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 2017 Adopted Operating Budget. Approval of this resolution will have no impact on the City budget.
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Authorizing the Mayor and City Clerk to execute a loan agreement including up to $400,000 in HOME Funds, in addition to a previous $530,000 award made in 2015 from Affordable Housing Funds (AHF), to Movin’ Out, Inc. and Mirus Partners, Inc., or an affiliate LLC for the Madison on Broadway affordable rental housing development.
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Movin’ Out, Inc. (MOI) is seeking $400,000 in HOME funds from the CDD’s Housing Development Reserve Funds for the proposed Madison on Broadway development at 2230 Broadway on Madison’s south side. If awarded, these funds would supplement the existing commitment of $530,000 in 2015 Affordable Housing Funds (AHF) towards this project.
MOI and its co-developer Mirus Partners (together, the “Developer”) have assembled $10.6 million dollars in financing commitments to develop 48 units of affordable rental housing utilizing WHEDA Section 42 Tax Credits. The project, as proposed in 2015, included 36 units of rental housing above a first floor neighborhood center space and 12 townhouse units on the site of the existing neighborhood center. At the time the 2015 AHF award was offered, it was anticipated that tax increment financing could be utilized to finance a portion of the project, which also included redevelopment of the neighborhood center. Subsequently, it was determined that this financing strategy was not permissible creating a need to redesign the project. Simultaneously, the tax credit market experienced a downward adjustment, which yielded reduced funding for the project. Meanwhile, construction costs have continued to rise sharply. Cumulatively, these events have created a $400,000 financing gap which the developers are see...
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