Zoning, Neighborhoods & Development Committee - Regular Meeting

Committee for Tuesday, June 16 at 2,026 at 9 o'clock. one a m them all about which are committed to my rate is alderman staffer device here to my far left of all the spikers my immediate left here uh... our staff assistant chris lee will be joined by alderman jackson and we're also joined by alderman old woman card on the big board first item on the agenda is filed two six zero one seven five resolution approving land disposition report authorizing the sale of the city on taxi property at thirty two seventy six dash 78 North Holden Street in the 6th Aldermanic District.

Good morning, Mr. Chair, committee members. Duane Edwards with the Department of City Development's real estate staff. The file before you will approve a mixed-use building at 3276-78 North Holden Street. The City of Milwaukee acquired this property through property tax foreclosure. Seated to my right is Mr. Curtis Martin of Home Hab Limited. and his business partner, Shannon Mixon. I think they have a fantastic story to tell the committee. So with that, I'm going to actually turn it over to them so they can give you details. You should have received a land disposition report with most of the particulars on the sale price, investment that they're going to put into the building and so forth. So with that, I'd be happy to have Curtis Martin and Shannon Mixon share their details with you. Awesome. Great. Please.

I can take it. So we got a little packet here for you. It just tells you quick about us, what we've been doing. So we started working up here last August. We got called up by Axe Housing to do some of the north side remodels, the remotations. Go ahead.

No, that was an accident.

Oh, okay.

That was somebody who was talking.

Rehabilitations, renovations. So, basically, I was an engineer for Fairbanks-Morse Defense and ABC Supply Company of Beloit. I did the AXE housing program a few years back. Went through it, and even though I know the construction business and all that, I did that all as a youth until I became an engineer. I realize it's an overwhelming job. thing for homeowners, first-time homebuyers. I noticed there's a million people in the high-end market and a million people in the uninsured low-end market, but there's no one that can develop a process in the quality, well-insured, low-to-medium budget range. There's There's very few people in that market. So I designed, which goes with home rehabilitation, home have. So I designed the process, because that's what I was, a process and manufacturing engineer, plant engineer for these large corporations for the last 10 years. I just got called to stop that and start this business. Shannon, my partner, she grew up in the contracting industry. Her family owns business. She works for title loan companies. She knows all the back end. I know how the front end, how to get it done. She knows how to make sure we don't fail, right? Okay. So with that, we were called up here by Axe Housing and Violize Milwaukee in August. We moved everything we had up here. And since then, we've done everything. Um, we've done 10 houses, 10 rehabs, you know, North 2nd Street, North 30th, North 26th, North Nash, North 6th, North 45th, North 35th, North 10th Street. Many of them sold. The FHA loans just gone. As soon as we finished them, they were sold. They keep the price point about 150 or less for sale. Move in ready. Okay. So while we were doing that, Axe Housing and other people caught wind of us. They did several articles on us, so basically they kind of thought it was interesting how we – I went from an engineer and going through the ACTS program to leaving all that and revitalizing for ACTS in Milwaukee. So they did an article on how we use young guys. We only use young guys and local guys. And we're not looking for the... The high experience guys already got the jobs. We're bringing in young guys, local guys, and training them up from nothing. As long as they show the work ethic and the desire and the willingness to learn. We just started bringing them in on our own. So Axe caught wind of that. They did an article. You'll see that in here. Once Axe, they started doing the article, Melanie, the CEO of Revitalize Milwaukee, reached out to us and said, hey, we have this Building Hope program. We're putting all kinds of people through it. No one's getting jobs afterwards. So we struck an agreement together. I'll apprentice their people and teach them to do the rehabs. Start to finish everything. Our first semester just ended. I apprenticed four of them. We hired all four. They're currently working on their own right now while I'm here.

That's why we're kind of dressed to work.

Because we've got to get back to them, right? But that article's in there, some of their history. how it goes, you know. So these are motivated guys. They don't know much. They're smart. They just need a chance, so that's what we're here for. So we're working with Revitalize. We're getting people in the community. They're going to rehab their own community, right? So these are a low-margin price point renovations. So basically, as an engineer, I developed this process, how to rehab a massive home. On a low price point, I'm talking $50,000 to $75,000. You drive around the city and pick a building. I'll get it done. Not counting electrical and plumbing. That can get different. I have the process developed. We've proven it up here in Milwaukee 12 times. I've proven it down. I'm from Beloit. Proven it over 35 times. Worked out the kinks. Basically, then a few months ago, we found out that you guys are selling a property on Holden's. And so I don't know if you guys have the packet, but that's the perfect property.

We actually don't have that. Can I approach you?

So the first page is kind of a catch up on my history and Shannon's history and kind of what we're doing here. The second page is kind of the properties we've done since August of 2025. So we're in June of 2026. So less than a year we've done all those.

And they're all been sold?

Yeah. There's a few still on the market. Home ownership? Yep, so Axe Housing, if you don't know, Axe Housing is a first-time homebuyer, low-income homebuyer. Yeah, we know that. So you don't need me to explain that.

We know Revitalize. We know Axe. We know everybody in the game.

Yeah, and we just are blessed to come up here and have them want to partner with us. Basically, our business model matches their business model and their ethics. That's what it's all about for us. Excellent.

And one thing that intrigued me, committee, in that packet that you have, it mentions how Calvin Martin went from Axe Homebuyer to trustee. Yeah, I saw that.

Then you'll see the other article about the Revitalize Milwaukee guys, the home building holster.

Yeah, but... When you were renting from Axe, were you helping build the house kind of like Habitat does?

No, so the way it works, I live in Beloit currently. I have a son in his senior year, so I'm not going to make the move up here until he completes his senior year. But in Beloit, the way Axe Housing works is you buy the home in a dilapidated state. And as a homeowner, you become the general contractor. They just give you the money. It's overwhelming down there. They don't rehab them first. I know Axe is working on changing that, going from Axe Homes to Axe Acquisitions to Axe Homes. But, yeah, so I actually did the program to buy my first home through them. Because I have a model home, you know, it's just kind of an unachievable thing sometimes. And with the amount of down payment in the market. So I did the program as an engineer, as I'm working as a manufacturing engineer for Fairbanks-Morse Defense. And I picked the property I wanted. It was dilapidated. And they gave me the scope. And they said, go at it. And I was like, this is crazy. This is overwhelming. Even for me. And that's when the business model hit me, the process. all that so i developed the process left left as an engineer and started the company and and then i proved the process out 40 times down there before ax milwaukee reached out to me and they said we need a company like i said no i i designed this based off what you guys are doing i literally designed it for you guys and they said come up tomorrow and come up tomorrow so is this going in there so in the building What we'll be doing, I'll give you a quick run around all that shenanigans here, take over. But what we're going to do with the building is we're going to use it to help train the Revitalize Builder Hope guys. It's going to be an office and a home base for home having. There'll be three apartments upstairs, whatever the going rate in the neighborhood is. We're not... gouging, but they'll be full remodeled. We'll have a green event space above our garage, in our garage, and in our warehouse, along with shenanigans. We are anti-alcohol, anti-vape, all that stuff. So we're going to host events, giveaways, backpack drives, bike drives. I'm partnered with a, it's called the Bike Elves, it's in Beloit. They have thousands and thousands of extra bikes, and they're looking for a way to give them away. So in this space, I'll be bringing the bikes up, and we're going to be doing giveaways. Okay, awesome. And things like that. There's lots of resources that we know of and have and partnerships beyond X Housing and Revitalize Milwaukee that we want to bring into that space and use to assist.

Hey, Kevin, what's your budget for this one?

Our budget, our total all in with HVAC and all the upgrades, we think will be about $250, including the buy.

It's going to look like this?

Yes, sir.

That's the goal. I'm convinced, Mr. Chair. You have my support.

I'd like you to hear about the cafe piece. Yeah, I was just right. Go ahead.

Real quick. So shenanigans. He picked the name. I think it's pretty good. I like it. No, it's going to be like a healthier cafe. We noticed when we were going around, just being up in the neighborhood and up in that area, there wasn't any places to go. to get something that wasn't McDonald's or fried or something like that, a healthier option. And then when we talked to Duane over at RiverWorks, he was talking about they have the farmer's market stuff that they're trying to make. get together and i'm like that would absolutely be perfect to utilize all of the neighborhood you know fresh food fresh you know what i mean and and have everybody's um um you like i said utilizing the neighborhood for that as well so the more we can bring in from people around the neighborhood the better so that's what we would like to do with that and then that would be the area where we would do I'd like to hire at least five or six people from the area to work there. Ours would just be breakfast, lunch, maybe seven to three. Wouldn't do anything late night, nothing, dinners, unless somebody wanted to have a little birthday party or something. Soup, salad, sandwich.

Yeah, soup, salad, sandwich. And small events, birthday parties, baby showers, small get-togethers, no alcohol. Shenanigans can cater a health option, or they can bring their own.

Okay.

Yeah.

All right, very good. Congratulations. All the women of Congress, do you have any commentary? It's in your district. Move approval. Approval has been moved. Hearing no objections, so ordered. Thank you.

Thank you, committee members. Congratulations.

Thank you. Okay, moving on to item two, file 260176. Resolution authorizing the sale back to former owners of the city-owned tax deed property located at 2409-11 West Hopkins Street in the 7th Aldermanic District. Morning.

Good morning. Cindy Rice-Smith, real estate disposition manager. This is just a repurchase back to the former owner.

Very good. Jackson moves approval. Hearing no objections, so ordered. Next item, item 3, file 260-047, resolution relating to a minor modification to the detailed plan development known as Kane Commons Phase 1 to allow exterior alterations to the existing residential structure at 1162-64 East Kane Place located on the north side of East Kane Place east of North Humboldt Avenue in the 3rd Aldermanic District.

All right. hello good morning tanya fonseca from the department of city development uh what we have here before you today is a uh detailed plan development for kane commons which was established in 2005 and entails a series of residential structures including single family and duplexes along king place and a series of courtyard buildings to the north. We last saw this DPD before us in 2016 for approval of a single-family infill home along Kane Place, which has since been constructed. This is a minor modification relating to an existing duplex along East Kane Place. The owners are working with their architect to make alterations to the exterior of the structure, and since this is custom zoning, approval is necessary. The applicants are here to go over the changes in more detail, but in summary, the entire duplex structure will receive new vertical board and batten siding. There will be alterations to the windows, with some being added or enlarged and others being removed for code purposes. Enlarged exterior doors on the north and south side to meet code, and a new first floor porch and second story deck on the north side. As part of the minor modification, future modest exterior changes may be reviewed at a staff level. And this site is in the northeast side plan area, and the proposed alterations are consistent with the plan. The site is also in the third aldermanic district and alderman Brower has expressed his support and at the June 8th City Plan Commission meeting the commissioners recommended approval of the file so with that I can turn things over to the applicants if you'd like to learn more have any questions and

Please, do you have anything to add? Sure. Russell Frambois, the architect. I didn't realize it was 20 years since we started this project. This is the last component of the King Commons, and our goal is to bring it back up to a... Nice looking building within the district. Under the original. Development polls. We listed siding and we didn't include board and baton, so we were under the East Village Historic District at that point now defunct, but that's still part of our. development is those requirements. So we're adding the board and batten. In terms of exterior modifications, on the street side, the south side, we're just adding, we're keeping the window placement basically the same, but just changing the size of the windows to make it more light inside the building and better use of the And the doors. Entry doors by code need to be 36 inches wide, and now they're 32. So we're going to be replacing the doors with code-compliant doors, both front and back. On the west side... That's where the most changes in window placement occur. As you can see, if you started on the right-hand side of the drawing, we've got some smaller windows. Those sit above a bed in what's going to become the bedroom. The little window in the middle is the kitchen, and then the two windows are the living room on the far left-hand side. Again, the windows, we're keeping within the historic nature of the area. It's just different size, different locations. On the east side, we run into another code problem, which is the upper drawing. Code doesn't allow just windows when you're within five feet of another building. And we're very close here, as you all tell. So we've taken out the windows and we've added back in glass block, which meet the fire rating that we need. And we've added those into the bedrooms, or not, into the bathrooms. What's the last?

So you could keep the existing double hung windows, but choosing to replace them requires you to meet new code requirements.

Yes, and the existing windows don't work with our new layout inside. So we're reconfiguring the entire interior is being reconfigured at this point, so they just don't line up anymore. On the north side, we're adding patio doors and decks off the back. This is, again, all the houses in King Commons have livable space and outdoor access on the courtyard. And we felt that's important. That's part of the community. And so we're adding those in just to give that to this unit, too. So overall, those are the changes. If there's any other questions?

What kind of siding is on the building now? Aluminum? Yeah, aluminum, yeah. So instead of clapboard-style siding, you're going to the vertical? Yes. Curious why would that just that just a design choice or the design choice?

Yeah? Yeah, it's it's a current look So it's it's lean into a little bit of a contemporary feel because that's really popular now But it does have the historic nature of being and you know barn farmhouses things like that have that look to it, so And the material would be wood or no no it'd be LP smart siding composite Got it, okay

Well, this wouldn't pass muster in a historic district, I can tell you that much, but since this is not a historic district. Well, I heard the word historic a couple times. Yeah, well, there was an overlay district. There was never a district. There was never a historic district in this area.

Neighborhood conservation overlay. Right.

That was fiercely, well, okay.

All right, very good. Any other questions or comments?

No. Hearing none, Alderman Stamper moves to recommend passage and hearing no objections, so ordered. Thank you. Congratulations. Thank you. Item 4, file 260155, communication from the Department of City Development relating to anticipated revenues that may be available from tax incremental district extension for affordable housing programs in the 2027 budget. This is sponsored by Alderman Bergellis, who was online previously. I assume he's still in the neighborhood? Still here. Very good.

Thank you, Mr. Chair. This is in response to a... a footnote that we adopted in the last budget asking the department to engage the council and the public in planning their budget request for 2027 based on shared priorities community-wide. I'm thankful that the department was very responsive in getting this together early so that we have plenty of time to review and give suggestions or concerns or comments before budget starts in September.

Yes, very good idea. Okay. Well, with that introduction, I do want to, I'm sorry, Sam Likling, Department of City Development. And with that introduction, I also want to thank the sponsor. Obviously, Alderman Bergellis served as the lead sponsor, but Alders Stamper and Jackson also co-sponsored this directing resolution, which our department, is appreciative of, because as the lead sponsor just noted, it allows for us to have some of this discussion around the housing elements in next year's budget earlier in the process. That's something we heard from a number of members last year, is that they would have liked to have some additional dialogue in a setting like this, as the department was crafting both our budget requests to the budget office, and then also as the mayor is evaluating what, of course, you hear this every year will be a challenging budget year. And wanting to have some dialogue with council, even before the mayor proposes his budget, so that we can do two things. One, we can preview to you all the amount of revenue that may be available from expiring tax incremental districts, which is one of the primary ways we've supported affordable housing programming in the budget over the last few years. But also so we can take your feedback into account as the mayor crafts his budget, understand your priorities, understand how you'd like to balance very popular programs. And we, again, appreciate that today is an opportunity to do that. No decisions need to be made today. This is a communication file. And the goal is for us to, again, kind of bring the committee up to speed on where things stand and hear any feedback from you all that we can, of course, communicate both to the budget office and the mayor's office as the budget process continues. I would like to just give a little bit of background. Some of this came up in discussions at both the Finance and Personnel Committee during last budget season, also at ZND, just to remind members specifically about how we've used tax increment financing as one of the primary mechanisms to fund affordable housing programs. This communication file was specific to asking us to report what TIDs are preparing to close out and might be ready to be extended in next year. I know most of you all are familiar with this, so I'll keep the summary very short, but I think it's also important to give this context because of some recent changes at the state legislative level also. So as you all know, part of the Wisconsin TIF law has a very unique and powerful component that says as TIDs are getting ready to close out, meaning we've repaid all the initial debt, whether it was city or developer financed, that was used to fund the items that were in the original project plan, when all those debts are preparing to be paid off and the city has carried out all the expenditures that were approved by the TIF project plan, those TIDs can be extended. For many years it was for one year. after all the costs of any amendments and original project costs have paid off. And that is the only time those revenues can be used citywide. So this has been a powerful tool that this council has been very thoughtful and progressive of since about 2013 on saying, We've made this commitment that as tax increment districts are ready to close out, we want to make sure that we're taking advantage of this tool, funding affordable housing needs citywide. As Alderman Baumann has, or Chair Baumann has made comments a number of times, it's also one of the ways that we've been able to take benefits of some of the significant impacts of downtown development and spread them into the neighborhoods across the city. This is one of the ways that the TIF law allows us to do that because obviously a lot of the largest housing TIDs have happened in the downtown and near vicinity. This tool allows us to harvest those funds and use them citywide. Again, it's the only time those funds can be used citywide outside of the original TID boundary. And, again, this is separate from the amendment process. And sorry to underscore that, but I know that came up a lot during last year's F&P where we got a lot of questions about the difference between amendments and extensions. So I'll just say that one last time, too, which is – I think all of you who have tax increment districts in your districts know that our economic development and housing staff, as TIDs are getting ready to close out and reach their expenditure period, we do still meet with the local alder. And if there is capacity, we could add projects that both address the goals of the original project plan for economic development, infrastructure, all within that half mile. That's a process we're continuing our commitment to work with alders on. We've really accelerated that work in the last few years under Mayor Johnson to fund infrastructure. public space, that commitment remains. This extension process occurs after the lifespan of those amendments has been completed. There is rules that say once a TID reaches a period where it's five years before its statutorily required deadline to close out, we can no longer add new project costs. And that's when we have to start then moving forward to move that TID towards closeout and the extension for affordable housing. Again, the Common Council has adopted a framework that we've utilized since about 2014 to allocate these funds. And I think, again, it's a very thoughtful one. You all have been statewide leaders on this since the state created this tool. And it calls for the funds that are available through the extension process to be allocated through the city budget process. And so you've all done that each year. Since about 2014, we've closed out 16 expiring TIDs to be able to leverage more than $14 million for affordable housing. This year, the 2026 budget includes $2.3 million from four expiring TIDs that are used to fund housing programs, including the Strong Homes Program, down payment assistance, and others. And we'll talk about that a little bit longer in a minute. And as noted earlier by the lead sponsor, during last budget season when some of this was discussed and there was a desire by council to start the discussion earlier for the 2027 budget process, the council did adopt Resolution 251448, which is the direct scene resolution that brings us here today, calling on DCD to report after we submit our requested budget to the DOA Budget Office on both what we're projecting for next year's closeouts and potential use of funds in our requested budget for housing purposes. Since that resolution passed, there's been one pretty significant change at the state level, and it's a change for the good. The state passed Assembly Bill 453 in February, which changed the underlying TIF law, and it allows us to now, instead of just being able to benefit from this extension from affordable housing process for one year, allows us to extend closing out TIDs for two years. So what that will do is going forward, it will basically double the amount of revenue we're able to harvest from expiring TIDs to support local affordable housing use. And that's pretty good news for us. Obviously, we're always looking for ways to continue to find new revenue sources to fund council and mayoral priorities, and affordable housing is obviously high on that list. And this provides, again, a new source of revenue for us to do that. While it was passed this past February, it doesn't take effect until February 1, 2028, and that becomes relevant for some of the discussion later. The directing resolution in front of us today called for DCD to report on TIDs that we anticipate being eligible for closure that would be available for funding housing in the 2027 budget. In about September of last year, we provided some initial projections to the F&P committee about what TIDs we anticipated might be ready to close out in 2027. And we did talk about the potential that CIDs 41 and 49 would be ready to close in 27. Ultimately, as we've continued to work to finalize some of the underlying projects that were funded by the final amendments for those districts, they ultimately, the work is continuing there. We've not yet completed all of some of the final aspects of some of those projects. And so they will not be eligible for closeout in 2027, as we previously anticipated. So we now anticipate those will be ready to be closed out in 2028. So that has one downside, which is that those funds will not be available in the 2027 budget year. But there's one significant upside there, which is assuming the Department of Revenue confirms what our initial interpretation is of the new state law, instead of just being able to harvest $4.2 million out of those two TIDs, we anticipate now being able to harvest over two years a double that, $8.2 million. So that would be a significant upside. positive unintended consequence of the need to close those out one year later. But again, the work continues there. And so as of now, they would not be eligible for closeout next year. So that poses a significant challenge, which is we do not have any TIDs ready to close out in 2027. And that's been a primary source of funding for our affordable housing work. As I mentioned earlier, there was $2.3 million of money in the 26 budget for affordable housing. Obviously, housing remains a critical priority of the council and the administration. And so we've been working to identify how can we still, even without having the source of TID funding available in 2027, still fund key programs. And so as our department prepared our requested budget that we submitted to the budget office following all the statutory deadlines last month, We did request that some of the core programs that have in the last couple of years been funded with TID extensions be funded with city capital money. And so obviously that's something that the mayor and the budget office will have to evaluate. You all will have to evaluate during budget season. The takeaway there is, even without having the source of TID funding to do so, we still want to continue those programs. And obviously, we'll work with the budget office, mayor's office, to try to hopefully find a way to do that. And ultimately, that will also be part of the budget discussion, I'm sure, in the future. And so how have we evaluated these decisions? Oh, I should note before we go on. We do anticipate beyond the two TIDs we're showing here that additional TIDs are anticipated to close out in 2028. So in 2028 and 2029, we could have some significant additional resources that are at higher levels than we've seen in the past for housing programs. And so we do want to spend the next year or so working with you all to start preparing for the fact that we will have some increased resources to be able to bring to bear for housing in 2028 and 2029. And we want to be strategic about that so that we're advancing shared council And mayoral priorities. Mr.

Chair. Yeah, sure. Sam, please go back to that previous screen. Yeah, thank you. So 3.4.2 million will be available for housing in 2028. According to this money applies to the recent TID rule that you just explained.

Yes, we have two TIDs that we are relatively certain. You know, that's always dangerous to make 100% commitments, but we all are pretty certain we'll be ready to close out in 2028. Those are the two on the screen that would total $4.2 million-ish. Each year? In 2028, and we hope that DOR will agree soon. So the state changed the rule to allow in the future two years' worth of extensions. We're still awaiting guidance on what happens in this bridge, like the first year where it takes effect. We believe, based on our read, that TIFs, CIDs that close out in 2028 will be eligible for that two-year process, which means we could extend them into 28 and 29, but we want to... We want to seek guidance from the state before we confirm that.

Sam, that's a little too difficult for me. Will 4.2 really be available in 2028? That's our current projection, yes. And then in 2029, another additional 4.2?

That's the part we're waiting for confirmation on the state. Just this first year. I mean, going forward after 29, it's very clear. You get two years out of it. But there is some guidance we're seeking on what happens with this first year where the new law takes effect. And our read is that we would. be able to get two years' worth of increment about that, but we want to make sure that that's consistent with the state's interpretation of their new law.

When you say two years, you're talking about one year and 2.8 the next year?

Out of each TID, but there's two of them, so it would be $4.2 million total in each year, plus some additional TIDs we hope will be also ready to close in 2028 and 2029. So it could be more funds than even these two TIDs. Okay, gotcha. So as we've kind of looked at the plan, we're looking at a two-phase plan. One is what we do in 2027 to bridge this year where we won't have TID resources. And I think the goals there, and Larry will talk through kind of how we've navigated that. And then we also then want to move into the 2028 and beyond where we do have ability to be a little bit more strategic. And what you're hearing from us right now initially is we have a commitment to continue dialogue with council about that. I think the mayor very much wants to be strategic, wants to use this time effectively. to prepare us for um 2028 and 2029 and beyond when we'll have additional funds and you're hearing loud and clear a commitment to have dialogue today's the start of that dialogue but again no decisions need to be made today we look forward to working with you all throughout the summer to continue these discussions but the focus of today is to honor the directing resolution and just show you what we've presented for 2027 and so if it's okay i'll turn over to larry to kind of just walk through at a program level what you'll see in our 2027 requested budget

All right. Good morning. Larry Kilmer with the Department of City Development. So just echoing a little bit what Sam mentioned. So for 2027, we're really looking at kind of this bridge year, having this flat funding just so that we can try to find our way to 2028. But for 2027, we're looking at advancing key goals, both invest in shared council and mayoral priorities, as well as continuing the successful housing programs that we're all very aware of. As Sam mentioned, then beyond 2028 and beyond, that's when we're going to start to look at, with all of your input, using expanded resources to fill critical gaps in support innovative programs. So we've had a lot of conversations about what are we unable to do, where is that need in the developments that we look at. as well as strategically plan for fluctuations in funding due to timing closeouts. So as we all know, year to year, the dollar amounts that are closing out in TIDs fluctuate. So how do we start to plan for those future fluctuations with what we start to see in 28 and 29? Um, as I mentioned, so the two focuses for this year, um, continue successful housing programs. So just wanted to reiterate the programs that we have been operating for many years now that have been very successful, um, for, uh, for the strong homes loan program. Uh, just a reminder, this is a home ownership retention program, uh, over the last decade, since we've been operating the program, we've seen approximately $13 million that have helped, uh, provide low and no interest loans to over 750 households. And the program cap, although it's at 150% AMI, three out of every four households are under 80% AMI that have been accessing that program. The second program that you're all aware of, the Milwaukee Down Payment Assistance Program. So this is more of the home ownership attraction strategy. Over the last four years of operating the program, we've seen over $8 million go into that program to help approximately new homebuyers, just a caveat there, 4 million of that was ARPA funding. So about half of that city funds, half of that ARPA funds. And again, as a reminder, that program serves households that make up to 80% AMI. And then the final program that, again, long-term successful programs is a housing trust fund. Here we're seeing both rental and homeownership supply strategy and also allowing nonprofit housing agencies to apply for these programs or for the housing trust fund program. Between 2007 and 2025, over $19 million has gone to the Housing Trust Fund to help create or rehab over 3,000 units. And again, another caveat there is about $10 million of that $19 million was from ARPA funds. So you can see about $9 million since 2007. The next component that I mentioned was invest in shared council and mayoral priorities. The two programs that we're highlighting here are, as mentioned before, the Revive Attached Housing Development Program is in its first year, 2026. And this is a homeownership attraction strategy for new construction on vacant lots. In 2026, there was a $1.6 million capital budget allocation as well as the $1.2 million of pro-housing as a federal funds that we received a number of years back in anticipation for us rolling out this program. Earlier this year we ran an RFQ and we have identified four development teams and we were very close with entering into contracts with those teams. I know you've been hearing me say that now for a while, but each week we do make really good progress. So I'm wanting to finalize a couple of components with the design contracts with those teams before we make announcements.

Mr. Chair, as you break down the programs, what helps me is the

absolutely so we're calling it the revive attached housing development program attached yeah it's meaning that the units are attached so townhomes multiple multiple units are not just single-family standalone housing Yeah, so we're anticipating with about $110,000 development subsidy that we'll see about 25 units with the current budget, with the 2026 budget.

I didn't want to interrupt you, but what was the first one, the one right before that, the title of that one?

The three previous ones are the Strong Homes Loan Program, the Down Payment Assistance Program, and the Housing Trust Fund.

There wasn't one in between there?

Not yet. No, there's one after.

I haven't talked about it yet.

But you don't anticipate those houses being started this year, do you?

We do have one team that I think they are going to be getting out of the gate much sooner than the other teams. So we hope to see some ground broken. I'm sorry.

There could be substantial carryover from this account.

And that's not the goal. We do anticipate entering into design contracts with these teams this summer, if not in the next month or so. So we do anticipate ground being broken and dollars being allocated to these teams this year. They're budgeted, correct?

Are they budgeted? The 2.8, is it budgeted for this?

So the 1.6 from the city budget from 2026, and then the 1.2 million from the pro-housing grant. Okay. And then the final program I want to highlight some version of the current Homes MKE program. For short, Homes MKE 2.0. We did hear through the budget process last year that kind of this balanced approach of both new construction and obviously continuing to operate something that we have operated very successfully before. Not just under the homes on Katie program, but multiple iterations prior since the NSP years So looking at a home ownership attraction strategy rehabbing distress city tax for closed houses and just to highlight where the dollars came from for the Homes MKE program. Those are ARPA dollars, so approximately $13-plus million. We're able to work with developers to rehab just over 100 homes under that program. Okay, cool. All right, so the final slide. So in DCD's requested budget, as Sam mentioned, that was submitted a number of weeks back, so just focusing on 2027, we have a very kind of stable, as I mentioned, flat dollars, flat funding for the programs that we've been operating. So the Strong Homes Loan Program, we look at budgeting $1 million for the Milwaukee Down Payment Assistance Program, $1.4 million. Again, stable from the budget from this past year, from 2026. The Housing Trust Fund, so we have $0 budgeted. We have been in communication with the CDGA office and recognizing that recent years they've received about $300,000 in their budget. But because they are looking to run an RFQ or an RFP this year for their existing funds, they didn't feel like budgeting for another $300,000 next year would be enough to actually run another RFP next year. So strategically, they were comfortable with us holding back on budgeting anything for next year, knowing that based on the information that Sam provided for 2028, 2029, and going forward, we'll have a significant...

block grant office there is a housing trust fund board and i don't and i'm a member of that board i don't recall the board ever meeting to reach that conclusion You just talked to the Black Grant office, which staffs the housing trust fund, right?

That's correct.

The board has never acted to acquiesce in that strategy of a zero line item, correct?

Not that I'm aware of.

I just want to make that clear.

And that's a fair point, I think, and it probably merits some additional discussion at the staff level, but I think... I think there's been about three years' worth of recent allocations that I know that the staff of the Housing Trust Fund do plan to put on RFP this year that would bring down that whole balance. So if there was $300K allocated next year, which has been the funny last few years,

President would suggest they're not going to. You can't do a project with $300,000. What is their carryover? What do they have available presently?

I think we should let the Block Grant Office give an exact number, but my understanding is it's a couple years' worth of allocation, so they're in a position this year to do an RFP that would lead for a substantial amount of money.

I mean, there's always next year's budget, and then there's what exists now and what carries over, which is not always clear, because that's this revised thing. I have no confidence you're going to spend $2.6 million in 2026.

I think that's a fair point about making sure we get you all the details on the current balance and housing trust fund, and so I think we can ask the Block Grant Office to follow up directly with you.

I remember meeting with you guys about this allocation, and I discussed the importance of the housing infrastructure preservation fund, and I see it's not even listed, much less has a number assigned to it.

Yeah, and that that's a fair point about revive. I think the way we would answer that, you know, I think Larry talked about the timing of when we anticipate revive funds being utilized, which would be. we know this will come up during budget season and we welcome that discussion but you know to track our progress but the goal would be to actually encumber and commit funds to the development teams this year which would mean if there's no funding for revive in the 2028 budget it would mean we could not carry out additional activity in 2028 because well yes the 2026 Physical dollars, some of those will be spent in 27. We need to have them to actually encumber with development contracts. And we do, as Larry mentioned, we remain on track to do that in 2026. And that's why requesting, we anticipate requesting additional funding in the 27 budget for revive because without that we would not be able to continue the pipeline of working with developers to identify projects because we will not we would need to be able to encumber those funds um to actually continue the process and we know that will be a subject of discussion during budget season and we know you'll be holding us accountable for progress and so that that message has been heard and we look forward to continue those discussions

Um, so the next item on the, uh, the budget that is laid out here is the revive to that point, the revive housing development program. So, again, keeping a steady dollar amount of approximately what was allocated for 2026. so, 1.8Million dollars. The Homes MKE 2.0 program that I mentioned, so looking at a budget there of about $1.1 million. And then the final item on this list is an AIN-RAM account for $400,000. And again, that runs a couple of very small programs, but also is an account that we can bill staff time to.

Yeah, I assume the housing trust fund earlier discussion where you allocated some funds is why you didn't put any money in this one. Is there anything in correlation with that?

So we have, as Sam mentioned, the last few years, it's my understanding that there's been budget allocated to the Housing Trust Fund of about $300,000 or so per year over the last number of years. And that was after that large infusion of ARPA dollars of about $10 million. Okay. So Inc in conversations with the block grant office They they are anticipating running an RFP this year still convening convening the board But I want to say it's it's it's slightly north of a million dollars Thank you

So as far as then the funding strategy, as Larry laid out how we're proposing to use the funds, our budget request to the budget office that we submitted includes a $4.5 million capital request. And then the way we would anticipate seeking support of the council to fund the balance is there are a number of currently unallocated TID extension funds from previous years. There's $100,000 remaining from 2021. There's also $500,000 available. You may remember Council acted last September to allocate up to $500,000 for emergency flood loans based on FEMA ultimately supporting that need. Those funds did not need to be utilized for the code compliance loan program, so they now remain available for reallocation. And then this year, we actually, and this is another bit of good news, when we actually closed out the four TIDs that are included in the 2026 budget, increased assessments the final year resulted in greater than anticipated revenues. So we do have $527,000 of greater than anticipated revenues from the 2026 extensions that can be carried forward in 2027. Those funds have to be used for affordable housing because they came from the TIF extensions. So what we hope, you know, the $4.5 million, that was our capital budget request. Ultimately, again, the mayor will have to evaluate that with other capital budget requests, and then you will see a proposed budget in September. The $1.1 million would require separate council action, but we hope to, over the next few months, continue to engage in this dialogue with you all to best allocate the available funds for housing in 2027 budget to meet the needs. And I also anticipate there will be a lot of questions, but I also want to just close with noting There's a lot of good news to unpack within this presentation. I first want to credit our IRD staff. They've worked over the last few years. For the last few years, it's been one of our highest legislative priorities to get this TIF extension, and they were able to successfully do that. That's what is allowing a significant infusion of funds for affordable housing in the future years. So I want to thank IRD for making that happen. While this year we won't see the benefits of it, I think you will see incredible benefits of that in future years and future councils. Um, we also, you know, this is the year of housing and I think we've been working very closely with the mayor's office, budget office to build that groundwork. Um, and even in a year where we do not have, um, the revenues coming through TIF extensions, we believe we're putting forth, um, a proposal that would still allow for significant investments in housing. As Larry mentioned, it would allow us to continue to, um, fund strong homes at the level that's been funded in the past. It would allow us to fund DPA at 1.4 million dollars, which we know from last budget season was a priority of this council. a priority of community advocates who said $1.4 million represents full funding, and we are requesting that in our future budget. And we've also found a way to hopefully continue the success of the HOMES MKE program. There was a lot of discussion about what happens when the ARPA funding that was utilized for that program runs out, and we have made a commitment last budget season to council that we would work hopefully in collaboration with you all to find a way to continue that type of work, whether we call it HOMES MKE 2.0 or something else, To continue that commitment, I know it's a commitment we made, especially Alderman Baumann, who's long been a champion of making sure that we're equally focusing or perhaps even more focusing on rehab with new construction. We did make a commitment to try to do that through the next year's budget, and we hope that this reflects that commitment. of a balanced housing strategy that prioritizes both rehabilitation repair and new construction we look forward to working with you all to um during budget season i get to something that again advances both the shared goals of the administration and the council and with that we're open to any questions and it's important to understand that this is your budget request correct

the executive budget may reduce that request. That's right. Just to be clear about that.

That's 100% that we know that there's going to be a lot of pressure on the capital budget. The mayor's office and the budget office will have hard decisions, but that's another benefit of this type of dialogue is that we can hear from you all, whether it's today or any time between now and September, your priorities that we can continue to keep in communication as we work with our colleagues in those offices. Okay.

Any questions, comments? That's pretty good. All right, thank you. Alderman Gellis, you got anything to add in closing?

I'm just glad for the report and appreciative for the detailed summary that we have now. We can move forward, wait for the executive budget, and make sure our priorities are met.

All right. Thank you very much. Okay. Alderman Jackson moves to receive and place on file and hearing no objections so ordered. And that concludes our agenda. We're adjourned. Adjourned.

Thank you. Thank you all.