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State delivers $87.5 million in tax credits for low-income housing in Madison

State delivers $87.5 million in tax credits for low-income housing in Madison

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Movin' Out-Red Caboose project

Red Caboose and Movin' Out are teaming up on a $13 million redevelopment that will require demolishing the long vacant, former Union Corners sales office at the corner of East Washington Avenue and South Sixth Street. The state announced that the project will receive $6.6 million in federal tax credits over a decade for the project, which will include 38 housing units with 32 of them for those with lower incomes. WHEDA awarded credits to six housing projects in Madison this week.

The state is providing tens of millions of dollars in low-income housing tax credits critical to advancing projects in Madison, but not all seeking financial support got it.

The Wisconsin Housing and Economic Development Authority this week awarded a total of $87.5 million in state and federal tax credits over multiple years to six low-income housing projects in the city that will provide a combined 633 housing units — about 100 replacing aging ones and 579 of them for those with lower incomes. Four other projects did not receive support.

The city and Dane County are also investing millions of dollars in several of the projects.

“There’s no question we need to add affordable housing in Madison,” said Jim O’Keefe, city community development director. “This will help us get 500 new units closer to what we need. It continues the flow of new units into the pipeline.”

Another five projects in other Dane County communities received tax credits, and three others were denied.

All of the low-income apartments are for those making no more than 60% of county median income, or $54,060 for a family of three, and some units are for those with lower income levels. A smaller number will be for those making up to 80% of median income, or $72,080 for that family.

“Access to safe, affordable housing supports public health and allows people to put more of their hard-earned dollars toward other local goods and services as well as save for the future,” WHEDA spokeswoman Jennifer Sereno said.

Projects in Madison receiving funding are:

Movin’ Out/Red Caboose

  • . The Red Caboose Apartments, a $13 million project at 2340 Winnebago St. with first-floor child care and 38 housing units, including 32 for those with low incomes. Receiving $6.6 million in federal tax credits.
  • Alfred McConnell’s

The Madisonian Apartments

  • , a $15 million project at 1825 and 1837 Aberg Ave. with 70 units, including 49 for those with low incomes. Receiving $10 million in federal tax credits.
  • MSP Real Estate’s

The Oscar Apartments

  • , a $25 million project at 1212 Huxley St. with 110 units, including 93 for those with low incomes. Receiving $15.5 million in federal tax credits.

Rule Enterprises/Movin’ Out’s $38 million Fourteen02 Park Street

  • project at 1402 S. Park St., which includes a first-floor grocery store and 150 low-income units. Receiving $14.9 million in state and federal tax credits.
  • The
Bayview Foundation

‘s Bayview Apartments

  • , a $38 million redevelopment at 601 Bay View with 130 units, including 120 for those with low incomes, a new community center and more. Receiving $21 million in state and federal tax credits.
  • Urban Land Interests’s

Ella Apartments

  • , a $30 million project at 2902 E. Washington Ave. with 135 units, all for those with low incomes. Receiving $19.2 million in state and federal tax credits.

“We are extremely pleased to learn that three of our new projects (two in Madison and one in Milwaukee) received low-income housing tax credit awards,” said Movin’ Out’s executive director Kathryne Auerback. “These funds are key to making these affordable housing projects possible. We’re humbled to have the opportunity to contribute to closing the affordable housing gap in Wisconsin.

WHEDA put three Madison projects on hold:

Alfred McConnell’s Avenue Square Senior Apartments

  • , a $15 million project at 1814 Packers Ave. with 64 units, including 42 for those with low incomes.
  • Gorman and Co.’s

Elderbery Place Apartments

  • , a $19.1 million project at 8552 Elderberry Road with 87 units, including 73 for those with low incomes.
  • Gorman and Co.’s

Valor On Washington

  • apartments, a $15 million project at 1326 E. Washington Ave. with 59 units, including 50 for those with low incomes. The project had received $10 million in credits in a previous funding cycle but did not get an additional $410,000 that was requested.
  • Ted Matkom, Gorman’s Wisconsin market president, said the Elderberry Place application did not score high enough so the company is talking with a partner about future options. The Valor is under construction with a tight budget and will proceed toward completion, he said.

WHEDA declared ineligible the Salvation Army of Dane County’s proposed The Shield apartments, a $10 million project that would provide 37 units for those with low incomes as part of a larger, roughly $30 million redevelopment that would provide a new homeless shelter and other facilities at the nonprofit’s current shelter site on the 600 block of East Washington Avenue.

The Salvation Army continues to plan and raise funds for the shelter piece of the project and expects to communicate with WHEDA about its tax credit application, and is likely to make a new submission for The Shield in the next funding cycle, Maj. Andrew Shiels said. The setback is likely to affect the timeline for the apartments, not the project itself, he said.

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