Wisconsin Manufacturers & Commerce building to become affordable housing

Bear Development wants to build a seven-story, 222-unit complex

The “W,” “M” and “C” have disappeared from the Wisconsin Manufacturers & Commerce office building on East Washington Avenue, and soon all the letters could come tumbling down. The building is slated to be demolished, and under a plan submitted to the city, seven stories of affordable housing would be built.

The Madison city council signed off on financing to help fund the project Tuesday, authorizing a tax incremental finance loan of $1.66 million. The funding would help close about a third of the total financing gap of roughly $5 million; the total project is projected to cost roughly $81 million...

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Leo's notes: The conversion of a long-standing office property on East Washington Avenue into 222 income-restricted apartments reflects a broader market transition: underutilized commercial sites are increasingly becoming prime candidates for high-density workforce housing in strong-growth cities like Madison. Just as important, the layered financing structure — combining TIF, WHEDA tax credits, and private development capital — underscores the reality that affordable housing production at scale still depends on substantial public-private partnership.

Ken Notes: The problem is it is expensive and the end result is either heavily subsidized or prohibitively expensive.