Fiscal Note
The proposed resolution authorizes awarding funding to three community non-profit housing providers for capital improvements at their residential properties. The resolution also authorizes the Mayor and City Clerk to execute agreements and take other actions as needed to accomplish the purpose of the resolution. Four organizations requested approximately $1.19 million through the application period ending September 15, 2024. Three organizations qualified for funding, and the resolution authorizes awarding these three organizations a total of $696,786. The proposals are consistent with the City's 2020-2024 Five-Year Consolidated Plan and with the 2024 Annual Action Plan approved by the Common Council in March 2024. $2.0 million of funding for the program is included in the Community Development Division’s 2024 Adopted Operating Budget through Community Development Block Grant (CDBG) funds. No additional City appropriation is required.
Title
SUBSTITUTE- Awarding up to $1,191,786 $697,000 in Community Development Block Grant (CDBG) funds through Community Development Division’s (CDD) Capital Improvements for Non-profit Housing (CINH) Program to four three non-profit housing providers (Care Net Pregnancy Center of Dane County, Project Home, Nehemiah Center for Urban Leadership Development, and Madison Community Cooperative) and authorizing the Mayor and City Clerk to enter into agreements with those agencies to implement the specified rehabilitation projects.
Body
Background
The Community Development Division (CDD) has heard from nonprofit agencies that own and operate housing for low-to moderate-income households that the COVID-19 pandemic has had impacts to maintenance reserves due to tenants who experienced financial hardship during the pandemic.
On March 22, 2024, the Common Council approved the adoption of the 2024 Annual Action Plan (AAP) (RES-24-00207/ #82249) which identifies that up to $2 million of Community Development Block Grant (CDBG) funds will be used support the Capital Improvements for Non-profit Housing (CINH) Program. The program will make funds available to non-profit housing providers to make certain improvements to residential properties that serve households at or below 80% of the Dane County Median Income (CMI). Funds were to be made available through a monthly application cycle. The first application deadline was September 15th and CDD received requests from four agencies, totaling about $1.19 million to support rehabilitation work at 27 different properties. Funding recommendation of up to $697,000 for three of the submitted applications is included in this Resolution.
Action
WHEREAS, the City of Madison 2024 Annual Action Plan (AAP) was adopted on March 19, 2024, which approved the use of Community Development Block Grant (CDBG) funds to support the Capital Improvements for Non-profit Housing (CINH) Program; and,
WHEREAS, the Community Development Division received requests for housing rehabilitation from four non-profit housing providers by the September 15th deadline, totaling about $1.19 million, and staff recommend funding all eligible activities for three of the applications as follows:
• Care Net Pregnancy Center of Dane County, up to $495,000
• Project Home, LLC, up to $350,000
• Nehemiah Center for Urban Leadership Development, up to $36,000
• Madison Community Cooperative, up to $310,786
WHEREAS, all of these proposals are consistent with the goals and requirements set forth in the City's 2020-2024 Five-Year Consolidated Plan, formally adopted by the Common Council on February 25, 2020, which guides the use of U.S. Department of Housing and Urban Development (HUD) funds; and,
WHEREAS, agencies will need to follow all CINH Program guidelines including, for example, federal regulations such as Davis Bacon Labor Standards; and,
WHEREAS, these funds are proposed to be offered to agencies in the form of grants.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council hereby approves the funding allocations as recommended by the CDBG Committee and described herein; and,
BE IT FINALLY RESOLVED, that the Council authorizes the Mayor and City Clerk are to execute, deliver, publish, file and record such other documents, instruments, notices and records, and take such other actions as shall be deemed necessary or desirable to accomplish the purpose of this Resolution, and to comply with and perform the obligations of the City hereunder.