Fiscal Note
Adopted RES-20-00732 (File ID 62430) authorized $5.77 million in direct financial support for five proposed affordable housing developments, including up to $1,680,000 to JT Klein Company, Inc. for Westgate Commons. The proposed resolution does not change the amount of the award. No additional City appropriation is required.
Title
Authorizing a change to the proposed unit mix at JT Klein Company, Inc.'s Westgate Commons development, one of five affordable rental housing development projects approved by the Council to receive an award of Affordable Housing Funds.
Body
Background
A primary strategy in the City’s efforts to increase the supply of affordable housing has been to use the Affordable Housing Fund (AHF) to leverage the powerful federal Low Income Housing Tax Credit (LIHTC) financing. The most valuable of these credits, (so-called “9% credits”) are allocated annually by the Wisconsin Housing and Economic Development Authority (WHEDA). WHEDA, through an annual, competitive process, uses priorities and evaluation criteria spelled out in a Qualified Action Plan (QAP). The competition for these tax credits is fierce and is becoming increasingly so for Madison developers as the QAP seeks to achieve a wider distribution of credits throughout the state.
The City’s Community Development Division (CDD) conducts its own annual process, timed to coincide with WHEDA’s process and largely aligned with the QAP. This year, WHEDA released its QAP later than usual. That delay made it more difficult to align the City’s 2020 funding process with WHEDA’s standards. Developers did not have details of the QAP available as they prepared their responses to the City’s Request for Proposals (RFP). However, the City process proceeded, and on October 22, 2020, the Common Council adopted a resolution (RES-20-00732) authorizing $5.77 million in assistance to five proposed developments seeking WHEDA tax credits.
After further analyzing its competitiveness under W...
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