Fiscal Note
Up to $439,029 in federal HOME funds were previously authorized by the Common Council as part of the Community Development Division 2013 and 2014 Adopted Operating Budgets for rental housing acquisition and rehabilitation. This Resolution authorizes an amendment to the contract. No additional funds are being requested, and there is no impact on the local levy.
Title
Authorizing an amendment to Common Wealth Development, Inc.’s contract for HOME-assisted rental housing acquisition and rehabilitation at 5726 Balsam Road., reducing the number of HOME-assisted units by one for the purpose of creating an unrestricted resident manager unit.
Body
BACKGROUND
In September 2014, Common Wealth Development, Inc. (CWD) and the City of Madison entered into a contract for $439,029 for the acquisition and rehabilitation of eight units of affordable rental housing at 5726 Balsam Road as part of the 2013-14 funding process. CWD has since indentified the need for a resident manager to provide a much needed on-site presence and related resident services for their growing southwest portfolio. Staff recommends approval of this request as it would facilitate the stabilization of the properties in CWD’s southwest portfolio and the neighborhood by extension.
To accomplish this, CWD is seeking an amendment to the contract to reduce the number of HOME-assisted units at 5726 Balsam Rd. from eight to seven units for the purpose of creating an unrestricted Resident manager unit not subject to the regulations of the federal HOME funds. Authorizing a contract amendment to reduce the number of HOME-assisted units also results in an increased CDD investment per unit. This triggers a request for authorization to:
a. Invest an additional $6,000 per unit based on increased costs to provide accessibility, lead based paint mitigation, and energy efficiency improvements. Justification for the actual additional costs of $9,251 per unit for these improvements is demonstrated in CWD’s a...
Click here for full text