David Michael Miller
About half of the tenants in Rethke Terrace, above, and Tree Lane Apartments have already moved out.
With operating funds set to expire by the end of May, half of the tenants at two troubled Madison supportive housing complexes have already moved out. But city and county officials are racing against the clock to negotiate a potential sale to a new owner and resolve outstanding debt.
“There’s a lot that has to happen to bring us across the finish line and it’s a fairly tight time frame,” says Jim O’Keefe, director of the city of Madison’s community development division. “But I think we’re encouraged that we can get this done by the end of May. I would say everybody is doing everything they can to make sure that happens.”
O’Keefe says that he hopes to have resolutions to the city council for its April 16 meeting that deal with the city’s outstanding debt and provide additional services to tenants who might still want to move. Those measures would be introduced for referral and sent to committees for action.
Rethke Terrace and Tree Lane Apartments were Madison’s first efforts at a “housing first” strategy to help tackle homelessness in the area and provide wraparound services for residents in supportive housing units. Dane County, the city of Madison and WHEDA all provided subsidies and will all need to approve any sale of the buildings.
Facing a short timeline and with new supervisors taking over after the April 2 election, two Dane County board committees recently approved the transfer of the buildings’ ground and condominium leases to Cinnaire, a Michigan-based company with an office in Madison. The county's personnel and finance committee could consider approval in May if a signed lease agreement is in place, according to assistant controller Meg Krohn. This is a necessary step to approve the sale, since the county owns the land the two buildings sit on.
In the meantime, though, since the sale is not guaranteed, O’Keefe urges tenants that still remain in the two properties to take advantage of financial and navigation assistance being provided by the city to help with relocating.
“Getting a deal with Cinnaire is so important,” Supv. Heidi Wegleitner tells Isthmus. An official deal with the company would “provide more certainty for the tenants there — that these properties will [remain] open, and they will not be kicked out just because a new buyer doesn’t want to rent to low-income people.”
The mix of affordable and supportive units in the two complexes could change as a result of ongoing negotiations, but federal tax credits for the property dictate that at least 50% of the units must remain supportive housing. The WHEDA board of directors would have to take action to reduce the fraction of supportive units below that 50% threshold. Before the property entered receivership, 90% or more of the units were dedicated to supportive housing.
As the fate of the buildings has remained uncertain, Wegleitner says the inability to move in those in need of housing has put further strain on an already limited supply of affordable housing. “It’s a shame to have any vacancies of accessible and affordable units,” says Wegleitner.
