Twenty-three affordable housing developments are moving forward with the support of $23.3 million in state and federal housing tax credits awarded by the Wisconsin Housing and Economic Development Authority (WHEDA).
The projects are in 20 communities across the state and will provide more than 1,400 housing units.
The 2022 tax credit projects range in size from a 20-unit family housing project by the Lac du Flambeau Chippewa Housing Authority in Vilas County to 68 units of supportive housing by AbleLight Cornerstone Village (formerly known as Bethesda Cornerstone Village) in Milwaukee to a 133-unit senior development by Gorman & Co. in Madison.
A total of $10.5 million in federal 9% housing tax credits have been awarded to fund 14 projects with 700 low- and moderate-income housing units. A total of $5.6 million in state housing tax credits will fund nine projects with 610 low- and moderate-income housing units.
“WHEDA’s housing tax credit program continues to be one of the most successful financing resources to attract private equity capital to build high-quality, affordable housing options all across our state,” said WHEDA CEO Elmer Moore Jr. “I commend our developer partners for their commitment to advancing housing equity and economic opportunity despite the challenging market conditions we are all facing. With thoughtful consideration for this year’s tax credit allocation, we are working hard to get as many projects as possible built so that people can access housing where they want to live, work, raise a family, and prosper.”
The award of the state housing tax credits triggers the availability of $7.1 million in federal 4% housing tax credits for these projects. In all, the tax credits support the development of a total of 1,466 units, which include 1,310 low- to moderate- income units affordable for those earning at or below 60% of the area median income.
Communities with projects receiving housing tax credit awards include Antigo, Appleton, Barron, Burlington, Elkhart Lake, Green Bay, La Crosse, Lac du Flambeau, Madison, Menomonie, Middleton, Milwaukee, Monona, Oneida, Sheboygan, Superior, Waunakee, Wausau, Wauwatosa, and Whitewater.
The $10.5 million in federal 9% tax credits are worth approximately $91 million over the 10-year lifespan of the credits. The state credits are worth $24 million over a six-year lifespan, and the federal 4% tax credits are worth $63 million over a 10-year lifespan.
The $23.3 million in awards represents a decrease from the 2021 levels due in part to a reduced allocation in federal 9% housing tax credits based on an expired federal policy that temporarily increased national allocations of 9% housing tax credits over the last three years.
WHEDA is the sole administrator for federal affordable housing tax credits in Wisconsin and has been since the program began in 1986. It is also the administrator of state housing tax credits since the program began in 2018. The programs do not subsidize renters; instead, they provide tax incentives through the Internal Revenue Code and the Wisconsin tax code that encourage developers to create qualified affordable housing.