Fiscal Note
Sufficient HOME Match funds are available for this project within the Community Development Division’s Housing Development Reserve Fund, which was authorized as part of the CD Division’s 2011 Adopted Operating Budget. (The Federal HOME funds for Movin’ Out’s Rental Housing program, referenced herein, were previously authorized as part of the 2008 and 2011 Adopted Operating Budgets.)
Title
Authorizing the Mayor and City Clerk to execute a loan agreement with Movin’ Out Inc. for up to $283,759 in HOME Match funds to purchase land at 2100 Winnebago Street on which to construct mixed-income multi-family rental housing.
Body
Background:
Movin’ Out, Inc. has proposed redevelopment of a vacant commercial & industrial site located at 2100 Winnebago Street to construct Winnebago Lofts, a 60 unit mixed-income rental development. Winnebago Lofts will provide 56 units of affordable housing for low and moderate income people below 60% AMI and 4 market rate units. HOME and HOME Match funds will be used for acquisition only to create 11 HOME funded units. Movin’ Out, Inc. intends to submit a Section 42 Low-Income Housing Tax Credits application in January 2012 for approximately $12,000,000. Committing a total of $470,000 in HOME and HOME Match funds in advance of the tax credit application significantly enhances Movin’ Out, Inc.’s ability to submit a competitive application. Movin’ Out will use its 2011 HOME rental contract funds ($180,000), plus the remaining balance from its 2008 HOME rental contract funds ($6,241), in combination with the current request of $283,759 in HOME Match funds to provide a $470,000 loan to its affiliated entity, Movin’ Out Homes, LLC.
Action:
WHEREAS, the CDD staff and the CDBG Committee have reviewed this proposal and find that it furthers the goals expressed in the 2010-2014 Five-Year Community and Neighborhood Development Plan and the 2011 Community Action Plan;
WHEREAS, the acquisition and new construction of this property and...
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