WHEDA Awards State Housing Tax Credits in Eau Claire and Chippewa Falls

The Wisconsin Housing and Economic Development Authority (WHEDA) today announced a State Housing Tax Credit award to fund renovations at two multifamily developments. The tax credits, which are distributed by WHEDA, will preserve 60 affordable housing units in Eau Claire and Chippewa Falls.

WHEDA COO Brian Schimming made the announcement at Englewood Apartments in Eau Claire, one of the state tax credit awardees.  The Wisconsin Housing Preservation Corp. (WHPC) received $197,613 in State Housing Tax Credits for the redevelopment of two apartment complexes:  Englewood Apartments in Eau Claire and Barrington Apartments in Chippewa Falls. 

Both properties were built in 1982 and are in need of renovations to ensure that affordable housing for existing residents is preserved for years to come.  Renovations include replacing the roofs and exterior doors as well as constructing a new, on-site community room at Englewood Apartments.  Unit renovations include replacing kitchen appliances in all 60 units as well as complete kitchen and bath renovations in 37 of the 60 units.  The updates also include installing property-wide Wi-Fi.

“The new state program is tremendous news for Eau Claire, Chippewa Falls and the rest of the state,” said WHEDA COO Brian Schimming. “The tax incentive for private investment in the development and preservation of affordable housing is critical for our economy as it spurs construction jobs and reduces rental cost burdens for families.”      

“As the property management company for Englewood Apartments in Eau Claire and Barrington Apartments in Chippewa Falls, Cardinal Capital Management is grateful to the State of Wisconsin and WHEDA for this State Tax Credit Award,” said Erich Schwenker, President of Cardinal Capital Management.  “This funding will allow substantial upgrades to these family-housing sites to continue to allow us to offer quality housing opportunities to low- and moderate-income residents.”  

“WHPC is a leading provider of affordable housing in the State of Wisconsin,” said Mary Wright, President of Wisconsin Housing Preservation Corp.  “These State Tax Credit Awards, when combined with Federal Tax Credits, will provide over $5 million in funding to rehabilitate and improve quality housing choices in Eau Claire, Chippewa Falls and Superior that support residents at low- and moderate- income levels.”

WHEDA received 15 applications this year representing $10.4 million in requests. With a total available pool of approximately $7 million, this demonstrates the continued need for affordable housing in Wisconsin. State tax credits are awarded over a six-year-period and this year’s allocation will generate nearly $40 million in credits over their lifespan. In exchange for receiving the state tax credits, developers agree to reserve a portion of their housing units for low- and moderate-income households for at least 30 years. Remaining units are rented at market rates to seniors and families without income limits. 

The state tax credits will help finance affordable housing units in the following communities: Chippewa Falls, Eau Claire, Fitchburg, Green Bay, Pleasant Prairie, River Falls, Sheboygan and Superior.

WHEDA also administers federal housing tax credits. The new state tax credit program will be matched with $6.6 million in federal 4% tax credits increasing the leverage and enabling more affordable housing across the state. Overall, the new state program will generate $191 million in total development.

Tax credit developments must meet high design and operating standards. Criteria include strong management, excellent development quality, demonstrated market need, provision of services and amenities, proper local zoning and permits and service to households at various income levels.

Go to www.wheda.com for a complete listing of 2018 State Housing Tax Credit awards.

For over 45 years, WHEDA, as an independent state authority, has provided low-cost financing for housing and small business development in Wisconsin.  Since 1972, WHEDA has financed more than 73,000 affordable rental units, helped more than 125,800 families purchase a home and made more than 29,000 small business and agricultural loan guarantees.  For more information on WHEDA programs, visit wheda.com or call 800-334-6873.