Number
140901
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. BAUMAN, MURPHY, BOHL, PEREZ AND KOVAC
Title
Substitute resolution establishing the STRONG Homes Loan Program to be administered by the Department of City Development.
Analysis
This resolution creates a home repair loan program (the "STRONG Homes Loan Program") to assist owner-occupants of one- to 4-family properties in making essential repairs to their homes. The program will help address the gaps that currently exist in home rehabilitation resources for Milwaukee homeowners.
Body
Whereas, Section 66.1105(6)(g), Wisconsin Statutes, provides that after the date on which a tax incremental district ("TID" or "district"), created by the City of Milwaukee ("City"), pays off the aggregate of all of its project costs, including project paving costs relating to any amendment to the project plan under s. 304-95-2, Milwaukee Code of Ordinances, the life of the district may be extended for one year and the additional tax incremental revenues may be used to benefit affordable housing and to improve the housing stock in the city; and
Whereas, On September 24, 2013, the Common Council passed File No. 130460, which created s. 304-96 of the Code of Ordinances to provide for the extension of TIDs for one year to improve the city's housing stock; and
Whereas, On May 13, 2014, the Common Council approved File No. 131751, which established a framework for using tax increments to benefit affordable housing and improve the housing stock in Milwaukee, including supporting programs that help prevent foreclosures, improve the city's housing stock and preserve and promote homeownership; and
Whereas, There has been a 10% decline in owner-occupancy of one- to 4-family properties since 2005; and
Whereas, Because of the foreclosure crisis and the decline in the housing market and residential property values, Milwaukee homeowners may have difficulty_obtaining conventional financing to make essential repairs to their homes; and
Whereas, The Mayor and Common Council have committed via the Strong Neighborhoods Plan to prevent tax delinquency and foreclosure and stabilize city neighborhoods; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a STRONG Homes Loan Program is created to be administered by the Department of City Development ("DCD"); and, be it
Further Resolved, That future tax incremental revenue made available for housing by the extension of the life of TIDs, according to the provisions of s. 304-96 of the Code of Ordinances, shall be allocated for use for the STRONG Homes Loan Program through the adoption of the City Budget as approved by the Common Council; and, be it
Further Resolved, That payments the City receives from loans originated in the program shall be deposited into a revenue account to be created by the City Comptroller and used by DCD to make additional loans under the program; and, be it
Further Resolved, That the STRONG Homes Loan Program shall be implemented and administered consistent with the guidelines that are attached to this Common Council File; and, be it
Further Resolved, That DCD may impose other or additional restrictions, qualifications or conditions as reasonably required; and, be it
Further Resolved, That the appropriate City officers are authorized to take such acts as are necessary to implement the provisions and intent of this resolution, including signing and causing the City to enter appropriate loan agreements as called for herein, to be prepared by DCD in consultation with the City Attorney's Office; and, be it
Further Resolved, That DCD shall submit an annual report to the Common Council, beginning no later than July 31, 2015, regarding its activities under the STRONG Homes Loan Program.
Requestor
Drafter
LRB155891-1
Jeff Osterman
10/29/2014