CP100 (Affordable Housing Fund Policy)CITY OF JANESVILLE Policy No. 100
Page 1 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
PURPOSE
The purpose of the Affordable Housing Fund is to assist developers in addressing the
lack of quality and affordable housing stock available in the City of Janesville, especially
for its lowest-income residents, through incentivizing the construction of new multi-
family units by non-profit or for-profit developers.
The goal of the Affordable Housing Fund is to provide gap financing for projects in the
City of Janesville that seek to increase the supply of safe, quality, affordable rental
housing that facilitates long-term affordability and sustainability. In addition, the funds
seek to achieve a wider dispersion of affordable rental units throughout the City
The fund will prioritize projects that subsidize such residential units and that set-aside
units for people transitioning out of homelessness.
STATEMENT OF POLICY
Background
The State of Wisconsin created the Affordable Housing Extension program (“AHE”) to
the Tax Incremental Finance law in 2009. Under this provision, cities with a Tax
Increment District (“TID”) that has retired its debt and paid for all of its project costs can
extend the life of the district for one year. The funds captured in the one-year extension
must be used solely to benefit affordable housing and improve housing stock anywhere
in the community. A city must use at least 75% of those tax increments to benefit
affordable housing anywhere in the community. Affordable housing is defined as
housing costing no more than 30% of the household’s gross income. Any remaining
portion of the increment must be used by the municipality to improve its housing stock.
Affordable Housing Funding
1.1 Funding Availability
Funding will become available intermittently as TIDs close and the one-year
extensions are approved by the City Council through a resolution.
1.2 Funding Amounts
CITY OF JANESVILLE Policy No. 100
Page 2 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
• The City of Janesville anticipates providing gap financing ranging from
$15,000 to $60,000 per unit of affordable housing
• The amount of subsidy offered will reflect the extent to which proposals
match the City’s overall needs, goals, and objectives
• Maximum amount per project: $1,500,000
1.3 Loan Terms
• A project creating all of the units for households exiting homelessness, the
loan shall be 0% interest with the principal deferred for 20 years or until
time of sale
• For projects where at least 50% of the project is set aside as affordable
units for those making 60% or less of county median income, the loan
shall be 1% simple interest due annually, with the principal deferred for 20
years or until time of sale
• For all other projects, the loan shall be 2% simple interest due annually,
with the principal deferred for 20 years or until sale
• A mortgage or land use restriction will be recorded at the Rock County
Register of Deeds Office, and the affordability and income requirements
will be in place as long as funds are owed to the City
• Eligible costs include acquisition, demolition, site preparation, construction
costs, architecture, and engineering.
Affordability Definition
2.1 Affordability
The maximum program gross rents will not exceed 30% of the household’s gross
income and affordable units cannot exceed the current rent levels in effect for the
City of Janesville Housing Choice Voucher (Section 8) program. Tenants must
be qualified upon initial leasing of the unit by the developer or the assigned
management and may be required to re-certify annually. The City of Janesville
retains the right to conduct a property inspection at any time to ensure that the
property is being maintained properly.
Eligibility and Application
3.1 Applicant Eligibility
• For-profit and non-profit developers with demonstrated experience
managing and developing multi-family projects with an affordability
component
CITY OF JANESVILLE Policy No. 100
Page 3 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
• Projects must be located in the City of Janesville
• Projects must meet the affordability definition in section 2.1 of this
document
• Projects where the developer owns the land in fee simple or has the land
under a binding offer to purchase
3.2 Application Process
• The Developer must meet with the Economic Development Office and the
Housing Services Division to determine eligibility
• Staff will review the application for eligibility and against the criteria
outlined in this policy
• Prior to closing on the loan, staff will collect the following documents from
the developer:
o Evidence of all secured financing, including all terms and conditions
o Copy of a partnership agreement or operating agreement if the
applicant is a partnership or limited liability corporation.
o Statement of cash contributions of any partner or LLC members
o Copy of construction cost estimates, construction contract, and
preliminary bids
o For Low Income Tax Credit projects, documentation of the
syndication costs (legal, accounting, tax option) for the
organization/individual(s) who will syndicate and sell the offering to
ensure that the project can support the fees necessary to
syndicate/fund the project
o Agreements governing the various reserves which are capitalized
at closing to verify that the reserves cannot be withdrawn later as
fees or distributions
• The City of Janesville Economic Development Office will receive draw
requests and process loan disbursements
3.3 Application
To apply for the Affordable Housing Fund, applicants should complete the
Affordable Housing Fund application. The application will allow the developer to
describe the proposed development concept and their experience developing
and operating multi-family, affordable housing projects.
CITY OF JANESVILLE Policy No. 100
Page 4 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
Project Summary- Describe basic information on project sponsors and project
ownership
Project Description- Include the following:
• Project narrative-Describe how the proposed project meets the City’s
goals
• Design and Quality-Describe the construction of the units and the
materials used
• Units by Bedroom Count and Income Levels
• Project Schedule
• Low Income Housing Tax Credit (LIHTC) self-score if applying for LIHTC
funds
• A concept plan and site plan-Submit both plan view and elevations
• Location of the site regarding proximity to schools, shopping, employment,
recreational activities, and public transportation
Development Budget
• Sources and uses budget
Financing Sources
• Financing narrative
Project Operations
• Operating narrative
• Relationships with agencies providing supportive housing services, case
management, and residential support services
• Proposed rents detailed by unit size and income level
• Operating, services and rent subsidy sources
• Tenant selection plan, sample lease and all lease addendums
Organizational Capacity
• General Ownership experience
• Personnel
• References
• Property Management relationships
• Resume of Lead Project Manager
CITY OF JANESVILLE Policy No. 100
Page 5 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
• Commitment letter for non-profit organizations providing supportive
services
• Experience with low-income populations and the Housing Choice Voucher
Program
• Ongoing involvement with the project, building management, and
maintenance plan
• Corporate philosophy on affordable housing, fair housing, and diversity,
equality, and inclusion
Evaluation of Application
4.1 Project Description and Technical Approach
Evaluation of the organization’s approach to the project, proposed design quality,
and success in understanding and meeting the City’s goals and visions for multi-
family development. Conformance with adopted plans.
4.2 Development Concept, Site Design, and Proposed Location
Strength of design concept, sensitivity to neighborhood context, readiness to
proceed. Demonstrated commitment to energy efficiency and sustainable
building design. Proximity of proposed site to public transit, schools, employment
opportunities, and shopping districts. Project amenities. Location in a low poverty
census tract.
4.3 Financial Soundness and Capacity to Obtain Funding for the Project
Evaluation of the financial soundness of the proposed funding plan and the
capacity of the developer to successfully obtain the funding necessary for the
project, including operating subsidies.
4.4 Property Management
Experience and reputation of the developer, owner, and property management
company. If the developer, owner, or property management company currently
conduct business in the City of Janesville, staff will review a history of Order to
Correct, complaints, and police calls regarding those properties. If the parties
have no current projects in the City of Janesville, staff will rely upon references of
other similar projects in other communities.
CITY OF JANESVILLE Policy No. 100
Page 6 of 6
CITY COUNCIL POLICY STATEMENT
Date Issued: 7/11/2022
Revised: 9/11/2023
General Subject: Affordable Housing Fund
Effective Date: 9/12/2023
Specific Subject: Allocation of the Tax Incremental
Development Extension Funds Cancellation Date:
Supersedes No.
Responsible Economic Development Office/
Dept./Div.: Housing Services Division
Property management should have experience with the specific type of housing
being proposed.
4.5 Supportive Housing
Quality of the plan to provide housing units intended for households who are
exiting homelessness. Experience with individuals with disability, serious mental
illness, or substance addiction. Experience with domestic violence survivors
Established relationship with and support of local area service providers. Plan to
lower barriers for people experiencing homelessness.
4.6 Organizational Capacity
The City is seeking to invest in a developer that represents a sound, long-term
investment in scarce housing resources. The City will evaluate whether all
involved parties have demonstrated the experience necessary to execute the
project within budget, secure funding, and operate the development over the long
term. The City will also determine if the mission, vision, and values of the
applicant aligns with those of the City of Janesville.