Number
080644
Version
SUBSTITUTE 2
Reference
Sponsor
ALD. BAUMAN and DAVIS
Title
Substitute resolution establishing a Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes to plan for administration of emergency assistance available under Title III of the federal Housing and Economic Recovery Act of 2008.
Analysis
This resolution establishes a Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes composed of 3 members to be appointed by the Mayor and 3 members to be appointed by the President of the Common Council. The Mayor and the President of the Common Council shall each designate one appointee as Co-Chair of the committee. Staff support will be provided by the City Clerk. The purpose of the committee is to coordinate efforts between administrative offices and the Common Council related to the receipt of emergency assistance from the federal government under the recently enacted Housing and Economic Recovery Act of 2008 (the Act) which passed Congress and was signed by the President on July 30, 2008 (HR 3221).
Title III of the Act provides nearly $4 billion in funding for redevelopment of abandoned and foreclosed homes to be distributed to states and localities by a formula established by the Secretary of the United States Department of Housing and Development through the Department's Community Development Block Grant (CDBG) program.
The Act provides that the formula for distribution be announced within 60 days of enactment and that funds be distributed within 30 days of the announcement. Funds may therefore become available to the City of Milwaukee as early as November 1, 2008, for expenditure in 2008 and for budgeting and expenditure in 2009.
The Act also provides that the eligible uses for this federal emergency funding include: a) financing mechanisms for the purchase of foreclosed and residential properties by low- and moderate-income homebuyers; b) purchase and rehabilitation of homes and residential properties that are abandoned or foreclosed upon, to sell, rent, or redevelop such properties; c) establishing land banks for foreclosed homes; d) demolishing blighted structures; and e) redeveloping demolished or vacant properties.
The committee shall meet regularly at the call of the Co-Chairs for purposes of identifying City needs, sharing information, discussing application for and maximizing funds available under the Act, coordination of administrative activities with policy development, and the preparation of regular communications to the Mayor and the Common Council, including recommendations for future activity and policy action.
Body
Whereas, The United States Congress enacted the Housing and Economic Recovery Act of 2008 ("the Act"), signed by the President of the United States on July 30, 2008; and
Whereas, Title III of the Act, entitled "Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes," provides nearly $4 billion to be distributed through the Community Development Block Grant (CDBG) program of the Department of Housing and Urban Development (HUD) to states and localities; and
Whereas, The Secretary of HUD is required to establish a formula for the distribution of these funds within 60 days of enactment and to distribute the funds within 30 days following the establishment of the formula; and
Whereas, The eligible uses for funds made available by the Act are:
A. Establishing financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties, including mechanisms such as soft-seconds, loan loss reserves, and shared equity loans for low- and moderate income homebuyers.
B. Purchasing and rehabilitating homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties.
C. Establishing land banks for homes that have been foreclosed upon.
D. Demolishing blighted structures.
E. Redeveloping demolished or vacant properties.
; and
Whereas, The sub-prime mortgage loan crisis and the downturn in the housing market has caused the City of Milwaukee, like communities across the state and nation, to experience increases in foreclosures on residential properties and in numbers of vacant residential properties; and
Whereas, Vacant and abandoned residential properties contribute to a decline in assessed values of properties adjacent and near to an abandoned residence and a reduction in tax revenues, create an increased risk of fire, offer opportunities for crime including drug-trafficking and vandalism, often constitute an attractive public nuisance, and, when neglected, threaten the health, safety and welfare of neighborhoods; and
Whereas, It is the policy of the City of Milwaukee to maximize resources available to address the problems of vacant, abandoned and foreclosed properties, and to utilize available resources in the most effective and efficient manner; and
Whereas, It is the intent of the Common Council to encourage a timely and coordinated response by City administrators and policy-makers to quickly and effectively utilize the funding available under the Act; now therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes shall be established to consist of 3 members appointed by the Mayor, one of whom shall be designated Co-Chair by the Mayor, and 3 members to be appointed by the President of the Common Council, one of whom shall be designated Co-Chair by the President; and, be it
Further Resolved, That the committee shall meet regularly and as needed at the call of the Co-Chairs, with staffing provided by the City Clerk, for purposes of identifying City needs, sharing information, discussing application for and maximizing funds available under the Act, coordination of administrative activities with policy development, and the preparation of regular communications to the Mayor and the Common Council, including recommendations for future activity and policy action; and, be it
Further Resolved, That, in the conduct of its business, the committee may receive communications from the public and from City officers and departments, and may entertain testimony and consult with experts both within and outside City government.
Drafter
LRB08442-3
RLW
9/11/2008