City of Madison
Homeownership Assistance Programs

For home buyers || For current homeowners || For developers of housing

Programs for home buyers

"Home-Buy" Program

This program provides a second mortgage loan with no interest and no monthly payments to eligible first-time homebuyers to partially cover the down payment/closing costs of the first mortgage loan. The loan maximum is $5,000 and will become due and payable when the property is sold or transferred, the owner vacates the property, or there is a cash-out refinance on the property. Eligible properties include single-family homes, condos or 1/2 of a duplex located in Dane County.
 
Learn more about this program
En Español: "Comprando-Casa"

 

Homebuyer's Assistance Loan Program

This program provides a loan at below market rates to eligible buyers in financing a portion of the acquisition and rehabilitation cost of an eligible 1-8 unit owner-occupied property located in the City of Madison. Additional funds needed shall be provided by a conventional home mortgage loan and borrower's down payment.
 
Learn more about this program
 

Inclusionary Zoning Program

This program makes homes in new developments throughout the City of Madison available to income-eligible buyers — those making 80% or less than the Area Median Income (AMI) — at substantially discounted sales prices.
 
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Madison American Dream Downpayment Initiative (ADDI)

This program provides qualified homebuyers with a long-term deferred loan to assist with down payment and closing costs. Loan assistance will range from a minimum of $1,000 to a maximum amount of 6% of the purchase price not exceeding $10,000. The loan repayment includes the initial loan amount plus a proportional share of appreciation based on the percentage of assistance initially provided. It will be due and payable when the property is sold, transferred, or the homebuyer is no longer the primary resident of the property. Eligible properties include single-family homes, condos and part of a duplex located in the City of Madison.
 
Learn more about this program
En Español: La Iniciativa para el Pago Inicial del Sueño Americano

 

Additional Affordable Housing Options

The City of Madison provides funding to a number of non-profit housing agencies who develop and maintain affordable housing units for sale or rent to families with less than 80% AMI.
 
To read more about these agencies or to see what housing they have for sale or rent, visit their web sites.

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Programs for current homeowners

Deferred Payment Loan Program

This program provides financial incentives to upgrade eligible owner-occupied housing units in need of rehabilitation within the City of Madison. The City provides a deferred loan to eligible families, which requires no monthly payments. The principal loan amount and a one-time finance charge of 10% are paid back when the property is sold or transferred, the owner vacates the property, or there is a cash-out refinance on the property. If after five years the owner's income increases above the program guidelines, the loan is converted to an Installment Loan at 10% interest payable over fifteen years.
 
Learn more about this program
En Español: Préstamo Con Pagos Aplazados

 

Installment Loan Program

This program provides a loan at below market rates to upgrade eligible 1-8 unit owner-occupied housing units in need of rehabilitation.
 
Learn more about this program
En Español: Préstamos A Cuotas

 

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Programs for developers of housing

Homebuyer's Assistance Developer Loan Program

This program provides a loan at below market rates to developers of 1-8 unit properties in the City of Madison for purchase/rehabilitation, conversion, new construction or land acquisition. Once the rehabilitation or development of the property is completed, the units must be sold to eligible owner-occupied borrower(s).
 
Learn more about this program
 

Rental Rehabilitation Program

This program provides a loan at below market rates to investors to upgrade their non-owner occupied 1-8 unit properties in the City of Madison. Eligible properties must be 75% occupied by households with incomes of no more than 80% of the Dane County Median Income.
 
Learn more about this program
 

Community Development and HOME funds for non-profit developers

These funds provide seed capital, construction financing, and permanent financing to non-profit developers of either affordable for-sale or rental housing. Developers may apply for the funds through the Community Development Office.
 
The funds include a variety of Federal, State, and local sources, including Community Development Block Grant (CDBG), HOME, Emergency Shelter Grant (ESG), and other special purpose funds.
 
For more information, please contact the Community Development Office at (608) 267-0740.
 

Affordable Housing Trust Fund

This Trust Fund provides deferred payment loans up to $25,000 for each affordable unit to for-profit and non-profit developers of either rental or for-sale housing. Developers may apply for the funds through the Community Development Office.
 
The Trust Fund utilizes a variety of local and Federal sources, including land sales and special grants.
 
For more information, please contact the Community Development Office at (608) 267-0740.
 

Inclusionary Zoning Program

This program requires every new development meeting certain qualifications to offer housing at sales prices affordable to people making 80% or less than the Area Median Income (AMI). In return, the City offers a range of incentives to developers, from greater density to consideration for reductions in park fees, to special financial assistance or variances in parking requirements.
 
Learn more about this program
 

Special Inclusionary Zoning (IZ) Reserve Fund

The Reserve Fund provides bonuses of $2,500 for each inclusionary zoning (IZ) unit to developers of inclusionary units offered at lower income price points. A portion of the fund is set aside for City purchase of inclusionary units offered on the market by their owners. Developers may apply as part of the submission of the zoning application and the submission of the inclusionary dwelling unit plan.
 
This Reserve Fund derives its revenue from developer payments in lieu of the provision of on-site inclusionary dwelling units and from the City's share of appreciation on the sale.
 
For more information, please contact the Community Development Office at (608) 267-0740.
 

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 Rev. 08/2008