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 2025. The four awards total up to $13.963 million. Funding for the loans is available in the Community Development Division's 2026 Adopted Capital Budget (Affordable Housing - Development Projects, program 17110). The proposed resolution further authorizes the execution of all necessary documents to achieve the purpose of the resolution. No additional City appropriation is required.
Title
Awarding up to $13,963,000 from the Affordable Housing Fund to support four affordable housing development projects, selected through a City Request for Proposals process that will support construction of approximately 425 units of new rental housing in Madison, 263 of which will be affordable, and authorizing the execution of related loan agreements (District 12, District 18, District 19).
Body
Background
The City of Madison’s 2026 Executive Capital Budget, adopted on November 11, 2025, includes the City’s commitment to the Affordable Housing Fund (AHF) at $17,500,000 in 2026. 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. Initially, the receipt of AHF funds required developers to commit to a 30-year period of affordability, however, sin...
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