Redevelopment authority approves $720,000 loan for 36‑unit affordable housing project

The Waukesha redevelopment authority on Monday approved a $720,000 affordable housing development fund loan for a proposed three‑story, 36‑unit multifamily project on a vacant parcel on Meadow/Metal Lane between Silverado and Marshfield Street.

RDA staff said the loan, priced at $20,000 per unit, is intended to help the project clear development hurdles including costly water‑main connection work and unstable soils on the site. The loan will be subject to the authority’s terms: a 1% annual interest rate with interest‑only payments for the first two years and disbursement tied to issuance of building permits; staff also recommended that disbursement occur no later than one year after approval to avoid reserving funds for stalled projects.

“The way we’re recommending this is to not distribute loan funds until permits are issued,” the staff member said, explaining the authority’s practice of ensuring projects are ready before releasing money. The staff member described the broader development fund as a revolving pool that receives repayments and other revenues to seed future projects.

Principal developer Dewan Cherry, who described himself as the project’s principal developer, said the design changes aim to improve aesthetics and livability with features such as balconies and a mix of materials. He said financing would include senior debt from Waukesha State Bank, second‑position public funds (Waukesha County HOME/MEDC), and other subordinate gap sources; post‑construction permanent financing would be sought through a HUD 223 loan product.

Cherry said the project will offer a mix of income‑restricted and market‑rate units. Staff and the developer confirmed the planned unit mix includes 11 units targeted at 60–80% of Waukesha County median income and other units at higher bands up to 100% of median income; sample figures discussed for a two‑person household were roughly $53,000 (60%), $70,850 (80%) and $88,500 (100%) in annual income bands.

Members discussed project economics and risk. Staff noted cost‑saving strategies being considered by the developer—such as self‑management and lower operating fees—to improve cash flow. Committee members asked about transferability if the developer sold the property; staff said the authority would normally require the loan be repaid on sale unless the board agreed to subordinate the loan to a new lender.

After discussion the authority moved to approve the loan; the motion passed with five ayes and one abstention. The staff member said construction is expected to start next spring if approvals and financing fall into place and that the project’s target opening is 2027.

The authority’s approval obligates staff to finalize loan documents and to tie disbursement conditions to permits and the development agreement before releasing funds.