The city of Madison’s Common Council voted Tuesday night to pave the way for the sale of the properties at 715 Rethke Ave. and 7933 Tree Lane to Cinnaire Solutions, a nonprofit housing developer with offices in Madison.
Staff with the city, county, and the Wisconsin Housing and Economic Development Authority (WHEDA) concluded the bid from Cinnaire Solutions most closely aligned with the goals of preserving long-term affordability at both properties and ensuring some units would remain available to support those experiencing or at risk of homelessness.
The resolutions passed by the council transfer responsibility for the loans previously made to Heartland Housing Inc., which originally built the property, to Cinnaire. They also draw on unused federal Emergency Rental Assistance funds from the American Rescue Plan Act to fund a $1,527,600 grant to Cinnaire to help pay for costs related to the acquisition and rehabilitation of the properties. Additional funds are to be provided by Dane County and WHEDA.
Cinnaire will use the funds only to cover costs associated with units that serve those with household incomes at or below 50% of Dane County’s Median Income ($44,100 for a single person or $62,950 for a four-person household).
The properties are expected to undergo extensive rehabilitation before reopening to new tenants later this year.
