#2 Authorize the conveyance of 627 Rockport Road to The Wisconsin Partnership for Housing Development (File Res. #2012-911)
NEIGHBORHOOD SERVICES MEMORANDUM
May 1, 2012
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the Conveyance of
Property Located at 627 Rockport Road to The Wisconsin
Partnership for Housing Development, Inc. (File Resolution # 2012-
911)
Summary
In September of 2011, the City Council approved the acquisition and demolition
or rehabilitation of 627 Rockport Road for neighborhood improvement purposes
under the Rock County Tax Foreclosure Program.
In 2011, the City of Janesville entered into a Developers Agreement with The
Wisconsin Partnership for Housing Development (the Partnership) for housing
rehabilitation and redevelopment under the Neighborhood Stabilization Program
III grant (NSP III). The Partnership has expressed a willingness to rehabilitate
and convert the 2-unit property back to a single-family home.
Staff believes that it is in the best interest to convey the property located at 627
Rockport to the Partnership for rehabilitation purposes under the NSP III
Program.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve
File Resolution #2012-911, authorizing the City Manager to convey the property
located at 627 Rockport Road to The Wisconsin Partnership for Housing
Development, Inc.
City Manager Recommendation
The City Manager concurs with Neighborhood Services recommendation.
Suggested Motion
I move to approve File Resolution #2012-911 authorizing the City Manager to
convey the property located at 627 Rockport Road to The Wisconsin Partnership
for Housing Development, Inc.
Background
In September of 2011, the City Council approved the acquisition of 627 Rockport
Road through the Rock County Tax Foreclosure Program. Under this program,
Rock County forecloses on properties that are 5 years delinquent on their
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property taxes, and the City has a first right to purchase the properties before
public auction. Under State Statutes, the City may acquire tax foreclosed
properties for a price equal to the delinquent taxes, special assessments and
charges, interest, and closing costs. The property at 627 Rockport was acquired
for $13,227, which included past due water bills of $2,957, for a net cost of
$10,270. Funding to pay for the purchase was provided through note issue
funding for neighborhood and downtown property acquisitions.
The property located at 627 Rockport Road is a 2-unit residential property that
was built in approximately 1929 and is zoned R2-Limited General Residence
District. It is a contributing structure in the Old Fourth Ward Historic District. The
1,434 square foot home has a combined 4 bedrooms and 2 baths. In addition,
there is a 400 sf detached garage. The property is located 2 blocks from Wilson
School and Monterey Park and has rear views of the Rock River.
The rehabilitation and conversion of 627 Rockport into a single family home is
consistent with the City of Janesville Look West and Old Fourth Ward
Neighborhood Revitalization Plans and the City of Janesville Comprehensive
Plan, which call for the revitalization of neighborhoods that have experienced
decline and for the City to acquire vacant, dilapidated, and tax-delinquent
properties for rehabilitation and resale to increase owner-occupancy and promote
continued investment in existing neighborhoods.
The City of Janesville received $600,000 in housing funds and $37,250 in
administrative funds for the Neighborhood Stabilization III Program. This program
allows municipalities and qualified non-profit organizations to acquire foreclosed
properties for the purpose of rehabilitation, redevelopment or demolition.
In June of 2011, the City Council authorized staff to enter into an agreement with
The Wisconsin Partnership for Housing Development, Inc. for utilization of
Neighborhood Stabilization Program III funds. The Partnership is a private
nonprofit corporation working to expand affordable housing opportunity through
innovation in housing development, consulting, finance and advocacy. Since
founding in 1985, they have formed numerous partnerships with the public,
nonprofit and private sectors in efforts to build and sustain strong neighborhoods
and communities.
The Partnership will be responsible for the rehabilitation of five single family
homes, the construction of one new home, and the provision of down payment
and closing cost assistance. All activities assisted must benefit low to moderate
income households, which include individuals at 80% of the adjusted median
income or below. At least 30% of the total grant funding must benefit households
with incomes ≤50% of median income. Fifty percent of all grant funds must be
expended by 12/31/2012 and 100% of grant funds must be expended by
12/31/2013.
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To date, the Partnership has purchased three properties for rehabilitation, all of
which are nearing completion. They have prepared preliminary designs for a
newly constructed home, which are currently being reviewed by the Historic
Commission. City staff has been pleased with the progress The Partnership has
been making under our current agreement and approached them regarding their
interest in undertaking the rehabilitation of this home under the NSPIII Program,
and they have indicated a willingness to do so.
Under the proposal, the City would transfer ownership of the property to The
Partnership at no cost to The Partnership. The Partnership would then assume
full responsibility for converting the home back into a single family home,
addressing all housing quality standards and reselling the home to an income
eligible household. The added cost of conversion back to single-family is largely
offset by the low acquisition cost. Sale proceeds would then be returned to the
NSP III Program to finance additional projects.
Analysis
Rehabilitation and conversion of 627 Rockport into a single family home is
consistent with the City of Janesville Look West and Old Fourth Ward
Neighborhood Revitalization Plans and the City of Janesville
Comprehensive Plan, which call for the revitalization of neighborhoods
that have experienced decline and for the City to acquire vacant,
dilapidated, and tax-delinquent properties for rehabilitation and resale to
increase owner-occupancy and promote continued investment in existing
neighborhoods.
The Partnership has staff who are knowledgeable in the Neighborhood
Stabilization programs and who have the experience necessary to ensure
the NSP program is in compliance with the State and Federal
Requirements. They will rehabilitate this property as one of the five
properties they have committed to in our NSP III Agreement.
Current City staff is fully engaged in other housing and community
development activities, and this collaboration will ensure that rehabilitation
will occur in the most expeditious manner possible. In addition, if City staff
were to undertake the rehabilitation project, detailed specifications would
need to be developed and the entire project taken out to bid as a whole.
Davis Bacon prevailing wage rates would be triggered. Both of these items
may increase the overall cost of rehabilitation.
cc: Eric J. Levitt, City Manager
Jay Winzenz, Director of Administration / Assistant City Manager
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RESOLUTION NO. 2012-911
A resolution authorizing the City Manager to proceed with the conveyance of property located at
627 Rockport Road to The Wisconsin Partnership for Housing Development, Inc.
WHEREAS,
the City of Janesville owns the following described parcel:
Stone’s Add. Lot 5 & 80’ Strip Lying South & Adj. JC6107920.
For informational purposes: 627 Rockport Road, Janesville, WI 53548; Tax Key No. 241-0401100106.
WHEREAS
, The City of Janesville acquired the property located at 627 Rockport Road in October 2011,
through the Rock County Tax Foreclosure Program for the purpose of neighborhood improvement; and
WHEREAS,
The City of Janesville has entered into an agreement with The Wisconsin Partnership for
Housing Development, Inc. for the rehabilitation of 5 residential homes and the development of 1 new
home under the Neighborhood Stabilization Program III grant; and
WHEREAS,
The Wisconsin Partnership for Housing Development has expressed a willingness to
rehabilitate the 2-unit residential property at 627 Rockport Road and convert this property into a single
family home under the Neighborhood Stabilization Program III grant; and
WHEREAS,
The rehabilitation and conversion of the property into a single family home is consistent with
the City of Janesville Look West and Old Fourth Ward Neighborhood Revitalization Plans and the City of
Janesville Comprehensive Plan, which call for the revitalization of neighborhoods that have experienced
decline and for the City to acquire vacant, dilapidated, and tax-delinquent properties for rehabilitation and
resale to increase owner-occupancy and promote continued investment in existing neighborhoods; and
WHEREAS,
It is in the best interest of the City of Janesville to convey 627 Rockport Road to The
Wisconsin Partnership for Housing Development for rehabilitation and conversion to a single-family
home; and
WHEREAS,
the rehabilitated home will be sold to an income eligible party under the Neighborhood
Stabilization III guidelines.
NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL
of the City of Janesville that it
hereby authorizes and directs the City Manager and the City Clerk to execute on behalf of the City of
Janesville, the conveyance of such property; and to negotiate and execute such documents, papers and
forms as may from time to time be necessary and/or desirable to effectuate such transaction and the
intent of this resolution as the City Manager may decide; and
BE IT FURTHER RESOLVED
that the City Manager is hereby authorized to take whatever other actions
or to make whatever other minor changes that may be necessary to effectuate this land transaction.
ADOPTED: Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Farrell
Eric J. Levitt, City Manager
Kealy
Liebert
ATTEST:
Severson
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services
Prepared by: Neighborhood Services Director
627 Rockport
627 Rockport