Fiscal Note
This ordinance amendment dramatically alters the rules governing the expenditure of funds in the Affordable Housing Trust Fund, expanding both the scope of eligible expenditures and the maximum amount that could be expended in any given year. Roughly $94,000 was added to the fund during 2009, bringing the balance in the fund at the beginning of this year to about $4,100,000.
The existing Affordable Housing Trust Fund ordinance restricts spending to the creation of affordable housing units, prohibiting the use of Trust Fund resources for operating expenses. The amount that can be spent in any given year is limited to 25% of the additions to the fund received in the previous year. Thus, under current rules, only about $23,000 would be available for expenditure in 2010, of which $19,000 has already been committed.
The proposed ordinance would expand the eligible uses of Trust Fund resources to include the operating expenses of for-profit and non-profit developers that receive a grant or loan from the Trust Fund. It also broadens the definition of eligible projects to include the repair, preservation and upgrade of existing affordable units. Additionally, it removes the current annual expenditure limitations, replacing them with the provision that no more than 25% of the total fund balance could be spent on any single project. Thus, under the proposed ordinance, the full $4,100,000 balance in the fund could be spent in 2010 as long as no more than $1,025,000 was spent on any one project.
Title
AMENDED ALTERNATE Amending Sec. 4.22 of the Madison General Ordinances to allow the payment of developers’ operating costs from the Affordable Housing Trust Fund.
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DRAFTER'S ANALYSIS: This amendment revises the uses of Trust Fund monies to provide greater flexibility in authorizing disbursements, increases the amount that may be disbursed from the Fund, and makes certain definition changes.
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