MADISON, Wis. (WMTV) – Governor Tony Evers announced a $20 million investment to provide funding to help fill gaps for affordable multifamily developments that received 2020 and 2021 federal or state housing tax credits.
The investment is in partnership with Wisconsin housing and Economic Development Authority CEO and Executive Director Elmer Moore Jr.
“I often talk about connecting the dots and affordable housing is one of the most important dots we can connect,” Gov. Evers said. “Affordable housing links business growth, job creation, and education, and it’s good for our workforce, our kids and families, and our seniors. This is a critical investment that will help more folks have access to safe, affordable housing while bolstering community well-being throughout our state.”
Funded by the American Rescue Plan Act, WHEDA plans to use the $20 million investment to create a new grant program for developers to help fill shortages in capital sources needed for multifamily housing tax credit projects that still have serious funding gaps.
WHEDA will work directly with its developer partners on a project-by-project basis to allocate grant funds.
The investment is projected help move forward about 1,800 affordable rental units throughout the state.
“WHEDA’s housing tax credit program has a long-standing history of advancing housing equity and economic opportunity for the people of our state,” Moore said. “We know that demand for these highly competitive credits far outpace availability. That is why it is important for us to work together to help get these housing projects across the finish line despite the challenging market conditions our developer partners are facing.”
WHEDA is the sole administrator for federal affordable housing tax credits in Wisconsin and has been since the programs’ start in 1986. WHEDA is also the administrator of the state housing tax credits since the program began in 2018.
The programs do not subsidize renters; they provide tax incentives through the Internal Revenue Code and the Wisconsin tax code that encourage developers to create qualified affordable housing.
In exchange for these tax credits, developers agree to reserve housing units for low- and moderate-income households for at least 30 years. Any remaining units are rented at market rates.
Copyright 2022 WMTV. All rights reserved.