Three housing developments that would create about 200 units of affordable housing in Madison would receive a total of $4.1 million from the city under a recommendation from the City Council's Finance Committee.
On Monday, the committee recommended awarding $3.2 million from the city’s affordable housing fund and $900,000 in federal HOME grant funds to support a total of 236 units of housing. Of those, 199 are slated to remain affordable for at least 30 years.
The Finance Committee’s recommendation will need approval from the City Council.
The goal of the affordable housing fund, now in its sixth year, is to increase the inventory of affordable rental units for Madison households earning 60% of the county’s median income or less, or $49,560 for a family of three.
“The biggest impact has been that it’s provided quality housing, stable housing and, in some cases, for the first time in a long time for households who now take up residence in the apartment buildings that we’ve helped make happen,” city Community Development Director Jim O’Keefe said. “We’ve helped make that happen.”
Madison uses the fund to assist developers leverage other resources, such as federal low-income housing tax credits.
So far, projects supported by the city have received approximately $130 million in these tax credits to support the development of a total of 1,246 units of rental housing. Of these, 1,091 are or will be available to households earning up to 60% of the county’s median income.
The fund was founded in 2015 at $4.5 million per year but would increase by $500,000 under Mayor Satya Rhodes-Conway’s proposed 2020 Executive Capital Budget.
The adopted resolution recommends distributing the following funding:
- Up to $1.4 million from the affordable housing fund for an 87-unit proposal from Gorman & Company and Age Better, Inc. The project aims to serve seniors over the age of 62 years old and would be located at 8552 Elderberry Rd. on the city’s west side. Of the total units, 73 would be set aside for those earning 30%, 50% or 60% of the county’s median income.
“The goal of this proposal is to develop high quality affordable senior housing, in partnership with an established and experienced senior service provider, that will offer the necessary support and resources that seniors need to remain independent and healthy,” Gorman & Company and Age Better, Inc. said in their proposal to the city.
- Up to $1.7 million from the affordable housing fund to MSP for an 111-unit, two-building project at 1212 Huxley St. Of the total units, 94 would be reserved for those earning at or below 30%, 50% or 60% of the county’s median income.
“The Huxley Street location assists the city objectives of a wider dispersion of affordable housing throughout the City as no new tax credit housing has been built within a ½ mile of this site in the last 20 years,” Mark Hammond, MSP’s vice president of development, said in the application to the city. “Further this site has strong connections to public transit, a full service grocery store and is also located right next to the Dane County Job Center which provides training and access to employers looking for employees throughout Dane County.”
- $125,000 from the affordable housing fund and $900,000 in federal HOME Investment Partnership to Movin’ Out, Inc. for Red Caboose Apartments, a 38-unit proposal at 2340 Winnebago St. The project would include 32 affordable units for households earning 30%, 50% or 60% of the county’s median income. Eight units would be targeted to households in which a member has a permanent disability or is a military veteran.
“This unique development provides much-needed affordable housing in Madison as well as providing housing solutions for individuals and families where one member has a permanent disability,” Movin’ Out, Inc.’s application to the city said.
The city received four proposals, which were evaluated by a staff team. The Salvation Army applied to be considered for funding for its proposed campus redevelopment. Due to the project’s complexity, the city will consider the potential commitment of funds under a separate resolution.