JOINT COMMITTEE ON REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES

200 E. Wells Street City of Milwaukee Milwaukee, Wisconsin 53202 Meeting Minutes JOINT COMMITTEE ON REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES ALD. ROBERT BAUMAN, CHAIR Spencer Coggs, Mario Higgins, Ald. Khalif Rainey, Antonio Perez, Maria Prioletta, Ald. Russell Stamper, II, and Erica Roberts Staff Assistant: Linda Elmer, 286-2231 Fax: 286-3456, lelmer@milwaukee.gov Legislative Liaison: Aaron Cadle, 286-8666, acadle@milwaukee.gov Monday, October 12, 2020 10:00 AM City Hall, Room 303 To participate or view virtually: https://global.gotomeeting.com/join/512596493 To dial in using your phone: (571) 317-3122 Access Code: 512-596-493 1. Review and approval of the July 13th meeting minutes. Meeting convened: 10:06 A.M. Members present: Tom Mishefske for Erica Roberts, Maria Prioletta, Mario Higgins, Antony Perez, Robert Bauman and Jim Klabor. Members excused: Ald. Stamper and Ald. Rainey Jim Klajbor moved, seconded by Antonio Perez, for approval of the minutes. There were no objections. 2. Discussion relating to the mayor's proposed 2021 budget relating to housing and housing initiatives. Mr. Dennis Yaccarino, Budget and Management Division, said the major part of the program is the $6.4 million provided in the DCD capital funding and the remaining funding is typical of previous years. The $2.9 million is to fund the down payment program and the land trust program. The other million dollars is the Housing Trust Fund program. Ald. Bauman had some questions about the 2 new progams: the down payment assistance program and the co op housing program in terms of when they would be implemented. The Dept. of City Development believes the down payment program will be ready around the first of the year; the land co op program will probably be operating more mid-year. In the future, the budget office will include carryover in the spreadsheet in its reports to this body. 3. Communication from the Department of City Development on Housing Infrastructure Preservation Fund Activities. Mr. Yves LaPierre said no appropriation is recommended for the 2021 budget. The department worked on 59 properties with 46 of them sold and 10 are currently for sale. 2922 N. Hubbard St. will be marketed with a $25,000 forgivable loan and the loan will be tied to repairs of the front cottage and owner occupancy of that cottage. The rear cottage can be used for rental income. There is $190,000 in carry over so that should City of Milwaukee Page 1 JOINT COMMITTEE ON Meeting Minutes October 12, 2020 REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES be adequate, per Mr. LaPierre and there are no properties in the foreclosure list that would need this money. Ald. Bauman commended Sherry Tussler for rehabbing a property across the street from her home with a $25,000 loan after the city took no action for a number of years. This amount is more than the cost of demolition - she spent $115,000 to renovate the house and sold for $130,000 to a owner occupant. 4. Communication from the Department of City Development on the Lease-to-Own Program. Ms. Rhonda Szalli said the program closed on 72 properties since 2014 and there are 2 properties in the rehab process. One tenant is going through financial counseling and 2 are interested in purchasing. For 2021, Ald. Bauman asked how much money specifically is set aside for Lease to Own. There is a single bucket of money with the in rem property and funds will be used as needed. 5. Communication from the Department of City Development on the Strong Home Loan Program. Mr. Larry Kilmer, Dept. of City Development, went through the report in the file. Since March, some of the training programs have been moved online and they have resumed inspections by the rehab specialists at the front end and also during construction. 6. Communication from the Mayor's Office, Department of City Development, and the City Attorney's Office relating to activities, revenue and expenditures of the Strong Neighborhoods Plan. Ald. Bauman noted that in September $635,000 worth of property was sold and he asked where those proceeds go. Ald. Bauman wanted to know who would have the breakdown of how much money the city gets (which goes to the delinquent tax fund), the Redevelopment Authority and the property owner. Ms. Turim said the average sale price is $11,000 over the past 5 years and if you take out the $1 sales, the average sale price is $13,000. Per Ms. Turim, there typically aren't large amounts of money left over from the sale and a number of properties are sold for the minimum amount of $2,500. 7. Communication from the Department of Neighborhood Services relating to the Compliance Loan Program. The department went through the numbers contained in the report in the file. $800,000 was requested for 2021. Mr. Mishefske said that there typically is no carryover in the compliance loan program, but one inspector salary does get paid out of those funds 8. Communication from the Department of Neighborhood Services relating to demolition and deconstruction. Mr. Mishefske said the contractor, White Glove, has provided insurance documentation and signed the contract, so, last week, he was approved to proceed and he has 3 applications pending. Ald. Bauman has a memo that was sent to the Finance and Personnel Committee that provides only reasons NOT to do deconstruction rather than any reasons to do it. The department, per Ald. Bauman, has been fighting this program for 10 years despite the policy statement created by the Council when the ordinance was originally created. There is $981,000 remaining of the City of Milwaukee Page 2 JOINT COMMITTEE ON Meeting Minutes October 12, 2020 REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES $1.2 million originally funded and the department hopes to see the benefits once White Glove begins operation. Ald. Bauman thinks the memo isn't factual in stating that it will add a cost to the taxpayers - the materials will be donated to a nonprofit and can be a savings to the private property owner, although it may be a cost to taxpayers. $2.2 million was requested in the 2021 budget and the project is general carry over of $300,000 for a total of $3.4 million. Ald. Bauman would like the addresses of the 3 proposed deconstructions. 9. Communication from the City Attorney's Office regarding updates on neighborhood revitalization litigation. City Attorney Heather Hough said the last formal report was in May and COVID has prevented this office from being a community presence to learn of nuisances. The Northridge raze order has been appealed. There is an attorney assigned to opioid matters and federal legislation and the city will also be defending four officers who seized a reptile portfolio in 2010. 10. Public Comment No public comment. 11. Set next meeting date. The next meeting date will be set by the Chair. Meeting adjourned; 10:49 A.M. Linda M. Elmer Staff Assistant 191282 Communication relating to the 2020 activities of the Joint Committee on the Redevelopment of Abandoned and Foreclosed Homes. Sponsors: THE CHAIR City of Milwaukee Page 3