The expansion of an incentive in the city’s zoning code encouraging developers to construct affordable housing downtown was approved by Madison’s City Council on Tuesday, according to the Wisconsin State Journal.
The current incentive, approved in 2023, let developers add extra floors to new downtown buildings if at least half of the added space was allocated for tenants earning up to 60% of the area median income. The amendment unanimously approved this week makes qualifying for the incentive easier for student housing projects.
Core Spaces of Chicago and Mortenson Development of Minneapolis, two student housing developers, have entered into agreements with the city and UW–Madison that allow them to offer lower rents to qualifying students at certain projects in exchange for extra stories. Each of those agreements was reportedly negotiated separately with each developer.
Tuesday’s amendment is aimed at simplifying the process for future student housing projects — a move aligned with the changes recommended by Madison’s Housing Strategy Committee.
