$20 million fund created to help finance affordable housing in Wisconsin

A new $20 million fund has been created to provide grants to affordable apartment developments across Wisconsin, state officials said.

The grants will be awarded to apartment developments that have already received federal or state affordable housing tax credits in 2020 and 2021, according to a statement from Governor Tony Evers and the chief executive and executive director of Wisconsin Housing and Economic. Development Authority, Elmer Moore Jr.

Several of these developments encountered difficulties in securing sufficient additional funding as inflation caused the prices of materials and labor to rise rapidly.

Developers who receive tax credits generally must provide at least 85% of the apartments in a building at below-market rents to people earning no more than 60% of the local median income.

Developers sell the tax credits, often to banks and other investors, to raise capital for their projects. Most additional funds are usually provided through commercial loans.

It is not uncommon for an affordable apartment development to still have a hole in its financing.

These gaps can be filled with options such as federal grants, developer deferrals, and supplemental tax financing districts – which use local property tax revenue generated from new developments.

The new state fund, using federal money provided by the American Rescue Plan Act, will provide grants to help fill additional gaps.

According to state officials, there are plans to advance about 1,800 affordable rental units across Wisconsin.

“Affordable housing connects business growth, job creation, and education, and it’s good for our workforce, our children and our families, and our seniors,” Evers said in a statement. communicated.

In a separate action, Evers announced in February that Milwaukee was receiving $15 million from the ARPA-funded neighborhood investment fund.

This includes $12.9 million which will be used to help develop more than 400 affordable rental units.

Tom Daykin can be emailed to [email protected] and follow-up instagram, Twitter and Facebook.

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