In 2023, the City of Madison Community Development Division’s (CDD) Affordable Housing Fund (AHF) awarded $11 million in funding for qualifying projects applying for federal Low Income Housing Tax Credits. The program’s goal is to incentivize new construction that widens the distribution of low-income units across the city and to preserve existing low-income housing units to ensure long-term affordability and sustainability.

To receive an AHF loan, applicants must also apply for Energy Design Assistance (EDA) through Focus on Energy, which provides a custom energy analysis of the proposed project. EDA incentives can assist developers in implementing energy-saving strategies based on unique project characteristics.

The partnership between Madison’s CDD and Focus on Energy helps the City achieve its affordable housing and sustainability goals, which include reaching 100% renewable energy and net-zero carbon emissions by 2030.

Uno Terrace Apartments is a great example of how a multifamily property used these programs to maximize incentives, contribute to municipal goals, meet community needs, and foster local prosperity.

In 2020, the City of Madison awarded Northpointe Development $1.35 million toward Uno Terrace’s 64-unit affordable rental development. The team elected to move forward with EDA strategies for efficient lighting, improved heating and cooling, and more. This resulted in over $39,000 in annual energy savings and over $26,000 in Focus on Energy incentives.

The Uno Terrace project also included two unique attributes that aided in its energy efficiency and sustainability. Rather than demolishing a historic building on the acquired property, the project decided to engage in adaptive reuse. The building was moved to a new foundation and given updates to create a community room for the apartment complex. Uno Terrace also implemented 29 kW of rooftop solar, for which they received several incentives, including a Focus on Energy rebate.

The City of Madison also has a Climate Forward plan to help with low-income renters’ utility bills. The Focus on Energy Advisor for the project, Lara Bakker, explains, “When we consult for affordable housing, I point out that energy efficiency lowers the utility bills. Lower utility bills are especially important for people with lower incomes because utility bills are a large portion of their household budget.”

Even if your multifamily property doesn’t qualify for income-qualified or affordable housing funds, you still may receive other multifamily incentives, including:

• New construction.
• Solar energy.
• Heating and cooling upgrades, including heat pumps.
• Smart thermostats.
• Insulation and air sealing.