Fiscal Note
The 2010 Adopted Operating Budget provides authority for the expenditure of up to $150,000 from the City's Scattered Site Fund. This Resolution proposes the expenditure of $99,000 from the Fund. No additional appropriation is required.
Title
Authorizing the provision of $99,000 in Scattered Site funds to Movin' Out Inc. for acquisition and rehabilitation of a 4-unit property located at 717 North Midvale Boulevard to be used as rental housing for low- and moderate-income City residents; and authorizing the Mayor and City Clerk to enter into agreements with Movin' Out, Inc. to implement the project.
Body
Background:
Movin' Out will use its 2010 HOME rental contract funds ($141,000) in combination with the currently requested $99,000 in Scattered Site funds to provide a $240,000 loan to its affiliated entity, Movin' Out Homes, LLC, for the acquisition and rehabilitation of a four-unit property located at 717 North Midvale Boulevard. The property will be used as rental housing for low- and moderate-income City residents.
Action:
WHEREAS, the four-unit property located at 717 North Midvale Boulevard is located in a Scattered Site area, as designated in the CDBG Office's 2009-2010 Program Funding Framework, thus qualifying it for the use of City Scattered Site funds; and,
WHEREAS, the sale of this property to Movin' Out Homes, LLC for the purpose of acquisition and rehabilitation and use as rental housing for low- and moderate-income City residents will aid in the stabilization of Movin' Out, Inc.'s operations, the retention of four affordable rental units, and the provision of reduced rent to the four tenant households; and,
WHEREAS, CDBG staff and the CDBG Committee have reviewed this proposal and find that it furthers the goals expressed in the Community Development Division's 2010-2014 Five-Year Community and Neighborhood Development Plan and the Division's 2010 Community Action Plan;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves the provision of $99,000 in City Scattered Site funds in the form of a long-term deferred loan to Movin' Out, Inc. for the purpose of funding Movin' Out Homes, LLC's acquisition and rehabilitation of the property located at 717 North Midvale Boulevard to be used as affordable rental housing; and,
BE IT FURTHER RESOLVED, that the Common Council authorizes the Mayor and the City Clerk to enter into agreements with Movin' Out, Inc. as necessary to implement this project; and,
BE IT FINALLY RESOLVED, that the Common Council authorizes the Mayor and City Clerk to execute and deliver any additional documents necessary to accomplish the purposes of this Resolution.