Committee for Tuesday, June 16th at 2026 at 9 0 1 a.m.

I'm all in Baumature Committee.

To my right is Alderman Stamper, the vice chair.

To my far left is Alderman Spiker.

To my immediate left is uh our staff assistant Chris Lee, who will be joined by Alderman Jackson, and we're also joined by Alderman Hollywoman Cog and on the big board.

First item on the agenda is file 260175 resolution approving a land disposition report and authorizing the sale of the city-owned tax D property at 3276-78 North Holden Street in the 6th Aldermanning district.

Good morning, Mr.

Chair, Committee members, Dwayne Edwards with the Department of City Development's real estate staff.

Uh the file before you will approve a mixed use building at 3276-78 North Holton Street.

City of Milwaukee acquired this property through property tax foreclosure.

Seated to my right is Mr.

Curtis Martin of Home 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.

So with that, I'd be happy to have Curtis Martin and Shannon Mixon share their details with you.

Awesome.

Great please.

So we got a little packet here for you.

Just tells you quick about us, what we've been doing.

So we started working up here last August.

We got called up by uh Axe Housing to do some of the North Side remodels.

You get the rehabilitations.

Go ahead.

No, that was Axe.

Oh, okay.

That was somebody.

So basically I was an engineer for Fairbanks Morris Defense and uh and uh ABC Supply Company of Beloy.

I did the Axe Housing Program a few years back, went through it, and even though and even though I know the construction business and all that, I did that all as a youth until I became an engineer.

Um I realize it's an overwhelming thing for homeowners, first-time home buyers.

Um 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 in quality, well-insured, you know, low to medium budget range.

Um there's there's very few people in that market.

So I designed which which goes with home rehabilitation, home have um, so I designed the process because that's what I was a process of manufacturing engineer, plant engineer for these large corporations for the last 10 years.

Um I just got called to stop that and and start this business.

Um 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 we were called up here by Axe Housing and Violet's Milwaukee in August.

We moved everything we had up here, and since then we've done um we've done 10 houses, 10 rehabs, you know, North 2nd Street, North 30th, North 26, North Nash, North Sixth, North 30, 45th, North 35th, North Tenth Street.

Many of them sold the FHA loans, just gone.

As soon as we finish them, they're sold.

We they keep the price point about 150 or less for sale.

Moving ready.

So um, when we were doing that, uh, Axe Housing and other people caught wind of us, um, they did uh several articles on us.

Um, so acts so basically they kind of thought it was interesting how we uh I went from an engineer and going through the acts program to leaving all that and revitalizing for acts and Milwaukee.

So uh they did an article on how we use young guys.

We only use young guys and local guys, and we we're not looking for the for the the guy, you know, the high experienced guys already got the jobs.

But 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 they did an article.

You'll see that in here.

Uh, once Axe they started doing the article, Melanie, the CEO of uh like 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 uh uh agreement together.

I'll apprentice their their people and teach them to do the rehabs.

We start to finish everything.

Um 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 guessed to work.

Because we gotta get back to 'em, right?

But uh that article's in there, how some of their history, um how it goes, you know.

So uh these are motivated guys.

They don't know much, they uh 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 we're getting people in the community, they're gonna 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 to 75,000 from you you drive around the city and pick a building.

I'll get it done.

All right, not counting electrical plumbing, right?

That's a track that can get different.

So I have the process developed.

We've proven it up here in Milwaukee 12 times.

I've proven it down, I'm from Beloy, proven it over 35 times, worked out the kinks.

Um basically then a few months ago we found out that you guys sell a property on Holton, and um, so I don't know if you guys have the packet, but that's the perfect property.

We actually don't have that.

Okay, I looked it up.

Can I approach them?

Go ahead.

All right.

I'm sorry.

You want to take that, you can take it.

So you can walk through it.

Kind of gives you the runoff.

I'm sorry that you if you didn't have them in your life.

I think you said it's another time.

Yeah, too well.

So the first page is kind of uh catch up on my history and Shannon's history and kind of what we're doing here.

Um 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.

Yep, yep.

So Axe Housing, if you don't know Axe Housing is a first-time home buyer, low-income home buyer.

Yeah, we know that.

Oh, yeah, yeah.

So you don't need me to explain.

We know revitalized, we know X, we don't know.

Yeah, okay.

Everybody in the game.

Yeah, yeah.

And we just are blessed to come up here and and have them on a partner with us.

So um basically our business model matches their business model and their ethics.

That's what it's all about for us.

So excellent.

And one thing that intrigued me committee, um, in that packet that you have, yeah.

It it mentions how Calvin Martin went from Axe Home Buyer to Trust.

Yeah, I saw that.

Then you'll see the other article about the revitalized Milwaukee guys that we the home building hosts.

The whole example.

Yeah, but uh when you were reaching from Axe, were you helping build the house kind of like Habitat does?

No, so the way it works.

I live I live in Beloit currently.

We're we're in I have a s a son in his senior year, so I'm not gonna make the move up here until he completes his senior year.

But uh in Beloit, the way Axe Housing is if you buy the home in a dilapidated state, and as a homeowner, you become the general contractor, they just give you the money.

Okay, it's overwhelming down there, they don't remain rehab them first.

I know Axe is working on changing that.

It it going from Axe Homes to uh Axe uh acquisitions to axe homes.

But uh, yeah.

So I actually did the program to buy my first home uh through that.

I haven't bought a home, you know, it's just kind of an unachievable thing sometimes, and uh with with the amount of down payment in the market.

Uh so I did the program as an engineer as I'm working as a manufacturing engineer for Fairbanks Morris Defense, and I I I picked the property I wanted, it was dilapidated, and they gave me the scope and they said, Go add it, and then 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 Axe Milwaukee reached out to me and they said, We need recovery.

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.

Come up tomorrow.

So it's going in there.

So in the building, what we'll be doing, I'll give you a quick run around on that shenanigan.

We're going to use it to help train the revitalized building hope guides.

It's going to be an office and a home base for home ham.

There'll be three apartments upstairs, whatever the the going rate in the neighborhood is.

You know, we're not gouging, but they'll be full remodels.

Um we'll have our green event space uh above our garage, in our garage, and in our warehouse, along with shenanigans.

Um we are anti-alcohol, anti-vape, all that stuff.

So we're gonna host events, giveaways, backpack drives, bike drives.

I'm uh partnered with uh it's called the um bike elves, it's in Beloy.

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 gonna be doing giveaways.

Okay, so and things like that.

Um, there's lots of resources that we know of and have and partnerships beyond Axe Housing and ever vitalize Mohawke, um, that we want to bring into that space and and use to uh usually what's your budget for this one?

Our budget, our total all in with HVAC and all the upgrades.

We think will be about two fifty, including uh small like this.

Yes, sir.

That's that's the goal.

You have my support.

I'd like you to hear about the the cafe piece.

Yeah, real quick.

Yeah, sorry, sorry, real quick.

Um, so um shenanigans, he picked the name.

I think it's pretty good.

I think it's pretty good.

I didn't think about shenanigans.

That's what he said all the time.

Um, no, it's gonna be um like a healthier cafe.

We noticed when we were going around um just being in up in the neighborhood and up in that area, there wasn't any places to go to get something that was that wasn't McDonald's or you know, fried or something like that.

It's a little a healthier option.

Um, and then when we talked to Duane over at Riverworks, or excuse me, Daryl.

Sorry.

Um, he was talking about they have the farmer's market stuff that they're they're trying to 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 and have everybody's 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 um I'd like to hire at least five or six from people from from the area to work there.

It would the hours would just be breakfast, lunch, so it's maybe seven to three.

We wouldn't do anything like night nothing dinners unless somebody wanted to have a little birthday party or something, yeah.

And uh 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.

Uh, all over the car, do you have any commentary in your district?

Boom, approval.

Approval been moved, hearing no objections to order, thank you.

Congratulations.

Okay, moving on to item two, file two six zero one seven six resolution authorizing the sale back to former owners of the city of Tex D property located at twenty four oh nine-11 West Hopkins Street in the 7th Aldermatic District.

Good morning, Cindy Rice Smith, uh, real estate disposition manager.

Uh, just this is just a repurchase for back to the former owner.

Very good.

Although, uh, move approval here we know objections to order.

Next item, item three, file two six zero zero four seven resolution relating to a minor modification to the detailed plan development known as Kane Commons phase one to allow exterior alterations to the existing residential structure at eleven sixty two-sixty-four.

East Kane Place, located on the north side of East Kane Place, east of North Humboldt Avenue in the 3rd Automatic District.

All right.

Hello, good morning, Tony and Fonseca from the Department of City Development.

Uh, what we have here before you today is a uh detailed plan development for Kane Kane Commons, which was established in 2005 and entails a series of residential structures, including single family and duplexes along Kang Place, and a and uh series of courtyard buildings to the north.

We last saw this DPD before us in 2016 for approval of a single family info 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, it's 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, which some um with some being added or enlarged and others being removed for code purposes.

Enlarged exterior doors and the north on the north and south side to meet code and a new first floor porch and second uh 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?

Please, you have any of that?

Uh sure.

Um, Russell Fromboy, the architect.

Um I didn't realize it was 20 years since we started this project.

Uh, this is the last component of the Kane Commons.

Um, and our goal is to bring it back up to uh uh nice looking building within the district.

Um under the original uh uh uh development proposals, um, we listed siding and we didn't include board and batten.

So we were under the uh East Village uh historic district at that point, uh now defunct, but that's still part of our our planned development is is those requirements.

So we're just we're adding the board and batten.

Um in terms of exterior modifications, um, 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 of the uh of the space.

Um, and the doors.

Um entry doors by code need to be 36 inches wide, and now they're 32.

So we're gonna be replacing the doors with uh code compliant um doors, both front and back.

On the west side, that's where the most changes in window placement uh occur.

Um, as you can see, there's uh if you start on the right hand side of the drawing, we've got some smaller windows, those sit above a bed, uh, in what's going to become the bedroom.

Um, the little window in the middle is the kitchen, and then the two uh windows are the living room on the far left-hand side.

Again, the windows um are you know we're keeping within the horse 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.

Um, code doesn't allow uh just windows when you're within five feet of another building, and we're very close here, um, as you'll 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.

Um, and we've added those into the bedrooms, uh, or not into the bathrooms.

Um, and uh what's the last uh so you could keep the existing double hung windows, but they choosing to replace them requires you to meet new code requirements.

Yes, and the existing windows don't work with our uh new layout inside.

So we're we're reconfiguring the entire interior is being reconfigured at this point, so they just don't line up anymore.

On the north side, uh we're adding uh patio doors and decks off the back.

Uh this is again all all the uh houses in Kane Commons have livable space and outdoor access on the courtyard, and we felt that's important, that's uh part of the community.

Um, and so we're adding those in just to give that to this unit too.

Um so overall, those those are the changes.

Um, if there's any other any questions.

What kind of sighting is on the building now?

Aluminum.

Aluminum.

Yeah, aluminum, yeah.

So you're going to see your set of clapboard style sliding, you're going to the vertical yes.

Curious, why would that just a design choice?

The design choice, yeah.

Yeah, it's it's a current look, um, so it's it's leaning into a little bit of a contemporary field because that's really popular now, but it does have the historic nature of being in you know bar barn or uh farmhouses, things like that, um, have that look to it.

So and the material would be wood or aluminum.

No, uh no, it'd be uh LP smart siding composite.

Got it.

Okay.

Well, this wouldn't pass muster in the historic district, I can tell you that much, but since this is not historic district.

Well, I heard the word historic a couple times.

Yeah, well, there was an overlay district.

It was never a district.

There was never a there's a historic district in this area, neighborhood conservation overlay.

Right.

That was fiercely, well, okay.

Alright, very good.

Any other questions or comments?

No.

Very alderman, uh, staff removes a recommend uh passage and hearing no objection to order.

Thank you.

Thank you.

Item four, file two six zero one five five communication for 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 Rugellus, 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 uh footnote that we uh adopted in the last budget.

Uh asking the department to uh engage the council and the public in planning their uh budget request for 2027, um based on uh shared priorities.

Uh community-wide.

I'm thankful that the department's very responsive by getting this together uh early so that we have plenty of time to review uh and uh suggestions or uh concerns or comments before uh budget budget uh starts in September.

Yes, very good idea.

Okay.

Well, with that introduction, I do want to sorry, Sam Lakley, uh, Department of City Development.

And with that introduction, I also want to thank the sponsor.

Um, obviously Alderman Bergellis served as the lead sponsor, but um all their Stamper and Jackson also co-sponsored this directing resolution, which our department um is appreciative of because as as the um 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 the setting like this, um, as the department was crafting um both our budget request to the budget office, and then also as the mayor is evaluating what of course that 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 um 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 um in the budget over the last few years, but also so that we can take your feedback into account as the mayor crafts' budget, understand your priorities, understand how you'd like to balance you know very popular programs, and we again appreciate that um 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 um the committee up to speed on where things stand and hear any feedback from you all that we can, of course, um 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.

Um some of this came up in discussions at both the finance and personnel committee during last budget season, also at Z and D, just to remind um members specifically about how we've used tax increment financing as one of the primary mechanisms to fund affordable housing programs.

Um 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 the next year.

Um 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 um to give this context because of some recent changes at the state legislative level also.

So, as you all know, um part of the Wisconsin TIFF law has a very unique and powerful component that says as TIDs are getting ready to close out, meaning we've um repaid all the initial debt, whether it was city or developer finance, that was used to create um 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 TIFF 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 Bauman has uh Chair Bauman has made comments a number of times, it's also one of the ways that we've been able to uh 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 TIFF law allows us to do that because obviously a lot of the largest um 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 FN last year's FMP.

We got a lot of questions about the difference between amendments and extensions.

If I'll just say that one last time too, which is um I think all of you who have tax increment districts in your um districts know that our economic development 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 um address the goals of the original project plan for economic development infrastructure, all in 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.

This 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 it's 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 it's a 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 allocated we've closed out 16 expiring TIDs to be able to leverage more than 14 million dollars for affordable housing.

This year, the 2026 budget includes 2.3 million dollars 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.

Um, 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 uh 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.

Um the state passed um assembly bill 453 uh in February, which changed the underlying TIFF law, and it allows us to now instead of just being able to benefit from this extension for affordable housing process for one year, allows us to extend it 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 um that's pretty good news for us.

Obviously, we're always looking for ways to continue to um find new revenue sources to fund council and memorial priorities and affordable housing is obviously high on that list, and this provides again a new source of revenue for us to do that.

Well, it was passed this past February, it doesn't take effect till February 1, 2028, and that becomes relevant for some of the discussion later.

Um the directing resolution in front of us today called for DCD to report on TIDs that we anticipate being re eligible for closure in 20 and then um that would be available for funding housing in the 2027 budget.

Um in about September of last year, we provided some initial projections to the FNP committee about what TIDs we anticipated might be ready to close out in 2027, and we did talk about the potential that TIDs 41 and 49 would be ready to close in 27.

Ultimately, as we've continued to work to finalize some of the underlying projects um that were funded by the final amendments for those districts, they ultimately um the work is continuing there.

We've not yet completed all of some of the the final aspects of some of those projects, and so they will not be um eligible for close out 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 um assuming the department of revenue confirms um what our initial interpretation is of the new state law, instead of just being able to harvest 4.2 million dollars out of those two TIDs, we anticipate now being able to um harvest over two years a double that eight point two million dollars.

So that would be a significant um positive unintended consequence of um the need to uh close those out one year later.

But again, the work continues there, and so as of now they would not be eligible for close-up 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.

Um, as I mentioned earlier, there was two point three million dollars 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 um the source of TID funding available in 2027, still fund key programs, and so as our department prepared our requested budget um that we submitted to the budget office um, you know, following all the statutory deadlines last month, um, we did request that some of the core programs that have in the last couple 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, but the the takeaway there is um 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 and mayor's office to try to um 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 um 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 um additional resources that are at higher levels than we've seen in the past um for housing programs, and so we now 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 208 and 29, and we want to be strategic about that so that we're advancing shared council and mayoral priorities.

Mr.

Sure.

Yeah, sure.

Yeah, Sam, please go back to that previous screen.

Thank you.

So three point uh four point two million will be available for housing in 2028.

According to this money applies to the recent TID rule.

So to just explain.

Yes, we have two TIDs that we are relatively certain, you know, that's always dangerous to make 100% commitments, but but we all are pretty certain we'll be ready to close out in 2028.

Um, those are the two on the screen that would total 4.2 million if you know in 2028, and we hope that DOR will agree.

Uh so the state changed the rule to allow in the future two years worth of um extensions.

We're still awaiting guidance on what happens in this bridge.

Like the first year where it takes effect.

We we believe based on our read that TIFS TIDs 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 seek guidance from the state before we can.

So difficult for me.

Well, 4.2 ready to be available in 2028.

That's our current projection, yes.

And then in 2020, another 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 you're talking about 2.81 year 2.8, the no the next year.

Out of each TID, but there's two of them, so it would be 4.2 million dollars total in each year, plus of additional TDs we hope will be also ready to close in 28 and 29.

So it could be more funds than even these two TIDs.

Okay, okay, gotcha.

Um, 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, um, where we won't have TID resources.

And I think the goals there, and Larry will um 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 to continue dialogue with council about that.

Um, I think the mayor very much wants to be strategic, wants to use this time to prepare us for um 2028 and 2029 and beyond where 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 it over to Larry to kind of just walk through at a program level what you'll see in our 2027 uh requested budget.

Alright, good morning.

Larry Kilmer with the Department of City Development.

Um, so uh just echoing a little bit what Sam mentioned.

Um, 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.

Um, but for 27, we're looking at advancing key goals, um, both uh invest in shared council and mayoral priorities, as well as continuing this successful housing programs that we're all very aware of.

Um, as Sam mentioned, then beyond 2028 and beyond.

Um, that's when we're going to start to look at uh with all of your input.

Um, uh using expanded resources to fill uh critical gaps in the support of uh in support innovative programs.

So we've had a lot of conversations about what are we unable to do, um, where is that uh where is that need in the developments that we look at, as well as strategically plan for fluctuations and funding due to time and close out.

So, as we all know, year to year, uh the dollar amounts that are closing out in TIDs fluctuate.

So, how do we start to um 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 continued 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 homeownership retention program.

Uh, over the last decade since we've been operating the program, we've seen approximately 13 million dollars that have helped uh provide uh low and no interest loans to over 750 households.

Um, and the program cap, um although is at 150% AMI.

Uh three out of every four households are under 80% AMI that have been accessing that program.

Um, the second program that you're all aware of uh the Milwaukee Down payment assistance program, so this is more of the homeownership attraction uh strategy over the last four years of operating the program.

We've seen over eight million dollars uh go into that program to help approximately 1200 uh new home buyers.

Just a caveat there.

Four uh four million of that um was ARPA funding, so about half of that city funds, half of that ARPA funds.

Um, and again, as a reminder, that program serves households um that make up to 80% AMI.

And then the final program uh that again, long-term successful programs is a housing trust fund.

Um, here um we're seeing both uh rental and homeownership supply strategy, um, and also allowing non-profit housing agencies to apply for these programs or for the uh housing trust fund program between 2007 and 2025.

Over 19 million dollars has gone into the housing trust uh housing trust fund to help uh create a rehab over 3,000 uh units.

Uh and again, another caveat there is about 10 million dollars of that nineteen was from ARPA funds so you can see about nine million dollars um since 2007.

Um the next component uh that I mentioned was the invest in shared uh council and mayoral priorities.

Um, you know, the two programs that um we're highlighting here are uh as mentioned before um the revive attached housing development program is in its first year, uh 2026, and this was a homeownership uh attraction strategy for new construction on vacant lots.

Um in two thousand or in 2026, um there was a 1.6 million dollar uh capital budget uh allocation as well as the 1.2 million dollars of pro housing as a federal uh uh funds that we received a number of years back in anticipation for us rolling out this program.

Um earlier this year we uh we ran an RFQ uh and we have identified four development teams uh and we're very close with um entering into contracts with those teams.

I know you've been hearing me say that now uh for a while, but uh each week we do make really good progress.

So uh wanting to finalize a couple components with um uh the design contracts with those teams before we make announcements.

Sure.

Um, as you break down the programs, what helps me is the the title of the program.

Yeah, so that title of that program and how many houses is that one.

Absolutely.

So um we're calling it um the revive attached housing development program.

Okay, so we got the revive and detached, attached.

Yeah, meaning that the units are attached, so uh town homes, multiple, multiple units, so not just single family uh standalone housing.

And uh how many houses is one of that one?

Yeah, so we're anticipating with about 110,000 development subsidy um that we'll see about 25 units with the current budget with 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.

Um 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 that.

Not yet, okay.

No, there's one after.

I haven't talked about it.

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

Um we do have one team that um I think they are going to be uh getting out of the gate much sooner uh than the other teams.

Um so we we hope to see some ground broken.

I'm sorry.

There could be substantial carryover from this account, unspent.

That's not the goal.

Um, we do we do anticipate entering into design contracts with these teams um this summer, if not in the next month or so.

I think it's uh 2.8 million.

Um, so we we do anticipate uh ground being broken um and dollars being allocated to these teams this year.

Okay, they're they're budgeted, correct?

Are they budgeted?

Um the 2.8 is the budget for this.

So the 1.6 from the city budget from 2026, and then the 1.2 million from the uh pro housing uh grant.

Okay.

Um and then the final program I want to highlight uh uh some uh version of the current homes MKE program for short homes uh homes MKE 2.0.

Um we did hear through the budget uh uh budget process last year that um kind of this balance approach of both new construction and obviously continuing to operate something that we have operated very successfully uh not just under the homes MKE program but uh multiple iterations prior uh since the NSP years.

Um so looking at homeownership attraction strategy, rehabbing distress uh city tax foreclosed houses, um, and uh uh just uh to highlight where the dollars came from for the homes MKE program.

Um those are uh those are ARPA dollars, so approximately 13 plus million dollars.

Um, we're able to work with developers to rehab uh just over a hundred homes under that program.

Alright, so uh the final slide.

Um so in uh in DCD's requested budget, um, as Sam mentioned, uh, that was submitted a number of weeks back.

Um so just focusing on 2027.

Um we have uh a very kind of stable, as I mentioned, flat dollars, flat funding for the programs that we've been operating.

Um so the strong homes loan program.

We look at budgeting uh one million dollars for uh the uh Milwaukee Down payment assistance program, 1.4 million dollars again, stable um from the budget from this past year from 2026.

Um the housing trust fund.

So we have zero dollars budgeted.

Um we have been in communication with the CDGA office um and recognizing that recent years they've received about three hundred thousand dollars in their budget.

Um, but uh because they are looking to run an RFQ or an RFP this year um for their existing funds, um, they didn't feel like budgeting for another uh three hundred thousand next year would be enough to actually run another RFP next year.

Um so strategically um they were comfortable with us holding back on budgeting anything for next year, knowing that um based on the information that Sam provided for 2028-2029 and going forward we'll have um uh I'm serious.

You said the 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 block grant office, which staffs the housing trust fund, right?

That's correct.

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

Not that I'm aware of.

And that's a fair point.

I think, and it probably merits some additional discussion with at the staff level, but I think Mari, I think we're um 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 if there was three hundred K allocated next year, which has been the the funding last few years, um precedent.

I think it's not enough though, that uh even you can't do a project with three hundred thousand dollars.

But what what is there carry over?

What do they have available present?

I I think we should let the block rent office give an exact number, but my understanding it's a it's a couple years worth of allocation, so they're in a position this year to do us an RFP that would lead for some a substantial amount of um you know multiple projects to be funded to this year, they do plan that.

I mean, there's always next year's budget, and then there's what exists now.

Yeah, and what carries over, which is not always clear and not all because that's this revived thing.

I have I have no confidence you're gonna spend two point six million dollars in 2026.

I think that 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 Black Run office to follow up here.

And I remember meeting with you guys about this uh allocation and then we and I discussed the importance of the housing infrastructure preservation fund, and I see it's not even listed, much less have 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 revived funds being utilized, which would be um, and 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 while 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 have as Larry mentioned, we we remain on track to do that in 2026, and that's why we're requesting we anticipate requesting additional funding in the 27 budget for revive, because without that, um 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'll 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 uh the budget that is laid out here is uh revive to that point, the revived housing development uh program.

So again, keeping a steady dollar amount um of approximately what was allocated for 2026, so 1.8 million dollars.

Um the homes MKE 2.0 program that I mentioned, so looking at a budget there of about 1.1 million dollars.

Uh and then the final item um on this list is ANRAM account uh for 400,000 dollars.

And again, that runs a couple of very small programs, but also um is uh an account that we can build staff time to.

Sure.

Yeah, so on the housing trust fund earlier discussion where you allocated some funds is why you didn't put any money in this one.

Does that have anything in correlation with that?

Um so we have um uh as Sam mentioned uh uh the last few years, it's my understanding we've valid that um that uh budget there's been budget allocated to the housing trust fund of about three hundred or so thousand dollars per year over the last number of years.

And that was after that large infusion of ARPA dollars of about ten million.

And I don't remember, so it all used that.

Um, so uh in conversations with the Block Grant office, um, they uh they are anticipating running an RFP uh this year still um convening convening the 650.

Um I don't have the exact number, but I want to say it's it's uh it's slightly north of a million dollars.

Is it okay?

Thank you.

So as far as then the funding strategy is Larry Larry laid out how we're proposing to use the funds, um, our budget request to the budget office that we submitted includes a 4.5 million dollar capital request, and then the way we would anticipate seeking support of the council to fund the balance what is there are a number of currently unallocated TID extension funds from previous years.

There's a $100,000 remaining from 2021.

Um there's also $500,000 available.

You may remember council acted last September to allocate up to $500,000 for emergency flood um 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, um, we actually, and this is another bit of good news uh when we actually closed out the four TIDs that are included in the 2026 budget, um, increased assessments the final year resulted in greater than anticipated revenues.

So we do have $527,000 um of greater than anticipated revenues from the 2026 extensions that can be carried forward in 2027.

Those funds have to be used for uh affordable housing because they came from the TIFF extensions.

So what we hope, you know, the the 4.5 million dollars 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 dollars would require separate council action, but we hope to over the next few months continue to um engage in this dialogue with you all to best allocate um the available funds for housing in 2027 budget to meet the needs.

And I also I anticipate there'll be a lot of questions, but I also want to just close with noting there's a lot of good news um that to unpack within this presentation.

I first want to credit our IRD staff.

Um they've worked over the last few years.

Uh, for the last few years, it's been one of our highest legislative priorities to get this TIFF extension, and that they were able to successfully do that.

Um, that's what is allowing a significant infusion of funds for affordable housing in future years.

So I want to thank IRD for um making that happen.

Uh, 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 TIFF 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 it's been funded in the past.

It would allow us to fund DPA at 1.44 million dollars, which we know from last budget season was a priority of this council, a priority of community advocates who said um 1.4 million dollars 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.

Um, there was a lot of discussion about what happens when the ARPA funding that was utilized for that program runs out.

And um, we have made a commitment last budget season to council that we would work um hopefully in collaboration with you all to find a way to continue that type of work, you know, whether we call it homes MKE 2.0 or something else to continue that commitment.

Um, I know it's a commitment we made especially all of the Bauman, but who's long been a champion of making sure that we're um equally focusing or or perhaps even more focusing on rehab with new construction.

Um, we did make a commitment to try to do that through the next year's budget, and we hope that this um reflects that commitment of a balanced housing strategy that prioritizes both rehabilitation, repair, and new construction.

We look forward to working with you all too um during budget season, uh, get to something that again advances both the shared goals of the administration of the council, and with that we're open to any questions.

And it's important to understand that this is your budget request.

The executive budget may reduce that request.

That's right.

Okay, just to be clear about that.

That's that 100% that we we know that there's going to be a lot of pressure on the capital budget.

The mayor, mayor's office, 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, um, your priorities that we can continue to keep in communication as we work with our colleagues in those offices.

Any other any questions comments?

That's pretty good.

All right, thank you.

Uh Alderman Gallis, you got anything that add in closing?

I'm just uh glad for the report.

Appreciate uh for the detailed summary that we have can move forward.

Uh wait for the executive budget and uh make sure our priorities are aligned.

All right, thank you very much.

Okay, Alder injection moves to a receive in place on file and hearing the objection so ordered, and that concludes our agenda.

We're adjourned.

So adjourned.

Thank you.

Thank you all.