Gov. Walker selects WHEDA to administer HUD funds

GOV. WALKER SELECTS WHEDA TO ADMINISTER HOUSING TRUST FUNDS FROM HUD

Funds are used by developers for affordable housing 

Wisconsin Governor Scott Walker has submitted a letter to U.S. Department of Housing and Urban Development (HUD) Secretary Julian Castro, designating the Wisconsin Housing and Economic Development Authority (WHEDA) as the state’s official grantee of Housing Trust Funds.

“WHEDA is pleased to accept this important responsibility for the people of Wisconsin,” said WHEDA Executive Director Wyman Winston. “I’m proud of our longtime commitment to the construction of safe, quality, affordable housing; such experience will prove to be invaluable while administering the Housing Trust Funds.

HUD’s Housing Trust Fund provides funding to developers to preserve, rehabilitate and construct housing, primarily for extremely low-income families. At least 80 percent of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10 percent can be used for first-time home buyers homeownership activities, such as: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs. At least 75 percent of the funds for rental housing must benefit extremely low-income households and 25 percent of the funds must benefit very low-income households. Extremely low-income and very low-income limits for areas throughout Wisconsin can be found here.

According to HUD, funds are distributed by formula to states, who then may distribute the money according to a state plan, state designated entities, or sub grantees.  The entity may then further distribute within their respective state or directly to qualified recipients, such as nonprofit and for-profit organizations.

Governor Walker’s letter to HUD Secretary Castro serves as the official designation for WHEDA as Wisconsin’s “State-Designated Entity” for Housing Trust Funds. Each state is required to inform HUD of its designated grantee. 

WHEDA is a public body corporate and politic created in 1972 by the Wisconsin Legislature that provides low‐cost financing for housing, small business and agricultural development. Since 1972, WHEDA has financed more than 77,000 affordable rental units, helped more than 118,000 families purchase their first homes and made more than 29,000 small business and agricultural loan guarantees. For more information, call 1-800-334-6873 or browse this web site.