Fiscal Note
The proposed resolution accepts funds from the State of Wisconsin through the Housing Cost Reduction Initiative (HCRI). The 2019 Adopted Operating Budget includes $251,000 within the Community Development Division-Affordable Housing service budget. State funding from this program will fund loans as part of the Home Buy the American Dream program.
Title
Authorizing the City of Madison to accept an allocation of 2019-2021 Housing Cost Reduction Initiative (HCRI) funds from the State of Wisconsin DOA's Division of Housing in the amount of $275,000 to provide down payment and closing cost assistance to low and moderate-income homebuyers.
Body
BACKGROUND
The City of Madison submitted a grant application for 2019-2021 Housing Cost Reduction Initiative (HCRI) funds to the State of Wisconsin DOA's Division of Housing in March 2019, and received a letter in May 2019 awarding the City $275,000 for the City’s down payment and closing cost assistance program, Home Buy the American Dream (HBAD). The HBAD program provides deferred down payment and closing cost assistance loans to low- and moderate-income residents.
ACTION
WHEREAS, the City of Madison operates the Home Buy the American Dream (HBAD) down payment and closing cost assistance program to support homeownership opportunities for low- and moderate-income residents; and,
WHEREAS, the City of Madison Community Development Division’s 2019 Operating Budget anticipated up to $315,148 in Housing Cost Reduction Initiative (HCRI) funds for the HBAD program; and,
WHEREAS, the City of Madison Community Development Division applied for and was awarded $275,000 in State HCRI funds to support the HBAD program for operating years 2019-2021;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council authorizes the Mayor and the City Clerk to enter into an agreement with the State of Wisconsin DOA's Division of Housing to accept $275,000 in HCRI funds.