Fiscal Note
$499,600 in Federal CDBG and HOME/match funds are available within the Housing Development Fund to cover the cost for this project.
Title
Authorizing the provision of CDBG/HOME funds to assist Common Wealth Development, Inc., develop a Yahara Homes housing project in ways that address City Community and Neighborhood Development Objectives.
Body
Agency:
Common Wealth is a community-based agency established by residents of the Wil-Mar neighborhood to undertake housing and economic development projects that enhance the quality of life within the area. During their 30-year history, Common Wealth has sponsored many development activities, including the construction of affordable rental and for-sale housing, and the development and operation of two successful business incubators.
Project:
Common Wealth seeks CDBG/HOME funds to help construct 80-100 family-friendly homes near the Yahara River. The City funds would be targeted to 11 of the units to make them affordable and accessible to lower-income households.
Actions:
Whereas, the Community Development Block Grant Program, as amended, and its implementing regulations located at 24 CFR 570.200 ff., permit the City of Madison to help community agencies which benefit lower income persons; and the HOME program, as amended, and its implementing regulations located at 24 CFR 92.400ff, permit the City of Madison to help community agencies in the provision of housing assistance;
Whereas, CD staff and the CDBG Commission have reviewed this proposal and find that it furthers the goals expressed in the Five-Year Community and Neighborhood Development Plan;
Now, therefore be it resolved, that the Common Council approve the provision of funds for the following project, and authorize the Mayor and the City Clerk to enter into an agreement with:
Common Wealth Development Inc., or an affiliated development entity, for up to $499,600 in CDBG, HOME and match funds toward the acquisition and related pre-development and development costs of 11 owner-occupied dwelling units at 202 S. Thornton Ave. and 201 S. Dickinson St.
Be it further resolved that the assistance be offered on terms adopted in the 2005-2006 CD Program Funding Framework, such that the capitalized assistance to the organization (and to the buyer) be offered in the form of a deferred payment loan payable upon change of use or sale to a non-income eligible buyer, with repayment equal to the greater of the amount of CDBG, HOME, and City match funds invested in the property or the percent of appraised value that the CDBG, HOME, and match funds represent in the value of the property. The sale of the units to income-eligible households enrolled in Common Wealth's lease-purchase program will not trigger the repayment requirement. Further, up to 15% ($74,940) of the HOME funds will be provided in the form of a pre-development loan permissible under the HOME CHDO regulations.