City of Madison - File #: 32316

• File #: 32316
• Version: 1
• Name: Authorizing acceptance of $27,500 in NSP funds, amending 2014 CDBG Adopted Operating Budget accordingly; authorizing execution of agreements to accept funds on behalf of Housing Initiatives and implement project; and authorizing subordination to WHEDA.
• Type: Resolution
• Status: Passed
• File created: 11/25/2013
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 1/21/2014
• Final action: 1/21/2014
• Enactment date: 1/23/2014
• Enactment #: RES-14-00050
• Title: Authorizing the CDBG Office to accept a supplemental award of funds from the State of Wisconsin’s Neighborhood Stabilization Program (NSP) on behalf of Housing Initiatives, Inc. and amending the 2014 CDBG Adopted Operating Budget to recognize $27,500 in additional expenditure and revenue authority; and authorizing the Mayor and City Clerk to execute agreements with the State of Wisconsin and Housing Initiatives, Inc. to implement a specific rental housing project for low income households with NSP funds at a previously foreclosed property; and authorizing the Mayor and City Clerk to execute a Subordination of Mortgage in favor of first mortgage financing for two previously approved loans to Housing Initiatives, Inc. to Wisconsin Housing and Economic Development Authority (WHEDA) in forms as shall be approved by the City Attorney consistent with this Resolution.
• Sponsors: Maurice S. Cheeks, Lauren Cnare, Matthew J. Phair

Date	Ver.	Action By	Action	Result
1/21/2014	1	COMMON COUNCIL	Adopt Unanimously	Pass
1/13/2014	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT (15 VOTES REQUIRED) - REPORT OF OFFICER	Pass
12/5/2013	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Return to Lead with the Recommendation for Approval	Pass
12/3/2013	1	BOARD OF ESTIMATES (ended 4/2017)	Refer
12/3/2013	1	COMMON COUNCIL	Referred
11/25/2013	1	Community Development Division	Referred for Introduction

Fiscal Note
The City will accept a total of $27,500 including $25,000 on behalf of Housing Initiatives, Inc. for rehabilitation of three units. $2,500 will be retained by the City for administrative expenses. Project costs and a portion of the program administration will be covered by the grant and administered through a segregated fund.

By Legislative ID #28407 (RES-13-00035) adopted January 23, 2013 and Legislative ID #30269 (RES-13-00448) adopted June 19, 2013, the City approved two awards with loans totaling $329,000 to Housing Initiatives, Inc., to acquire one 4-unit property and one 3-unit property. Housing Initiatives is seeking to borrow $173,550 from Wisconsin Housing and Economic Development Authority (WHEDA) to provide favorable, permanent first mortgage and rehabilitation financing. To secure that loan, WHEDA requires a first mortgage on the properties with the City subordinating its interest to second position, as is customary. No appropriation or expenditure is required.
Title
Authorizing the CDBG Office to accept a supplemental award of funds from the State of Wisconsin’s Neighborhood Stabilization Program (NSP) on behalf of Housing Initiatives, Inc. and amending the 2014 CDBG Adopted Operating Budget to recognize $27,500 in additional expenditure and revenue authority; and authorizing the Mayor and City Clerk to execute agreements with the State of Wisconsin and Housing Initiatives, Inc. to implement a specific rental housing project for low income households with NSP funds at a previously foreclosed property; and authorizing the Mayor and City Clerk to execute a Subordination of Mortgage in favor of first mortgage financing for two previously approved loans to Housing Initiatives, Inc. to Wisconsin Housing and Economic Development Authority (WHEDA) in forms as shall be approved by the City Attorney consistent with this Resolution.
Body
Accepting and Awarding NSP Funds
The City of Madison was previously awarded a 2009 contract and 2010 a...