The Waukesha City Redevelopment Authority on Oct. 20 approved a $720,000 loan from its Affordable Housing Development Fund to support a proposed 36‑unit residential development on a vacant parcel on Meadow Lane between Silverhill and Marshfield Street.

The loan — $20,000 per unit — was approved on terms the authority described as a 30‑year repayment at 1 percent annual interest with interest‑only payments for the first two years. Disbursement of funds will be tied to the issuance of building permits; the authority also set a one‑year time limit on reserving the funds for the project.

The loan is intended to help the developer, identified in the meeting as the project’s principal developer Dewan Cherry, make the project financially viable while keeping units affordable to households at or below Waukesha County median income levels. Cherry described the proposal as a three‑story building with a mix of one‑ and two‑bedroom units and said the design team aimed to add visual interest with varying roof lines, mixed materials and balconies.

City staff outlined site challenges that remain, including the need to extend a water main loop through adjacent property and address unstable soils on the parcel; both items add construction cost. Staff also said earlier projects had shown workforce rental levels can be difficult to reconcile with the revenue needed for project cash flow. To tighten operating costs, the developer told the authority he plans to self‑manage the property and reduce leasing commissions and other operating expenses.

The developer and staff discussed additional financing sources the project expects to tap: senior debt from Waukesha State Bank, a HUD‑insured takeout loan (described in the meeting as a HUD 223 refinancing post‑construction), Waukesha County home funds and a Waukesha County Center for Growth loan. At the meeting the developer said Waukesha State Bank would provide construction financing and that the HUD loan was the anticipated long‑term financing vehicle.

On affordability, staff said the assisted units would be restricted by income tiers up to 100 percent of the Waukesha County median income. Meeting discussion included specific county figures presented by staff: for a two‑person household 100 percent of median income was listed as $88,500 (housing cost example $2,200/month); 80 percent was listed as $70,850 ($1,771/month); and 60 percent as $53,000 ($1,300/month). Staff and the developer said the overall unit mix would include some units at lower income levels (60–80 percent) and others up to 100 percent of county median income; the loan terms require that any units receiving the city assistance meet the development‑fund limits.

Financial details discussed at the meeting included an estimated total project value mentioned in discussion (approximately $8.8 million) and a breakdown of proposed rents and unit counts shown in the developer’s pro forma (the authority asked that members review a current pro forma before final disbursement decisions).

After discussion, a motion to approve the loan agreement was made and seconded; the motion passed with five ayes and one abstention. The authority recorded that loan proceeds would not be disbursed until building permits were issued and that the city expects loan repayment to flow back into its revolving affordable‑housing funds.

Dewan Cherry, the project’s principal developer, said the project’s goals include affordability and accessibility, and that he wanted the building “to be aesthetically somehow fit into the neighborhood.”

Next steps: staff said the developer will continue to refine design and pro forma materials, pursue the additional financing commitments discussed in the meeting, obtain permits and return to the authority for final loan documents and disbursement timing once permits are issued.