City’s Affordable Housing Fund to support 150+ affordable units
posted
Four affordable rental housing developments will receive financial support from the City of Madison after the Common Council approved the funding during its meeting on Tuesday, October 29, 2024.
Six developers submitted requests in response to the 2024-2025 Affordable Rental Housing Development Non-Tax Credit Request for Proposals (RFP), which offered assistance to affordable rental housing developments that are not utilizing Federal Low-Income Housing Tax Credits. The goal of the Non-Tax Credit Affordable Housing Fund program is to offer support for different types of affordable housing development and preservation than those that typically receive tax credits.
In reviewing the six requests for funding, staff from the Department of Planning, Community and Economic Development considered a variety of factors including project feasibility, consistency with City plans, and making sure the proposals adequately advanced the City’s goals of providing safe and suitable housing for lower-income households.
The Council approved staff recommendations to offer funding to four of the six proposals with $2,771,000 to be drawn from the City’s Affordable Housing Fund and $2,750,000 from Tax Increment Financing. The awards include:
- Up to $622,000 to Catalyst 4 Change LLC to rehabilitate and add units at a property on Milwaukee Street
- Up to $2,750,000 to Hispanic Housing Development Corporation to rehabilitate and maintain long-term affordability of soon-to-expire affordable housing at Parker Place Apartments in South Madison
- Up to $1,500,000 to Repvblik Madison Apartments to help rehabilitate units at The Point on Washington Apartments located on East Washington Avenue
- Up to $649,000 to Sunny Side Development and Red Pine Coop, Inc.to acquire and rehabilitate the Red Pine Housing Cooperative on the City’s near east side
Together, these projects will add or preserve a total of 152 income- and rent-restricted rental units for low- to moderate-income Madison families for decades to come.
The award of City funds for these projects is contingent on the developers assembling all other financing needed to complete the projects and meeting other City land use and related requirements.
This is the third consecutive year the Community Development Division has offered funding for affordable rental housing developments that are not seeking Low-Income Housing Tax Credits.
A separate RFP was issued for affordable housing developments seeking to use City Affordable Housing Fund awards to leverage additional support through tax credits. The Common Council will make decisions about awarding funds to those proposals at a later date.
