Special Assessment Loans


The City of Madison offers financing for the payment of City of Madison Special Assessments to eligible homeowners who reside in their property, have limited household income, limited available assets and at least 30% equity in the property.

2024 Income guidelines for Special Assessment Mortgage Loan Program
Household family income (from all sources) for all members occupying household must be less than:

Applicant Household SizeIncome Limit

Based on HOME and CDBG annual Income limits, effective 06/01/2024 until next update.

Special Assessment Mortgage Loan Program Terms and Conditions:

  1.  The property must be located in the CITY OF MADISON; an eligible property owner may request a loan for any amount up to the total amount of the special assessment or special charge.  
  2. All principal amounts disbursed and all interest accrued under this program will accrue interest as specified on the Mortgage Note. The interest rate will equal the City's cost of borrowing (General Obligation debt) plus one percent rounded up to the next highest one-half percent.  
  3. The City will obtain a Letter Report from the Title Company prior to disbursement. The cost (est. $75) of the report is the responsibility of the Program participant and that participant may add that cost to their loan account or may pay the cost by personal check to the City.  
  4. The property owner will be required to sign a Note and Mortgage and any other necessary documents at the time of closing, whereupon the mortgage will be recorded with the Dane County Register of Deeds. The recording fee (est. $30-$90) is the responsibility of the Program participant and this cost may also be added to that participant’s loan account or may be paid by personal check to the City.  
  5. The cumulative amount advanced under this program, plus accrued interest and other loans secured by the property, cannot exceed 70 percent of the assessed value of the property.    
  6. Upon signing of the loan documents, the City will process a check payable to the property owner AND the City of Madison. The property owner is responsible for paying the special assessment or special charges.  
  7. The property owner agrees to maintain sufficient homeowner’s insurance to cover the replacement value of the dwelling and to name the City of Madison as loss payee. A Certificate of Insurance must be submitted prior to or at the time of signing that lists the City of Madison as a mortgagee.  
  8. The loan becomes due and payable upon sale, title transfer or non-owner occupancy of the property. Upon notification of a potential sale or transfer, the City will forward in writing as to the balance due under this program.  
  9. The property owner’s participation in this program in no way precludes the property owner from filing the Wisconsin Homestead Credit Claim - Schedule H each year with the Wisconsin Department of Revenue. 

How to apply

Fill out a Special Assessment Loan Application. You can have it notarized prior to sending or a City of Madison employee will notarize the application at the time of loan closing.  Send the application to: City of Madison Community Development Division, PO Box 2627 Madison, WI 53701-2627.

Downloadable Forms


Email us at: homeloans@cityofmadison.com or call 608-266-6520

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