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, May 10, 2021 10:00 AM City Hall, Room 301-B Please join the meeting from your computer, tablet or smartphone. https://global.gotomeeting.com/join/727361205 Or by phone. United States: +1 (669) 224-3412 Access Code: 727-361-205 Meeting convened:10:01 A.M. Members present: Jim Klajbor, Erica Roberts, Ald. Robert Bauman, Maria Prioletta, Ald. Khalif Rainey Members excused: Mario Higgins, Ald. Russell Stamper and Tony Perez 1. Review and approval of the April 12th minutes. Mr. Klajbor moved, seconded by Ms. Prioletta, for approval of the minutes. There were no objections. 2. Communication from the Department of City Development on Housing Infrastructure Preservation Fund Activities. Mr. Yves LaPierre said there are currently no additional funds being requested. Ms. Prioletta said DCD is looking at in-rem properties for ARPA funds and the department will involve Council members once federal guidance is received. The money should be released in a few days so the guidelines should be released prior to that. Mr. LaPierre said there is only one property and the plan is to secure the property and get a roof on it. 3. Communication regarding resolution directing DNS and DPW to establish a moratorium on mechanical demolition of 1-4 family residential structures until the city plan to deploy ARPA funds for housing programs is developed. Ald. Bauman noted that there are 370 structures on the raze list and with the high price of lumber new affordable housing is even more costly to build. Those 370 structures do have lumber which is not even available to purchase. Ald. Bauman thinks if the City of Milwaukee Page 1 JOINT COMMITTEE ON Meeting Minutes May 10, 2021 REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES cost of repair is less than the cost of building new house then the city should be doing this and providing financial support to subsidize these properties. Commissioner Roberts would rather use the money to repair properties that need TLC rather than put the funds into buildings slated for demolition. She does not support the proposed ordinance that will be heard at Public Works Committee on Wednesday. Mr. Tom Mishefske, DNS, said a rehabbed house is not equal to a new house in terms of life expectancy. He noted the city doesn't have any deconstruction contractors. The Department is opposed to the proposed ordinance. 4. Communication regarding the expenditures, outcomes and results of the Neighborhood Stabilization Program, Strong Neighborhoods Plan and miscellaneous housing programs with a view to developing city priorities to be funded under the American Rescue Plan Act of 2021. The city is still awaiting the federal guidelines. Mr. Dennis Yaccarino, Budget Director, said the mayor submitted goals and there is a priority list of 10 things on it. There is limited city staff capacity that was mentioned at the last meeting and Ald. Bauman asked if that had been discussed, both capacity for public and private staff. Mr. Yaccarino said staff concerns have been discussed and the city wants to refrain from adding new positions based upon the pending 2023 pension crisis. 5. Discussion regarding the development of the plan and budget for housing initiatives to be funded by the American Rescue Plan Act of 2021. This was discussed under item #4. Ald. Perez asked about the outcome if more staff can't be added; Mr. Yaccarino said city staff might be added, if needed, due to the short-term nature of the grant with the positions ending in the four years of federal funding. The city is trying to do affordable housing and one attempt was Rehab to Lease, run by Friends of Housing, which ended up backing out of the program. Ald. Bauman thinks Rehab to Lease is the best way to create affordable housing, even though the city would end up subsidizing the housing. Ms. Prioletta thinks there is a balance between renovating and demolishing and the city will save properties wherever it can. Mr. Yaccarino mentioned the city will be looking at in-fill housing for vacant lots created through demolition. Ms. Prioletta said the city is also looking at factory-built housing; Ald. Rainey asked if the city looked at refurbished shipping containers for housing. Factory-built housing was used 15 years ago and seemed to stop during the recession, but Ms. Prioletta believes some is still going on. 6. Communication from the Department of City Development on the Lease-to-Own Program. Ms. Rhonda Szallai said she is unaware of the program being expanded and it's on a case-by-case basis and it's facing the increased costs of renovation. It would be a benefit if the city could spend more than $25,000 per building. 7. Communication from the Department of City Development on the Strong Home Loan Program. Aaron Helt took over for Larry Kilmer on this topic. He went through the memo in file 201626. Ms. Prioletta said they will be reviewing the loan limit based upon increased construction costs. Most people aren't turned away due to income limits. Most people that can't be helped are ineligible due to other financial issues. For Strong loans, Ms. City of Milwaukee Page 2 JOINT COMMITTEE ON Meeting Minutes May 10, 2021 REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES Prioletta thinks they have sufficient resources to meet the needs. Ald. Bauman noted there is a large influx of out-of-state property owners buying up rental property. He asked if the city screens in-rem buyers for non-owner-occupants. Ms. Amy Turim noted that Pres. Johnson just started a program to attract local buyers and investors and ACTS is also doing well on getting home buyers into their properties. 8. 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. Discussed previously in the meeting. 9. Communication from the Department of Neighborhood Services relating to the Compliance Loan Program. Discussed previously in the meeting. 10. Communication from the Department of Neighborhood Services relating to demolition and deconstruction. Discussed previously in the meeting. 11. Communication from the City Attorney's Office regarding updates on neighborhood revitalization litigation. Atty. Heather Hough said Mohammed Rashaid tried to re-open his case and the city fought against that. The agreement is still in place and the arbitrator agreed with the city and any future in-rem action won't face the same scrutiny as this last batch did. The office is still working hard on quality-of-life litigation. Atty. Hough is the only remaining nuisance attorney. 12. Public Comment There were no members of the public present. 13. Set next meeting date. Monday, June 7th at 10 A.M. Meeting adjourned: 11:06 A.M. Linda M. Elmer Staff Assistant This meeting can be viewed in its entirety through the City's Legislative Research Center at http://milwaukee.legistar.com/calendar. 201626 Communication relating to the 2021 activities of the Joint Committee on the Redevelopment of Abandoned and Foreclosed Homes. Sponsors: THE CHAIR City of Milwaukee Page 3 JOINT COMMITTEE ON Meeting Minutes May 10, 2021 REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES City of Milwaukee Page 4