Gov. Evers, WHEDA announce $32 million in housing tax credits

Awards support over 1,500 housing units statewide

MADISON – Gov. Tony Evers and Wisconsin Housing and Economic Development Authority (WHEDA) CEO and Executive Director Elmer Moore, Jr., announced today that developers of affordable multifamily housing will receive over $32 million in federal and state tax credits to help address Wisconsin’s housing shortage.

“Housing tax credits have a proven track record of expanding affordable housing in our state – supporting our workforce, our families, and the well-being of our communities – and demand for these highly competitive housing tax credits continues to outpace supply emphasizing the need for affordable housing in our rural and urban areas alike,” said Gov. Evers. “Together we can drive economic vitality, leverage private capital, strengthen our workforce, maintain our economic momentum, and help ensure housing security for folks across our state.”

View a video message from Governor Evers.

In total, 23 developments will receive tax credits which will provide over 1,500 new affordable housing units in both urban and rural communities that seek housing for their workers, families, and seniors. During the application process, WHEDA received $59 million in tax credit requests from developers, underscoring the need for funding resources to complete these much-needed housing developments.

A complete list of projects and locations is available here.

“The housing shortage we are experiencing is unique, but not exclusive to Wisconsin,” said WHEDA CEO and Executive Director Moore. “Housing tax credits continue to be a powerful resource to expand housing options for our small and large communities and everywhere in between. We are working diligently with developers to push housing developments over the financing finish line. Together we realize that advancing affordable housing helps our communities and the people we serve thrive and prosper.”

The 2023 tax credit projects range in size from a 36-unit senior development by Gerrard Development in Hudson to 40 units of family housing by the Ho-Chunk Nation in Baraboo and 81 units of veteran supportive housing by the Center for Veteran’s Issues in Milwaukee. A total of $15.9 million in federal 9% housing tax credits have been awarded to fund 13 developments and $7.9 million in state housing tax credits will fund ten developments.

The award of the state housing tax credits triggers the availability of $8.4 million in federal 4% housing tax credits for these projects. In all, the tax credits support the development of a total of 1,587 units which include 1,474 low- to moderate- income units for those earning at or below 60% of the area median income.

Communities with projects receiving housing tax credit awards include Baraboo, Brown Deer, Greenfield, Hudson, La Crosse, Madison, Manitowoc, Milwaukee, Oregon, Prairie du Chien, Racine, Reedsburg, Stoughton, Viroqua, Waupaca and Wausau.

The $15.9 million in federal 9% tax credits are worth $138 million over the 10-year lifespan of the credits. The state credits are worth $34 million over a six-year lifespan and the federal 4% tax credits are worth $75 million over a 10-year lifespan.

WHEDA is the sole administrator for federal affordable housing tax credits in Wisconsin and has been since the program began in 1986. WHEDA is also the administrator of state housing tax credits since the program began in 2018. The programs do not subsidize renters; instead, they provide tax incentives through the Internal Revenue Code and the Wisconsin tax code that encourage developers to create qualified affordable housing.

In exchange for receiving the tax credits, developers agree to reserve housing units for low- and moderate-income households for at least 30 years. Any remaining units are rented at market rates. The developers then sell the tax credits to private investors to obtain funding for the housing project. Once the housing project is completed and available to tenants, investors can claim the tax credit as a dollar-for-dollar reduction of federal income taxes owed over a 10-year period or reduction of state income taxes owed over a 6-year period.

Developments that receive affordable housing tax credits go through a highly competitive application process administered by WHEDA. Tax credit developments must meet high design and operating standards. The scoring system for the awards is referred to as WHEDA’s Qualified Allocation Plan; it includes points for strong management, excellent development quality, demonstrated market need, provision of supportive services and amenities, proximity to economic opportunities and proper local zoning.

ABOUT WHEDA

For 50 years, WHEDA has worked to provide low-cost financing for housing and small business development in Wisconsin. Since 1972, WHEDA has financed more than 87,300 affordable rental units, helped more than 138,300 families purchase a home, and provided more than 29,200 small business and agricultural loan guarantees. WHEDA is a self-supporting public corporation that receives no tax dollars for its operations. For more information on WHEDA programs visit wheda.com or call 800-334-6873.