City of Madison
Legislative File ID   10219
Type:   Miscellaneous    Status:   Filed
Enactment Date:      Enactment No.:  
Title:  
Affordable Housing Trust Fund Discussion Topics
Controlling Body:   HOUSING COMMITTEE
Introduced:   4/29/2008    Version:   1
Final Action:      Contact:   mzopelis@cityofmadison.com
Name:  
Affordable Housing Trust Fund Discussion Topics
Extra Date 1:  
Requester:  
Sponsors:  
Legislative History
DateActing BodyAction TakenMotion
4/2/2008HOUSING COMMITTEE
6/3/2009HOUSING COMMITTEEEileen Mershart, YWCA Madison, registered to speak and thanked the Committee for their work. Ms. Mershart was formerly a member on the Committee. Ms. Mershart wanted to speak on why the Affordable Housing Trust Fund is important to the YWCA. Possible uses for them are work on the building. The building they are in is on the Historic Register so they receive Historic Tax Credits. They were just notified they received all of the tax credits they wanted from WHEDA. They have been Section 42 Housing forever so they know how to do this. The YWCA is going to need a construction loan and this is something that the Affordable Housing Trust Fund has been established for. Porterfield said this issue has been an issue for a long time and he thinks we need an amendment at the Council level to the Ordinance to allow the use of more than 10% of the money. The initial design is to build up the overall fund. The subcommittee wants to try to find ways to provide short-term, relatively secure loans that could be made to help to build and at the same time promote affordable housing. Porterfield is working YWCA as a consultant on this and thinks this is a project that could really use the help and is very likely, if it is underwritten by the other funders, to be a pretty secure loan. Porterfield suggests that the committee does whatever it has to promote this to the Common Council to get some action. Munson recalled that Brenda Konkel was drafting an actual amendment to the Affordable Housing Trust Fund. Schumacher said it “died” because it lost its sponsor. Munson thinks one of the true goals was to get returns other than just the monetary return by getting it mobilized into housing and create units and get returns on that. This would make the fund grow while also implementing. Munson thinks the Affordable Housing Subcommittee should bring this discussion back up. Where is the language that was previously drafted? Porterfield said there is a time factor on the YWCA project so they would need to focus on the project specifically. Porterfield would like it done by September. Schumacher encouraged Porterfield to remove himself from this conversation since he is a consultant to YWCA. Schumacher said Porterfield should not discuss it even at this point in time, as it could be said it is a major conflict of interest. Munson thought there was language that the subcommittee endorsed and that should be found and brought to the full Housing Committee to discuss. Wilcox will call Brenda Konkel to get the language from her. Schumacher thought it was in Legistar.
Notes:
7/1/2009HOUSING COMMITTEESparer said there is the idea of amending the Affordable Housing Trust Fund uses so that we can have the fund be used in a short term way. Sparer provided the draft by Anne Zellhoefer, sponsored by Brenda Konkel. There is one potential applicant at this time that needs the money sooner than later. A motion was made by Wilcox, seconded by Hassel, to refer to the Common Council to adopt the changes to the Affordable Housing Trust Fund which are indicated in the draft by Anne Zellhoefer. Schumacher is willing to sponsor this item, but thinks it should go to the Subcommittee for discussion. Broadnax asked if there is a minimum loan term or minimum interest rate. Day does not know if you want to limit those types of terms in this fund. You should leave it to the administrators. Wilcox said they should be able to negotiate with the applicant. Eileen Mershart of YWCA was present to discuss possible changes to the Affordable Housing Trust Fund. Third Sector has spoken about this and the YWCA is highly motivated and has support from Third Sector. They asked Tim Radelet to look at Brenda Konkel’s recommendations to the Affordable Housing Trust Fund. Radelet’s language will broaden the scope. (See language provided by Tim Radelet) Ms. Mershart referenced uses of rehab, preservation and land banking. Maniaci arrived at 5:17 PM. Rosenberg spoke with Eileen Mershart about this and Rosenberg cannot say what works at this point. He is focused on what would be helpful as a borrower. How can the City get a good return on its investments? Land banking – this is a fantastic time to buy. Think about zooming out and looking at where the needs are for affordable housing preservation. Schumacher supports this but wants a lengthy discussion first. There is no sponsor at this point. He wants to be able to speak eloquently about this and needs more information about this. Maniaci agreed with Schumacher and wants more information. Day said the Subcommittee took a long hard look at the Ordinances that stand and their intent was to expand the uses of the Affordable Housing Trust Fund, and not limit the uses. Additionally, they changed it from 25% being able to use for programs to 50% for programs. The remaining 50% stays in reserve. This would allow growth to the Fund. Brink agrees with Day’s comments. If we zoom in on YWCA issue, then we can work into other issues. Land banking scares Brink. YWCA could be a test case. Day does not think that would work. Day said that CDBG administers the Affordable Housing Trust Fund and does all the work. The intent of this is to allow those activities begin. Schumacher said there is not enough information to refer this for introduction. This is really a timing issue. He wants to make sure he can speak to this. Maniaci asked if this can this gain a sponsor on the floor of the Council. Schumacher said this is not a good way to go, not having a sponsor bring it forward. A better process would be to meet at the Affordable Housing Subcommittee, bring it back to the Housing Committee, and then send it to Council. Hassel asked Schumacher and Maniaci if they know anything from the Mayor on what he wants to do with the funds. Schumacher said there has always been discussion about the Trust Fund and there are many different opinions on this. He does not know what the Mayor has in mind. Wilcox withdrew her initial motion to refer this item to Council. A motion was made by Wilcox, seconded by Rosenberg, to refer this discussion to the Affordable Housing Subcommittee, with the language provided by Radelet. A request was made that Ald. Schumacher and Ald. Maniaci attend that meeting. The motion passed by voice vote/other. Rosenberg asked if it would be useful to look at pot of money from IZ. Can this be used in the Affordable Housing Trust Fund?
Notes:
8/5/2009HOUSING COMMITTEESchumacher said it is hard to coordinate with Ray Harmon. We need a closer working relationship with the Mayor’s Office on this. We need people involved up front. Munson recommended putting comments in writing and get them to staff. Send back to the Affordable Housing Subcommittee along with any other lists, and invite the Mayor’s Staff to attend the subcommittee meeting. Brink agreed that the group should work from the latest version and insert the changes into the document. Harmon needs to be there as dialogue moves forward. This is critical. Day would like to look back at the original document, start from the first and bring in changes we hope to see. Schumacher said this may take a while as we are heading into budget season. Schumacher wants to be involved but cannot be at next meeting. A motion was made by Schumacher, seconded by Munson, to refer this item back to the subcommittee, with the intent of setting up a special meeting after August 27, 2009. Meeting to include Ray Harmon, Anne Zellhoefer, and CDBG administrator of funds. The motion passed by voice vote/other.
Notes:

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