WHEDA awards tax-credits for affordable housing
WHEDA Awards Nine Milwaukee Projects Low-Income Housing Tax Credits. A total of 28 projects are expected to create more than 1,300 affordable housing units statewide.
Wisconsin Lieutenant Governor Rebecca Kleefisch announced the award of more than $14 million in Low-Income Housing Tax Credits (LIHTC) to fund affordable housing developments across Wisconsin on May 2. The tax credits, which are distributed by the Wisconsin Housing and Economic Development Authority (WHEDA), will move forward 28 developments that will create 1,307 units of affordable rental housing.
“Affordable housing and economic development go hand in hand to build strong neighborhoods,” said Lt. Governor Kleefisch. “The developments awarded tax credits today will provide new housing opportunities and spark economic growth in our communities. These valuable tax credits make it possible for private developers to finance vital projects they wouldn’t ordinarily be able to do on their own.”
Lt. Governor Kleefisch made the announcement at the Milwaukee Urban League this morning, next door to the Historic Garfield Redevelopment Phase 1 which was one of the projects awarded tax credits. Another award announcement was scheduled Monday afternoon in Madison.
Seven of the nine Milwaukee awardees are located within the Transform Milwaukee area and include: Historic Garfield Redevelopment Phase I, 15th & North Apartments, 704 Place Apartments, Century Building, City Place, St. Anthony’s Apartments, and Washington Park Townhomes. The 5th Street School Apartments and Victory Manor, LLC also received tax credits and are located in close proximity to Transform Milwaukee. All nine housing developments will offer much-needed affordable housing options for Milwaukee area residents.
WHEDA received 39 applications this year representing $19.4 million in requests, demonstrating the highly competitive nature of the federal tax credits. The tax credits will help finance affordable housing units in communities including Bayfield, Colby, Fond du Lac, Grand Chute, Madison, Merrill, Milwaukee, Nekoosa, New London, Oshkosh, Prairie du Chien, Sheboygan, Sparta, Superior, and Wausau.
Tax credits are awarded over a ten-year-period through the federal housing tax credit program. The 2016 awarded tax credits are worth over $142 million over their 10-year lifespan. In exchange for receiving the tax credits, developers agree to reserve a portion of their housing units for lower- and moderate-income households for at least 30 years. Remaining units are rented at market rates to seniors and families without income limits.
Tax credit developments must meet high design and operating standards. Criteria include strong management, excellent development quality, demonstrated market need, provision of services and amenities, proper local zoning and permits and service to households at various income levels.
“Low-Income Housing Tax Credits create incredible economic activity in Wisconsin worth millions of dollars,” said WHEDA Executive Director Wyman Winston. “Our goal is to attract private equity capital for rental housing production of the highest standards. The tax credit program is effective and is a reflection of the dedication, commitment, and outstanding work of Wisconsin’s housing professionals that supply safe, quality housing.”
“WHEDA is delighted to administer this federal resource that continues to be one of the state’s most successful public-private partnerships,” said Winston.
This marks the 30th year for the LIHTC program. WHEDA has been the sole administrator for LIHTC in Wisconsin since the federal program began in 1986. Since 1986 WHEDA has awarded nearly $342 million in LIHTC resulting in the development and rehabilitation of more than 53,000 units of rental housing for low- to moderate-income families, seniors and persons with special needs.