Fiscal Note
The Resolution proposes the provision of up to $1,300,000 in City funding assistance for the acquisition and rehabilitation of an apartment complex. City funding sources include up to $650,000 in Federal Department of Energy EECBG funds, authorized and available as part of the Community Development Division/CDBG 2014 adopted operating budget, plus up to $650,000 from the City's Affordable Housing Trust Fund (AHTF), in the form of a loan to be repaid over a sixteen year term. The current balance of the AHTF is approximately $3.3M.
Title
SUBSTITUTE-Authorizing the Mayor and City Clerk to execute a loan agreement with Mirus Partners, Inc., or an affiliate LLC, for up to $1,300,000 of City-administered funds for the acquisition and rehabilitation of the Woodland Terrace Apartments
Body
Woodland Terrace Apartments (Woodlands), located at 523 Northport Drive, contains 128 units of affordable rental housing. They include 32 one-bedroom, 64 two-bedroom and 32 three-bedroom units. The rental property has settled into an advanced state of disrepair and is the subject of numerous citations for City building code violations. The current owner has largely failed to address these issues and the City has deemed about one-fourth of the units to be uninhabitable due to structural defects. The Woodlands property has been identified by the City of Madison Building Inspection Unit and the Neighborhood Resource Team as one with significant health and safety issues. These issues have affected the current residents, many of whom have filed for rent abatement, as well as the adjacent neighborhood, and have become a significant drain on City resources. There is further concern that the owner is at risk of defaulting on its loans.
Mirus Partners, Inc. is proposing to invest more than $16 million to acquire the property and undertake extensive rehabilitation that will preserve all 128 units, and keep them affordable for low-income households. The project will...
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