Number
211079
Version
ORIGINAL
Reference
171755, 190401
Sponsor
ALD. COGGS, PEREZ, AND STAMPER
Title
Resolution authorizing the continued implementation of the Anti-Displacement Neighborhood Preference Policy.
Analysis
This resolution authorizes the continued implementation of the Anti-Displacement Neighborhood Preference Policy to be applied to eligible affordable and mixed-income housing developments receiving financial assistance from the City of Milwaukee.
Body
Whereas, The Department of City Development (“DCD”) developed an Anti-Displacement Plan for Neighborhoods Surrounding Downtown Milwaukee and presented that Plan to the Common Council of the City of Milwaukee (“Common Council”) during March of 2018; and
Whereas, The Plan made a series of recommendations that should be pursued in neighborhoods identified as being at risk of displacement, with the goals of preserving choice for existing neighborhood residents and prioritizing equity for historically disadvantaged groups; and
Whereas, One major recommendation of the Plan was that the City of Milwaukee (“City”) should prioritize the use of city financial resources to create new affordable and mixed-income housing in neighborhoods at risk of displacement; and
Whereas, The Plan recommended developing a companion Anti-Displacement Neighborhood Preference Policy (“the Preference Policy”) that would provide a limited preference for existing low-income neighborhood residents to assist them in accessing newly created affordable housing units in developments receiving city assistance in their neighborhoods; and
Whereas, Common Council File No. 190401, adopted on July 30, 2019 created the Anti-Displacement Neighborhood Preference Policy and authorized its utilization in conjunction with affordable and mixed-income housing developments receiving financial assistance from the City; and
Whereas, The Preference Policy designates 20 percent of the affordable housing units receiving city assistance within a development to be prioritized for existing residents of the zip code where the development is located within the eligible zip codes of 53204, 53208, 53212, and 53233; and
Whereas, File No. 190401 documented the public purpose and compelling governmental interest in creating the Preference Policy, as well as the geographic criteria and statistical testing carried out to ensure that the Preference Policy complies with the Fair Housing Act and will not have a disparate impact based on race or ethnicity by perpetuating existing patterns of racial segregation or limiting access to newly created affordable housing units by a particular racial group; and
Whereas, The Preference Policy was initially authorized on a pilot basis through December 31, 2021; and
Whereas, DCD was directed to report to the Common Council prior to the expiration of the pilot period regarding the effectiveness of the Preference Policy and to provide a recommendation as to whether the Preference Policy be continued and/or the terms and regulations of the Preference Policy should be modified; and
Whereas, The Preference Policy has been applied to a number of recent developments that have received City financial assistance and are currently in the construction or lease-up stages and DCD anticipates that a number of additional eligible projects in Preference Policy zip codes will advance in the near future; and
Whereas, DCD has carried out the required statistical testing utilizing updated Census Bureau data to confirm that the application of the Preference Policy continues to meet applicable Fair Housing benchmarks when assessing the potential for a disparate impact based on race or ethnicity; and
Whereas, Continuing the Preference Policy is consistent with the recommendations of the recently completed Collective Affordable Housing Strategic Plan developed by the Community Development Alliance, including one of the core values of that plan to prioritize neighborhood based affordability and assist families who already live within neighborhoods to remain and maintain affordable housing costs; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Anti-Displacement Neighborhood Preference Policy is reauthorized for utilization in affordable and mixed-income housing developments receiving financial assistance from the City following the Preference Policy terms set forth in File No. 190401; and, be it
Further Resolved, That DCD and the Community Development Grants Administration shall continue to administer the regulations and requirements necessary to implement the Preference Policy, and include those requirements within the terms of any development agreement providing city financial assistance to an eligible project; and, be it
Further Resolved, That prior to December 31, 2023, DCD shall carry out the required periodic statistical testing and report to the Common Council on the effectiveness of the Preference Policy and any relevant neighborhood demographic changes that may impact the eligible geography or other terms of the Preference Policy, including Preference Policy regulations, and make recommendations regarding any potential modifications to the Preference Policy.
Drafter
DCD:Samuel.Leichtling:spl
11/02/21/A