City of Madison celebrates groundbreaking for hundreds of new affordable housing units

City staff joined local developers Wednesday in celebrating the groundbreaking of a project near the former Oscar Mayer plant that will bring more than 500 new housing units to Madison.

Huxley Yards, located on Roth St. at the former Hartmeyer site on the City's north side, is the first housing development to begin construction since the Oscar Mayer Special Area Plan was adopted and implemented in the summer of 2020. City of Madison Economic Development Division Director Matt Mikolajewski joined representatives from Lincoln Avenue Communities at the official groundbreaking ceremony to celebrate the project.

"The Oscar Mayer Special Area Plan envisions an entirely new neighborhood for the City of Madison. This project will help that plan come to fruition. We are grateful for this investment that Lincoln Avenue Communities is making in the City of Madison and appreciate all the work of the Lincoln Avenue Communities team to get us to this groundbreaking," Mikolajewski said.

The City of Madison contributed more than $6 million in Tax Incremental Financing (TIF) funds last year to help cover a gap in the project's financing and keep construction on track. It was additionally financed through Federal Low-Income Housing Tax Credits from the Wisconsin Housing and Economic Development Authority (WHEDA) and the National Equity Fund, and also received a Brownfield Idle Sites Grant from the Wisconsin Economic Development Corporation (WEDC).

Increasing access to affordable housing

Plans call for a grand total of 553 income- and rent-restricted units between two buildings, with one building dedicated to older adults, with the other building dedicated to individuals and families. All of the units at Huxley Yards will be reserved to individuals making up to 50%, 60%, or 70% of Dane County's Area Median Income (AMI), depending on the unit. According to the U.S. Department of Housing and Urban Development (HUD), Dane County's AMI is currently $125,900 for a family of four.

The 50% AMI level equates to units being available for individuals making up to $44,100 per year and families of four making up to $62,950 per year. Individuals making up to $52,920 per year would be eligible for the 60% AMI units, while individuals making up to $61,740 per year would be eligible for the 70% AMI units. A family of four making up to $75,540 per year would be eligible for the 60% AMI units, while a family of four making up to $88,130 per year would be eligible for the 70% AMI units.

(2024 HUD AMI for Dane County: $125,900 for household of 4)

Buildings split between family and older adult housing

Of the 553 units on the site, 303 will be in the building called "The View," which will serve families and individuals, offering several amenities, including job training. The other building, called "The Victoria", will provide 250 units for older adults while also including a club room, a craft room, a fitness center, and two rooftop courtyards. The site will also include a new City park.

In addition to providing 1- and 2-bedroom units, plans also call for 3- and 4-bedroom units that will help support families who can experience challenges in finding affordable housing that fit their needs.

"I am grateful for this partnership that is creating a significant number of affordable homes for families and older adults to Madison. Not only will The View and The Victoria provide an affordable option for hundreds of people for decades to come, they help address a big need in the Madison community for larger, multi-bedroom units designed for growing families," Mayor Satya Rhodes-Conway said. "We know that the key to a more affordable housing market in Madison is to build more housing - in fact we need to be building around 2,000 homes every year - and the over 500 homes in these projects get us much closer to that goal."

Before this development was proposed and approved, the parcel of land had been vacant for decades. Now, in addition to putting that land near the former Oscar Mayer site to use in helping address the City's housing crunch, the buildings will be near bus lines and several job opportunities, helping to further develop the area.

Both buildings will be sustainable, with rooftop solar power systems and Wisconsin Green Built Home certifications.

What is TIF?

Tax Incremental Financing (TIF) is a governmental finance tool that the City of Madison uses to fund public infrastructure, provide financial assistance to private development where it is warranted, expand the City's tax base, and create jobs. TIF assistance to private projects in Madison is only provided when the proposed development would not occur but for City TIF assistance. Under State of Wisconsin TIF Law, the property taxes collected each year on the increase in equalized value of the Tax Incremental District (TID) may be used by the City to pay for eligible project costs within the TID.

You can learn more about Tax Incremental Financing and see a map of TIF loans issued across the City on the Economic Development Division's website.

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