Can he just ignore Madison General Ordinances because he thinks he has a better idea? If so, why not just eliminate the Common Council and the Citizen Committees altogether? No, this isn’t about personnel ordinances, this is a blog about the Affordable Housing Trust Fund. Here’s another process issue, passed in an ordinance, the Mayor has chosen to ignore:
(4) Trust Fund Distributions.
(a) The Trust Fund is to function as an endowment fund to fund loans and grants in accordance with this Section. The Trust Fund program shall be administered by the Grants Supervisor. No disbursements may be made from the Trust Fund Account without the prior recommendation of the Commission and authorization by the Common Council. Unless authorized by a vote of the Common Council, for any year that the Trust Fund Account balance is less than $10 million, the total disbursements from the Trust Fund Account shall be limited to twenty-five percent (25%) of all revenue sources deposited into the Trust Fund Account in the previous fiscal year, except loan repayments. For any year that the Trust Fund Account is greater than $10 million, the total disbursements from the Trust Fund Account shall be limited to:
1. The total interest accrued on the Trust Fund Account from the previous fiscal year, plus
2. Any unexpended amount from the allowable disbursements from the previous fiscal year.
The proposal to use the Affordable Housing Trust Fund money never went through the CDBG Commission. In fact, they were never even asked about it and found out about it when I told staff that it was in the Capital Budget.
Additionally, the ordinance we passed has requirements about the type of affordable housing that the money is allowed to be used for. Do you think they intend to comply with all of the following requirements?
(b) Disbursements from the Trust Fund Account shall be made as loans or grants to assist Recipients in the creation of Assisted Units. Recipients may use the funds to pay for: capital costs, including but not limited to the actual costs of rehabilitating or constructing Assisted Units; preserving affordable units; demolishing or converting existing non-residential buildings to create new Assisted Units; real property acquisition costs; and professional service costs, including but not limited to, those costs incurred for architectural, engineering, planning and legal services which are attributable to the creation of Assisted Units.
(c) Trust Fund moneys may not be used for operating expenses of any program, or supporting services such as childcare or any other social program.
(d) At least 60% of the funds eligible for disbursement annually shall be used to create Assisted Units for Very Low Income households. ADDED: “Very Low Income” means gross household income adjusted for family size that is at or below fifty percent (50%) of Area Median Income.
(e) Rental Assisted Units shall be available only to households whose gross income, adjusted for family size, is at or below fifty percent (50%) of Area Median Income.
(f) Owner-occupied Assisted Units shall be available only to households who are Low Income or Very Low Income.
(g) The Commission shall periodically review the terms of assistance, and structure these terms to encourage the longest period of affordability possible.
(h) Loans or grants from the Trust Fund shall be used to develop Assisted Units within a project. The Trust Fund may assist up to one hundred percent (100%) of the units within a building or development of one (1) to nine (9) total units, up to fifty percent (50%) of the units within a building or development of ten (10) to fifteen (15) units, and up to twenty-five percent (25%) of the units within a building or development of sixteen (16) or more units.
(i) Assisted Units shall be distributed throughout the building or development so as to avoid a disproportionate concentration in any one area.
(j) The Commission shall give preference to projects not located in any Tax Incremental District whose project expenditure period has not expired.
(k) Notwithstanding the stated purpose in subsection (1) herein to create the Fund as a continually renewable source of revenue, the Commission may, in its discretion, recommend that disbursements from the Trust Fund Account may be made as grants at any time that the Trust Fund Account balance exceeds $10 million.
(l) At least fifty percent (50%) of funds available in any calendar year shall be reserved for commitments to nonprofit corporations until October 1st, after which these reserved funds may be disbursed to any Recipient or carried over to the following year. Exceptions to this provision may be approved by the Common Council.(6) Term of Affordability.
(a) The minimum term of affordability for any Assisted Unit shall be thirty (30) years. The Commission shall give preference to those projects that ensure that the Assisted Units remain Affordable for the longer period possible.
(b) Assisted Units shall be deed restricted to ensure long term affordability.
(c) In those cases where an Assisted Unit is sold or transferred, or where an Assisted Unit is no longer Affordable, the initial Recipient of assistance from the Trust Fund shall be obligated to repay to the City the original loan amount, plus a pro-rated percentage of the appreciated value of the Assisted Unit as determined by the Commission. If an Assisted Unit has remained Affordable for more than fifty (50) years, the Commission may waive the obligation of the Recipient to pay the pro-rated appreciated value.(7) Building Standards.
The Commission shall encourage a set of building standards or initial improvements that lead to lower, long-term utility costs for occupants of Assisted Units. The specific set of these standards and improvements shall include the following:
(a) Compliance with such health and safety standards such as direct vent hot water units when individual hot water heating units are provided within the Assisted Unit;
(b) Protection from radon gas;
(c) A passive solar-slab ventilation system when sub-grade areas are exposed during construction or rehabilitation; and
(d) Within the Assisted Unit, features that help achieve a performance standard of energy conservation equal to 115% of the performance required by state building codes.(8) Accessibility. The Commission shall establish a program-wide goal of helping to create at least one (1) accessible unit out of every five (5) it assists. An accessible unit shall have accessible features as defined by the applicable sections of Wisconsin Administrative Code Chapters COMM 61-65, and include one curb-less shower and a step-free entry into the Assisted Unit.
Laws, schmaws. I guess the Mayor doesn’t need them.
