APPROVING AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH MSA PROFESSIONAL SERVICES (“MSA”) FOR ADMINISTRATION OF THE SAUK COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING LOAN FUND HOUSING PROGRAM (“CDBG”)

Background: Resolution 78-10 authorized Sauk County to work with MSA in the implementation and administration of Sauk County’s Community Development Block Grant-Small Cities.  This program provided $650,000 of funding for remediation of rural housing stock and capitalization of a revolving loan fund.  The program offers 0% interest loans for housing rehabilitation to eligible households.  The funds are available for home repairs, down payments, and closing costs at a 0% interest.  The loan amount is dependent on household size.  It is also available to landlords who rent to tenants that are low-to-moderate income.  A lien is placed on the property in the amount of the loan.  The loans are deferred payment loans, and are not repaid until the house is sold or the borrower no longer lives there.  To date, 43 loans have been issued, and there are currently 27 loans outstanding totaling $480,721.  The current balance available to lend is $22,075.

Resolution 53-12 authorized Sauk County to enter into the Southern Housing County Consortium with nine other counties and into a cooperative agreement with Columbia County for the purpose of administering CDBG regional housing funds. MSA also administers this program in order to be consistent and to successfully follow federal guidelines. 

Starting January 23, 2020, MSA has amended the administrative expenses and inspection services fees. Per MSA amended contract language, Sauk County will pay MSA 16% of the Revolving Loan Funds received in repayment of past CDBG Housing program loans and expended for new housing rehabilitation projects. MSA will submit a bill for 8% of the funds when a revolving loan fund deposit is made and for the remaining 8% (housing only) as the “new” RLF project funds are spent. The fees for inspection services are in the table below.