MILWAUKEE — Wisconsin Governor Tony Evers announced recently the award of more than $24.7 million from the federal Housing Tax Credit Program and more than $7.3 million in state credits to fund housing developments across Wisconsin.
The tax credits, which are distributed by the Wisconsin Housing and Economic Development Authority, will move forward 35 developments that will create 2,308 units of rental housing.
Gov. Evers made the announcement in Milwaukee at the Mercantile Lofts, a WHEDA-financed 36-unit multifamily development.
The combined Federal and State Housing Tax Credit award total is just more than $32.1 million.
Evers said in a statement that the funding will give the Wisconsin economy “a shot in the arm.”
The tax credits will help finance affordable housing units in communities in Green, Adams, Brown, Dane, Dodge, Iowa, Jefferson, Kenosha, La Crosse, Marathon, Marinette, Milwaukee, Portage, Racine, Rock, Pierce, Oneida, Outagamie, Ozaukee, Sauk, Sawyer, Sheboygan, and Waukesha counties.
The federal tax credits are awarded over a 10 year period and are worth more than $247 million over their decade lifespan. The $7.3 million in state tax credits are worth over $43.8 million over a six year lifespan.
In exchange for receiving the tax credits, developers agree to reserve a portion of their housing units for low- and moderate-income households for at least 30 years.
Remaining units are rented at market rates to seniors and families without income limits. Tax credit developments must meet high design and operating standards.
Criteria include strong management, excellent development quality, demonstrated market need, provision of services and amenities, proximity to economic opportunities, proper local zoning and permits and service to households at various income levels.
Apartment construction in New Glarus by Wisconsin Housing Preservation Corp received more than $625,000 as requested to begin building the 40-unit complex.
WHEDA has been the sole administrator for federal Housing Tax Credits in Wisconsin since the program began in 1986.
WHEDA also administers the state program. Wisconsin Act 176 was signed into law in 2018 and created the State Housing Tax Credit program that is utilized in conjunction with the existing federal Housing Tax Credit program.