Fiscal Note
Sufficient Federal HOME, HOME Match and/or CDBG funds are available for allocation to this project within the CDD’s Housing Development Reserve Fund, which was authorized as part of the City’s 2015 Adopted Operating Budget. Approval of this resolution will have no impact on the City levy.
Title
Authorizing an allocation of up to $600,000 in Housing Development Reserve Funds to assist Housing Initiatives, Inc. to acquire and rehabilitate two properties at 310 E. Mifflin & 103 N. Butler Streets for a total of fourteen (14) units of affordable rental housing for low-income people.
Body
BACKGROUND:
Housing Initiatives, Inc. (HII) is a local community-based agency that provides permanent, affordable rental housing for people with mental illness who are experiencing homelessness. Housing Initiatives acquires and rehabilitates rental properties, manages the properties as affordable housing, and actively assists their tenants in maintaining case management services.
With this commitment of funds, HII will acquire and rehabilitate a 6-unit property, comprised of five 1-bedroom units and one efficiency unit; and an adjacent 8-unit property, comprised of seven 1-bedroom units and one efficiency unit. In 1996, Madison Development Corporation (MDC) acquired and rehabilitated these properties with assistance of $206,000 from City-administered HOME & CDBG. In 2015, the two properties were valued at approximately $1.1M. Under the terms of the HOME and CDBG loans, MDC, upon sale of the properties, is obligated to repay the original loan amounts plus a proportionate share (46%) of the properties’ appreciated value. The repayment amount, pending appraisal, is estimated to be about $500,000. MDC will repay these funds to the City of Madison. If this resolution is approved, the Community Development Division (CDD) will enter into a new loan agreement with Housing Initiatives and execute loan documents to support its acquisition of the properties.
ACTION:
WHERE...
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