The Milwaukee projects account for just 13 out of the 54 projects submitted to the Wisconsin Housing Economic Development Authority for approval. They are a part of the authority’s yearly allocation of housing tax credits for low-income people. The number of applications is always more than the number of federal credits available, so they are given on a competitive basis.
WHEDA’s CEO Joaquin Altoro put out a statement where he said:
“The demand for these highly competitive tax credits indicates a continuing, acute shortage of affordable housing throughout Wisconsin. However, tax credits and WHEDA-backed financing are not sufficient to address the needs. Many factors are contributing to the shortage.”
The developers use the credits to offset their tax liabilities. In most cases, the credits are bought by large institutions at discounted rates. The money from selling these credits is used to raise funds for the development projects. Additional sources of funding are often required. Graphic design is often used to illustrate what completed projects will look like.
WHEDA tends to announce which projects will get the credits in the spring. Developers of projects not selected often use the feedback to resubmit their projects for reconsideration in future years.