Fiscal Note
The 2018 Executive Capital Budget includes $4.5 million of new funding for the Affordable Housing Fund. In addition to the newly authorized appropriation anticipated for 2018, $2.7 million from the 2017 allocation is not committed due to projects that did not receive funding through the WHEDA process. Between the 2017 and 2018 allocations there is $7.2 million available for projects to participate in the application process for WHEDA Low-Income Tax Credits in their spring 2018 process.
This resolution, if adopted, will allocate $2.0 million to Heartland Housing for a project at 1202 S Park Street. The project will create approximately 60 units of affordable permanent supportive housing.
Title
Authorizing the allocation of up to an additional $500,000 to Heartland Housing Inc, from the 2018 Affordable Housing Fund, and reauthorizing 2017 AHF loan commitments to Heartland to support development costs associated with a proposed project to construct approximately 60 units of permanent supportive housing in Madison, Wisconsin and authorizing the Mayor and City Clerk to execute a loan agreement with Heartland.
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Background
The City of Madison’s 2018 Capital Budget is expected to authorize continuation of the Affordable Housing Fund, at an annual level of $4.5 million. The AHF was created in 2015 to help increase and/or preserve the supply of affordable rental housing, It seeks to leverage other financing resources, most notably federal Low-Income Housing Tax Credits (LIHTCs), to help achieve the City’s goal of adding approximately 150-200 new affordable rental units per year. Twenty-five percent of those units are sought specifically to provide housing to homeless persons.
In Wisconsin, LIHTCs are administered by the Wisconsin Housing and Economic Development Authority (WHEDA). WHEDA allocates credits annually through a highly competitive process. The review criteria that WHEDA employs favors development proposals that demonstrate local financia...
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