The Wisconsin Housing and Economic Development Authority 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.
Recipients include two projects in the New North region. Crown Court Properties, Ltd. received $953,463 for the 45-unit River North Cottages project in Waupaca and Movin’ Out Inc., will receive $556,933 for the 59-unit Maritime Flats in Manitowoc.
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 10 developments.
“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. Tony Evers.
A complete list of projects and locations is available here.
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.
