This is way bigger than the Edgwater for Madison. Way. Bigger.
Last night at the Community Services Commission Mark Olinger explained to the Commission about the HOPE VI grant that the Community Development Authority (CDA) plans to write. If we got the money as planned it would be huge for the community, it would lead to a $100,000,000 investment in the community, in both “bricks and mortar” and services. Here’s the discussion from last night.
PRESENTATION
Mark says the last time he attended the Commission meeting was more than a couple years ago. [What a sad statement about Olinger’s priorities as he ran the department over the last 10 years. And, more pathetic, he only comes to them, when he wants something. He didn’t say what he wanted outright, but it was clear he needs them, and CDBG, for the $88M in matching funds.] He says that this is an initiative working its way through council [Discussed at the Board of Estimates on Monday] This will be at the council on Tuesday, it will allow the CDA to apply for the HOPE IV grant for the 2010 funding round. He wanted to talk to them and the Block Grant Committee about what they have done in Truax Park Neighborhood and why the Choice Neighborhoods Initiative (CNI) might make sense for Madison. 2 or 3 years ago, chair Gregg Shimanski asked how they reinvest in housing authority properties, they have buildings that are 30 or 40 or 60 years old and how do they keep them vital and decent places to live as the city grows and as there is more need for affordable housing [Wow. Was that an admission that we need more affordable housing. I don’t think I’ve ever actually heard him say that as if it was a concern and a priority.] , how can they make that occur. CDA committee landed on Truax and Wright Townhomes and the idea was to take a look at how to use 20 acres to reinvent the provision of affordable housing and build mixed use communities. [Oh, right, now I get it, its how to spread out the low income people, not actually provide housing for them.] He says they were looking for ways to use MATC, the East Madison Community Center and the strong social infrastructure and resident association, which is not as robust as some but they meet regularly and communicate with them on a regular basis. They hired a firm for the master plan, idea was that there are 150 units of housing in 20 buildings and green space and how did they look at creating more of a neighborhood, making it a less isolated place, and not require residents to have to move yet have a broader array and mix of housing types and spur additional revitalization – council adopted that plan last year. They got $13M in tax credits last year to fix up 6 buildings, they got significant money to rehab them, and as he thought about it and looked at the area off East Washington Avenu, they started noodling with idea of one mile radius (he’ll explain in a moment) – they were looking to leverage funds from HOPE VI, where they could get $22m to make a significant improvement around public housing sites, HUD was here for a visit and said it would make an interesting HOPE VI site. They hired a consultant from Washington DC who has HOPE VI experience. At this point, he has to stop and explain because no one on the committee knows what HOPE VI is. [Wow. That kind of blew me away. Tells me how badly our community doesn’t have the basic tools to discuss affordable housing.] He explains HOPE VI is a way to fix severely distressed public housing, he mentions well known examples of Robert Taylor and Cabrini Green – he says these were high rise units with high crime and drug problems and there were a lot of vacancies. No on wanted to live there, HUD was frustrated with vacancies and high need and a dozen or more years ago, they asked housing authorities rethink how communities fit into neighborhood, with a big tower in park, no one had ownership of the park and no one had ownership in the common areas. If you go down the Dan Ryan now those buildings are gone, funding was to have housing authorities build new housing to give section 8 vouchers to the rest of the tenants if new units did not equal the number demolished. There is a service component, they are looking for youth and workforce development services, they don’t just demolish, but provide more comprehensive services for the community. [Which is why he is here, because he needs them to concentrate their funding in this area.] He says at the end of 2008 the consultant toured all the sites and said that he liked Truax Park. He pauses to explain that these funds are for family housing, so Brittingham and the Triangle would not work. The consultant said to think about adding Webb-Rathke in Darbo, they are within a mile of Truax, which is important for HUD funding reasons, the consultant said it would be relatively competitive if they combined Truax with Webb-Rethke, they are the same type of units, but oriented differently, they thought long and hard about it, they did not apply last year, will go for one this year – so, what does that mean for you?
Lisa Subeck interrupts and asks how many units are at Webb.
Olinger says there are 50 units. There would be 200 units as part of the HOPE VI project. The 71 that are part of the tax credits would remain, the rest would be HOPE VI, they don’t know when the NOFA (notice of funding availability) will be out. It’s coming soon, they will will hire a consultant if money passes to help put application together, its part of an intense effort to go through planning process to work through some of the issues, there is a match component, $22M would go to the Housing Authority, there are other leveraging that has to occur, [wait for it . . .] it could be cash or other things that could happen, community service providers, community centers, employment etc, that will be part of the effort. He’s not a betting person, this year HUD expressed interest that they would really like HOPE VI in this round in smaller cities that never got HOPE VI before, may be a lot of them applying, but the great thing about this neighborhood is that the neighborhood plans are done, they have adopted a master plan, there is a strong community, strong services and partners, it is a CDBG eligible area. They can use CDBG and HOME funds [Starting to get the picture.] and there are some signs of distress, they have Neighborhood Stabilization Program (NSP) funds there, there are many foreclosed housing, that is census tract 20, which is the primary target area because of the level of foreclosure activity. Census tract 25 was secondary, not as many foreclosures. CNI or HOPE VI would be a way to link efforts individually into targeted geography. The have 5 years to spend money, not $22M in one year, 5 years to do it, long term commitment, if you drive through Webb—Rathke you will see they can fix up homes, there needs to be job opportunities and they can do things to concentrate efforts, nice area picked out. There is 1 mile requirement to be considered a scattered site as connected neighborhoods, they have invested some money here, neighborhoods are connected, money through housing authority might make it happen. At end of month or in April HUD will pull plug on NOFA and then they will have to scramble, and there are some community service aspects to work together to work on. [I told you he wanted something from them. Otherwise he would never take interest in what they were doing.]
Mary Czynszak-Lyne asks what do you need from us?
Olinger says its just FYI for tonight.
Lauren Cnare asks about if we got the money, there seems to be a big community service component, would we recommend that they get extra point because of synergy that would be created.
[Lauren got it! Are you asking us to prioritize our funds in this area?]
Olinger says that is what HUD would be looking for, get synergies that might not otherwise happen. HOPE VI is the WD40, if they go forward with project, it should be obtainable without HOPE VI, realistically they would scale back but partnerships and synergies would established. [Here is comes.] On the commercial side, E Washington commercial area could use some assistance, thinks in a way they haven’t thought in a while and might be opportunity.
Cnare asks about matching funds – how much does consultant cost – how long will they be with us.
Olinger says that it will cost $100-150K for the consultant, $100K in the capital budget, anything over that they will take out of of the capital fund the housing authority has, partner would be people with use throughout process – as part of development and maybe a partner. [Still ducking the BIG question.]
Cnare asks about what the size of the area, is it bigger than Allied Drive.
Olinger, Yes, Way. Bigger.
David Wandell asks if it is all bricks and mortar, can it be community services? What type of housing, single, two story?
Olinger says there is a broad range of housing types there. Truax is 10 2 – 3 story buildings and little town houses, this could add variety, there is a need for senior housing so that could be a component, single family detached component as well, master plan is keeping 6 of 10 buildings and doing townhouses – it will be a mix like on Allied.
Lisa Subeck asks about Darbo how would what you all are talking about impact rest of neighborhood, would there be services for other residents?
Olinger says yes, Northpointe residents could access services, money on physical side would be house building on the authority side, but other activities for all residents in the area/
Joanne Brown asks about sprucing up the houses, is that included.
Olingeer says yes, foreclosures in Census Tract 20 was a pretty big number, so how they get those areas stabilized and make things happen is part of it, so fixing up and returning to occupancy is part of it.
Alan Sweet asks if main impetus is from your department, the CDA, how is the city involved?
Olinger says CDA is the applicant, but as part of the Department of Planning Community and Economic Development (DPCED) all other functions of department and other agencies in city will be involved, including Engineering and Parks. Is Worthington park the best park it can be? They would get new curbs and gutters, if get funding and work on in next 5 years, all hands will be on deck, like when we do neighborhood planning through block grant, it would be similar, there would be an interagency team, when all was said and done, our $22M has to leverage $88. $100M project, not $88M of cash, can be other things, this is a real reinvestment. [THERE IT IS!! $88M of our funds need to be dedicated to this area over the 5 years if we get it. Not all in cash, but in other services as well, but that is a MAJOR city commitment, that is just being glossed over. I don’t think the council realizes that this is what they are getting themselves into.]
Sweet asks if NOFA is out in a month, how long to prepare?
Olinger says 90 – 120 days, intensive process, lots of planning done, so not so much start at zero, just start in one place and find gaps, typically the city plan everything around the CDA but doesn’t improve those properties, that was done for Truax, but not Webb-Rathke. It would be an intensive 3 to 4 months process, they ntey would cool heels for 6 months and wait, they have not announced winners from last year yet.
There was a bit more chitter chatter, but no new information.
CONCLUSION
Don’t get me wrong, I think this could be a really good thing, it will be done in the name of affordable housing, but
– A lot of money will be spend with only 200 units of affordable housing.
– Where was the discussion about which neighborhoods to pick?
– Is this about the housing, or the economic development on E Washington Ave?
– Where will the other $88M come from?
– Do people realize that is the commitment we are making if we make this application?
– If funds are diverted, what will happen to the programs that are already in place? Does the rest of the city get put on hold for 5 years?
– Since this is the CDA, what is the city’s role? Where will all these decisions get made?
I’m sure there are more questions, but those are mine at the moment.
