City of Oak Creek

Common Council Report

Meeting Date: March 2, 2004

Item No.:

Recommendation: That the Council adopt Resolution No. 10344-030204 authorizing the execution of an agreement with Milwaukee County to transfer the administration of the Home Improvement Loan Program from the City to the Milwaukee County Department of Administration, Housing and Community Development Division.

Background: The Department of Community Development administers a home improvement loan program using community development block grant funds. This program provides low interest and zero interest loans are to owner occupied low income households for eligible home repairs.

Staff was made aware several months ago that there are new federal guidelines that the City is required to follow regarding the use of these federal funds for home repair. Loan recipients are now required to have lead assessments performed on the structure for which the loan is applied for. If the property is found to be a lead hazard, than a risk assessment needs to be performed. Staff is concerned that the Department of Community Development does not have the training and resources to properly perform these assessments and monitor the loan program effectively. Milwaukee County has the resources available to properly administer this program on behalf of the City. They have personnel trained to perform these lead assessments. They are also more familiar with the detailed requirements and conditions for the disbursement of loans under this program. In fact, the County administers this loan program on behalf of most of the municipalities within its jurisdiction.

The impact on property owners will be minimal. The loans would still be available. They would just be administered through Milwaukee County. The City Attorney has reviewed the proposed agreement and has approved the agreement as to form. He also had suggested some revisions to the language of the agreement pertaining to how the City would be entering into contracts and acquiring real estate. This language is required by the U.S. Department of Housing and Urban Development. However, since the City would not actually be doing these things (since the County is taking over the program) he has no objection to this language standing.

Fiscal Impact: There will be costs charged against the City’s annual CDBG allocation for the County’s administration of this program.

Prepared by:

Doug Seymour, AICP

Director of Community Development

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk