City of Madison, Wisconsin | Legislative Information Center
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File #: 65701    Version: 1 Name: Authorizing an amendment to loan term awarded in RES-21-00153 that committed about $1.2 million from the Affordable Housing Fund to support owner-occupied development to Madison Area Community Land Trust, Common Wealth Development and Wisconsin Partnershi
Type: Resolution Status: Passed
File created: 5/26/2021 In control: Community Development Division
On agenda: 6/1/2021 Final action: 6/15/2021
Enactment date: 6/18/2021 Enactment #: RES-21-00448
Title: Authorizing an amendment to loan term awarded in RES-21-00153 that committed about $1.2 million from the Affordable Housing Fund to support owner-occupied development to Madison Area Community Land Trust, Common Wealth Development and Wisconsin Partnership for Housing Development to ensure longer term affordability of property.
Sponsors: Christian A. Albouras, Nikki Conklin, Barbara Harrington-McKinney, Regina M. Vidaver, Syed Abbas, Satya V. Rhodes-Conway, Charles Myadze, Nasra Wehelie
Attachments: 1. Housing Forward Revised Terms Memo to CDBG Committee.pdf, 2. RegistrantsReport-CDBG Committee 6-3-21.pdf
Fiscal Note
The proposed resolution authorizes amending the loan terms adopted by RES-21-00153 (File #63936) to allow for some of the funds originally awarded to be in the form of a forgivable loan in exchange for a 99 year Land Use Agreement to ensure future sales of the properties benefit low to moderate income households. There are no proposed changes to the level of funding originally awarded. No additional city appropriation is required.
Title
Authorizing an amendment to loan term awarded in RES-21-00153 that committed about $1.2 million from the Affordable Housing Fund to support owner-occupied development to Madison Area Community Land Trust, Common Wealth Development and Wisconsin Partnership for Housing Development to ensure longer term affordability of property.
Body
On February 23, 2021, the City of Madison Common Council passed Resolution RES-21-00153 (Legistar #63936), which approved awarding up to $3.11 million in City and federal funds to proposals submitted to the Community Development Division (CDD) in response to its Housing Forward Request for Proposals (RFP) released on October 30, 2020. Of this $3.11 million, three nonprofit applicants were awarded approximately $1.2 million from the Affordable Housing Fund to support their proposals for acquiring property to create new homeownership opportunities for low- and moderate-income households. The terms of the loans that these nonprofit organizations accepted when they applied for City funds were listed in the RFP. However, to encourage long-term and permanent affordability of these properties, CDD is proposing to change the terms of one of the loans to be more favorable to the nonprofit in exchange for a 99 year Land Use Restriction Agreement on the individual properties.

Action Item
WHEREAS, Community Development Division issued Housing Forward Request for Proposals (RFP #2020-8976) on October 30, 2020 that included loan terms that 50% of the funds awarded for acquisition and rehabilitat...

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