in the event of any
conflict between the provisions of this subsection. And the
chapter 2156, the more restrictive Provisions will control
in addition to uh, other concerns brought by committee, we
have strengthened, uh,
Section T cooperation with the oig. That now reads the
corporation, including all directors advisory committee
members officers and employees of the corporation shall
have a duty to cooperate with the city of Chicago Office of
the Inspector General, the oig in any investigation audit
or review undertaken by the oig with respect to the
performance of the directors advisory committee members
officers and employees of the corporation.
Any projects financed or supported by the corporation and
any programs or operations undertaken by the corporation.
June, what page are you on?
Oh sorry. Page. 8 8.
My apologies.
Section T cooperation with the oig.
Oh, at the red line.
My apologies. I was looking at the clean version. I'm sorry
about that. I'll look at the red line.
P is on page 9 June?
Thank you, thank you. Chairwoman my apologies.
So we're looking at section T cooperation with the oig.
The corporation, including all directors advisory committee
members officers and employees of the corporation shall
have a duty to cooperate with the city of Chicago Office of
the Inspector General, the oig in any investigation audit,
or review undertaken by the oig with respect to the
performance of the directors advisory committee members
officers and employers employees of the quote Corporation,
any projects financed or supported by the corporation and
any programs or
Operations, undertaken by the corporation. All in order to
detect and prevent misconduct inefficiency and waste within
the programs and operations of the corporation.
In the course of an investigation by the oig, upon the
oig's request, the corporation's, premises equipment
Personnel, books, records and papers shall be made
available as soon as practical to the oig for the avoidance
of Doubt for the purposes of section, 2-56 - 05084. The
corporation shall be deemed to be a contractor, providing
services to the city.
we have also, uh, strengthened
Section U Gifts.
Gifts to directors.
Shall be subject to section 21566142 and any other gift
policies adopted by the board.
We have added a section V annual audits. The corporation
shall ensure the annual audits of the corporation are
conducted in compliance with applicable law.
So those are the requests made directly by members of this
committee. And now I'm going to go back a section to page.
6.
This is the part of the agreed to upon language with our
labor partners.
Section, I staff and financial support.
the department is authorized to provide such operating
Capital to the corporation as may be required to accomplish
its purpose as described in subsection C, which is the
purpose Clause of the ordinance.
Subject to the availability of appropriated funds.
the department shall provide and the corporation shall
receive the staff, who provide services to the department.
Substantially similar to those required to fulfill the
corporation's purpose as described in subsection C. For
purposes of this subsection staff shall mean staff of the
department who are not managerial supervisory or
confidential employees.
We have made changes to section M authority to enter into
agreements.
Page 8.
the commissioner or a designee or successor thereof the
authorized do officer is hereby authorized subject to
approval by The Corporation Council to enter into and
execute such agreements and instruments.
And perform any and all acts as shall be necessary or
advisable in connection with the implementation of loans or
grants to the corporation.
The authorized do officer is hereby authorized subject to
the approval of the Corporation Council to negotiate any,
and all terms and Provisions in connection with loans or
grants, which further the purpose of the corporation.
Notwithstanding the foregoing with respect to any
applicable agreements for the Department to provide staff
support to the corporation. Such agreements shall comply
with subsection I which I just reviewed.
And then finally, we have added section, W labor, peace
agreement.
To the extent permitted under applicable law. The
corporation shall be required to enter into a labor. Peace
agreement with any labor organization's representing or
seeking to represent the corporation's employees as used in
this subsection labor. Peace agreement means a written
agreement between the corporation and any Labour
Organization representing or seeking to represent the
corporation's employees that a prohibits, the labor
organization and its members from engaging in work.
Stoppages boycotts. Picketing or any other activity that
may interfere with or hinder the op
Operations of the corporation B contains to measure it,
provisions on the part of the corporation to ensure labor
peace. As may be agreed upon by the parties and C contains
a means of amicably. And finally resolving disputes between
the corporation and its employees.
And that concludes the uh amendments that have been made
since we last convened on Monday. Thank you, June, uh,
Alderman, clay and Alderman Rodriguez. Sanchez have joined
us and will be counted toward towards Quorum. Um, Alderman
Mosley has requested remote participation under rule, 59,
can I get a motion to allow him to participate? So moved by
Alderman laspada. All those in favor. Signify by saying I
opposed and the opinion of the chair, the eyes have it and
the motion carries. I like to confirm that Alderman Mosley
has joined us
This is madam chair. Thank you.
Um,
Are any questions from members of the committee? Regarding
the amended substitute ordinance?
Okay, Alderman Lopez followed by Alderman Lee.
Followed by Alderman, Ervin.
Alderman Lopez, thank you, good morning, chairman and good
morning, to both me to both committees. Uh
I'm a little perturbed this morning with this substitute. I
asked twice in as many days for language, got nothing. I
know, I spoke.
At length about my concerns, particularly around
management, fees, construction camps, things of that
nature.
As well as some of the legal issues of incorporating. And
then us being held hostage to a creation that we cannot
amend later legally.
Was that included in any of these Sub in any of these
amendments here.
we have included bylaws in your packet, with respect to
what I asked from the other day was anything that I brought
up during committee included in this amendment to the
amendment substitute,
No sir. Thank you.
so Madam chair and
Chairman 2 chairman, excuse me.
I will not be in support of this. I think there's a lot of
issues that are still unresolved.
top of mind for me is the fact that we do not have
clarification that once we create this, not for-profit that
we're going to be able to amend it through the municipal
code and have them act as to what the, the law says, here,
in the city of Chicago, I think conceptually there's plenty
of opportunity to move forward but this
Artificial rush and this selective engagement of who you
want to work with in this body. Uh gives me great pause. So
I would urge my members to say no and
work on something more collaboratively that benefits. All
of Chicago. Thank you, thank you, Alderman, Lopez Alderman,
Lee followed by Alderman, Ervin, thank you, madam chair.
Um, and thanks again, I you know,
I know more work has continued on this and I know people
have been, um, have been hustling to get stuff done and I
know that uh, an agreement has been reached with uh, with
labor. Um, you know, I have a few questions. I, I share the
sentiment about the about feeling very rushed with this. We
just got this substitute this morning. Um, and, you know,
I, I'm, I'm not comfortable voting on this currently, but
I'm going to ask my questions. Um, so on Page 6, um, item,
uh, G5. The the new addition we're we're referring to set a
chapter 2-15. What is chapter 2156?
I refer to, uh,
Jim McDonald from Corporation Council.
Or the record. My name is Jim McDonald. I'm a managing
Deputy Corporation Council on the Law Department. Chapter
2-15 is the ethics ordinance, the ethics ordinance. Thank
you.
Generally why we like to have a little bit of time to like
read through stuff here. Um, the next section here uh down
uh section. I um I know we read, ultimately, could you just
move your mic? Oh, I'm sorry. Um, Page 6, uh, item, I staff
and financial support. Um, I know, we read through what the
red line is. I just, I need to understand what this means.
The department shall provide, and the corporation's, all
receive staff. Can someone just explain this to me in
layman's terms? I'm not trying to be difficult. I just, I
really want to understand what this means. Yes, happy to
uh this is language to a firm that this is not a effort to
privatize current Department of Housing employees and
should there be employees of the residential Investment
corporation that
uh, do substantially similar Services as the Department of
Housing employees, the Department of Housing employees will
Perform th those job duties.
Okay.
Thank you. Um,
On page 9 with the annual Audits. And I don't know if this
was mentioned someplace else under item v, um, thank you
for including this is something that I uh, raised last time
we had a hearing um, about ensuring the uh,
Compliance with uh, audits will these be made publicly
available as well?
Yes, Elder woman on page 7 under uh section K annual
reporting which begins on Page 6.
We have added annual reporting to the committee on the
housing and real estate.
With a number of items required to be reported on. And we
have added section 4, a copy of the annual audit prepared
in accordance with subsection 5.
Or subsection V. Excuse me, thank you.
um,
and as far as the labor piece agreement goes, this in
essence just
gives us a way forward if if anything is raised ultimately
In, in terms of a conflict.
That's right. That is a commitment that the residential
Investment corporation will enter into any labor, peace
agreement, as required by a labor organization.
And then the issues that uh were raised by Alderman, Reilly
about the oig. Um,
Yes, those have been addressed.
um, and I can start from
the beginning.
so the first was, again, the inclusion of
All directors being subject to chapter 2-15, the ethics
ordinance. That's found on Page 6.
Um in our conversations with the oig, we have made an edit
to subsection J on quarterly reporting so that the report
goes to the full finance committee to uh
avoid any doubt there.
Then we have added language to subsection. T found on page
9.
Of cooperation with the oig.
I'll just skip to the red line at the bottom for the
avoidance of Doubt for the purposes of section 2-56 0500
A4. Which is the section of the code that uh governs the
oig's powers and authorities.
The corporation shall be deemed to be a contractor.
Providing services to the city. And within that chapter,
there's enumerated uh the the rules and regulations and how
that is informed and investigated.
And then we've uh strengthened um again in with feedback
from the oig section U on gifts.
To make it clear that all directors are subject to the gift
Prezi Provisions in section 21566142 of the code.
So this is just for directors, not for any of the
subsequent committees that are proposed to be formed.
That is correct because the Committees are advisory in
nature.
I don't have any more questions. I mean again this is a lot
and thank you for going through every single 1 of those.
Um, you know, I'll I'll
um, I'll just lead with my real discomfort with
The desire of the administration to have a vote on this
today. Um,
I do not want to be on the record for voting against an
effort that will bring more housing. Um, but I do believe
that the devil's in the details and I'm not asking for 6
months I'm asking for a few more weeks so that we make sure
that we have fully cooked this chicken dinner that we want
to serve to everybody, not get anybody sick. Um, you know,
and with that if there
Are barring any other questions? I would make a motion to
hold this in committee.
Alderman.
Urban followed by Alderman, Reilly.
Thank, thank you. Uh, thank you madam. Madam chair. Uh, and
uh, um, real quickly, uh, I just wanted to, uh, thank, uh,
staff for listening to the, uh, pieces that are brought up
by, uh, committee, incorporating them and also working with
our partners in labor, to get us to where we are today. Uh,
while it's not everything that everybody fully wants. I
think this is, um,
something that that will provide the city, and the
Department of Housing, additional tool to, uh, Place some
levels of affordability in communities, that that needed.
And also uh, give our residents opportunities to live in
the communities. Otherwise they may not have the
opportunity to live in uh, with that. I I see that my my
colleague is raised questions. After that, I moved to pass.
Thank you Alderman. Ervin, Alden Vice, chair Mitchell has
joined us and will be counted towards Quorum Alderman.
Reilly
Thank you. Um, Madame chair. And I just want to remind
folks that, uh, alderwoman lee made a motion to hold this
in committee, which I will also Renew at the end of my
comments. Um, but I guess a question for the
administration, um, is the Inspector General satisfied with
the ethics. Provisions in the revised ordinance. Okay? See,
we met with the oig yesterday and law has taken all of that
feedback in and uh,
Had a conversation walking through those changes and
amendments. I understand they had a conversation but the
question
Was is the Inspector General satisfied with the revisions
that you made in the ordinance related to ethics? I think I
know the answer. It's a yes or a no answer. I'll defer to
The Corporation Council. Great.
Jim McDonald again, I've had a discussion with the
Inspector General. I will not speak for what the inspector
General's attitude is, but I think we've had a, she
understands what changes we were making in response to the
comments.
So I'm not going to get an answer. Um, well I can tell you,
I I've heard from the Inspector General and um, the good
news is that this is an ordinance that can work, if we put
the proper time into it, um, but there are still remaining
issues here.
Um, related to ethics and I think that's something that
we've heard over and over again. In this very compressed
time, frame, that you all have asked us to consider this
ordinance,
And it's frustrating when we get these evasive answers,
which has been kind of par for the course on this
ordinance.
Um, the oig says that, no, we've got issues when it comes
to things. Like who do you have a fiduciary duty to if you,
uh, work for the city but are also sitting on this board.
Is it a fiduciary duty to the nonprofit?
That is essentially protected from lots of transparency
Provisions, that that apply to the city council and city
employees, or do you have a fiduciary duty to the city, or
do you have both? And if you have 2 duties 2, fiduciary
duties to do different entities, which 1 wins the jump
ball,
um, have has anyone spoken with the board of Ethics about
this, this latest revision? This revision, we received just
this morning minutes ago, Alderman. Uh, we'd like to
address the fiduciary duty question because we have
addressed that
Well, not to the satisfaction of the Inspector General, who
is the expert on that and the person who has to live within
that part of the code. Um, and if that person, um, can't
enforce the ethics code, as we all want it to apply here,
that's a real issue. Um so I'm going to stick with the
subject matter expert, who is our Inspector General.
Now, have you spoken to the board of Ethics about this
latest revision?
And have they provided you, with feedback, comments, the
thumbs up, we are subjecting the corporation to the
entirety of the ethics code, if the board. That's not the
question that I asked. I asked you, did you have a
conversation with the board of ethics and have they told
you in the affirmative?
That these revisions will address the concerns. We all have
raised about transparency and ethics
It's a yes or a. No question, no sir.
Sorry what was the answer?
No, no.
Look, I've said we are subjecting the entire excuse me. I'm
I'm speaking ma'am. Um, I've said this before.
That this is a good idea.
And this is something that I would love to support.
I still to this day, do not understand why we are in this
Sprint to get this done.
when a week or 2,
Of of more conversations with the folks that we want to
weigh in on this and tell us. This is okay and proper.
The folks that manage ethics for the city.
I don't understand why today, is this, this, this
incredible deadline. This could be in a very impactful
ordinance. And again, the issues that have been raised here
are not insurmountable,
The inspector General's office has told us these can be
solved.
But once again, here we are with a rush job and whenever
this body rushes something we get it wrong.
And I think we owe it. We owe it to the taxpayers to take
the extra week or 2, we can always come back.
We've had more City Council meetings on this Administration
than I can remember in the last 3. So we're available.
We're here. Practically 3 times a week. We're Council
meetings, these days. It seems so call us back. When the
good work has been done and let us all sign off on this
program, I'm really glad that you worked out your
differences with apps me. That was important to me as well.
But that's only half the job.
and so again, um, you know, the evasiveness, the the the
the lack of transparency in this conversation about what
could be an impactful ordinance as frustrating to me, and
many of my colleagues. So, I don't want to vote against
this today, either.
But you got to do your work.
You got to do your work.
And so Madam chair, I renew the motion to to, to hold this
in in committee, right? We have taken the uh motion under
advisement and would like to have all them in Vasquez, who
is the last person that has raised his hand for questions?
And then chairman CEO Lopez will entertain the motion.
Uh, thank you very much, Madam chair and chairman. Um, I
know everyone's got their points because we have the
Inspector General here. I'd like to hear from the Inspector
General as far as her take on it.
Back here.
Sorry, I'm pointing at him a little too dramatic. But would
we be able to hear from the Inspector General? Uh, we would
ask, uh, Inspector General witzburg.
Can you come to the mic very quickly? We have a city
council meeting, we need to get to
I worked out you like that.
Good morning.
See.
Very dramatic trying to go although she's coming into the
box. Do you have a point of information or did you
You want to, I would like to listen if you want to speak.
Okay? So after Alderman Vasquez, we will come to you and
then we will entertain the motion.
Good morning.
Thank you all for having me. Uh I I appreciate the
questions here. Uh and we've had we had some conversations
yesterday afternoon with the Department of Housing. We had
some conversations this morning with the Department of Law.
I appreciate all of that. I think that some important
changes have been made between last night and uh, this
morning.
um addressing some of those concerns, 1 of the major
concerns, we raised was whether in fact oig, would have
investigative jurisdiction over this body, there was
clearly language on a duty to cooperate, that is different
from legal authority to investigate. And so, 1 of the
changes made this morning was to describe this corporation,
uh, as a contractor of the city of Chicago for purposes of
oig's jurisdiction, that solves 1 set of problems. I think
that clarifies our authority to issue to to investigate in
fact to to have legal authority to investigate it
verifies our ability to issue subpoenas it, clarifies that
all directors of this Corporation would have a legal duty
to report misconduct to oig people would have whistleblower
protection that solves 1 set of problems. However,
Another set of our concerns around enforced and
applicability of the city's. Ethics rules has been the
attempt to resolve that here has been by way of adding a
provision that says that the corporation and its, or the
directors of the, of the corporation would be subject to
the ethics ordinance in its entirety section. 2-15 of the
municipal code that section of the municipal code, however,
does not as of General proposition. Apply to contractors it
governs. The conduct of city employees and City officials
and not always to both the same way.
I I there is more work to be done about how we would take
the ethics ordinance in its entirety which is not written
to apply to contractors and apply it to an entity that has
been rendered a contractor by statutory language. 1 of the
concerns I have about that is that the ethics ordinance
imposes, upon employees and officials of the city of
fiduciary duty to the city.
This ordinance imposes, on directors, and employees of the
corporation, a fiduciary duty to the corporation. I I do
not read this ordinance to be clear on
the applicability of the ethics ordinance. Fiduciary duty,
there is a provision here that says that that seems to
permit a situation in, which a single person has a
fiduciary duty on both sides of a transaction here. Both
the fiduciary duty to the city and a fiduciary duty to the
corporation. And it says that in those situations, the
primary duty is to the city. From an enforcement
perspective, I am not sure how we would go about enforcing
fiduciary duty on both sides of a transaction where 1 purse
to be superior to the other and where the statutory
Authority for a fiduciary duty to the city.
Says it applies in 1 place and doesn't apply in another
because I don't think we have clarified here whether
For purposes of Ethics enforcement. Directors of this
Corporation are contractors which we say in 1 place or
officials or employees, which they would have to be for
applicability of the ethics ordinance. The question I think
about consultation with the board of Ethics is critical
from an, from a pragmatic enforcement perspective. There
was a lot of recent conversation, which you all will recall
about whether rules on the books around ethics
restrictions, could necessarily be enforced. So, there is
there's an executive order, restricting contributions by
lobbyists and there was a determination by the board.
of Ethics, that it had no enforcement mechanism for that
rule rendering it moot, I
I would want to ensure that the board of Ethics was
satisfied that these Provisions applying wholesale, the
ethics ordinance were in fact, enforceable or else. We are
in a situation where we have unenforceable rules, which are
a little worse than no rules at all. So those are my those
are my remaining questions.
Thank you uh Inspector General. I'd like to invite our uh,
Corporation Council, Justin Edge to um talk about the not
for-profit act during this committee.
Excuse me.
Respond.
We will we will have the Corporation Council to respond.
Um, I would like to get through
the last 2 people who have questions, which are
Um, actually 3 people, 2 people want to speak Alderman,
Martin and Alderman manah hoppenworth you have a point of
information. So let's get your point of information out
first.
Thank you, chair. Um, General. I was wondering if to your
knowledge there, any other um, nonprofit like entities for,
which these issues have or haven't been resolved.
We, we talked about this a little bit with the Department
of Housing last night. I think that is a good question and
is 1, which, which, with some time I think everybody could
consider the 1 that we talked about specifically was the
low-income housing, trust the enabling ordinance for the
low-income housing trust was passed in 1989. That was that
was the year oig came into existence. And so I, I think,
um, and and it makes no mention of, of Ethics, rules or the
applicability of Ethics rules and so, that 1 does not look
to me like a helpful comparator to work through some of
these issues. I imagine that there are others. I think that
would be a helpful. A helpful way to work through these
questions. Thank you, chair.
All right, thank you. Um, if I could get Justin Edge, the
assistant Corporation counsel to uh respond to what he has
has heard, then I would like to turn it back to Alderman,
CEO Lopez to deal with the motion that was made by Alderman
Lee.
Thank you chairman. Uh, Justin Edge assistant Corporation
counsel uh for the Department of Law. Um,
Thank you. Um Inspector General for uh we've had a short
period of time to work together and it's been nice that
we've been able to have several back and forths and short
period of time and uh, thank you for recognizing the
changes that we have made. Um, I'm going to specifically
speak to fiduciary duties and, um,
In that regard.
This is way I would summarize it. This is just a matter of
many levels of layers of law that we have. Right. We've got
an ordinance that we're looking at here. An ordinance which
in 1 Place says for purposes of defining.
For the purposes of interpreting.
Chat or section 256. We're going to call ourselves a
contractor.
Okay. That was what what we use to sweep this organization
within the uh, investigative powers of the Inspector
General fully.
Um, when it gets to questions of fiduciary duties, though,
it really doesn't matter how we choose to Define for
interpretation of 1, small piece of, uh, interpretation of
1 area of the code or not nor, so does it matter what we
choose to say, in an individual ordinance.
Fiduciary duties are defined by common law almost
exclusively which is a matter of interpretation of the
Illinois general. Not for-profit. Corporation Act of 1986.
there is ample common law that explains that fully and it
falls basically in line with every other standard that
anyone learned about any other state, there is, there are
very few variations to it. Um, and, uh,
when I've had experience creating nonprofits before where
there was a difficulty of an individual elected official
wearing 2 Hats,
um, I will tell you that there are many times in which this
question is kicked down the road not even dealt with as
well as stating unequivocally, your primary Duty for at
least these members is in this direction is in this
direction but by choosing to opt into the ethics ordinance,
While we are opening up.
The organization to quite a bit of uh, voluntary. Really? I
mean, we're in the negotiation, we are by choice opting
into an entire chapter and quite a few duties that are
beyond what a normal director of a. Not for-profit
Corporation would have
Behind all that are the fiduciary duties, which I would
just say are ultimately a matter of state law as cases.
Going back toward the Illinois, Supreme Court.
Seems I referred to cases back to the 1870s.
um, so, um
That's what I would say is that that is ultimately what
determines the fiduciary duties. And so ultimately those
are owed and those the uh stacking of those principles
while I understand there may be some split duties. There is
plenty of case, law explaining how to deal with exactly
that. Um, by defining that the primary for the elected
officials is in fact to the city, I believe that helps
makes it very clear.
um, to the other directors, it is primarily to the
corporation
By just choosing to opt into the definition for purposes of
inclusion in 2. Uh, 56.
Uh, I'm sorry. 2 1, 2 56 by choosing the opt into that.
Into working with the Inspector General, we're not changing
the nature of fiduciary duties.
Thank you. Is there anything else to add?
No, that's all from the Department of Law. It's fine. I saw
Jeff LaVine go over there. So, I was a little, I get a
little worried and I just stopped before Jeff reached me,
but, uh, I I, uh, was done and appreciate your time. Thank
you, Alderman. Manan worth.
Thank you. I just had a comment here and chairs.
I I appreciate um the thank you for being here oig and
Laura. Um, and also want to commend my colleagues for
For bringing all these questions to the table is very much
appreciated. I want to also thank our labor Partners um
because we we have to move forward.
To help our housing crisis.
Now.
We can't wait.
We have too many people.
Who have been struggling, not just today. But for many
years and we don't see a future in sight in which my own
kids can afford to live in the neighborhood that they grew
up in.
We can't wait. I am not here.
To wait, I came to get stuff done and I appreciate all the
conversations that have been had.
Collaboration across.
Advocates the administration and you all here.
We need to move forward.
We're in a housing crisis, not just in Chicago, but
globally.
In the edge water, we have 62% renters, and 51% of them are
cost burdened. That means they're spending more than 30% of
their income on on rent.
We have a loss of population, we have a spike in rents.
And we want young people and families to choose Chicago.
We have tools in our tool box. It's not enough.
We have to strengthen what we have, but we also have to add
to it.
And this is a new way to unlock.
An abundance of housing.
It's what we want. It's what we need.
We're talking about living in our values.
Of Chicago, where I have been.
I am a product of Chicago Chicago, everything.
Thank. Thank you Alderman. I, I also want to say that
again, this body has a responsibility to help where the
market cannot fix our problems.
So I call on us to to bring those Solutions forward. Thank
you.
Please.
Let's refrain from making comments while another Alderman
is speaking.
Alderman will happen with.
He's gone. So we we have a motion, we have a motion but all
the women leave to hold these items. So we're going to go
with the we're going to go with the motion. We're going to
take a roll call and I just ask everybody to please be
respectful in these Chambers.
We start.
um,
So we so would your members?
Vice chair Conway.
Let's go. Yes. Um, where's your Mutual?
Yes.
No.
Alderman Hopkins.
Alderman Robinson.
Alden Robinson.
They come back Alderman. Alderman Hall.
No.
Alderman. Alderman, Harris.
Yes.
Alderman, bill.
Alderman. Lee.
Alderman. Alderman reivers.
Alderman Quinn.
Alderman Lopez.
Alderman Moore.
Alderman. Curtis
Alderman will share.
Alderman Mosley.
Alderman Rodriguez. Oh, right.
Yeah.
Can you repeat that Alderman Mosley?
No, no. Okay.
Alderman Rodriguez.
All the way.
All the way with Scott.
All the other person, fentes.
All the member net.
Alderman Irving.
ultimately,
Alderman, Cardona.
Alderman, W is back.
Alderman, Rodriguez, Sanchez.
Alderman cassada.
All the mbas.
All the mitts.
all the
baskets.
Alderman. Reilly
Alderman. Ken.
All the women clay.
Alderman. Martin.
all the women man that happen with
Alderman, all the women Haden.
And Alder, Alder women in Silverstein.
And uh, Irving know.
No.
Alderman.
Moore know.
Alderman Robinson.
Alderman Hall.
Said no Robinson is a no almond, right? Paul said no.
I shared down. I mean, excuse me. Cheer Dell is a yes.
No.
What do you have?
19.
Just double checking.
So we have 19 19. Yes and 17 knows the all the the item will
will be holding committee. Um, there being no further
business before the Joint Committee, can I get a motion to
adjourn?
So, move by Alderman, Chico, all those in favor. Say, I all
those opposed, the joint committee on housing, real estate
and finance has been adjourned.