Fiscal Note
In 1998, the Common Council approved $250,204 in HOME funds to help Madison Development Corporation acquire these two properties. The terms of assistance required a ten-year period of affordability and repayment of the greater of the original amount or a pro-rated appreciation of the market value upon change of use, sale or transfer. The current value of the property will require a repayment of $414,790 from MDC. This resolution authorizes the City to reinvest this $414,790 in the purchase of these same properties by ARISE. This reinvestment will be secured by a new mortagae of this greater amount and will continue the same conditions for eligible use of the property for an additional 10 year period.
Title
SUBSTITUTE - Approving the transfer of HOME funded mortgages on two buildings on Johnson and Gorham Streets from Madison Development Corporation to ARISE Family Services to continue their use as SRO housing for lower income individuals and authorizing the Mayor and the City Clerk to sign agreements to implement the transfers.
Body
WHEREAS in 1998 the City Council approved the provision of HOME funds to Madison Development Corporation to help MDC acquire two properties in the Johnson/Gorman area to serve as single-room occupancy housing for very low income individuals, and
WHEREAS Madison Development Corporation has master leased the two properties to another non-profit organization called ARISE Family Services since August 2004 to provide property management, and tenant support services as part of a program to help re-integrate returning ex-offenders into the community,
WHEREAS ARISE has offered to purchase the property from MDC contingent upon the transfer City Reinvestment of an amount due to the City based upon the original City mortgages and the assumption
of the original terms,
WHEREAS MDC has adopted a strategic plan to focus on larger housing projects that offer affordable housing with less need for supportive services, a...
Click here for full text