Four Milwaukee affordable housing projects have been awarded critical low-income housing tax credits, according to a Thursday announcement from the Wisconsin Housing and Economic Development Authority (WHEDA).
The four proposed developments are:
- Compass Lofts, a 67-unit project at 3116 N. Martin Luther King Jr. Drive, was awarded $1.4 million in federal tax credits. The project is proposed by Milwaukee-based Martin Luther King Economic Development Corp., EA Development, One 5 Olive and KG Development.
- Historic Mitchell Residences, a 59-unit project at 1718 S. 12th St., was awarded $1.19 million in federal tax credits. The project is proposed by Lansing, Michigan-based Cinnaire Solutions and Milwaukee-based BBE Investments and Development.
- Historic Patterson Place, a 40-unit adaptive reuse project at 4116 W. Silver Spring Drive, was awarded $1.3 million in federal tax credits. The project to convert a former elementary school is proposed by Oshkosh-based Wisconsin Redevelopment LLC and Milwaukee-based AndersonWebb.
- Union at Rose Park, a 75-unit project at 3030 N. Martin Luther King Jr. Drive, was awarded a total of $1.6 million in state and federal tax credits. The project is proposed by Indianapolis-based Annex Management Group.
The credits are the most common tool used in Wisconsin to create federally-defined affordable housing, where rent costs do not exceed 30% of a household’s gross income. Receipt of the credits requires developers to set aside pre-determined units at a discounted rate for those making no more than 60% of the area’s median income.
Statewide, the tax credits were awarded to 23 developments in 14 counties will provide 1,383 new affordable housing units, according to the announcement. The winning Milwaukee projects secured credits from a pool of 40 applicants.
“We are making tremendous strides toward providing access to affordable housing for all people in Wisconsin through programs like this,” said WHEDA CEO and executive director Elmer Moore Jr., in the announcement. “Housing tax credits are one of our foundational tools to ensure that everyone in Wisconsin has a safe, affordable place to call home. Most housing units created by tax credits are reserved for income-eligible households for at least 30 years. The rest are available regardless of income.”
WHEDA scores projects on a point system according to the state agency’s “qualified allocation plan,” which incentivizes setting aside units for the lowest-income individuals, availability of supportive services and proximity to jobs, according to WHEDA’s website. Credits can be awarded from two programs: one provides a 9% federal tax credit and the other provides a 4% federal and 4% state income tax credit.
