Fiscal Note
A sufficient combination of Federal HOME and HOME Match funds are currently available for the requested project amount (as described in the body of this Resolution) within the Community Development Division's Housing Development Reserve Fund, which was authorized as part of the CD Division's 2010 Adopted Operating Budget.
Title
THIRD SUBSTITUTE - Authorizing the provision of $385,000 in Federal HOME, and HOME Match and/or Community Development Block Grant (CDBG) funds to assist the City of Madison Community Development Authority to acquire and construct 50 units of affordable senior rental housing.
Body
WHEREAS, the City of Madison Community Development Authority plans to acquire and demolish 7 buildings located on the south side of Madison for the purpose of constructing 50 new units of affordable senior rental housing, and
WHEREAS, the CDBG staff and the CDBG Committee have received this proposal and find that it furthers the goals expressed in the 2010-2014 Five-Year Community and Neighborhood Development Plan and the 2010 Community Action Plan; and,
WHEREAS, the acquisition, demolition and construction of 7 properties located 50 new units located within South Madison will provide long-term affordable rental housing; and,
WHEREAS, the successful completion of the project will provide affordable housing to 50 low and moderate income senior households including 11 HOME and HOME Match funds funded units; and,
WHEREAS, the CDBG Office has funds available to allocate only ½ of the requested amount in 2010 and desires to commit the remaining ½ of the requested funds from 2011 funds, contingent upon the receipt of Federal HOME, HOME Match and CDBG.
WHEREAS funding is contingent on a final decision on the merits of the Circuit Court condemnation challenge and when all appellate opportunities and deadlines have passed.
NOW, THEREFORE BE IT RESOLVED that the Common Council authorize a long-term deferred loan to the City of Madison Community Development Authority to acquire land and construct 50 units of affordable senior rental housing including 11 HOME and HOME Match funds funded units and authorize the Mayor and the City Clerk to enter into an agreement with the City of Madison Community Development authority for $192,500 $358,000 $385,000 in HOME, and HOME Match and/or CDBG funds. in 2010 and $192,500 in HOME, and HOME Match and/or CDBG in 2011 when funds are available; and
BE IT FURTHER RESOLVED that the assistance be offered with terms adopted in the 2009-2010 Program Framework for Community and Neighborhood Development. Assistance to the agency will be offered in the form of a long-term deferred loan without shared appreciation or interest.
BE IT FURTHER RESOLVED that the funding is contingent on a final decision on the merits of the Circuit Court condemnation challenge and when all appellate opportunities and deadlines have passed allowing the CDA to move forward on the project, compliance with relocation requirements and framework requirements regarding loan-to-value limits.