City of Madison - File #: 67614

• File #: 67614
• Version: 1
• Name: Awarding up to $5.75 million from the Affordable Housing Fund to support three affordable housing development projects, selected through a City Request for Proposals (RFP) process, that will support construction of approximately 250 units of new rental ho
• Type: Resolution
• Status: Passed
• File created: 9/29/2021
• In control: Community Development Division
• On agenda: 10/19/2021
• Final action: 10/19/2021
• Enactment date: 10/25/2021
• Enactment #: RES-21-00713
• Title: Awarding up to $5.75 million from the Affordable Housing Fund to support three affordable housing development projects, selected through a City Request for Proposals (RFP) process, that will support construction of approximately 250 units of new rental housing in Madison, about 200 of which will be affordable, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects.
• Sponsors: Satya V. Rhodes-Conway, Christian A. Albouras, Nikki Conklin, Barbara Harrington-McKinney, Syed Abbas, Yannette Figueroa Cole, Nasra Wehelie, Regina M. Vidaver, Jael Currie, Tag Evers, Brian Benford, Sheri Carter

Date	Ver.	Action By	Action	Result
10/19/2021	1	COMMON COUNCIL	Adopt	Pass
10/11/2021	1	FINANCE COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
10/7/2021	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Return to Lead with the Recommendation for Approval	Pass
10/5/2021	1	FINANCE COMMITTEE	Referred
10/5/2021	1	COMMON COUNCIL	Referred
9/29/2021	1	Community Development Division	Referred for Introduction

Fiscal Note
The proposed resolution authorizes awarding up to $5.75 million in affordable housing development loans to Gorman & Company, LLC, MSP Reals Estate, Inc., and Odessa Affordable Housing, LLC. The development loans are expected to result in 252 units of housing, 208 of which will be maintained as affordable for at least 40 years. The $5.75 million of development loans will be funded by the $7 million Affordable Housing-Development Projects capital program in the 2022 Executive Capital Budget. No additional City appropriation is required.
Title
Awarding up to $5.75 million from the Affordable Housing Fund to support three affordable housing development projects, selected through a City Request for Proposals (RFP) process, that will support construction of approximately 250 units of new rental housing in Madison, about 200 of which will be affordable, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects.
Body
Background
The City of Madison’s 2022 Executive Capital Budget proposes to increase the City’s commitment to the Affordable Housing Fund (AHF) by $1,000,000, to $7,000,000 million. Common Council first authorized AHF in the 2015 Capital Budget to help increase and/or preserve the supply of affordable rental housing. For purposes of this initiative, affordable rental housing is defined as that which is reserved for households with incomes at or below 60% of the County Median Income (CMI) and with rents restricted at levels affordable to households at those respective income levels. As of 2020, the Community Development Division (CDD) requires a period of affordability of at least 40 years for these developments. The City’s primary strategy in deploying AHF is to leverage other resources, most notably federal Low-Income Housing Tax Credits (LIHTCs), to help achieve the goal of adding approximately 200 new affordable rental units per year.

In Wisconsin, LIHTCs are administered by the Wisconsin H...