Fiscal Note
$121,000 in HOME match dollars is available to cover the costs for this project. The project will not impact State cost controls.
Title
Authorizing the provision of CD Office funds to assist Project Home Development Organization refinance a portion of its first mortgage on its Prairie Crossing location, as a way to stabilize their housing and contribute to the revitalization of the Allied neighborhood.
Body
AGENCY
Project Home was established in the mid-1970's to provide repair assistance to elderly residents of Madison, as one way to improve their quality of life at home. Its affiliate, Project Home Development Organization, was established in 2000 to serve as a community housing development organization, and to be the lead developer and general manager for the WHEDA-assisted, low-income housing tax credit project called Prairie Crossing.
PROJECT
In 2000, a private (tax credit) investor, the City and WHEDA provided financing to Project Home to help purchase six eight-unit buildings on Allied Drive, renovate them, and operate them as affordable rental housing. The project also relied on first mortgage financing. As the Allied neighborhood has struggled over the last several years, Project Home too has been challenged to decrease expenses and increase revenues while maintaining good tenant selection and property management standards. In December 2005, the Board of Director decided that it needed to lower its debt service costs and seek additional rental subsidies in order to maintain the project. Project Home proposed that the City and WHEDA provide some funds to refinance the first mortgage loan and lower its operating loss. Project Home has also sought and obtained a multi-year commitment from the tax credit investor to cover additional operating losses. In March 2006, the Council adopted resolution 03191 that authorized the provision of $244,000 in HOME match funds, an amount that was approximately 2/3 of the amount requested of the Cit...
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