HomeMy WebLinkAbout35. 21-195INCLUDE NEIGHBORHOOD IMPROVEMENT LOAN PROGRAM
ACCOUNT FOR RENTAL REHABILITATION PROJECTS
($218,000.00)
INITIATED BY: COMMUNITY DEVELOPMENT
WHEREAS, the Common Council has adopted the 2021 Operating Budget, which
is on file in the Office of the City Clerk and available for public inspection; and
WHEREAS, the Neighborhood Improvement Loan Program Account was not
included in the 2021 Operating Budget and has a $218,000 cash balance of federal and/or
State HOME program funds; and
WHEREAS, Community Development staff will utilize the $218,000 in the
Neighborhood Improvement Loan Program Account to assist developers in creation of
additional affordable rental housing units.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2021 Operating Budget, on file in the City Clerk's Office, is hereby
amended to include $218,000 in the Neighborhood Improvement Loan Program Account
0301-0740-6401.
APRIL 13, 2021 21-195 RESOLUTION
(CARRIED__7-0______LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE 2021 OPERATING BUDGET AMENDMENT TO
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: April 8, 2021
RE: Approve 2021 Operating Budget Amendment to include Neighborhood Improvement
Loan Program Account for Rental Rehabilitation Projects ($218,000)
BACKGROUND
The City originally received these Federal funds from the HOME program in the 1980s and 1990s. The
City no longer receives these HOME funds. The program required a larger rental development project
to set aside units, screen tenants and set rent limits according to HOME requirements. The $218,000 in
HOME funds were repaid to the City more than 15 years ago and no other developer has been
interested in the funding program to date. This funding has not been included in the 2021 Operating
Budget. Staff was recently reviewing possible funding programs for pending multi-family housing
projects and determined that these funds could be used as a possible funding source for an affordable
rental housing developer.
ANALYSIS
The HOME program is a 0% interest, deferred loan that was repaid 10 to 15 years later as a balloon
payment. The same requirements would be required for a future use of the funds. In addition, the
HOME funds would still require the owner/developer follow all the Federal construction, leasing and
monitoring requirements for the period of the loan. Federal rent limits would be included in the
requirements. Adding this account into MUNIS will make it possible to use the HOME funds to assist a
developer in the creation of additional affordable rental housing units.
FISCAL IMPACT
There are no City funds in the account. There is no fiscal impact to the City. However, this funding
account may help a developer complete an affordable rental housing project that would have not been
feasible.
RECOMMENDATION
The Council approves the 2021 Operating Budget Amendment to include the Neighborhood
Improvement Loan Program Account (0301-0740-6401) for Rental Rehabilitation Projects ($218,000).
Respectfully Submitted, Approved:
Allen Davis Mark A. Rohloff
Community Development Director City Manager