Madison Reporter

The City of Madison has approved financial support for four affordable rental housing developments, as confirmed during the Common Council meeting on October 29, 2024. This decision follows a request for proposals aimed at assisting projects that do not utilize Federal Low-Income Housing Tax Credits.

Six developers submitted requests under the 2024-2025 Affordable Rental Housing Development Non-Tax Credit Request for Proposals. The initiative aims to support various types of affordable housing development and preservation beyond those typically benefiting from tax credits.

City staff from the Department of Planning, Community and Economic Development evaluated the six proposals based on project feasibility, alignment with city plans, and their contribution to providing safe housing for lower-income households.

The Council approved funding for four proposals. A total of $2,771,000 will be allocated from the City’s Affordable Housing Fund, alongside $2,750,000 from Tax Increment Financing. The awards are as follows:

- Up to $622,000 is allocated to Catalyst 4 Change LLC for rehabilitation and unit addition on Milwaukee Street.

- Up to $2,750,000 is designated for Hispanic Housing Development Corporation to maintain long-term affordability at Parker Place Apartments in South Madison.

- Up to $1,500,000 will assist Repvblik Madison Apartments in rehabilitating units at The Point on Washington Apartments.

- Up to $649,000 is granted to Sunny Side Development and Red Pine Coop Inc. for acquiring and rehabilitating the Red Pine Housing Cooperative.

These projects aim to add or preserve 152 income- and rent-restricted rental units for low- to moderate-income families in Madison.

Funding is contingent upon developers securing additional financing and meeting city land use requirements. This marks the third year that funding has been offered without seeking Low-Income Housing Tax Credits.

A separate proposal process exists for developments aiming to leverage tax credits through City Affordable Housing Fund awards. Decisions regarding these proposals will be made by the Common Council at a later date.