Madison Reporter

Madison is addressing its housing challenges with a new Rental Rehabilitation Loan Program launched by the City of Madison's Community Development Division. The initiative aims to maintain and improve existing rental units in response to the city's low vacancy rates and growing population.

The program provides loans to landlords who charge rents at or below Fair Market Rent, as defined by the U.S. Department of Housing and Urban Development for 2024. These rates range from $1,004 per month for a studio to $1,986 for a four-bedroom unit.

Loan amounts vary based on building size: up to $75,000 for 1-4 unit buildings, up to $150,000 for 7-12 unit buildings, and up to $200,000 for 13-20 unit buildings. Eligibility requires that at least 75% of the units house tenants with incomes at or below 80% of Dane County’s Area Median Income.

The program's goal is "to make sure renters have access to affordable, safe, and healthy housing options," contributing to stable communities. It supports improvements such as meeting housing codes, enhancing property appeal, upgrading major components like HVAC systems, energy-efficient repairs including solar panels installation, weatherization improvements, disability accessibility modifications, and environmental hazard reduction.

Funds cannot be used for refinancing existing loans or personal items like furniture. Applications are processed on a first-come basis with emergency repairs prioritized. Properties in specific areas of Madison will benefit from waived application fees and better loan terms.

Detailed information and application forms are available on the City’s Community Development Division website.