Redevelopment Authority approves $720,000 loan commitment for 36-unit affordable housing project

The Waukesha Redevelopment Authority on Oct. 20 approved a $720,000 loan commitment to Charley/Cherry Faith Properties to support a proposed 36-unit residential project on a vacant parcel on Meadow (Metal) Lane between Silverdale and Marshfield Street.

The loan, recommended by staff and approved by the authority, is structured as a per-unit award of $20,000 (36 units total). Jeff (RDA staff) told the authority the recommendation ties disbursement to the developer securing building permits and includes a one-year reservation window for the funds. "We're recommending very similar terms: 1% annual interest, interest-only payments for the first two years," Jeff said during the presentation.

Why it matters: the site sits adjacent to existing commercial uses (Good Harvest and the Avid Hotel) and has infrastructure and soil challenges staff said increase development costs. The authority’s loan is intended to help the project reach financial feasibility while keeping units restricted to households at or below the Waukesha County median income as required under the development fund terms.

Project details and timeline Dewan Cherry, the project's principal developer, described the proposal as a three-story, 36-unit building with surface parking and a mix of one- and two-bedroom units. Cherry said the building includes design changes from an earlier proposal—varying rooflines, mixed materials and balconies—to better fit surrounding development. He said financing conversations include senior debt from Waukesha State Bank, anticipated second-position financing through county HOME/MEDC funds, and potential use of HUD 223 permanent financing post-construction. Cherry said the developer expects construction to begin in spring and the project to open in 2027 if permits and financing proceed as planned.

Affordability and rents Staff and the developer told the authority the loan requires units benefitting from the development fund assistance to be affordable to households at or below 100% of the Waukesha County median income; staff noted some units will be targeted at lower bands (60–80% of median). The developer gave an illustrative rent breakdown during discussion (as stated at the meeting): affordable one-bedroom examples at about $979, two-bedroom examples at about $1,170, and market-range examples of roughly $1,600 for one-bedroom and $2,000 for two-bedroom units. The authority discussed and confirmed the development fund condition that any units receiving the RDA loan must meet the fund’s income limits.

Conditions, risk and voting Staff recommended that loan disbursement occur only after permits have been issued and after standard due diligence (appraisal, environmental review, final pro forma review). That approach, staff said, reduces the risk the authority would lose its investment if a project fails before construction starts. The authority voted to approve the loan commitment: the motion passed with five votes in favor and one abstention. The authority recorded the outcome as "approved." Members noted the RDA would expect repayment if the property were sold unless the authority agreed to subordinate the loan to another lender; the developer said his intent is to hold the property long term.

Next steps The loan terms and final documents will be completed by staff and the authority; funds will not be disbursed until the permit condition and other due-diligence items are satisfied. The developer will continue securing construction financing and final site approvals at the Planning Commission and through permitting.