MADISON – Three projects that will provide housing to extremely low-income elderly and disabled residents have been awarded a total of $1.3 million in National Housing Trust Fund financing by the Wisconsin Housing and Economic Development Authority (WHEDA).
The projects, in Madison, McFarland and Fond du Lac, previously received state and
federal 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.
“The National Housing Trust Fund is a vital financing resource to expand housing opportunities for some of our most vulnerable community members,” said Joaquín Altoro, WHEDA CEO. “WHEDA administers this federal program in Wisconsin which supports the construction and rehabilitation of housing that would not otherwise be available for extremely low-income households.”
The 2021 awards include:
Fourteen02 Park, City of Madison, Dane County. $500,000. Movin’ Out and Rule Enterprise. This project includes new construction of 150 units, open for a mix of residents, with 30 Housing Trust Fund units set aside for residents at or below 30% county median income. The finished project includes a large commercial space on the first floor intended for a grocery store.
The Waterford, Village of McFarland, Dane County. $485,000. Northpointe Development. This project includes new construction of 49 units of family and senior housing, with six Housing Trust Fund Units set aside for residents at or below 30% county median income.
Brook Street Lofts, City of Fond du Lac, Fond du Lac County. $344,829. Commonwealth and Wisconsin Partnership for Housing Development. This project involves adaptive reuse of an industrial and commercial building for 62 units of family housing. A total of 13 Housing Trust Fund units are set aside for residents at or below 30% county median income.
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 $12.5 million to help advance 193 extremely low-income 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.
For more information on the National Housing Trust Fund program in Wisconsin including instructions and links to the application form, visit National Housing Trust Fund Page.
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