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Redevelopment Authority approves $400,000 in construction loans to Habitat for Humanity for Dominican Park lots
Summary
The authority approved two $200,000 construction loans to Habitat for Humanity to build on Lots 1 and 13 at Dominican Park; the loans carry 3% interest and repayment is due at transfer or sale to selected Habitat homeowners. Staff said incoming repayments from other Habitat loans will largely offset the new disbursements in May.
The Redevelopment Authority voted unanimously to approve $400,000 in new construction loans to Habitat for Humanity of Waukesha and Jefferson Counties to finance homes on Lots 1 and 13 in Dominican Park.
The request — two $200,000 loans tied to construction and release on building-permit milestones — was presented as part of the authority’s ongoing construction-loan portfolio. Staff said the loans would carry a 3% annual interest rate and repayment would be due at sale or transfer to the selected Habitat family.
Staff explained the loans are intended to be “one in, one out” — disbursing new funds as other Habitat loans come back into the program — so the authority’s cash position is not materially reduced. According to staff, Habitat currently had about $800,000 outstanding in construction financing, with three closings scheduled in May that should return about $400,000 to the program. "By May, we'll have $400,000 back," a member summarized during the discussion.
Why it matters: the loans support creation of new owner-occupied affordable homes in Dominican Park. Staff said the Dominican Park phase under construction is expected to be complete by December 2026 and that many Oakland Street lots already show active construction.
Questions from members addressed timing and controls. Staff said the typical turnaround between construction start and sale is about 10 months but can be longer if permitting or scheduling delays occur. Staff also said loan disbursements are tied to building-permit issuance and other customary construction milestones to avoid concentrating too much program money in a single development.
The authority moved, seconded and voted to approve the loans; the motion passed with no objections.
No amendments to the loan terms were proposed at the meeting.
