Fiscal Note
Up to $432,000 in federal HOME funds were previously authorized by the Common Council as part of the Adopted 2016 Operating Budget for the Community Development Division. This Resolution authorizes a waiver to selected program requirements. No additional funds are being requested, and there is no impact on the local levy.
Title
Approve Common Wealth Development’s request to waive selected requirements of the Community Development Division’s 2015-2016 Community Development Program Goals and Objectives for the organization’s proposed rental acquisition and rehabilitation project at 2102 Leland Drive.
Body
Common Wealth Development (CWD) has an accepted offer to purchase a 7-unit rental housing property at 2102 Leland Drive in the Balsam-Russett neighborhood on the City’s southwest side. CWD proposes to use up to $432,000 of HOME funds authorized in the 2016 Adopted Operating Budget and approved during the Community Development Division’s 2015-2016 two-year funding process. The original authorization for this project anticipated the acquisition and rehabilitation of eight (8) units of rental housing at $54,000 per unit, with a secured loan-to-value limit of 125%, per the requirements of the Division’s 2015-2016 Community Development Program Goals and Objectives. The proposed project at 2102 Leland Drive would exceed both the original authorization of $54,000 per unit and the 125% loan-to-value limit. As such, it would require a waiver of the 2015-2016 Community Development Program Goals and Objectives under which it was funded. To maintain feasibility, the project continues to require the same total funding commitment of $432,000. For this reason, CWD has requested waivers to both the per unit maximum funding amount and the loan-to-value limit. The primary purpose of these waivers is to fund energy efficiency improvements and provide for one fully accessible unit.
The first proposed waiver would authorize a reduction in the number of HOME-assisted ...
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