Governor Evers Announces Investment for Development of Multi-Family Housing Tax Credit

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MADISON, Wis. (WMTV) – Governor Tony Evers announced an investment of $20 million to provide funding to help fill the gaps in affordable multifamily developments that received federal or state housing tax credits in 2020 and 2021.

The investment is in partnership with Wisconsin Housing and Economic Development Authority CEO and Executive Director Elmer Moore Jr.

“I often talk about connecting the dots and affordable housing is one of the most important dots we can connect,” Governor Evers said. “Affordable housing connects business growth, job creation and education, and it’s good for our workforce, our children, our families and our seniors. This is a critical investment that will help more people gain access to safe and affordable housing while strengthening community well-being across our state. »

Funded by the American Rescue Plan Act, WHEDA plans to use the $20 million investment to create a new developer grant program to help fill shortages in sources of capital needed for credit projects. tax for multi-family dwellings that still have serious financing gaps.

WHEDA will work directly with its developer partners on a project-by-project basis to allocate grant funds.

The investment is expected to help advance approximately 1,800 affordable rental units across the state.

“WHEDA’s Housing Tax Credit program has a long history of promoting housing equity and economic opportunity for people in our state,” Moore said. “We know that the demand for these highly competitive credits far exceeds availability. This is why it is important for us to work together to help these housing projects cross the finish line despite the difficult market conditions that our developer partners are facing.

WHEDA has been the sole administrator of federal affordable housing tax credits in Wisconsin and has been since the programs began in 1986. WHEDA has also been the administrator of state housing tax credits since the inception of the program in 2018.

The programs do not subsidize tenants; they offer tax incentives through the Internal Revenue Code and Wisconsin tax code that encourage developers to create qualified affordable housing.

In exchange for these tax credits, developers agree to reserve housing for low- and low-income households for at least 30 years. All remaining units are rented at market rates.

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