Associated Bank, Johnson Financial partner to provide funding for affordable-housing project in Madison

MADISON, WIS. – January 3, 2024 – Associated Bank, in partnership with Johnson Financial Group, announced completion of a $13 million construction/bridge loan and a $41,632,068 tax-exempt bond loan for development of Rise Madison, a Madison, Wisconsin affordable housing project of the Wisconsin Housing Preservation Corp (WHPC). This 4-percent Low-Income Housing Tax Credit (LIHTC) project will provide affordable housing for both senior and family renters. Associated Bank acted as Lead Bank and Administrative agent in a unique financing collaboration. The senior financing structure will take the form of tax-exempt bonds issued by WHEDA and held by both Associated, the largest bank holding company in Wisconsin, and Johnson Financial Group, the state’s largest privately held, family-owned bank.

The four-building project is located at 942-952, 957, 958 and 963 Rise Lane in Madison near the intersection of East Washington Avenue and North Fair Oaks Avenue. Units will be offered to tenants with income levels at or below 80 percent of the Dane County median income with restricted rent levels as tax credit units. Two five-story elevator-equipped buildings will be marketed for families. One will have a total of 110 one-, two- and three-bedroom units and the other building will have 77 total units with a similar bedroom-configuration mix. A third three-story elevator-equipped building will have a total of 6 one- and two-bedroom units designed for senior living. The fourth building will consist of 12 two story three-bedroom townhomes.

All buildings will have underground parking available and all but the townhomes will have community rooms with kitchens and various other amenities such as an office and fitness room. One of the family buildings facing East Washington Avenue will include 4,080 square feet of commercial space. Older buildings on the site have been demolished, and phased construction is underway. The first building will be completed Q1 2025 and the last building in Q3 2025.

Wisconsin Housing Preservation Corp (WHPC) is a prominent leader in the affordable housing industry and the largest owner of affordable rental housing in the state. Their mission is to preserve, provide and protect affordable housing for low- and moderate-income individuals and families living in Wisconsin.

Bryan Schreiter, a senior vice president with Associated Bank’s Commercial Real Estate Division, with Steve Sosnowski, Johnson Financial Group senior vice president, handled the loan arrangements 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.

As seen in WisBusiness.com