MADISON, WIS. – May 28, 2020 – Associated Bank provided a $23.6 million financing solution for construction of a new housing development in Madison, Wis., with an emphasis on providing affordable housing for veteran families. The financing package included a $13,450,000 construction/bridge loan and $9,417,227 of Low-Income Housing Tax Credit (LIHTC) equity. The bank also sponsored a $750,000 Affordable Housing Project (AHP) grant from the Federal Home Loan Bank system (FHLB).
The development, named Valor on Washington, is located at 1322 East Washington Avenue in Madison. Gorman and Company, the developer, general contractor and property manager, received a 2019 WHEDA 9-percent tax-credit award in the amount of $1,023,714, in addition to subordinate financing from the City of Madison, Dane County, the Dane Co Housing Authority (eight project-based vouchers), and the aforementioned FHLB AHP. The development is located in an Opportunity Zone. Construction is now underway with completion anticipated in September, 2021.
Valor on Washington will have 59 units in a six-story building. The project includes 12 integrated supportive-housing units at 30-percent AMI, making them affordable by very low-income families. Supportive services for these 12 units will be provided by Lutheran Social Services.
The Valor on Washington project also includes a partnership with Dryhootch to provide veteran services. Dryhootch is a nonprofit organization with a mission to create safe, comfortable places where Veterans can gather informally in a drug- and alcohol-free environment. Dryhootch will provide a variety of veteran services and support on-site for both residents and non-residents.
Based in Wisconsin with offices in Phoenix, Miami, Denver and Chicago, Gorman and Company specializes in downtown revitalization, the preservation of affordable housing, workforce housing, and the adaptive reuse of significant historic buildings.
Vice President Bryan Schreiter of the Commercial Real Estate division of Associated Bank managed the loan and closing.
Associated Bank’s Commercial Real Estate division is committed to providing commercial real estate developers/owners/operators with an array of financing solutions, in addition to products and services that meet their unique needs. The division has offices in Illinois, Indiana, Michigan, Minnesota, Missouri, Ohio, Texas and Wisconsin.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $34 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 240 banking locations serving more than 120 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas.