Fiscal Note
The proposed resolution authorizes $6.8 million in loans for four affordable housing projects, identified through a competitive RFP process, which will result in the development of approximately 310 units of affordable rental housing. The $6.8 million will be funded by $1.98 million of federal HOME Investment Partnership (HOME) revenue in the Community Development Block Grant (CDBG) fund and $4.82 million from the Affordable Housing Fund capital program. The federal HOME funds are included in Community Development Division’s 2018 Adopted Operating Budget, which includes approximately $6.4 million Purchased Services budget authority in the CDBG fund. The Affordable Housing Fund capital program currently has $11.16 million in available budget authority. No additional City appropriation is required.
Title
SECOND SUBSTITUTE - Awarding up to $4.82 million from the Affordable Housing Fund and $1,980,000 in Federal HOME funds to support four development projects, selected through a City Request for Proposals (RFP) process, that will construct approximately 310 units of affordable rental housing in Madison, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects.
Body
The 2019 Executive Capital Budget authorizes $4.5 million of new spending for the Affordable Housing Fund (AHF). In addition, it carries forward the authority to spend $1,220,500 from the 2018 Adopted Capital Budget not yet committed to specific housing projects. In addition, the 2019 Executive Operating Budget also reflects the availability of at least $5 million in 2018-2019 funds under the Federal HOME Program. This resolution draws on both resources to provide up to a combined $6.8 million in direct financial support for four proposed affordable housing developments that will also leverage federal Low-Income Housing Tax Credits allocated by the Wisconsin Housing and Economic Development Authority (WHEDA).
This resolution, if adopted, will...
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