WHEDA extends deadline for 2021 competitive housing tax credit applications
December 09, 2020
MADISON – The Wisconsin Housing and Economic Development Authority is extending the deadline for 2021 competitive housing tax credit applications to provide additional flexibility and support for affordable housing developers navigating technology changes and COVID challenges.
Deadlines for the federal 9% as well as state 4% and federal 4% programs have been extended to 5 p.m. Dec. 18, 2020. The credits are estimated at a total of $31 million for the upcoming year.
This year’s application incorporates a series of changes developed through a robust public engagement process with developers and community members that included in-person and online meetings as well as an online public survey. The allocation plan reflects greater emphasis on integration of supportive services; rural developments; opportunities for developers from underserved communities; and increased scoring for sustainability features.
Engagement with developers following WHEDA's transition to a new software platform as well as housing industry challenges related to COVID-19 supported the decision to extend the application deadline to Dec. 18. Developers are encouraged to check for application updates on the 2021 allocating page here.
WHEDA has been the sole administrator for federal housing tax credits in Wisconsin since the program was established in 1986. WHEDA implemented Wisconsin’s state housing tax credit program in 2018. Since 1986, WHEDA has awarded more than $445 million in affordable housing tax credits, resulting in the development and rehabilitation of more than 53,000 units of rental housing for low- to moderate-income families, seniors and vulnerable community members.
The programs do not provide housing subsidies. Rather, tax credits encourage developers to create affordable housing by offering a dollar-for-dollar reduction of income taxes owed by owners/investors in qualified projects for tenants whose incomes are at or below 60% of county median income.
WHEDA awards tax credits to developers who then sell the credits to private investors to obtain funding. Once the housing project is available to tenants, investors can claim the tax credit as a dollar-for-dollar reduction of federal income taxes owed over a 10-year period. The affordable units are reserved for low- and moderate-income households for at least 30 years while other units in the developments may be available at market rates.
For more than 45 years, WHEDA has worked to provide low-cost financing for housing and small business development in Wisconsin. Since 1972, WHEDA has financed more than 75,000 affordable rental units, helped more than 133,000 families purchase a home and provided more than 29,000 small business and agricultural loan guarantees. WHEDA is a self-supporting public corporation that receives no tax dollars for its operations. For more information on WHEDA programs, visit wheda.com or call 800-334-6873.