City of Madison, Wisconsin | Legislative Information Center
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File #: 59740    Version: 1 Name: Approving $900,000 in Federal HOME funds to provide additional support for the City's Deferred Payment Loan (DPL) homeowner rehab program and the "Home Buy the American Dream" (HBAD) down payment assistance program.
Type: Resolution Status: Passed
File created: 2/26/2020 In control: COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE
On agenda: 3/3/2020 Final action: 4/21/2020
Enactment date: 4/28/2020 Enactment #: RES-20-00310
Title: Approving $900,000 in Federal HOME funds to provide additional support for the City's Deferred Payment Loan (DPL) homeowner rehab program and the "Home Buy the American Dream" (HBAD) down payment assistance program.
Sponsors: Christian A. Albouras, Samba Baldeh, Zachary Henak, Syed Abbas
Attachments: 1. Memo HBAD and DPL Request for HOME Funding.pdf
Fiscal Note
The proposed resolution approves the use of HOME Investment Partnership funds for the Community Development Division’s Deferred Payment Loan and Home Buy the American Dream programs, all of which are located in CDD’s Affordable Housing service and funded by a combination of City, state, and federal funding sources. The 2020 Adopted Operating Budget includes $2.04 million in federal HOME Investment Partnership funds and currently has sufficient available budget authority for the proposed use of HOME funds. No additional City appropriation is required.
Title
Approving $900,000 in Federal HOME funds to provide additional support for the City's Deferred Payment Loan (DPL) homeowner rehab program and the "Home Buy the American Dream" (HBAD) down payment assistance program.
Body
BACKGROUND

The City of Madison's Deferred Payment Loan (DPL) program allows income-eligible homeowners to borrow up to $25,000 for housing rehabilitation purposes, with payback deferred until the owner sells, vacates, transfers or cash-out refinances the home. Funding for the DPL program comes from both federal sources and City levy. The City's "Home Buy the American Dream" (HBAD) program assists income-eligible first-time homebuyers in purchasing homes within the greater Madison area by providing no-interest deferred payment loans that help cover down payment and closing costs. Funding for the HBAD program is provided by the Wisconsin Division of Housing through its Housing Cost Reduction Initiative (HCRI) grant program, along with federal funds and City Levy. The Community Development Division (CDD) serves as the lead fiscal agency and provides loan administration for both programs.

Varying factors have caused both loan programs to experience a significant recent surge in popularity, and CDD staff anticipate a shortfall in available funds to support the programs' increased demand by mid-year.

This Resolution requests the transfer of $400,000 in supplemental HOME funds to the...

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