Wauwatosa wants more affordable apartments. Why do those projects face financing challenges?

A large Wauwatosa apartment development plan has been dropped — in part because its backers were unable to reach an agreement with city officials over their request for financing help.

Meanwhile, another development that city officials have agreed to help subsidize is now seeking a federal grant to supplement its financing. But there`s no guarantee the project will get that cash.

Both plans include apartments rented at below-market rates — part of Wauwatosa`s efforts to increase the number of affordable housing units.

But that goal is getting harder to achieve as construction costs rise due to inflation, and interest rates on commercial loans also are spiking...