The city of Madison offers TIF assistance to small-capacity borrowers for the purchase and conversion of residential properties from rental properties to owner-occupied properties. Properties may include rental units after the rehabiliation, but at least one of the units must be owner-occupied. The program is available to home-buyers in the Greenbush, Mansion Hill, and James Madison Park neighborhoods.
Small-Cap TIF consists of forgivable loans of $80,000-$100,000 with no interest payments. Loans can be used for the purchase and renovation of residential properties in those target areas. There are no interest payments, the principal is decreased by 10% each year, and completely forgiven after ten years. The property must be occupied by the owner during those ten years.
Archetype can manage the application, approval, compliance, and inspection processes that are required by Madison’s Small-Cap TIF program.