Redevelopment Authority approves $720,000 loan for 36‑unit Meadow Lane mixed‑income development

The Waukesha City Redevelopment Authority approved a $720,000 loan from its Affordable Housing Development Fund to support DuFec Construction’s proposed 36‑unit development on Meadow Lane in the Silverneal area.

The loan, approved by a 5–0 vote with two abstentions, carries a 1 percent interest rate, a 30‑year repayment term and allows interest‑only payments during the construction period. The authority directed staff to record a deed restriction to preserve the project’s affordable units for the term of the loan.

The vote followed a presentation by developer Mike Dufek of DuFec Construction. Dufek said the project would include a mix of incomes and unit types and that the financing package remains tight: “Even with $720,000 at 1 percent and $1,100,000 from HUD at 1 percent, it’s still barely cash flows,” he said. Dufek said the site is under contract for roughly $440,000, or about $13,000 of land cost per unit, and that the full project budget is roughly $8.4 million.

City staff and the developer described the capital stack for the…