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WHEDA /  Developers and Property Managers /  Tax Credits /  Housing Tax Credits /  Allocating /  2024 /  Application Two Policy Modification

Application Two Policy Modification

To ensure that the projects awarded Housing Tax Credits in the 2024 competitive Housing Tax Credit cycle are positioned strongly to deliver the promised housing units and to ensure the best stewardship of the 2024 Housing Tax Credits, WHEDA is implementing the following policy modification related to Application Two Submission Requirements.

The Carryover/Tier One Agreement is granted on the following condition: If a sponsor note was included in the Application Two Submission, it either must be replaced with an alternative committed source, or the sponsor must submit evidence acceptable to WHEDA that demonstrates its ability to provide the committed funding to the project at closing, which must occur prior to the Construction Start deadline of July 31, 2025.

Examples of evidence that demonstrates the sponsor’s ability to provide the committed funding includes, but is not limited to: cash account balance, letter of credit, or other liquid capital that can be immediately accessed at closing prior to July 31, 2025. WHEDA must receive documentation demonstrating the satisfaction of this condition no later than January 31, 2025. Failure to satisfy the condition by that deadline will result in a revocation of the Carryover/Tier One Agreement.

To address the affordable housing crisis in Wisconsin, WHEDA believes it is in the state's best interest to supply additional affordable units as quickly as possible. The January 31, 2025 deadline of this new requirement will allow any returned 2024 Housing Tax Credits to be redeployed in the 2025 cycle. Redeployment of 2024 Housing Tax Credits returned later in the process would be delayed until the 2026 cycle.

Applicants will be notified of this requirement prior to their acceptance of the Conditional Carryover:

  • If awardees choose not to proceed with the project, they can reapply for credits in the 2025 Application cycle. Deadlines for the 2025 Application cycle are as follows:
    • Prospective applicants must submit a Procorem WorkCenter Request Form between November 11 and December 4, 2024.
    • Project Concept Submissions are due December 6, 2024.
    • Full Application Submissions will be due March 21, 2025.
    • Details and a full timeline are available on the WHEDA website (2025-2026 QAP).
  • If any projects cannot meet the conditions imposed in their Conditional Carryover, the Housing Tax Credits will be revoked to be redistributed in the 2025 Application cycle.

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