Acting on a 2021 city budget initiative aimed at expanding affordable housing, Madison’s Finance Committee recommended on Monday funding 10 nonprofits and cooperatives.
This is the first time the city is funding entities outside of developers seeking Wisconsin Housing & Economic Development Authority (WHEDA) tax credits. Committee members voted unanimously on the consent agenda to award up to $1.7 million in affordable housing development loans and up to $1.36 million to support four housing services programs.
Mayor Satya Rhodes-Conway said after the meeting that it’s “exciting that we are moving forward and moving beyond just supporting tax credit projects,” while noting the importance of those projects in creating new affordable housing units.
“It’s just really exciting to see a broader range of things being supported by the city,” Rhodes-Conway said. “It’s really part of our larger plan on the creation of affordable housing in the city of Madison.”
The strategy uses a variety of funding sources.
In the city’s 2021 budget, officials included approximately $1.3 million of Community Development Block Grant funds, $2.6 million in HOME Investment Partnerships Program funds, $900,000 in Energy Efficiency and Conservation Block Grant funds and $2 million from the city’s Affordable Housing Fund to support developments not seeking WHEDA tax credits. It also included $50,000 in other city funds to support “innovative” homebuyer education programs.