Number
180808
Version
ORIGINAL
Reference
141256, 150238
Sponsor
ALD. HAMILTON
Title
Resolution approving a Strong Neighborhoods Challenge Grant Fund Program grant to Pastors United Milwaukee.
Analysis
This resolution approves a grant of up to $240,000 to Pastors United Milwaukee to provide gap financing for the purchase and renovation of six City-owned tax foreclosed properties in the Garden Homes neighborhood.
Body
Whereas, On December 16, 2014, the Common Council of the City of Milwaukee (“Common Council”) adopted File No. 141256, which approved a Request for Qualifications (“RFQ”) for the Challenge Grant Fund Program (“CGFP”) to solicit interest from community development organizations and private development firms to acquire and renovate City-owned tax foreclosed properties (“in rem properties”) for affordable homeownership and rental opportunities in concentrated geographic areas; and
Whereas, $1,000,000 in funding was appropriated in the 2015 Strong Neighborhoods budget to establish CGFP as a pilot program; and
Whereas, On June 23, 2015, the Common Council adopted File No. 150238 that awarded CGFP grants to two organizations chosen through a competitive process, with the goal that each organization would redevelop fifteen tax foreclosed properties in a 12-month period; and
Whereas, Northwest Side Community Development Corporation (“NWSCDC”) received a CGFP grant to develop properties in neighborhoods abutting the Century City business park (“Century City”), but it has been unable to complete the project; and
Whereas, Pastors United Milwaukee (“Pastors United”), a registered 501(c)(3) non-profit organization, has established a buy/rehabilitate/resell housing program that redevelops in rem properties and provides financial counseling to first-time homebuyers who wish to purchase the renovated homes; and
Whereas, Pastors United wishes to purchase and renovate six in rem properties in the Garden Homes neighborhood adjacent to Century City and sell completed properties to owner-occupants; and
Whereas, Low property values in the Garden Homes neighborhood make the costs of extensive renovation infeasible without City of Milwaukee (“City”) subsidy; and
Whereas, Renovation and sale of properties in the Garden Homes neighborhood will preserve properties and improve the quality of life for current residents; and
Whereas, Pastors United is an experienced community-based developer whose program model is closely aligned with the goals of CGFP; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a CGFP grant of up to $240,000 shall be made available to Pastors United and that the Department of City Development (“DCD”) shall enter into a Sale and Development Agreement containing the essential terms included in Attachment A-Term Sheet, a copy of which is attached to this Common Council File; and, be it
Further Resolved, That DCD is directed to enter into a Sale and Development Agreement with Pastors United for the properties located at 4481 North 25th Street, 4366 North 26th Street, 4401 North 26th Street, 4447 North 26th Street, 4437-41 North 25th Street and 4369 North 26th Street; and, be it
Further Resolved, That funding for City costs under this CGFP grant shall be allocated from the Capital Improvements In Rem Program Account No. 1910-UR04916002 and 1910-UR04917002.
Drafter
DCD:Maria.Prioletta:mp
09/05/18/A