City of Beloit to Support Funding Gap in Affordable Rental Housing Project

The City of Beloit will fund an additional $1.16 million in TIF housing funds to help support an affordable housing development that faced a funding gap.

The Beloit City Council on Tuesday approved the increase in funding the Alternative Continuum of Care project at 1865 Riverside Drive, which is the former YMCA site. The project previously received $3 million in TIF housing funds but the project was in jeopardy due to the funding gap.

Additionally, the deadline to finalize all plans was extended to May 31, 2026, to allow for adequate time for plans to be submitted, reviewed and approved.

The project includes

• 11 units reserved for residents with incomes that are less than 30% of the County Median Income (CMI)
• 25 units reserved for residents that are at 50% of CMI
• 15 units reserved for residents that are at 60% of CMI
• 4 units reserved for residents that are at 80% of CMI
  
  

City funding was available for the project from the TIF housing fund due to another affordable housing project at 3500 Eagles Ridge Drive not being awarded tax credits from Wisconsin Housing and Economic Development Authority’s (WHEDA) Low-Income Housing Tax Credit Program (LIHTC).

The developers of the Riverside Drive project must also finalize its WHEDA tax credits, which were preliminarily approved by the state, to be fully funded.

With an unprecedented demand creating a lack of affordable housing options for our community’s workforce, the City of Beloit recognized the need to invest in housing on all levels and dedicated funding from its successful tax increment financing districts to help bridge the gap. At least 75% of the city’s TIF housing fund must be spent on affordable housing initiatives, per state law.

This program is one of several new projects introduced to address the community’s housing needs from affordable housing to executive-level housing. The investments are being funded by the City’s Tax Incremental Financing (TIF) housing fund. Visit www.beloitwi.gov/tifhousing to learn more.

Any additional changes to the TIF Housing fund allocations will be made at a future date by the Beloit City Council.