MADISON – Three projects that will provide housing to extremely low-income elderly and disabled residents have been awarded a total of $1.9 million in National Housing Trust Fund financing by the Wisconsin Housing and Economic Development Authority.
The projects, in Ashwaubenon, Bristol and Milwaukee, previously received highly competitive federal 9% or state 4% housing tax credits administered by WHEDA. The housing trust fund awards expand the number of units available to vulnerable residents with incomes at or below 30% of the area median income by addressing the financing gap between what it costs to build the units and rents that are affordable for the residents.
“We are pleased to provide this critical financing to the partners working to build and rehabilitate these properties,” said Joaquín Altoro, WHEDA CEO. “National Housing Trust Funds make it possible to expand housing opportunities for some of our most vulnerable community members. This source of funding supports construction and rehabilitation of housing that would not otherwise be available for extremely low-income households.”
The 2020 awardees include:
- Bristol Commons, Village of Bristol, Kenosha County. $719,000. Bear Development. New construction of 48 units, mostly elderly, with 12 Housing Trust Fund units set aside for residents at or below 30% county median income. Eleven units are dedicated as supportive housing with services coordinated by the Kenosha County Veterans Services office. The development totals 40 multifamily units and eight family townhomes and will comply with Wisconsin Green Built Standards for sustainability.
- Orchard Ridge, Village of Ashwaubenon, Brown County. $644,957. General Capital Group. The project involves acquisition and rehabilitation of 43 family units with 21 Housing Trust Fund units for residents at or below 30% county median income. Nine of the units are dedicated as supportive housing supported by Brown County Aging and Disability Resource Center and Brown County Veterans Service. The extensive renovation of the existing Section 8 housing site includes electrical, kitchen and bathroom upgrades as well as sitework to provide units with easier access for visitors. Additional financing is being provided by WHEDA.
- Chapel Garden, City of Milwaukee, Milwaukee County. $577,786. General Capitol Group. The project involves adaptive reuse of 63 units of mostly elderly units to include 20 Housing Trust Fund units for residents at or below 30 percent of county median income. A total of 13 units will be dedicated as supportive housing for people with permanent physical, sensory and medical disabilities supported by Milwaukee County Aging and Disability Resource Center. Other financial partners in the project include WHEDA, the School Sisters of St. Francis and state and federal Historic Tax Credit equity. The finished 63 unit project will include 59 independent senior units in the renovated St. Joseph Convent building and four workforce townhome-style units with individual entries in the historic St. Jude building.
The Housing Trust Fund financing takes the form of low-cost, subordinated debt. Since the first federal allocation of housing trust funds in 2016, WHEDA has awarded a total of $9.7 million to help advance 112 units that might not have been possible without this funding source. There is no minimum dollar amount for financing requests.
The federal program is funded by a portion of a 0.042% fee on Fannie Mae and Freddie Mac activity to guarantee loans and create mortgage backed securities.