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HomeMy WebLinkAbout20-05 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN JANUARY 15, 2020 20-05 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE 2020 PILOT HOUSING STOCK IMPROVEMENT PROGRAMS: NEW CONSTRUCTION, CODE COMPLIANCE, AND HISTORIC PRESERVATION WHEREAS, the Common Council desires to improve Housing Stock under the 2020 Strategic Plan. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the attached "Housing Stock Improvement Programs" are hereby approved and the proper City officials are hereby authorized and directed to take those steps necessary to carry out the City's responsibilities under the programs. Oshkosh TO: Redevelopment Authority of the City of Oshkosh FROM: Allen Davis, Community Development Director DATE: January S, 2019 RE: Housing Stock Improvement Program Update BACKGROUND Earlier this year, the Council directed the City Manager and staff to review existing housing programs and create new programs as needed to improve the housing stock of the City of Oshkosh. After researching similar communities in Wisconsin, the LaCrosse and Green Bay approaches offered the most comparable programs with similar city goals. The August 13, 2019 Council Workshop touched on the acquisition, demolition, and disposition of blighted properties and the need for new housing programs in the City. In early October, staff distributed the attached program descriptions to the Council for review. At the Community Development Department budget session in October,Council and staff had an opportunity to discuss the Community Development Block Grant (CDBG) and Healthy Neighborhoods Initiative (HNI) proposed 2020 Capital Improvement Program(CIP)and 2020 Operating budgets that included the new Housing Stock Programs. Since that time, staff has been developing the brochures and application forms needed to market and administer the new, pilot programs. ANALYSIS The attached information summarizes the programs, funding source, funding requirements, the project locations, and the amount of funding for the additional housing stock improvements. The attachments include: 1. An Acquisition/Demolition Financing matrix — this matrix follows the acquisition/disposition policy and identifies the funding proposed. This expansion of the acquisition/demolition program would increase the number of scattered site blight removal projects from about 4 - 6 projects per year to 10 — 12 projects per year. City Hall,215 Church Avenue P.O. Box 1 130 Oshkosh,WI 54903-1130 920.236.5000 hffp://www.ci.oshkosh.wi.us 2. A map that overlays the Quality of Life Map and Neighborhood Association boundaries for context. This map would be used to target the acquisition/demolition programs and the new housing stock programs. 3. Proposed 2020 Housing Stock Improvement Programs-Identifies three new pilot programs to encourage housing stock improvements: 1. A grant program to assist in the construction of new single family houses on the acquired parcels after the pre-existing structures are demolished, 2. A Loan program for code compliance program (based on the City's Strategic Plan), and 3. A Loan program for historic restoration and design standards that would help property owners meet historic design standards, as applicable, and property owners meet City design standards, as applicable. FISCAL IMPACT All the new or expanded program budgets have been included in the 2020 Capital Improvement Program and 2020 Operating Budget. The expanded acquisition/demolition program will include $300,000 from the 2020 CIP, and an additional $250,000 from CDBG and $120,000 in HNI funding, for a total of$670,000. The new Housing Stock Programs will use a combination of CDBG and HNI funding. The $50,000 in CDBG funding will be used for the code compliance program and an additional$50,000 from HNI funding for a total of$100,000 for code compliance. The rest of the programs will use HNI funds. The New Construction Incentive for$45,000 will be used on vacant residential parcels. The Historic Restoration and Design Standards Program will use $50,000 from HNI funds. The$300,000 in CDBG Funds are programmed for 2020 out of the approximately$800,000 the city receives from the Federal government. The additional $265,000 in 2020 HNI funds is budgeted out of the$4.4 million balance in the Fund. The City has also budgeted about$500,000 in 2020 HNI funds for existing housing rehabilitation projects. RECOMMENDATION RDA approves the creation of the Housing Stock Improvement Programs as the Council directed. Submitted, Allen Davis Community Development Director City Hall,215 Church Avenue P.O. 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