Fiscal Note
Sufficient Federal Housing Development funds of up to $500,000 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 2014 Adopted Operating budget. The Resolution also proposes the expenditure of up to $295,000 from the Affordable Housing Trust Fund (AHTF). The current estimated balance of the AHTF is $3.09M. The 2014 adopted City operating budget authorized no expenditure from the AHTF, so a budget amendment is required. The expenditure of $295,000 will come from account #SO31-57700 (Affordable Housing Trust Fund loan expense). The use of these funds will have no impact on the local levy.
Title
SECOND SUBSTITUTE Authorizing the Mayor and City Clerk to execute a loan agreement with Lutheran Social Services of Wisconsin and Upper Michigan, Inc. or an affiliate legal entity, for up to $795,000 $500,000 in Housing Development Reserve funds and up to $295,000 in Affordable Housing Trust Funds for the development of multi-family affordable rental housing at the Tennyson Lane site and amending the budget of the Affordable Housing Trust Fund to authorize the expenditure. The loans will partially finance the development of 72 units of multi-family rental housing.
Body
Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (LSS) is a non-profit affordable housing developer with more than 130 years of experience. LSS has proposed to construct 72 units of mixed affordable housing located at the NEC of Tennyson and Eliot Lane on Madison’s north side. Housing Development Reserve and AHTF funds will be used to create these 72 units. LSS will use their current request of $500,000 in Housing Development Reserve funds and $295,000 in AHTF to provide a $795,000 loan to its affiliated legal entity.
Plans for Tennyson Ridge Apartments include a mix of 1, 2, and 3 bedroom units of affordable housing with all 72 units for low to moderate income house...
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