Fiscal Note
Movin' Out's Homeownership Assistance program has a current available balance of approximately $150,000 in HOME funds, and the CDD Housing Development Reserve fund has an available balance of over $1 million in CDBG funds. This Resolution proposes to exchange up to $150,000 in HOME funds from Movin' Out's Homeownership program for a commensurate amount of CDBG funds from the Housing Development Reserve.
No additional City funds are being requested by this Resolution, and there is no impact on the local City levy.
62110111-43630-71016 AFF HSG PI CDBG 16 PRGM PRNCP 150,000
62110111-43630-72016 AFF HSG PI HOME 16 PRGM PRNCP (150,000)
62112112-43630-71016 HSG AST RL CDBG 16 PRGM PRNCP (150,000)
62112111-43630-72016 HSG AST PI HOME 16 PRGM PRNCP 150,000
Title
Approving the exchange of HOME funds for CDBG funds between a homebuyer assistance loan program administered by Movin' Out, Inc. and the CDD Housing Development Reserve Fund in order to help facilitate the City's compliance with recent HUD guidance regarding the timely use of CDBG program income.
Body
BACKGROUND
Since 1997, Movin' Out has contracted with the City to administer a loan program that assists eligible Madison homebuyers with downpayment and closing costs. Households that use this program must have at least one member with a permanent disability, and assistance provided through the program is typically $30,000 per loan. To date, the agency's Homeownership Assistance program has been funded with a combination of HOME and CDBG funds, with loan repayments eligible for reuse in the program the next calendar year, to fund additional homebuyer loans.
Earlier this year, HUD's Field Office in Milwaukee recommended that the City spend down its CDBG program income balance more rapidly if possible, in an effort to help meet timeliness benchmarks imposed by the grant's regulations, which must be met in Fall 2017. To that end, this Resolution proposes to change the source of funding for Movin' O...
Click here for full text