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Council approves CDBG advisory board recommendation to bridge funding gap for new home at 44 S. Memorial Drive
Summary
The Common Council approved a CDBG Advisory Board recommendation to allocate HOME funds and $14,337 in non-federal revolving loan funds toward new construction at 44 South Memorial Drive; the roll-call vote was 10–2.
The Racine Common Council voted Feb. 19 to approve the Community Development Block Grant (CDBG) Advisory Board’s recommendation to support new construction at 44 South Memorial Drive with HOME program funds and a small non-federal revolving loan.
The advisory board recommended allocating HOME funds and using up to $14,337 from non-federal revolving loan funds to bridge a financing gap for the project. During the council presentation, aldermen were given a fiscal note stating sufficient HOME funds are available to cover $359,010.63 of the allocation and that $14,337 from the non-federal revolving loan fund would be used to cover the remaining shortfall.
Alder Pete moved to approve the advisory board recommendation; Alder McCarthy seconded. Alder Weidner spoke against the motion, saying she objected to using additional city funds beyond the HUD HOME subsidy limit for a four-bedroom unit. The clerk certified the roll call: the vote was 10 in favor and 2 opposed.
Why it matters: The allocation supports construction of an owner-occupied house intended to be sold to a HOME-eligible buyer. The use of non-federal revolving loan funds was presented as a bridge to complete the financing and then replenish the revolving fund when the property is sold.
Outcome: Motion carried 10–2; the council approved the financing package as recommended by the CDBG advisory board.
Ending: Councilors approved the allocation and said staff will proceed with the funding and project steps according to the established HOME and CDBG procedures.
