City of Madison - File #: 31991

• File #: 31991
• Version: 1
• Name: Approve Common Wealth Development’s request to waive the 2013-2014 CDD Program Goals and Objectives loan-to-value ratio limit for 2013-2014 SW Rental Acquisition & Rehab projects.
• Type: Resolution
• Status: Passed
• File created: 10/23/2013
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 12/3/2013
• Final action: 12/3/2013
• Enactment date: 12/5/2013
• Enactment #: RES-13-00872
• Title: Approve Common Wealth Development’s request to waive the 2013-2014 CDD Program Goals and Objectives loan-to-value ratio limit for 2013-2014 SW Rental Acquisition & Rehab projects.
• Sponsors: Maurice S. Cheeks, Lauren Cnare, Matthew J. Phair

Date	Ver.	Action By	Action	Result
12/3/2013	1	COMMON COUNCIL	Adopt	Pass
11/25/2013	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
11/14/2013	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Return to Lead with the Recommendation for Approval	Pass
10/29/2013	1	BOARD OF ESTIMATES (ended 4/2017)	Referred
10/29/2013	1	COMMON COUNCIL	Referred
10/23/2013	1	Community Development Division	Referred for Introduction

Fiscal Note
No appropriation is required.
Title
Approve Common Wealth Development’s request to waive the 2013-2014 CDD Program Goals and Objectives loan-to-value ratio limit for 2013-2014 SW Rental Acquisition & Rehab projects.
Body
Common Wealth Development (CWD) has targeted revitalization efforts to neighborhoods on the South West side of Madison such as Balsam-Russet-Leland-Hammersley. Based on recent purchases and research of the properties for sale in this area there is a need to waive the CDD 115% loan-to-value limit outlined in the 2013-2014 Program Goals and Objectives.

Whereas, the housing market and number of distressed sales in these challenged areas, results in low post-rehab appraisals, resulting in a higher loan to value ratio; and

Whereas, in order for Common Wealth to be a successful bidder of properties in these areas in a timely way, a waiver agreement needs to be in place before submitting an offer to purchase properties; and

WHEREAS, the CDBG staff and Committee have reviewed this request and find that it furthers the goals expressed in the 2010-2014 Five-Year Community and Neighborhood Development Plan and the 2013 Action Plan; and

WHEREAS, the acquisition and rehab of units in these neighborhoods will ensure permanent, affordable rental housing for low-income people; and

WHEREAS, the loans necessary to complete acquisition/rehabilitation of housing in these areas results in a higher than average loan-to-value ratio while not necessarily increasing the risk to the City; and

WHEREAS, the risk to the City is greatly minimized by the following factors: Common Wealth Development has a strong record of performance and responsibly using public funds to increase the stock of affordable housing for low-income people while revitalizing and stabilizing distressed neighborhoods; CWD has worked extensively on the Southwest side over the past year, including hiring a Housing Community Organizer in 2012, which increases the likely success of t...