Four affordable housing projects are slated to receive a total of $7.1 million in city and federal funds and would bring over 300 units of affordable housing to Madison, according to city staff recommendations.
Staff are recommending the $4.82 million in city affordable housing funds and $2.28 million in federal HOME funds to to the Bayview Foundation, Stone House Development, Mirus Partners and Movin’ Out, and Gorman & Company. The four projects include 355 units of rental housing, of which 310 would be affordable.
The city received six application requests in response to a request for proposals issued in May. Red Caboose Apartments and Packers Flats withdraw applications for the funding, according to an Oct. 24 letter from Community Development specialist Julie Spears.
In 2014, the city established the $25 million Affordable Housing Fund to encourage developers to build affordable units in amenity-rich areas with easy access to public transportation with a goal of creating 1,000 units of affordable housing in five years.
"Through the first four years, we have assisted 14 development projects," Community Development Division director Jim O'Keefe said. "We’re 14 for 14."
O'Keefe said the the projects have received in total $18.6 million in financial assistance from the city, secured about $108,000 in tax credits awarded by the Wisconsin Housing and Economic Development Authority and represent $185 million in development costs.
O'Keefe noted that several of the projects are still being discussed at the neighborhood level.
"We’re offering financial assistance be made available if these projects can gain the land use approvals that are required by the city, and if and only if they can secure the other financing that's needed, so our financing is not the largest," O'Keefe said.
The funding is contingent on each developer demonstrating that it has secured financing sufficient to complete the project, received the necessary land use and permit approvals from the city, satisfied any other city requirements and provided any other city-requested documentation.
"Because we are still working on the support services side of those projects, we have opted this year not to put a fourth project on the council," O'Keefe said.
The project proposals recommended for funding will be introduced at Tuesday’s City Council meeting and include the following:
Bayview Foundation Apartments: Planned for 601 Bayview, the project would provide 130 units, 120 of which would be affordable, and a community center for an estimated $29 million. The project is requesting $3 million from the city. The city recommends $1.9 million from the Affordable Housing Fund and $990,000 in federal funding for the project.
The development would replace the 102 existing townhomes located in the triangle bordered by South Park Street, Regent Street and West Washington Avenue, most of which are supported by Section 8. Bayview’s proposal would demolish the existing housing and 6,000 square-foot community center. In its place, the project would construct 100 new townhome units, a 30-unit two or three-story building and a new community center.
“Bayview's current units were constructed in 1971 and are, for the most part, functionally obsolete,” according to the application. “Our proposal will upgrade the existing rental housing stock and ensure the project's long-term affordability.”
The Bayview community center, known as the International Center for Education and the Arts, provides many free support services like ESL classes, health and wellness programs and summer camp, with plans to hire an on-site social worker, the application says.
Schroeder Road Apartments: Stone House Development plans to build a 96-unit project at 5614 Schroeder Road on the city's southwest side. The development would include 81 affordable units and almost 4,000 square feet of commercial space designated for a restaurant.
Twenty integrated supportive units would be set aside for formerly homeless families and veterans. The development has partnered with The Road Home and Dane County Veterans Service to provide supportive services.
The $20.6 million project is requesting $2 million from the city. City staff recommended $1.85 million from the Affordable Housing Fund.
The Ace Apartments: Mirus Partners and Movin’ Out are proposing a four-story, 70-unit development at 4602 Cottage Grove Road on the east side. The approximately $16 million project would provide 70 units of housing, 59 of which would be affordable.
The city is recommending the project receive $110,000 from the Affordable Housing Fund and $1.29 million in federal funding.
The site would also include 10,000 square feet of office space and a separate building with six townhouses, according to the project’s design application. Sixteen of the units will be slated for low-income households with a veteran, individual with a disability, are at risk of homelessness, or have experienced homelessness.
Movin’ Out provides affordable housing with a focus on adults with disabilities, families including a child with a disability and veterans.
There’s currently a Sentry Grocery store on the site, which closed in 2014. A previous proposal for a Kwik Trip on the site fell through.
Valor on Washington: Gorman & Company plans to construct a 59-unit project at the site of the former Messner Building at 1314-1326 East Washington Avenue. The $14.8 million development will include 50 units of affordable housing and aims to serve veterans. City staff recommend the project receive $950,000 from the Affordable Housing Fund.
Twelve of the units will be slated for very-low-income families and 10 units slated for households including a family member with a disability.
Dryhootch, a nonprofit peer support organization for veterans, will occupy space on the first floor of the building, and the space will include a coffee house, fitness room and offices. Lutheran Social Services will provide supportive services for all tenants.
The city’s Community Development Block Grant Committee and Finance Committee are scheduled to review the funding recommendations Nov. 1 and 26, respectively.
Lisa Speckhard Pasque contributed to this report.