Demand for low-income housing tax credits continues to outpace the federal and state resources available in Wisconsin.
For the 2021 tax credit award cycle, the Wisconsin Housing and Economic Development Authority (WHEDA) has received applications for 34 projects seeking $29.6 million in federal 9% housing tax credits to build 1,671 units available for low- to moderate-income renters. WHEDA also has received applications for 20 projects seeking $16.2 million in state 4% housing tax credits and $11.9 million in federal 4% housing tax credits to build 1,542 affordable units, reported agency leaders.
Eleven of the proposed 34 federal 9% projects are seeking to qualify under rural program set-asides while five of the 20 state 4% projects are seeking to qualify for designated rural awards.
WHEDA received approximately $31.9 million in federal and state housing tax credits for the 2020 award cycle. It does not anticipate a significant increase in that amount for the 2021 award cycle.
“The demand for these highly competitive tax credits indicates a continuing, acute shortage of affordable housing throughout Wisconsin,” said WHEDA CEO Joaquín Altoro. “However, tax credits and WHEDA-backed financing are not sufficient to address the needs. Many factors are contributing to the shortage, and at WHEDA we are continuing to work with our partners to achieve better alignment through federal resources, private investment incentives, local development policies, employment opportunities, and other tools.”
In 2020, funding requests also exceeded the supply of state and federal housing credits when applicants sought $61 million. WHEDA fully deployed the available credits last year, including some credits returned from prior allocations to help advance a total 2,058 affordable housing units.
The 2021 applications will be reviewed and scored, with results released in spring.
Developments that receive affordable housing tax credits go through a highly competitive application process administered by WHEDA. Housing credit developments must meet high design and operating standards. Criteria include strong management, excellent development quality, demonstrated market need, provision of supportive services and amenities, proximity to economic opportunities, and proper local zoning.
