What community house? The house the dwarven council member can wander into is just south of the axe monument.
You are in the right place. The third elven artifact is the staff that Josephine drops, though it can also be in the locked chest in that room. If you defeated her behind the stairs or the wall, which could be obscuring the alt description, try moving your mouse over that area. Check your weapon inventory; if you already picked it up, it might need to be identified first (don't recall if the elven council member cares, or not).
