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2004-31RESOLUTION NO. 2004-31 RESOLUTION AUTHORIZING THE EXPENDITURE OF FUNDS FROM THE HOME INVESTMENT PARTNERSHIP INITIATIVES (HOME) PROGRAM TO PAY ACQUISITION AND REHABILITATION COSTS FOR THE SALVATION ARMY PATHWAYS TRANSITIONAL HOUSING PROJECT WHEREAS, the Salvation Army of Janesville desires to establish a project-based transitional housing program including case management services for single adults without dependant children; and WHEREAS, the City of Janesville and the Salvation Army of Janesville have previously established a partnership to provide transitional housing in the City of Janesville through Project: Impact; and WHEREAS, the Homeless Intervention Task Force (HITF) has evaluated the Continuum of Care for homeless persons in Rock County and concluded that significant gaps exist in the continuum particularly in the area of transitional housing programs; and WHEREAS, most emergency housing and homeless assistance programs in Janesville are limited to thirty (30) days of assistance; and WHEREAS, the wait for assistance through the Section 8 Housing Choice Voucher Program is currently running approximately two (2) years; and WHERAS, it is much more cost effective in the long term to work towards breaking the cycle of homelessness through a transitional housing program than to continue to provide emergency assistance; and WHEREAS, the Salvation Army of Janesville has requested assistance from the City of Janesville in securing and rehabilitating an existing rental property in the City of Janesville to establish such a transitional housing program; and WHEREAS, the Community Development Authority (CDA) reviewed this request at their meeting on March 17, 2004, and recommends such assistance be in the form of a combination deferred payment and forgivable loan with ½ of the amount (125,000) forgiven over fifteen (15) years as long as the facility continues to be owned by the Salvation Army of Janesville and used for a transitional housing program and the other ½ ($125,000) be structured as a deferred payment loan with payments deferred for fifteen (15) years and repayment terms reviewed by the CDA at that time; and WHEREAS, the CDA further recommends that $200,000 of this assistance be provided in 2004, with the remaining $50,000 of assistance to be provided in 2005; and WHEREAS, the Common Council finds that it is in the community's best interest to provide such assistance to the Salvation Army of Janesville; Resolution No. 2004-31 Page 2 NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville, that it hereby authorizes the expenditure of up to $250,000 from the HOME Investment Partnership Initiatives (HOME) program to pay for site acquisition, rehabilitation, and related costs for the establishment of a transitional housing program; and initizt~d by the S~b.'~t!en _a__.-rp_y; ~_-_d BE IT FURTHER RESOLVED, that the City Manager, and his designees, are hereby authorized to negotiate, draft, prepare, execute, file and modify such other documents, papers and agreements ancillary and/or pertaining thereto and, from time to time, to take and/or make whatever other minor actions and/or minor modifications to the above described agreements as the City Manager and/or his designee may deem necessary and/or desirable to effectuate the purposes of such agreements and the intent of this resolution. ADOPTED: April 26, 2004 APPROVED: Steven E. Sh-eiffer, City ~(nager ATTEST: Jean/~nn Wdlf, City clerk-Tr-easur~ APPROVED AS TO FORM: City Attorney MOTION BY: Addie SECOND BY: Brien COUNCILMEMBER AYE NAY PASS ABSENT WELLNITZ, TIM X BRIEN X WILLIAMS X WELLNITZ, TOM X STEEBER X DEGARMO X ADDLE X Proposed by: Prepared by: Community Development Authority Housing, Building, and Neighborhood Services Director