Eight apartment projects in southeast Wisconsin totaling 628 affordable apartment units are one step closer to receiving crucial affordable housing tax credits after receiving preliminary approvals, though some notable projects could face financing snags after not being selected to advance.
The Wisconsin Housing and Economic Development Authority (WHEDA) granted preliminary conceptual approval to 39 projects statewide, which allows developers to pursue federal and state affordable housing tax credits that will be awarded by WHEDA in May.
The projects chosen to move forward must still apply for credits and are not guaranteed credits based on concepts alone.
This intermediary approval is a new step this cycle where WHEDA reviews project concepts before moving to final applications, which was added by request of developers, according to a WHEDA spokesperson.
Projects accepted for 4% state and federal housing tax credits include:
- 4220 35th: 94 affordable units for seniors that would be built on a currently vacant lot at 4220 35th Ave. in Kenosha. The project, proposed by Kenosha-based CDA Housing Inc. and Bear Development, could receive about $2 million in tax credits.
- 2711 W. Wells: 100 affordable units for seniors as part of a renovation of 2711 W. Wells St. on Milwaukee’s near west side, which is currently used by Milwaukee County and was once home to Doctors Hospital. The project is proposed by nonprofit Milwaukee Development Corp., a subsidiary of the Metropolitan Milwaukee Association of Commerce, and could receive about $2.4 million in tax credits.
- Midtown Commons: 100 affordable units at the Midtown Center on Milwaukee’s northwest side. The units would be built next to a vacant store once used by Walmart. The development team includes Oregon, Wisconsin-based Gorman & Co., Milwaukee-based One 5 Olive and Wisconsin Preservation Fund Inc. and could receive about $2.4 million in tax credits.
- Austin Commons: 100 affordable units for seniors that would be built at 2318 through 2332 S. Austin St. in Milwaukee’s Bay View neighborhood. Proposed by Milwaukee-based Northernstar Cos., the project could receive about $1.9 million in tax credits.
Projects accepted for 9% federal housing tax credits include:
- St. Matthew’s Senior Housing: 50 affordable housing units for seniors that would be built on a parking lot at 2953-2979 N. 8th St. in the Milwaukee’s North Division neighborhood. Proposed by Milwaukee-based Cupid Development, the project could receive about $923,000 in tax credits.
- Triangle Commons: 65 affordable housing units that would be part of an adaptive reuse project at 9350 W. Fond du Lac Ave. in Milwaukee, which is an abandoned nursing home on the city’s far northwest side. The project is proposed by 9350 W. Fond LLC and could receive $1.2 million in tax credits.
- Wauwatosa North Apartments: 55 affordable housing units that would be part of the first phase of a project at the northern tip of the Mayfair Collection development site in Wauwatosa. Proposed by West Allis-based MSP Real Estate, the project could receive $1.2 million in tax credits.
- Fairview Crossing Apartments: 64 affordable housing units that would be created as part of rehabbing an existing apartment complex at 716-744 S. Pleasant View Road in Plymouth. Proposed by Crown Court Properties and Kingston Properties, the project could receive abut $1 million in tax credits.
The credits are the most common tool used in Wisconsin to create federally-defined affordable housing, in which 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.
Some local projects that did not advance
Of the dozens of projects that submitted concept plans that were not accepted to submit a full application, 10 are located in southeast Wisconsin.
Milwaukee-based Royal Capital Group‘s proposal was not accepted for the first phase of its Cudahy Farms project on the far northwest side of Milwaukee, near Northridge, where the firm is planning more than 1,100 housing units around a “healthy living campus.” The first phase was to include 212 units, according to WHEDA documents. Royal Capital did not immediately respond to request for comment.
Likewise, Milwaukee-based J. Jeffers & Co.’s proposal was not accepted for its planned redevelopment of the Clark Building in downtown Milwaukee into 228 affordable housing units. Currently an office building at 633 W. Wisconsin Ave., the lower floors of the building would remain as offices under current plans. J. Jeffers did not immediately respond to request for comment.
Other projects not accepted to advance include:
- Fox Meadowview: 144 units proposed in Kenosha by CDA Housing Inc. and Bear Development.
- Urban Oasis: 90 units part of an adaptive reuse project in Milwaukee.
- Plymouth Senior Apartments: 50 units in Plymouth.
- The Longfellow Apartments: 51 units in West Allis that would be part of a project to renovate Longfellow Elementary School, located at 2211 S. 60th St.
- Calvary Site Renewal: 36 units in Milwaukee.
- 600 @ Bronzeville: 42 units in Milwaukee.
- Badger Ridge Flats: 54 units in Wauwatosa.
- Parkview Apartments IV: 50 units in Racine.
