Finance committee approves TIF loan for 223-unit affordable housing project at 501 E. Washington

The Madison Finance Committee on May 27, 2025, authorized a development agreement and a tax-increment financing (TIF) loan to support a residential development at 501 East Washington Avenue, approving Legistar 88003 which provides a $1,666,000 TIF loan to Wash Franklin LLC.

City staff described the project as a roughly 223‑unit affordable housing development with approximately 68 parking stalls on the former Wisconsin Manufacturers and Commerce site. The staff presentation noted a financing gap of just over $5,000,000 and that the proposed TIF loan of $1,666,000 represents 55% of the allowable TIF under city policy. The staff presenter said the loan would be repaid from future tax increments under the city’s standard process.

Staff also explained the project’s affordable unit mix. According to the staff presentation, the breakdown by area median income (AMI) is: 24 units at 30% AMI, 24 units at 50% AMI, 103 units at 60% AMI, 48 units at 70% AMI and 24 units at 80% AMI. Staff described the development as a 4% low-income housing tax credit deal and characterized the units as workforce housing and affordable housing across the listed AMI bands.

A motion to adopt the development agreement and loan (Legistar 88003) was moved and seconded and recorded unanimously with no objections. Alder Figueroa Cole requested a staff overview at the meeting and later asked that, in future staff materials, summary tables show what the city is receiving in exchange for public investment (for example, the AMI mix) so council members can readily see outputs tied to dollars authorized.

City staff said they would provide additional detail where available. No amendments to the development agreement or loan amount were made at the meeting; staff described the TIF loan as feasible under the city’s TIF policy and subject to standard repayment from tax increments generated by the development.