Members of Madison’s Community Development Authority proposed increasing rent and providing low-cost Internet to CDA building residents at a meeting Thursday.
The CDA provides price-reduced housing for those unable to afford regular priced housing, owning 742 affordable units, according to the city of Madison website.
CDA members expressed a desire to increase the amount of rent on these units, which even with the change will not make residents pay more, according to CDA member Kelly Thompson-Frater.
“We [the CDA] make up the difference,” Thompson-Frater said. “[The residents] will continue to pay 30 percent of their income for housing no matter what, even with the rent increase.”
Higher overall rents, along with the CDA not increasing its payment standards since 2009, are two of the main motivations for the desired rent increase.
“There has been a substantial increase in the cost of apartment rent over the past couple years, especially in Madison,” CDA member Matt Wachter said.
Although the CDA is making up the difference, it will benefit from an increase in rent, with the Wisconsin branch of the United States Department for Housing and Urban Development providing the extra funds.
The extra rent will enable the CDA to have more money to spend on construction and maintenance costs for its buildings.
The additional revenue may also be used to facilitate lower Internet and television service costs for CDA residents, according to members.
However, CDA member Augie Olvera said the CDA’s priority is inexpensive Internet for these residents, but television costs are not a concern. One of the possible solutions he mentioned was the CDA establishing its own cable company with state approval, but Thompson-Frater did not consider this a very realistic solution.
Having wireless service was also proposed, but Olvera said this solution may be difficult to accomplish given many CDA buildings are built of materials that are difficult for signals to penetrate.
The CDA was in agreement that the best current solution is working with the city’s Internet Technologies Department on a pilot project, as well as with non-profits able to provide Internet service.
Olvera said he plans to ask for approval of the increased rent proposal at next month’s CDA meeting.
