Fiscal Note
$207,000 in Federal HOME and/or match funds is available in the Housing Development Fund. Expenses will not be counted toward the State expenditure control limits.
Title
Approving a loan of $207,000 in Federal HOME and/or Match funds to allow Operation Fresh Start to re-pay bank loans on 2 properties.
Body
BACKGROUND:
The City of Madison annually provides some combination of CDBG, HOME or Match funds to Operation Fresh Start to assist with development costs of its “Employment/training through Housing Development” program. OFS recruits and trains young people in the 18 to 24-age range, and their work crews either rehab or construct homes that are then sold to income eligible households.
PROJECT:
Operation Fresh Start has encountered marketing and marketability challenges in selling some of its completed homes on a timely basis. The holding costs for those completed homes have increased and these costs negatively affect the affordability of those homes.
ACTION:
WHEREAS, the Common Council has adopted a five-year Community and Neighborhood Development Plan which identifies affordable housing as a critical issue within the community, and outlines a set of strategies and priorities to address those problems using community-based groups;
WHEREAS, the HOME Program, as amended, and its implementing regulations located at 24 CFR 92.200 ff., permit the City of Madison to use HOME and/or match funds to assist with the development costs of affordable housing;
WHEREAS the Operation Fresh Start has evaluated its marketing strategy and has taken some steps to increase its effectiveness in reducing costs and expanding its marketing;
WHEREAS, CD staff and the CDBG Commission have reviewed this proposal for funds and find that it furthers the goals of the CD program expressed in the Five-Year Community and Neighborhood Development Plan;
NOW, THEREFORE, BE IT RESOLVED that the Common Council approve the provision of $207,000 in HOME/match funds to cover s...
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