Fiscal Note
The proposed resolution authorizes the award of up to $1.3 million in Affordable Housing Funds to finance energy efficiency improvements at two CDA properties: Monona Shores Apartments and The Reservoir. The funds will be awarded in the form of a long-term deferred loan. The Community Development Division (CDD) allocates up to $2.0 million of Affordable Housing Funds annually to support City- and/or CDA-sponsored affordable housing development and/or improvements. Funding in the form of GO Borrowing is available within the Affordable Housing - Development Projects capital program (program #17110) within the Community Development Division's 2026 Adopted Capital Budget. No additional City appropriation required.
Title
Authorizing the allocation of up to $1,300,000 of City Affordable Housing Funds to help the Community Development Authority finance energy efficiency improvements at Monona Shores Apartments and CDA 95-1 “The Reservoir” and authorizing the Mayor and the City Clerk to enter into Loan Agreements. (District 6, District 14)
Body
Background
The Madison Community Development Authority of the City of Madison (CDA) provides affordable stable housing to many low- and moderate-income households throughout Madison. The CDA owns “Monona Shores,” a 104-unit rental property located at 1-11 Waunona Woods Ct., in Madison, and CDA 95-1 “The Reservoir Apartments,” a 28-unit rental property located at 612-632 East Dayton St. and 200-210 North Blount St., in Madison.
The proposed Affordable Housing Fund allocation of $1.3 million will support energy efficiency improvements at Monona Shores and The Reservoir. This work was identified as a result of a no-cost engineering audit performed by Johnson Controls. The energy efficiency improvements include the implementation of new air source heat pump heating and cooling systems, furnaces, heat pump water systems, attic insulation in top floor units, and window and sliding door frame sealing in all units. These improvements are intended to reduce energy and utility costs, improve resident comfort, extend the useful life of the buildings, and preserve the long-term affordability of these developments.
The Community Development Division annually sets aside $2 million of the City's Affordable Housing Fund to support preservation and capital improvement needs at City- and Community Development Authority-sponsored affordable housing developments. The funding proposed in this resolution will utilize a portion of that allocation to assist CDA in completing these improvements.
Monona Shores Apartments and The Reservoir are important affordable housing assets that provide long-term housing opportunities for lower-income households. Investing in these properties will preserve 132 affordable rental units, improve building performance and sustainability, and help ensure these homes remain safe, energy-efficient, and affordable for current and future residents.
Action Items
WHEREAS, the Madison Community Development Authority (CDA) owns and operates affordable rental housing serving low and moderate-income households; and
WHEREAS, the CDA owns Monona Shores Apartments, a 104-unit affordable rental development, and CDA 95-1 "The Reservoir," a 28-unit affordable rental development; and,
WHEREAS, the CDA has identified energy efficiency improvements necessary to preserve the long-term viability, affordability, sustainability, and livability of these developments; and,
WHEREAS, the Community Development Division allocates up to $2 million of Affordable Housing Fund dollars annually to support City- and/or CDA-sponsored affordable housing activities such as those described in this resolution; and,
WHEREAS, those funds are currently available to support both proposed CDA energy efficiency improvement efforts.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves awarding up to $1,300,000 of Affordable Housing Funds to the CDA to undertake the energy efficiency improvements at Monona Shores Apartments and CDA 95-1 “The Reservoir Apartments”, with the Community Development Division authorized to allocate funds between the two projects as necessary to complete the approved scope of work, provided the total funding does not exceed the amount authorized herein; and,
BE IT FURTHER RESOLVED, that the City will provide the funds in the form of a long-term deferred loan, repayable upon sale, transfer or change in use of the property; and the loans will be secured by a mortgage and a promissory note; and,
BE IT FINALLY RESOLVED, that the Council authorizes the Mayor and the City Clerk to execute a contract and related loan documents with the CDA to carry out the intent of this Resolution.