Affordable Housing Project in Eau Claire’s Cannery District Receives WHEDA LIHTC Award
Posted: April 28, 2020
After a year of hard work, W Capital Group was honored to learn it was awarded low-income housing tax credits (LIHTC’s) from the Wisconsin Housing and Economic Development Authority (WHEDA) for 2020. The credits mean the company will move forward with Cannery Trail Residences 2, which will provide 36 apartment units to low-income families in the Cannery District of Eau Claire.
“In order to make this affordable housing a reality, it was a team effort that included a lot of time and efforts made by the city of Eau Claire’s staff, JONAH Affordable Housing Task Force, Eau Claire County Veterans Services, and Cinnaire Solutions.” said Tyler Warner, President of W Capital Group.
Aaron White, Economic Development Manager for the City of Eau Claire, said of the announcement, “We are very pleased to see a workforce housing project like this one move forward as a result of receiving LIHTC’s and are hopeful that more future affordable housing projects are to come in Eau Claire.”
In 2019, W Capital Group partnered with the real estate development group Cinnaire Solutions, with the goal of obtaining 9 percent low-income housing tax credits from WHEDA for the Cannery Trail Residences 2 community. The application was submitted in December 2019 and after a very competitive scoring process by WHEDA’s underwriters, Cannery Trail Residences 2, LLC. was awarded the 9 percent LIHTC's.
The community will be comprised of 43 residences with a unit mix including studios, one-bedrooms, two-bedrooms, and three-bedrooms. The tax credit award provides the development with enough equity to allow for over 80 percent of the units to be set aside for workforce housing which means 36 of the 43 units will be income-restricted for individuals making less than 30 to 60 percent of the county median income. Cannery Trail Residences 2 is also working with the Eau Claire County Veteran Services to reserve a number of residences for veterans in need of housing.
In August, W Capital Group plans to open phase one of the project. The building, called The Current, broke ground in summer 2019. Phase one has 71 market-rate apartments including studios, one, and two bedrooms. The total community will add 114 dwelling units to Eau Claire's Downtown Cannery District.
"We're grateful to be part of the W Capital Group team, helping develop needed workforce housing in Eau Claire that will also serve community veterans. We're hopeful that this development will be a key fixture in Eau Claire's vibrant downtown and that it will support its growth. We're looking forward to being a trusted part of the community," said Chris Laurent, President Cinnaire Solutions.
"Cannery Trail Residences 2 has the City of Eau Claire’s best interest in mind. It will help mitigate the pent-up demand for affordable residences downtown. W Capital Group is excited to move forward with construction later this summer," said Tyler Warner, President of W Capital Group.
To learn more about phase one of the project visit liveatthecurrent.com
The Cannery Trails Residences 2 and The Current, along with The Brewing Projekt, are the first few projects that have quickly demonstrated the great redevelopment potential of the Cannery District in Eau Claire, WI. To see what else is planned for the Cannery District, view the redevelopment plan and more.
More about the Cannery District
More about the tax credit program from the WHEDA press release
“The tax credits are not housing subsidies. Rather, the credits provide tax incentives through the Internal Revenue Code that encourages developers to create qualified affordable housing. The developers then sell the credits to private investors to obtain funding. Once the housing project is available to tenants, investors can claim the tax credit as a dollar-for-dollar reduction of federal income taxes owed over a 10-year period.
In exchange for receiving the tax credits, developers agree to reserve a portion of their housing units for low- and moderate-income households for at least 30 years. Remaining units are rented at market rates to seniors and families without income limits.
Tax credit developments must meet high design and operating standards. The scoring system for the awards is referred to as WHEDA’s Qualified Allocation Plan; it includes points for strong management, excellent development quality, demonstrated market need, availability of community services and amenities, proximity to economic opportunities, and proper local zoning.”