The City of Madison’s Common Council has approved nearly $14 million from its Affordable Housing Fund. The funding will support the development of about 425 new rental homes across the city. More than 260 of these units will be permanently affordable for lower-income households. The funding is part of the city’s annual Request for Proposals (RFP) process, managed by the Community Development Division. The process encourages projects that use federal low-income housing tax credits.
The Council’s decision will provide gap financing loans to four selected projects. These projects will add 422 new homes to Madison’s housing market. Of these, 263 units will be permanently affordable. Eighty-six homes are designated as supportive housing for people who have experienced homelessness. Last year, the city awarded $9.85 million to projects creating 270 new homes, with 167 reserved for those earning up to 60% of the Area Median Income (AMI).
Developers must meet several requirements before receiving funds. These include securing full project financing, obtaining Low-Income Housing Tax Credits from the Wisconsin Housing and Economic Development Authority (WHEDA), and receiving all necessary city permits and approvals. Developers must also provide tenant selection and marketing plans that follow city guidelines…