HomeMy WebLinkAbout13. 21-141MARCH 23, 2021 21-141 RESOLUTION
INITIATIVE (HCRI) PROGRAM GRANT APPLICATION;
WISCONSIN DEPARTMENT OF ADMINISTRATION, DIVISION
OF ENERGY, HOUSING AND COMMUNITY RESOURCES
INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT
WHEREAS, Housing Cost Reduction Initiative (HCRI) funds are available from
the Wisconsin Department of Administration, Division of Energy, Housing and
Community Resources to provide housing assistance to low- and moderate-income
households seeking to own decent, safe, and affordable housing; and
WHEREAS, the City of Oshkosh / Greater Winnebago HOME Consortium is
interested in applying for said HCRI funds to assist eligible homebuyers purchase
affordable homes by providing down payment assistance, offset closing costs and/or
provide gap financing assistance.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the Council hereby approves the submittal of a 2021 Housing Cost
Reduction Initiative application and the proper officials are hereby authorized and
directed to submit any and all documents necessary, to execute any and all documents
for said purpose, and hereby accepts said funds if awarded.
(CARRIED__7-0_____LOST________LAID OVER_______WITHDRAWN_______)
PURPOSE: AUTHORIZE SUBMITTAL OF HOUSING COST REDUCTION
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: March 18, 2021
RE: Authorize Submittal of Housing Cost Reduction Initiative (HCRI) Program Grant
Application; Wisconsin Department of Administration, Division of Energy,
Housing and Community Resources
BACKGROUND
One of the City’s 2021-2022 Strategic Plan goals is providing more affordable housing in the
City, especially to very low and extremely low income households. The City is attempting to
form a consortium with the Oshkosh/Winnebago Housing Authority and ADVOCAP and apply
for more grant funds for affordable housing from various state and federal agencies. The
Housing Cost Reduction Initiative (HCRI) is one grant program that is a potential funding
source. Staff is also working in concert with consortium members for HOME Investment
Partnerships Program (HOME) funds on a parallel track.
ANALYSIS
The proposed $261,000 in HCRI funds would be used from 2021 to 2023 for Homebuyer
Assistance – down payment assistance, and Foreclosure Prevention. The City would
supplement the grant with $3,000 in capacity building including staff training, Lead Risk
Assessment, and Home Buyer Education. The HCRI program would be administered by the
City of Oshkosh for projects within the City, and by the consortium members outside the City,
depending on the location of the project.
The Homebuyer Assistance part of the grant would serve 45 households: 15 households below
50% County Median Income (CMI), and 30 households from 51% - 80% of CMI. The Foreclosure
Prevention Program would serve 6 households: 2 households below 50% CMI and 4 households
from 51%-80% CMI. One emphasis of the program would be to reach out to non-white
households and increase affordable home ownership.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
FINANCIAL ANALYSIS
The grant application for $261,000 is split between $225,000 for Homebuyer Assistance and
$36,000 for Foreclosure Prevention. The grant funds would not be repaid. The City’s $3,000 in
matching funds would come from the City’s affordable housing fund - Healthy Neighborhoods
Initiative.
RECOMMENDATION
The City Council approves the submittal of the grant application as proposed.
Submitted, Approved:
Allen Davis Mark A. Rohloff
Community Development Director City Manager