Fiscal Note
On October 16, 2012, the Common Council authorized a loan of $180,000 from the City’s Affordable Housing Trust Fund (AHTF) to the Community Development Authority to provide construction financing for the CDA’s Mosaic Ridge Homeownership Project.
This Resolution seeks to extend the term of repayments of any of those funds that are associated with homes sold to buyers at or below 50% of area median income (AMI). For those buyers, instead of repayment being due at the time of initial sale, some or all of the funds will remain as a long-term deferred loan, due upon sale or transfer of the property.
No new additional funds are being sought by this Resolution, and there is no impact on the local levy
Title
Amending the repayment terms of Affordable Housing Trust Funds (AHTF) awarded to the City’s Community Development Authority (CDA) for financing its Mosaic Ridge Homeownership Project.
Body
BACKGROUND
The City of Madison approved development of the Mosaic Ridge subdivision in the Allied Drive area with the intention of encouraging the development of a mixed-income community. Known as the Mosaic Ridge Homeownership Project, the goal was to have one-third of the homes be affordable to families at or below 50% of area median income (AMI), one-third be affordable to families with incomes between 50%-80% of AMI, and one-third have no income restrictions.
The City awarded AHTF funds to the Mosaic Ridge homeownership project in 2012, providing construction financing to four of the homes listed above. Funding was designated for two homes for households at or below 60% of AMI, and two homes for households at or below 80% of AMI.
The repayment terms outlined in the authorizing Resolution (RES-12-00793, Legistar #27743) state that CDA will pay 2.75% simple interest during construction for all units built for households at 60%-80% AMI, and no interest during construction for units built for households at or below 50% AMI. The Resolution further states that...
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