Madison is putting up at least $10 million to help get affordable apartments built near bus lines—and developers who want the money must meet strict long-term affordability and tenant-protection rules, including limits on annual rent increases for renewals.
According to the city’s competitive funding guidelines, the money comes from Madison’s Affordable Housing Fund and is reserved exclusively for projects using Low-Income Housing Tax Credits—a federal financing tool administered through the Wisconsin Housing and Economic Development Authority.
The city is offering this as gap financing, covering the difference between what a project costs and what developers can raise from other sources.
Location is a make-or-break factor
Any new construction or acquisition-rehabilitation project must sit within a quarter-mile of a medium-frequency transit route just to be eligible…