City of Madison, Wisconsin | Legislative Information Center
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File #: 32316    Version: 1 Name: Authorizing acceptance of $27,500 in NSP funds, amending 2014 CDBG Adopted Operating Budget accordingly; authorizing execution of agreements to accept funds on behalf of Housing Initiatives and implement project; and authorizing subordination to WHEDA.
Type: Resolution Status: Passed
File created: 11/25/2013 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 1/21/2014 Final action: 1/21/2014
Enactment date: 1/23/2014 Enactment #: RES-14-00050
Title: Authorizing the CDBG Office to accept a supplemental award of funds from the State of Wisconsin’s Neighborhood Stabilization Program (NSP) on behalf of Housing Initiatives, Inc. and amending the 2014 CDBG Adopted Operating Budget to recognize $27,500 in additional expenditure and revenue authority; and authorizing the Mayor and City Clerk to execute agreements with the State of Wisconsin and Housing Initiatives, Inc. to implement a specific rental housing project for low income households with NSP funds at a previously foreclosed property; and authorizing the Mayor and City Clerk to execute a Subordination of Mortgage in favor of first mortgage financing for two previously approved loans to Housing Initiatives, Inc. to Wisconsin Housing and Economic Development Authority (WHEDA) in forms as shall be approved by the City Attorney consistent with this Resolution.
Sponsors: Maurice S. Cheeks, Lauren Cnare, Matthew J. Phair
Attachments: 1. MEMO Additional NSP Funds and HI Subordination 2013.pdf, 2. HII funds to acquire & rehab 2013 rental approved res 28407.pdf, 3. HII 2013 Foreclosed Rental Acq Res 30269 app.pdf
Fiscal Note
The City will accept a total of $27,500 including $25,000 on behalf of Housing Initiatives, Inc. for rehabilitation of three units. $2,500 will be retained by the City for administrative expenses. Project costs and a portion of the program administration will be covered by the grant and administered through a segregated fund.

By Legislative ID #28407 (RES-13-00035) adopted January 23, 2013 and Legislative ID #30269 (RES-13-00448) adopted June 19, 2013, the City approved two awards with loans totaling $329,000 to Housing Initiatives, Inc., to acquire one 4-unit property and one 3-unit property. Housing Initiatives is seeking to borrow $173,550 from Wisconsin Housing and Economic Development Authority (WHEDA) to provide favorable, permanent first mortgage and rehabilitation financing. To secure that loan, WHEDA requires a first mortgage on the properties with the City subordinating its interest to second position, as is customary. No appropriation or expenditure is required.
Title
Authorizing the CDBG Office to accept a supplemental award of funds from the State of Wisconsin’s Neighborhood Stabilization Program (NSP) on behalf of Housing Initiatives, Inc. and amending the 2014 CDBG Adopted Operating Budget to recognize $27,500 in additional expenditure and revenue authority; and authorizing the Mayor and City Clerk to execute agreements with the State of Wisconsin and Housing Initiatives, Inc. to implement a specific rental housing project for low income households with NSP funds at a previously foreclosed property; and authorizing the Mayor and City Clerk to execute a Subordination of Mortgage in favor of first mortgage financing for two previously approved loans to Housing Initiatives, Inc. to Wisconsin Housing and Economic Development Authority (WHEDA) in forms as shall be approved by the City Attorney consistent with this Resolution.
Body
Accepting and Awarding NSP Funds
The City of Madison was previously awarded a 2009 contract and 2010 a...

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