Fiscal Note
The proposed resolution demonstrates the City’s commitment to create 180 165 units of affordable rental housing as part of the City’s Affordable Housing program. The 2017 Capital Budget includes $4.5 million in new appropriation for the Affordable Housing project. This commitment will allow the project developers to seek WHEDA tax credits when the application period opens during the 1st Quarter of 2017. Specific projects outlined in this resolution include: Fair Oaks Apartments, Madison Grand Family, and Normandy Square.
Title
SUBSTITUTE - Authorizing the allocation of $3.15 Million from the Affordable Housing Fund to support the creation of approximately 180 165 units of affordable rental housing in Madison, Wisconsin.
Body
Background
The City of Madison’s adopted 2017 Capital Budget authorizes $4.5 million for the Affordable Housing Fund (AHF). The adopted AHF guidelines stipulate that a portion of the fund will be used to help increase or preserve the supply of affordable rental housing, and establish a goal of adding approximately 150 affordable rental units per year.
The AHF guidelines also stipulate that these City funds may be used to leverage federal Low-Income Housing Tax Credits (LIHTC) administered by the Wisconsin Housing and Economic Development Authority (WHEDA). LIHTCs are allocated through an annual competitive process with applications due by February 3, 2017. The commitment of City funds proposed by this Resolution is intended to improve the competitiveness of City-supported applications to WHEDA.
ACTION
WHEREAS, in order to carry out the objective of expanding the supply of affordable rental housing, which is embodied in the 2017 Capital Budget, and using City resources in concert with federal Low-Income Housing Tax Credits, the Community Development Division issued a Request for Proposals (RFP) in July 2016 seeking tax credit eligible projects; and,
WHEREAS, the RFP offered up to $3 million in Affordable Housing Funds to s...
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