Fiscal Note
The proposed resolution authorizes the award of Affordable Housing Fund loans to support four development proposals submitted as part of the Community Development Division's (CDD) tax credit-eligible Request for Proposal (RFP) process in summer 2024. The four awards total up to $9.85 million. Funding for the loans is contingent upon adoption of the 2025 Capital Budget in November 2024 (Affordable Housing - Development Projects, project 17110, p. 53 of 2025 Executive Capital Budget). The proposed resolution further authorizes the execution of all necessary documents to achieve the purpose of the resolution. No additional City appropriation is required.
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SUBSTITUTE-Awarding up to $9,850,000 from the Affordable Housing Fund to support four affordable housing development projects, selected through a City Request for Proposals (RFP) process, that will support construction of approximately 275270 units of new rental housing in Madison, 167 of which will be affordable, and authorizing the Mayor and City Clerk to execute loan agreements with the developers of those projects (District 12, District 18 and District 19)
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Background
The City of Madison’s 2025 Executive Capital Budget, scheduled for adoption in November 2024, includes the City’s commitment to the Affordable Housing Fund (AHF) at $14,500,000 in 2025. The Common Council established the AHF in the 2015 Capital Budget to help increase and/or preserve the supply of affordable rental housing. The City’s primary strategy in deploying AHF is to leverage other resources, most notably federal Low-Income Housing Tax Credits (LIHTCs), to help achieve the goal of significantly increasing the supply of new affordable rental units.
For purposes of this initiative, affordable rental housing is defined as that which is reserved for households with incomes at or below 60% of the County Median Income (CMI), and with rents restricted at levels deemed affordable to households at those income levels. Ini...
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