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File #: 63901    Version: 1 Name: Authorizing an amendment to RES-20-00144 that awarded a loan of up to $1,800,000 from the Affordable Housing Fund to support an 150-unit affordable rental housing development at 1402 S. Park St., proposed by Rule Enterprises LLC and Movin’ Out, Inc., to d
Type: Resolution Status: Passed
File created: 1/26/2021 In control: Community Development Division
On agenda: 2/23/2021 Final action: 2/23/2021
Enactment date: 3/3/2021 Enactment #: RES-21-00149
Title: Authorizing an amendment to RES-20-00144 that awarded a loan of up to $1,800,000 from the Affordable Housing Fund to support an 150-unit affordable rental housing development at 1402 S. Park St., proposed by Rule Enterprises LLC and Movin’ Out, Inc., to decrease the loaned funds to up to $300,000 and restructure of the allocation of funds from the Affordable Housing Fund for this development.
Sponsors: Christian A. Albouras, Samba Baldeh, Sheri Carter, Tag Evers, Zachary Henak, Syed Abbas, Nasra Wehelie
Attachments: 1. FILE ID 63900, 2. Fourteen02 Park Street Updated Proforma & E-mail Memo Jan 26 2021.pdf, 3. TO Restructure Memo to CDBG Committee 020421.pdf, 4. Registrants Report - Public Comments CDBG 2-4-21.pdf
Related files: 63900
Fiscal Note
The proposed resolution amends the loan agreement between the City of Madison and Rule Enterprises, LLC and Movin’ Out, Inc (collectively, the “Developer”), adopted by RES-20-00144 (File ID 59334), and authorizes the Affordable Housing Fund to repay $1.1 million, used for the original purchase of 1402 S. Park St., to Tax Increment District (TID) 42. The $1.1 million from the Affordable Housing Fund will funded by the original $1.8 million awarded to this development and, in turn, donate the property to the Developer. The loan to the Developer will be reduced to $300,000, resulting in a $400,000 cost reduction from the original agreement and positioning the Developer to secure Affordable Housing Program (AHP) federal financing. No additional City appropriation is required with adoption of the proposed resolution.

Title
Authorizing an amendment to RES-20-00144 that awarded a loan of up to $1,800,000 from the Affordable Housing Fund to support an 150-unit affordable rental housing development at 1402 S. Park St., proposed by Rule Enterprises LLC and Movin’ Out, Inc., to decrease the loaned funds to up to $300,000 and restructure of the allocation of funds from the Affordable Housing Fund for this development.
Body
The Adopted 2021 Capital Budget contains, within funds authorized for the Affordable Housing Fund (AHF), an amount of $1,800,000 previously approved from AHF to support the affordable rental housing development proposed by Rule Enterprises, LLC and Movin’ Out, Inc. at 1402 S. Park Street. This resolution, alters the structure of that support and reduces the overall commitment of AHF funds to the project.

Background
The City of Madison’s approved 2021 Capital Budget reflects new and carry-over funding authority for the Affordable Housing Fund (AHF), to support affordable housing development.

Early in 2019, the Common Council authorized the release of a Request for Proposals (RFP) to solicit development proposals for the redevelopment of...

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