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City of Madison

City of Madison TIF funds keep construction of hundreds of affordable units on track

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Rendering of future apartments on Lot 1 at former Hartmeyer site
Image credit: JLA Architects

Hundreds of affordable apartment units of all sizes on Madison’s north side are one step closer to becoming a reality thanks to Tax Incremental Financing (TIF) funds from the City of Madison.

A development underway at two lots at the former Hartmeyer site on Roth Street received a total of more than $6 million in City TIF money last year, helping cover a gap in the project’s financing and keeping construction on track. The money comes from funds generated by Tax Incremental District #54, which was recently created by the City.

The mixed-use project, which is now under construction, will consist of 303 affordable units in one building and 250 units of affordable senior housing in the other.

Rendering of future apartments on Lot 2 at former Hartmeyer site
Image credit: JLA Architects

In addition to providing 1- and 2-bedroom units, the developer plans on also providing 3- and 4-bedroom apartment units, serving a segment of families that are not traditionally served by affordable apartment housing. Additionally, 100% of the units will be affordable at 60% of Dane County’s median household income, with qualifying incomes ranging from $48,000 to $80,000.

Between the two buildings, a total number of 553 new affordable units will be added to the City’s housing market. As part of the TIF agreement, City staff has recommended a 30-year land use restriction agreement to ensure that the development remains affordable housing for decades to come.

The City is happy to help keep this project going through TIF funding. The hundreds of affordable housing units, including the larger three- and four-bedroom units that are hard to find across the City, will play a role in addressing Madison's need for more housing options.

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City of Madison Department of Planning, Community and Economic Development Director Matt Wachter

Before the development was proposed, the parcel of land had been vacant for decades. In addition to putting that land to use in helping address Madison’s housing crunch, the mixed-use buildings are situated near bus lines and several job opportunities, helping further redevelop the area surrounding the former Oscar Mayer plant and connecting future residents to opportunities across the City.

What is TIF?

Tax Incremental Financing (TIF) is a governmental finance tool that the City of Madison uses to provide funds to construct public infrastructure, promote development opportunities, and expand the future tax base. TIF assistance in Madison is only used when the proposed development would not occur but for City TIF assistance, the proposed development is consistent with and reinforces all City plans, and leads to the consolidation and redevelopment of underutilized properties.

Under the Wisconsin TIF Law, the property taxes paid each year on the increase in equalized value of the Tax Incremental District (TID) may be used by the City to pay for eligible project costs within the TID.

You can learn more about Tax Incremental Financing and see a map of TIF loans issued across the City on the Economic Development Division’s website.

Departments:
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