On May 31, 2018 the Dane County Housing Authority purchased and preserved 20 units of Affordable Senior Housing in Belleville WI. The Sugarwood Apartments located at 50 Heritage Lane on the southern edge of Dane County were built in 2000 utilizing the Section 42 Low Income Housing Tax Credits, and had been slated to be removed from the program and transitioned to market rate housing.
By utilizing the Opt Out provision in the WHEDA tax credit qualified allocation plan the original developer had submitted an application to remove the income restriction on the property, and after a tenant protection period, begin to raise rents to market rate. By purchasing the Sugarwood Apartments before the Opt Out could take place the DCHA has ensured that these units will remain in the Section 42 program.
Further DCHA plans to convert the 4 market rate apartments at Sugarwood to units set aside for Seniors making no more than 30% of Area Median Income or about $19,250 per year. These units will be supported with rental assistance from the United States Department of Housing and Urban Development ensuring that the residents do not pay more than 30% of their income for rent plus utilities.
DCHA Executive Director Rob Dicke said that preserving affordable housing is a priority for the organization. “As a community we continue to prioritize building new affordable units in Dane County but if we lose units on the back side we are just spinning our wheels.”
The DCHA received $450,000 from Dane County’s Affordable Housing Development Fund and financing from Monona Bank to complete this project.