Madison is poised to deliver $5.9 million to three housing projects with a combined cost of $64.3 million that will deliver 252 apartments, including 208 units geared to those with lower incomes.
Ten City Council members have introduced a resolution to tap the city’s Affordable Housing Fund to support the projects, enabling the developers to combine local investments and Low Income Housing tax credits secured through the Wisconsin Housing and Redevelopment Authority.
Mayor Satya Rhodes-Conway strongly supports the Affordable Housing Fund, proposing $7 million for it in the capital budget in 2022 and the same amount annually in the nonbinding, five-year Capital Improvement Plan.
“I think the program is doing what we set out to do in terms of creating new affordable housing units,” said Jim O’Keefe, city community development director.
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The projects, all with most apartment units for those making no more than 60% of Dane County’s median income, or $55,680 for a family of three, and with some units for those making less, are:
Gorman & Co. “Courtyard Lofts,” a $23.4 million project to remake the Madison Plaza Hotel
- at 3841 E. Washington Ave. on the East Side into housing with all 105 units for those with lower incomes. Would receive $1.85 million in city support and is expected to seek tax credits through WHEDA. The developer must still secure city land use approvals.
- MSP Real Estate. “The Heights Apartments,” a $23.6 million project at 2208 University Ave. on the Near West Side with 62 of 79 units for those with lower incomes. Would receive $2.35 million in city support. Awarded $1.45 million from Dane County subject to County Board approval. Has already secured tax credits through WHEDA and city land use approvals.
- Odessa Affordable Housing. “Avenue Square Senior Apartments,” a $17.3 million project at 1802-1818 Packers Ave. and 2102 Schlimgen Ave. on the North Side with 41 of 68 units for those with lower incomes. Would receive $1.64 million in city support. Awarded $860,000 from Dane County subject to County Board approval. Has already secured tax credits through WHEDA and city land use approvals.
The city’s Community Development Block Grant Committees have approved the support and the Finance Committee is scheduled to consider the resolution Monday with the City Council expected to make a final decision on Oct. 19.
St. John’s Lutheran Church/MRB Holdings withdrew a request for $1.9 million in support from the Affordable Housing Fund for a $31.6 million redevelopment of its property at 322 E. Washington Ave. on the Near East Side with 82 of 98 units for those making up to 60% of county median income.
That team decided its proposal needed more refinement, O’Keefe said, adding, “It’s a project we’re very interested in and hope to see again.”
Since 2014, not including the projects now before the council, the city’s affordable housing initiative has helped create a total 1,835 apartments, including 1,464 units for those with lower incomes. The city has invested about $30 million in the developments, which have attracted a total $204 million in federal tax credits.
Photos: New emergency homeless shelter for families

Salvation Army of Dane County Maj. Andrew Shiels, left, and Jim O'Keefe, city community development director, visit one of the rooms at the new emergency homeless shelter for families that was the former Karmenta nursing facility at 4502 Milwaukee St.

William Luhn, divisional IT manager for Salvation Army, sets up WiFi at the new emergency homeless shelter for families.

Tara Barica, assistant director of social services at Salvation Army, left, and Melissa Sorenson, executive director of social services at Salvation Army, give a tour of the new emergency homeless shelter for families, including a sitting area for parents, front, with a play space for children across the way, that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

A room at the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

Melissa Sorenson, executive director of social services at Salvation Army, left, talks with Jim O'Keefe, community development director for the City of Madison, during a tour of the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

A fenced-in outdoor space at the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

Melissa Sorenson, executive director of social services at Salvation Army, shows the dining space at the former Karmenta nursing facility on Milwaukee Street that is now an emergency homeless shelter for families in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

A case manager's office at the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

Ofelia Velasco, right, and Miriam Hernandez, with CMS of Madison, a commercial cleaning company, fold linens in the basement at the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

The front desk area of the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

A shower room at the new emergency homeless shelter for families that was the former Karmenta nursing facility on Milwaukee Street in Madison, Wis., Tuesday, April 27, 2021. AMBER ARNOLD, STATE JOURNAL

The city and Salvation Army have transformed the former, one-story Karmenta nursing facility into a spacious shelter for families.