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Council committee approves TIF loan for 223-unit affordable housing project at 501 E. Washington
Summary
The Finance Committee unanimously approved a development agreement and tax-increment financing (TIF) loan to Wash Franklin LLC for a 223-unit affordable housing project at 501 East Washington Avenue, with a $1,666,000 TIF loan intended to cover part of an identified financing gap.
The Madison Finance Committee on May 27 approved a development agreement and a tax-increment financing loan to Wash Franklin LLC to support construction of approximately 223 affordable housing units at 501 East Washington Avenue.
The committee adopted the item (Legistar 88003) after a staff overview describing the project, proposed TIF assistance and the affordability mix.
What was approved: Dan Rolfes, a city staff member who presented the item, said the project would include 223 residential units and about 68 parking stalls on the former Wisconsin Manufacturers & Commerce site. Staff identified a financing gap of just over $5 million in the TIF analysis and recommended a TIF loan of $1,666,000, which Rolfes said represents 55% of the TIF amount allowable under city TIF policy.
Rolfes described the project as a 4% low-income housing tax credit deal and provided the income-targeting breakdown: 24 units at 30% of area median income (AMI), 24 at 50% AMI, 103 at 60% AMI, 48 at 70% AMI and 24 at 80% AMI.
"It is 223 units of affordable housing with 68 parking stalls located at 501 East Washington Avenue," Dan Rolfes said during his presentation.
Questions and follow-up: Alder Figueroa Cole asked for clarification on the affordability levels and requested a clear summary in the file indicating what the city is getting in exchange for public assistance; Rolfes provided the AMI unit counts in response.
The vote: The motion to adopt the development agreement and TIF loan was moved and seconded; the committee recorded a unanimous vote in favor.
Implementation notes: Staff said the $1,666,000 TIF loan would be repaid through future tax increments per the city's standard process. The presentation identified the project as workforce housing within the 4% LIHTC framework; staff did not specify a construction timeline or the final terms of the development agreement during the committee discussion recorded in the transcript.
Context: The site at 501 East Washington had been previously identified for redevelopment. The committee did not record any amendments to the loan amount during the meeting; members requested clearer written summaries in the agenda file about unit affordability levels for future review.
