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File #: 49034    Version: 1 Name: Authorizing the allocation of up to $4.35 Million from the Affordable Housing Fund to support two development projects, selected as part of a City Request for Proposals (RFP) process, that would involve the construction of approximately 175 units of affor
Type: Resolution Status: Passed
File created: 9/27/2017 In control: FINANCE COMMITTEE
On agenda: 10/17/2017 Final action: 10/17/2017
Enactment date: 10/19/2017 Enactment #: RES-17-00847
Title: Authorizing the allocation of up to $4.35 Million from the Affordable Housing Fund to support two development projects, selected as part of a City Request for Proposals (RFP) process, that would involve the construction of approximately 175 units of affordable rental housing in Madison, Wisconsin, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects.
Sponsors: Samba Baldeh, Maurice S. Cheeks, Matthew J. Phair
Attachments: 1. 2018 AHF memo_9-26-2017 SEM.pdf, 2. CDD Tax Credit Rental Development 2013-2017 Project Summary.pdf, 3. The Grove Apartments_Application .pdf, 4. MSP_TheGroveApt_Answers.pdf, 5. Fair Oaks_Application.pdf, 6. Stonehouse_FairOaks_Answers.pdf
Fiscal Note
The 2018 Executive Capital Budget includes $4.5 million of new funding for the Affordable Housing Fund. In addition to the newly authorized appropriation anticipated for 2018, $2.7 million from the 2017 allocation is not committed due to projects that did not receive funding through the WHEDA process. Between the 2017 and 2018 allocations there is $7.2 million available for projects to participate in the application process for WHEDA Low-Income Tax Credits in their spring 2018 process.

This resolution, if adopted, will allocate funds for the two projects outlined below. Collectively these projects will result in approximately 175 units of affordable rental housing.
· Up to $1.35 million - Stone House Development, Inc., or an affiliate LLC for Fair Oaks Apartments
· Up to $3 million - MSP Real Estate, Inc., or an affiliate LLC for The Grove Apartments

Title
Authorizing the allocation of up to $4.35 Million from the Affordable Housing Fund to support two development projects, selected as part of a City Request for Proposals (RFP) process, that would involve the construction of approximately 175 units of affordable rental housing in Madison, Wisconsin, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects.
Body
Background
The City of Madison’s 2018 Capital Budget is expected to authorize continuation of the Affordable Housing Fund, at an annual level of $4.5 million. The AHF was created in 2015 to help increase and/or preserve the supply of affordable rental housing. It seeks to leverage other financing resources, most notably federal Low-Income Housing Tax Credits (LIHTCs), to help achieve the City’s goal of adding approximately 150-200 new affordable rental units per year.

In Wisconsin, LIHTCs are administered by the Wisconsin Housing and Economic Development Authority (WHEDA). WHEDA allocates credits annually through a highly competitive process. The review criteria that WHEDA employs favor...

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