In what is being called one of the largest tax credit rehabilitation projects of affordable housing ever undertaken in the U.S., the Wisconsin Housing and Economic Development Authority has entered into $75 million loan transaction with the Wisconsin Housing Preservation Corp. to support affordable housing projects and stimulate the construction industry.
Gov. Scott Walker said the transaction would forge a public-private partnership that uses WHEDA’s allotment of New Issue Bond Program funds and an $18 million equity investment from Boston Capital Corp. for the acquisition and rehabilitation of multiple affordable housing projects in 23 Wisconsin counties.
“This project will provide much needed jobs in the construction industry, while at the same time improving housing and improving property values,” Walker stated.
The New Issue Bond Program was launched in 2010 the U.S. Department of Housing and Urban Development to help agencies like WHEDA continue to provide affordable housing to low- and moderate-income families.
The bond program combines low-income housing tax credits with tax-exempt bond financing at a reduced interest rate of 3.97% fixed over a 30-year term. NIBP has assisted housing agencies such as WHEDA at a time when expanding affordable housing stock otherwise would have been impossible.
Jeff Goldstein, COO and director of real estate at Boston Capital, said the partnership involves a significant portfolio of properties. “At a time of increased need for affordable housing resources throughout the country, this investment will provide high quality multifamily housing to citizens across Wisconsin,” he noted.
WHEDA’s other partner in the deal, the Wisconsin Housing Preservation Corp., is one of the nation’s largest nonprofit developers of affordable housing.
Funding will complete extensive rehabilitation of targeted properties, including improved accessibility, new flooring, upgraded kitchens and bathrooms, improved lighting and exterior upgrades. Wherever possible, the work will incorporate green elements.
Several of the projects are in underserved rural areas.
