55-Unit Affordable Housing Development Receives City Council Approval

A proposal to redevelop the former YMCA site to build 55 affordable rental units at 1865 Riverside Drive took crucial steps forward Tuesday evening. The Beloit City Council approved a development agreement with the property developer Beloit Riverside Apartments, LLC and a HOME-American Rescue Plan (HOME-ARP) grant agreement.

Construction is expected to begin this month after final building permits are issued. The project is planned to be completed in June 2027 with the units occupied beginning July 2027.

The units will be restricted households in the 30-80% of Rock County median income. In addition to the HOME-ARP grant, the project is receiving financing from Wisconsin Housing and Economic Development Authority (WHEDA) Low-Income Housing Tax Credits (LIHTC), City of Beloit’s Tax Incremental Financing housing fund, and Rock County American Rescue Plan Act (ARPA) funding.

The City of Beloit is providing the financing as a 30-year, interest-free $4.16 million incentive loan to bridge a funding gap. The developer will be required to maintain the property for affordable housing for 30 years before the city will consider forgiving the loan. Loan forgiveness is at the sole discretion of the City of Beloit.

The funding for the incentive was provided by the City of Beloit’s TIF housing fund. 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.

In addition to the TIF housing funds, the project is receiving a grant from the Rock County HOME Consortium. The City of Beloit is a member of the Rock County HOME Consortium, which also includes Janesville and Rock County. The Consortium received federal HOME-ARP funding to provide homelessness assistance and supportive services. Six units in the complex are designated to serve individuals and families experiencing homelessness or at risk of homelessness due to a variety of circumstances. As a result, the Consortium is allocating $829,632 in HOME-ARP grant funds to move the project forward. The City Council approved the grant agreement on Tuesday.