Nonprofit Cinnaire Solutions, with core operations in Madison, is set to buy two large, financially-challenged projects for the city’s homeless population, according to the Wisconsin State Journal. Most residents have already moved out, and a different mix of tenants is envisioned moving forward.
The nonprofit plans to purchase and rehabilitate the far west side’s 45-unit Tree Lane Apartments and the east side’s 60-unit Rethke Terrace project. The former will provide housing for homeless families and the latter for homeless singles and veterans.
The project is expected to cost $7.5 million, including repairs, replenishment of operating reserves, and the address of an existing lien at Tree Lane.
Cinnaire is buying the buildings for $1 and has proposed meeting other costs with almost $3.1 million in financial assistance from the city and Dane County (split evenly between them); $1.6 million in debt financing from the Wisconsin Housing and Economic Development Authority; and $2.75 million in low-cost WHEDA loans. In addition, Cinnaire will assume long-term deferred loans from the city for both sites with no payments if the properties are not sold and the use remains the same.
Several City Council members and Mayor Satya Rhodes-Conway are proposing the city provide a grant of up to $1.53 million in federal funds to assist Cinnaire with the purchase. Related resolutions will be introduced to the City Council on Tuesday and decided upon later.
