Affordable housing developers to get $32M to fill financing gaps

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Developers of affordable multifamily-housing projects in Wisconsin will soon receive $32.4 million to help make up for financial shortfalls caused by rising construction costs, interest-rate increases and supply-chain delays.

“Affordable housing is essential to the safety, health, and well-being of our kids and families, workers and communities,” said Gov. Tony Evers in a news release. “That’s why I am glad to announce (on Monday) that we are also providing another $5 million toward this grant program to help bring these projects to fruition and increase the number of units available statewide for the folks and families who need them.”

The news release came on top of Evers’ announcement in April that $20 million in American Rescue Plan Act money would be going to developers to help make up for financing shortages for multifamily-housing projects that had received federal or state housing tax credits in 2020 or 2021. In response, the Wisconsin Housing and Economic Development Authority had received grant requests for more than $38 million, underscoring the need for housing developments.

Besides $5 million in new money from ARPA, WHEDA is setting aside $7.4 million from National Housing Trust funds. That will bring the total amount on offer to $32.4 million, enough to provide 85% of the total request for project funding.

All told, there will be 22 developments in 11 counties providing nearly 1,200 new affordable-housing units. These will be built not only in urban settings but also in rural places that now have few housing options for working families.

VIEW A LIST OF THE PROJECTS AND LOCATIONS

WHEDA is the sole administrator for federal and state affordable-housing tax credits in Wisconsin. These credits do not subsidize renters; instead, they provide tax incentives through the Internal Revenue Code and the Wisconsin tax code to encourage developers to build affordable housing. In exchange for the tax credits, developers agree to reserve some of their housing units for low- and moderate-income households for at least 30 years. Any remaining units are rented out at market rates.