Fiscal Note
The proposed resolution authorizes awarding up to $1,136,440 to four 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. 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. $697,000 was approved by Council in October 2024 (Leg file 85520, RES-24-00622) to three organizations who submitted applications through the first application cycle that closed September 15, 2024. No additional City appropriation is required.
Title
Awarding up to $1,136,440 in Community Development Block Grant (CDBG) funds through the Community Development Division’s (CDD) Capital Improvements for Nonprofit Housing (CINH) Program to four non-profit housing providers (Bram Hill Apartments/Bram Hill Institute, Northport Apartments Corporation, The Road Home, and Housing Initiatives) and authorizing the Mayor and City Clerk to enter into agreements with those agencies to implement the specified rehabilitation projects (District 2, District 6, District 10, District 12, District 14, District 18).
Body
Background
The Community Development Division (CDD) has heard from nonprofit agencies that own and operate housing for low- to moderate-income households that financial hardships experienced by tenants during the COVID-19 pandemic depleted maintenance reserves and made it difficult for agencies to maintain their properties.
On March 19, 2024, the Common Council approved the City of Madison’s 2024 Annual Action Plan (AAP) (RES-24-00207/ Leg file #82249) which allocates up to $2 million in Community Development Block Grant (CDBG) funds to support the Capital Improvements for Nonprofit Housing (CINH) Program. The program offers funds to nonprofit housing providers to make certain improvements to residential properties that serve tenants with household incomes at or below 80% of the Dane County Median Income (CMI). Funds were made available through a series of monthly application cycles until the funds were fully utilized. The first application deadline was September 15, 2024. CDD received requests, totaling $696,786, from three eligible agencies to support rehabilitation work at 25 different properties, and the Council approved awards to those agencies on October 29, 2024 (RES-24-00622, Legistar File #85520). The second application deadline was October 15, 2024, and CDD received requests from seven agencies, totaling over $2 million. Following review of the proposals, staff recommend allocating the remaining $1,136,440 to four of those applicants to support rehabilitation work at 18 separate properties.
Action
WHEREAS, the City of Madison 2024 Annual Action Plan (AAP) was adopted on March 19, 2024, which approved the use of up to $2 million in Community Development Block Grant (CDBG) funds to support the Capital Improvements for Nonprofit Housing (CINH) Program; and,
WHEREAS, following a first application cycle, the Council approved funding allocations to three nonprofit housing providers, totaling nearly $697,000, for rehabilitation projects; and,
WHEREAS, in a second application cycle, the Community Development Division received requests to support housing rehabilitation from four eligible nonprofit housing providers, totaling about $1.1 million, and staff have recommended allocating funds as follows, subject to review and approval by the Community Development Block Grant (CDBG) Committee:
• Bram Hill/Bram Institute Corporation, up to $235,000;
• Northport Apartments Corporation, up to $500,000;
• The Road Home, up to $70,000;
• Housing Initiatives, up to $331,440; and,
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, these proposals are also consistent with the goals and requirements set forth in the City's 2025-2029 Five-Year Consolidated Plan, currently in development; 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 FURTHER RESOLVED, that the Common Council authorizes the Mayor and City Clerk 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.