CDBG is considering this issue again tonight, and I’m not the only one concerned about the CDA raiding the Affordable Housing Trust Fund. I’ll try to catch you up on the issue.
BACKGROUND
– For three years, we have been trying to get changes made to the Affordable Housing Trust Fund ordinance. When I left the council, Schumacher took over as the sponsor and its been in limbo. Those changes are here (mine from June 2007, but they aren’t the last changes I had requested made, they never made it into legistar) and here (Schumacher’s reintroduced last January).
– The ordinance remained stalled until 2 weeks ago. It was stalled on the CDBG agenda and the Affordability Subcommittee of the Housing Committee hasn’t met in months waiting to get the ordinance back.
– On Friday, July 30th, the CDA applied for Funds from the Affordable Housing Trust Fund to save their WHEDA tax credits for Truax with less than 2 months to find over $1M and in less than a week it reappeared on agendas and knowing full well that they didn’t qualify with the ordinance the was it is.
– On Wednesday, August 4, the issue magically appeared back on the Housing Committee agenda. They didn’t have quorum, I’m sure no thanks to their two alders who have such stellar attendance records. (Schumacher and Manaici)
– On Thursday, August 5, the issue also magically appeared back on the CDBG agenda in the middle of their questions and answers and deliberations on funding decisions for 2011 for the non-profits. They ended up referring the issue til tonight.
THE CDA PROPOSAL
– They want to borrow 1/4 of the Affordable Housing Trust Fund or $1,050,000 for 17 years.
– They want to money at the lowest rate the city can borrow at, plus .25% adjusted annually.
– They are spending $200,000 per unit and there will be no new units created, it is just rehab of 71 units.
– More here.
OTHERS ARE CONCERNED
August 16, 2010
Mr. Charlie Sanders, Chair
CDBG Committee
Room 280, Madison Municipal Building
215 Martin Luther King, Jr. Boulevard
P.O. Box 2985
Madison, Wisconsin 53701-2985Dear Mr. Sanders and CDBG Committee Members:
The undersigned Members of the Third Sector Housing group wish to voice concern over the process being used to consider the use of over $1 million of Affordable Housing Trust Funds (AHTF) for a project submitted by the CDA.
Third Sector Housing is an informal association of several affordable housing non-profit directors, who meet regularly to coordinate activities and issues relating to the provision of affordable housing in Madison and Dane County.
We are not commenting on the quality or need for the CDA project at Truax, but on the process underway to consider this project for funding. We are highly concerned that this funding is being considered without an open competition or advertised process for awarding AHTF funds. Additionally, revisions to the process for decisions on use of the AHTF have been referred to several committees and commissions for hearings without resolution, while consideration of the CDA’s request seems to assume those revisions will be approved. We believe the process being used is not consistent with open participation, and appears to be in violation of the AHTF procedures under the current ordinance.
Thank you in advance for your consideration of this serious matter.
Sincerely,
Third Sector Housing Members:Common Wealth Development Corporation, Marianne Morton, Executive Director
Independent Living, Inc., Rita Giovannoni, CEO
Madison Area Community Land Trust, Michael Carlson, Executive Director
Madison Development Corporation, Frank Staniszewski, President
Movin’ Out, Inc., Howard Mandeville, Executive Director
Porchlight, Inc., Steven Schooler, Executive Director
Project Home, Inc., Denise Matyka, Executive Director
The Road Home Dane County, Rachel Krinsky, Executive Director
YWCA Madison, Eileen Mershart, CEO
Wisconsin Partnership for Housing Development, Inc., Bill Perkins, Executive Directorcc.: Bill Clingan, Director, Community Development Division
CDBG DISCUSSION AT LAST MEETING
– Clearly, the application would need to be denied based on the current ordinance.
– They struggled with how to approve the ordinance when there were multiple issues to be resolved.
– They struggled with how to cahnge the ordinance without changing it for jsut one project.
– Several people were concerned about losing the WHEDA tax credits, but thought the last minute application was unfair to them and the gymnastics required to approve it were too difficult.
– They questioned the CDA on what other money they sought.
– They were surprised the Mayor told the CDA to come here . . . a year ago.
– Changes to the ordinance would need to be passed by the Housing Committee on September 1 and the council on September 7.
There’s more, but I gotta get to work . . . in short, if you’re interested, show up tonight!
