Fiscal Note
The proposed resolution authorizes awarding an additional $500,000 in affordable housing development loans to Movin’ Out, Inc. to allow their Red Caboose housing development to proceed on schedule. The proposed $500,000 will be funded by the estimated $2.19 million of remaining budget authority not yet committed to specific housing projects within the Affordable Housing-Development Projects capital program. No additional City appropriation is required with adoption of this resolution.
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SUBSTITUTE: Approving the allocation of up to $500,000 of additional Affordable Housing Funds to Movin’ Out Inc.’s Red Caboose housing development and authorizing the Mayor and City Clerk to amend the City’s contract with Movin’ Out Inc. to reflect that change.
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Background:
The City of Madison’s approved 2022 Capital Budget reflects new and carry-over funding authority for the Affordable Housing Fund (AHF), to support affordable housing developments.
In 2019, the Common Council adopted RES-19-00724 (Legistar File #57594), which authorized up to $1,025,000 ($125,000 of City Affordable Housing Fund (AHF) funds and $900,000 of federal HOME funds) to Movin’ Out, Inc., or an affiliate LLC, for Red Caboose Apartments. The proposal will create 38 total units of new rental housing of which 32 would be affordable, designated for households with incomes at or below 30%, 50% or 60% of County Median Income. In addition to creating more affordable housing units, the development will provide space for Red Caboose Child Care Center, an established, City-accredited child care provider. With this City support, the developer, a local non-profit organization, was successful in securing WHEDA-administered Low Income Housing Tax Credits, and other financing. However, rising construction costs and other factors have made it difficult for the real estate closing to be completed in 2021 and meet construction deadlines that accompany WHEDA’s Low Income Housing Tax Credits the ne...
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