WI-CARH Summer 2023
Newsletter
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Message from Russell Kaney WI-CARH President |
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Summer is a great time of year to recharge. Even if you have not taken an extended vacation yet this summer, there are plenty of opportunities to relax and take in local fairs, festivals, and other activities, either on long weekends or during the week. The Midwest summer season is bringing the usual high temperatures but the lack of rainfall this summer is problematic. Summer is also a great time to look ahead and plan for the future, both short-term and long-term.
Since our last newsletter, WI-CARH sponsored a very successful spring training session in Middleton, Wisconsin in April. The two days of training covered compliance issues and fair housing led by US Housing Consultants. Thanks to all who attended, the comments from evaluations were outstanding.
I had the opportunity to attend a grand re-opening of a senior housing development in Cuba City, Wisconsin earlier this year. Wisconsin Management, led by Board Member and WI-CARH Secretary Russ Endres, did an outstanding job in giving this property an extended and updated life. As the only dedicated senior housing in this community of 2,000, it reminds us of the importance of keeping our affordable housing stock in good shape for the future. See the full details of the Cuba City and Barneveld rehabs in a later article.
I had the opportunity to attend the Council for Affordable and Rural Housing (CARH) conference in Washington, D.C. in late June. Decoupling was the hot topic. Two listening sessions are scheduled for July 19 and July 25 for your input. Registration is required - Federal Register link. Please take the time to make your views known. See my report later in this newsletter.
Planning is underway for our fall conference to be held on November 8th at the Wilderness in Wisconsin Dells, Wisconsin. Please plan to attend as we have a number of interesting, timely topics and speakers.
Enjoy your summer, WI-CARH looks forward to seeing you this fall at our conference. In the meantime, let us know how your organization can help you.
Russell D. Kaney
President, WI-CARH
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CARH Annual Meeting Highlights Decoupling Efforts in Congress - By Russell Kaney |
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The 2023 annual meeting and legislative conference was held June 26-28 in Pentagon City, Virginia. The major topic for extended discussion was the decoupling efforts being proposed by Congress to resolve the maturing mortgage crisis for the Rural Rental Housing 515 portfolio.
Currently, any development in the RRH515 program with a USDA loan and rental assistance is subject to having the rental assistance disappear once the USDA loan is paid in full (a maturing mortgage). It is estimated that 75% of the USDA portfolio is subject to maturity dates within the next 10 years. Decoupling would allow the loan to USDA to be paid in full, but the development would retain rental assistance.
At the conference, a listening session was conducted by Stephanie Vergin and Michael Regan of RD soliciting comments on the advantages, and disadvantages of decoupling, Also, the question was asked: Are there policies/issues that would keep you from participating?
This listening session is one of four being conducted by RD-USDA. The first session was held at the NCSHA conference in Seattle earlier this year. The last two sessions will be via Zoom on July 19 and July 25 (registration required).
RD-USDA is required to provide a report to Congress by 9/30/2023 with recommendations and suggestions for the decoupling program. The regular rule-making process is still required for decoupling to be implemented. However, everything is on the table as to how the program would be structured including rent increases, budgeting, and approvals required by RD-USDA in a decoupled project.
For additional information on the July listening sessions and general background, see the Federal Register link.
Day 1 - Committee Meetings
State Affiliated Association Committee
Several states reported on their conferences and training efforts including WI-CARH, Ohio, Minnesota, Indiana, Florida, Virginia, and the Carolinas. Insurance cost and coverage, tenant-landlord issues, and realignment were topics in each state. Quarterly calls with each state association will continue in 2023.
Best Practices Committee
Discussion centered on the records retention policy, gig income, waiting list purging, and inspections. Property owners can expect further changes to their servicing personnel. RD-USDA has realized that having servicing staff be geographically closer to properties they are responsible for makes more sense than the previous model.
HOTMA (Housing Opportunities through Modernization Act of 2016) was discussed and potential implementation by 1/1/2024. (Background. On July 29, 2016, the Housing Opportunity through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA makes numerous amendments to Sections 3, 8, and 16 of the United States Housing Act of 1937 (1937 Act), including changes to income calculation and reviews). Note: HOTMA will be a featured topic at the WI-CARH conference in November.
Employee incentives were discussed and turnover is a problem nationwide. Most management companies are starting the budget process in July and expect to request rent increases as high as $50-$60/unit, once again. Insurance costs and wages are the drivers. Service coordinators are being approved for RD-USDA budgets. Many states Qualified Allocation Plans for tax credits are mandating service coordinators.
Lending Committee
The Guaranteed 538 multi-family loan program had an increase in loan authority from $250 million to $400 million. Lenders expect more volume due to potential decoupling.
Discussions with Ginnie Mae are ongoing to raise the loan-to-cost ratio from 70% to 85% to qualify for a Ginnie Mae guarantee. Continue to push RD-USDA to allow stand-alone refinancing of debt (currently requires rehab to be included). The timeliness of reviews for third-party reports continues to be slow.
Management Committee
2022 rent increases were requested for 90% of properties, 80% of requests exceeded $25.00 per unit, average rent increase was $54.30. Expect similar requests in 2023-2024 due to insurance costs rising and staffing costs. CARH was asked to submit a letter to RD-USDA warning them of continued rent increase requests due to inflation, and other costs. Also, need an adjustment on management fees. Will expect an announcement on management fee adjustment in mid-August.
Developers and Owners Committee
Realignment continues to provide constant changes, and developers/owners are not given heads-up for ongoing changes. NSPIRE (National Standards for the Physical Inspection of Real Estate) was discussed. HUD is using but RD is not although RD will accept an NSPIRE inspection. Appraisal specifications have been placed on the RD website, a positive move. Decoupling legislation discussed, need all developers/owners to weigh in at listening sessions.
Day 2 - General Sessions
Discussions with the Regulators
This session included comments from HUD and RD officials on their respective programs. HUD is promoting retrofits with funds from the Inflation Reduction Act, up to $80k per unit, available for both small and large properties. NSPIRE is the new inspection process for HUD, replacing REAC, and has been a 20-year effort. Videos are available explaining the changes on the HUD website. HOTMA regulations for HUD are effective 1/1/2024. HUD's budget for 2024 has an increase of $7.5B for Section 8.
Karissa Stiers of RD commented that incentive rental assistance is available for prepayment incentives. The voucher budget had a $10M carryover from last year. Expect $300M of 538 guarantees this year, well below $400M authority. Super Nosa has been delayed to early fall. It is held up due to priority in processing the $70M subsequent loan NOSA from earlier this year. RD has to obligate the $70M by 9/30/2023 end of the fiscal year (use it or lose it). Commented that the average rent increase last year exceeded 54.00/unit, 2023-2024 could be higher. Congress expects a report by 9/30/2023 on decoupling efforts, thus the listening sessions. The rental assistance ask is $1.68B for next year. Last year, the rent increases required an additional $177M in 2023 alone.
Staffing continues to hinder RD-USDA. The FTEs (full-time equivalents) were reduced at the national level. Operating at 75% of staffing needs with transfers taking 12-15 months, very slow. Prepayment requests have been reassigned to the Asset Management division. They are averaging 120 days to complete. Bifurcation of HAP contracts is being proposed. 8bb requests are still possible, which allows moving the Section 8 contract to another property. RD was asked to consider contracting for more services, doubtful their staffing numbers will increase, and use third parties to review reports and speed things along.
Listening Session – Decoupling
The listening session during the conference is the second of four, the last two to take place via Zoom on July 19 and July 25. Congress mandated a report by 9/30/2023 on stakeholder feedback and perspectives. Written comments can be submitted to Decoupling@USDA.gov. Comments during the session from the attendees included:
Need project-based RA.
Need full subsidy (100% RA).
Need 20-year RA contracts.
Cap income eligible at 60% AMI rather than 80% AMI.
Make rents market-based.
Not every property will be able to decouple. Vouchers will stay with the RD program. A window to consider decoupling by an owner is being debated, thinking is that an owner would receive a letter from RD-USDA within four years of the mortgage maturing. Should this timeline be more? Be less? The criteria and competition or decoupling are yet to be decided.
Additional details are available on these PowerPoints.
Maturing Mortgage Session
Michael Regan and Stephanie Vergin reviewed the current tools available for maturing mortgage properties. Ream-Lite (amortizations of small balance mortgages) can be used for any small amount of debt down to $1,000. No appraisal is required but requires that the owner apply one year before the reamortization as the loan has to be credit scored for budget purposes.
Rural Development and The Inflation Reduction Act (IRA) Session
HUD received over $800M and up to $4B in loan authority for the Green and Resilient Retrofit Program (GRRP).
Also discussed:
New Energy Efficient Home Credit (45L).
Energy Efficient Commercial Buildings Deduction (179D).
Electricity Credits (Sections 45 and 48).
Alternative Fuel Refueling Property Credit (Properties deploying charging stations).
Changing World of Physical Inspections Session
HUD officials reviewed the new NSPIRE physical inspection process. Replaces the REAC process. The final rule was published on 5/11/2023.
RD-USDA officials reviewed their new process. Under a PILOT program, RD authorized 1,075 inspections using third-party inspectors. They will use MBA form 3.03. This form is also used by Fannie Mae and Ginnie Mae. The contractor selected is BISCO (Tribal 1). Rolling out the program this fall. Due to staffing with RD at 75%, expect third-party inspectors to be the norm going forward.
Day 3 - Scholarship Awards Breakfast
Asset Management and Servicing Issues – In the Weeds with HUD and RD
HUD and RD are trying to align on issues such as a 30-day eviction notice, requiring hard-wire smoke detectors, establishing a tenant bill of rights, and a tenant grievance procedure as well as a model lease.
HUD will implement HOTMA regulations effective 2/14/2024 (originally scheduled for 1/1/2024) and will provide webinars for owners in August and separate tenant webinars. NSPIRE inspection process had a final rule on 5/11/23 and becomes effective 10/1/2023 and replaces REAC which was used for 25 years. More emphasis on health and safety issues rather than cosmetic deficiencies. The NSPIRE standards notice has been published. NSPIRE could be an IRS (tax credits), HUD, or RD format but not currently used by all three. RD will use the MBA form but will accept the NSPIRE inspection form.
RD continues to rebalance their servicing alignments. Trying to align one servicing team to a management agent. Southern states are being adjusted now. West and Midwest have been completed and will complete all by the end of July.
Conference Concludes
Here are some additional slides from the conference.
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WHEDA Foundation Opens 2023 Housing Grant Cycle |
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The Wisconsin Housing and Economic Development Authority (WHEDA) and the WHEDA Foundation, Inc. make available annually grant funds through the Housing Grant Program competition. The Program's mission is to assist in the improvement of the state's housing for special needs populations such as veterans, physically impaired or disabled persons, domestic abuse victims, runaways, homeless persons, and more.
A total of $2,000,000 will be awarded for the 2023 cycle with awards to be announced in December. The maximum individual grant award is $50,000 per project. The grants are for physical improvements such as rehabilitation, accessibility features, and new construction.
Who Can Apply?
- Nonprofit organizations or cooperatives organized under Chapters 181, 185, or 187 of the Wisconsin Statutes
- Community development, redevelopment, and housing authorities
- Local units of government
- Native American tribal authorities
Important details:
- The competition includes two separate housing categories: Emergency/Transitional housing and Permanent housing.
- Applicants may apply for grant funds in each category however they may only submit one application per category.
- The maximum individual grant award is $50,000. There is no minimum grant award and small funding requests are allowed.
- For flexibility in awarding grants to the "best of the best", more or less than 50% of the funds may be allocated to each category depending on the quality of applications. However, no category will be allocated less than 25% or more than 75% of the total pool.
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Applications are due on August 11, 2023, by 11:59 p.m.
- Grant Awards will be announced in December 2023.
For application materials and to apply, visit:
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WHEDA Announces Sheboygan Developer Training Program |
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Do you have an interest in developing affordable rental housing in Wisconsin? If so, we’re taking our popular developer class previously held in Madison and Milwaukee and bringing it to Sheboygan on September 6-8, 2023.
Over the course of a three-day training, you will gain valuable, practical information designed for anyone with an interest in developing affordable rental housing for families, seniors, and individuals with disabilities. For a small investment, you will have the information you need to pursue a career providing affordable housing, which is in high demand throughout Wisconsin.
If you are a contractor, developer, real estate agent, engineer, government official, or entrepreneur, this class is for you. You will interact with seasoned developers who will share their experiences, including how they overcame obstacles on their path to success. You will leave with knowledge of the key components of multifamily housing development, including:
- Key planning considerations
- Understanding the timetable and complexities of the development process
- Pursuing financial resources specifically for multifamily housing developers, including through WHEDA and other sources
- Becoming familiar with underwriting criteria
- Assessing your organization’s capacity to pursue multifamily housing
This course is available for first-time participants only. Registrations made for individuals that have previously taken the class may be cancelled and refunded.
Details on the Sheboygan class
September 6-8
UWGB – Sheboygan Campus
One University Drive
Sheboygan, WI
Seating is limited in this high-demand class!
Important Note About COVID-19:
All registered participants must test for COVID-19 within 24 hours before the class begins. Tests will also be available on-site. If you test positive, you will receive a full refund for the cost of your conference registration.
Currently, classes are planned to be in person. WHEDA reserves the right to pivot to virtual learning, or cancel, should the need arise. We will adhere to guidance from public health experts regarding masking and vaccination to ensure the health and safety of our staff and community.
Wisconsin Housing & Economic Development Authority
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WI-CARH's Spring Training was a Success! |
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Russell Kaney, President of WI-CARH and Amanda Lee Gross, VP of Training and Compliance Policy from US Housing Consultants
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Conquering Affordable and Fair Housing Compliance was the topic of WI-CARH's Spring Training event held on April 5 and 6, 2023, at the Madison Marriott Hotel. Amanda Lee Gross, VP of Training and Compliance Policy from US Housing Consultants was the trainer. Amanda received rave reviews for her training and attendees found the two-day extremely valuable. |
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Thank you to the Spring Training Sponsors |
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Please click on logo to go to the sponsors websites |
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Multifamily USDA Rural Development Continues Support of Multifamily Housing in Grant and Iowa Counties |
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Wisconsin State Director Lassa Attends Grand Re-Opening of Recently Improved Affordable Housing
STEVENS POINT, Wis., May 25, 2023 – U.S. Department of Agriculture (USDA) Wisconsin Rural Development State Director Julie Lassa joined representatives of Wisconsin Management Company, Inc., and others at a grand re-opening Thursday to celebrate improvements made to Cuba City Apartments, Cuba City, and Summit Apartments, Barneveld.
"A place to live is more than a building or an apartment with four walls. It’s a home where you can celebrate holidays and important milestones, take refuge from the world outside and dream about the possibilities of tomorrow,” said Lassa. “That’s why affordable housing is vitally important to the quality of life of people no matter where they live. In working with the Wisconsin Management Company on these improvement projects, we are pleased to have partnered with the Wisconsin Housing & Economic Development Authority [WHEDA] and the Federal Home Loan Bank of Chicago to provide financing. These investments benefit residents and will help address the need for affordable, quality housing in this area. USDA Rural Development, under the Biden-Harris Administration, is proud to be part of this project."
Funding for improvements to 34 units at Summit Apartments:
- $675,000 from WHEDA’s Multifamily Preservation Loan Fund and Preservation Revolving Loan Fund
- $495,000 from Federal Home Loan Bank of Chicago’s Affordable Housing Program
Funding for improvements to 36 units at Cuba City Apartments:
- $2,000,797 Low-Income Housing Tax Credit from WHEDA
- $506,840 from WHEDA’s Multifamily Preservation Loan Fund program
- $540,000 from Federal Home Loan Bank of Chicago’s Affordable Housing Program
Improvements at both locations include:
- On the exterior: new roofs, gutters, soffit, fascia, sidewalks, and parking lots.
- New lighting, ceiling fans, appliances, microwaves, cabinets/countertops, plumbing fixtures, doors, trim, hardware, and flooring
- Added two Americans with Disabilities Act (ADA) units and six Universal Design Units.
- A new ADA-accessible community room and bathroom, and updated laundry areas.
- An additional television tower for free over-the-air television to all units and community room.
- Free wireless internet to all units.
Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas. For more information, visit www.rd.usda.gov/wi.
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Multifamily Housing Partnership Updates |
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Date: Thursday, July 20, 2023
Time: 3:00 p.m. Eastern Time
Join USDA Rural Development Multifamily Housing (MFH) leadership to receive updates on MFH programs. USDA Rural Development MFH leadership hold these quarterly to provide updates to our customers.
If you have any questions, please contact your servicing specialist, as identified in the above sortable list, or contact the applicable Regional Director, as follows:
The four regions and the contact information for each Regional Director follows:
Western Region: Becki Meyer, Regional Director
(AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WY)
Southern Region: Byron Waters, Regional Director,
(AL, AR, FL, GA, KY, LA, MS, NC, OK, PR, SC, TN, TX, VI)
Midwest Region: Eric Siebens, Regional Director,
(IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI)
Northeast Region: Donna O’Brien, Regional Director,
(CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV)
For program information...
- Farm Labor Direct Loans & Grants
- Housing Preservation & Revitalization Demonstration Loans & Grants
- Multifamily Housing Direct Loans
- Multifamily Housing Loan Guarantees
- Multifamily Housing Rental Assistance
- Rural Housing Site Loans
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Save the Date for WI-CARH's 24th Annual Conference
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The 24th Annual WI-CARH Conference will be held on Wednesday, November 8, 2023, at the Wilderness Resort in Wisconsin Dells. More information and registration will be available soon. We hope to see you in November. |
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Gary Kirkman will be the keynote speaker.
Gary Kirkman has acquired over 17 years of valuable leadership experience within the affordable housing industry and now serves as the Director of Compliance Training for US Housing Consultants.
Having started in the industry as a Regional Property Manager, Mr. Kirkman managed Rural Development and HUD properties before being promoted to Training Specialist, where he was responsible for overseeing multiple affordable communities while training personnel on affordable housing programs.
Mr. Kirkman later became a Training Director and was responsible for developing company policies and procedures and overseeing the training program. In that position, Mr. Kirkman aided owners and developers in speaking at town councils and public meetings to establish new affordable housing properties in the needed areas.
Prior to becoming a compliance trainer, Mr. Kirkman was an award-winning Community Manager and was awarded Best Overall Compliance in Affordable Housing for the Southeast Region for a property management company portfolio.
Mr. Kirkman is an experienced and engaging public speaker. He conducts public and private trainings and speaks at housing conferences providing training on all major affordable housing programs.
Mr. Kirkman has received praise from former colleagues who have stated, “He has the ability to learn complex compliance requirements and teach them in a manner that others can learn” and “Because of his positive disposition, his reflective way of operating, and all of the character traits that make him so special, Gary’s questions never go unanswered, and his searches always bring him to exciting new discoveries.”
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Tentative Schedule of Events
7:30-8:30 am - Registration and Breakfast with the Sponsors and Exhibitors
8:30-10:00 am - Sessions
10:00-10:30 am - Break with the Sponsors and Exhibitors
10:30-12:00 pm - Sessions
12:00 -1:15 pm - Lunch and Awards Ceremony
1:15 -2:30 pm - Sessions
2:30-2:45 pm - Break with the Sponsors and Exhibitors
2:45-4:30 pm - Sessions
4:30-6:30 pm - Social Hour Reception
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Be A Sponsor and/or an Exhibitor at the 24th Annual Meeting and Conference |
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We would like to invite you to join us as a Sponsor and/or an Exhibitor at the 2023 Annual Meeting and Conference to be held at the Wilderness Resort in Wisconsin Dells on Wednesday, November 8.
Please consider signing up today to be a Sponsor and/or Exhibitor and help make this education and training opportunity affordable to all in the rural housing industry.
Register early and for exhibitors, space is limited. For more information or to register, please fill out the form. Contact the WI-CARH office email for more information.
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Meet the 2023 WI-CARH Annual Fall Conference Sponsors and Exhibitors |
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Thank you for your continued support!
Please click on the logo to go to the websites
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Award Nominations for Site Manager, Maintenance Person, and Property of the Year! |
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Don't delay! WI-CARH is now accepting your nominations for the following awards:
Site Manager of the Year
Maintenance Person of the Year
Property of the Year
Recipients will be announced at the WI-CARH Annual Conference on November 8, 2023. Each winner will receive recognition at the WI-CARH Annual Conference.
We welcome nominations from WI-CARH members, property management staff, residents, and cooperating agencies (such as USDA-Rural Development, Wisconsin Housing, and Economic Development, lenders, etc.).
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Youth Grant and Scholarship Opportunities |
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Wisconsin Council for Affordable & Rural Housing (WI-CARH) is accepting applications for the Youth Grant and Scholarship program. Please spread the word and help us make a difference in a student's future! Youth grants in the amount not to exceed $500 per student, per year, until all funds are used, will be awarded to enable students in grades 3-12 to participate in an academic enrichment activity. Eligible activities include Drivers Education, Little League, Soccer, Volleyball or Basketball Leagues, 4H Camp, Music or Band Camp, Sports Camp, Cheerleading Camp, Girl Scouts or Boy Scout Camp, and an International Youth Exchange Program. These activities are on a year-round basis and not limited to the summer.
Help your residents achieve their educational goals. A $500 scholarship will be awarded to a graduating high school senior or adult wishing to further their education. Eligible applicants can use the scholarship at any two (2) year or higher accredited public or private school in the State of Wisconsin which offers an associate or undergraduate degree or a vocational/technical program.
Download the attached flyer and post it in your lobby or breakrooms. On the flyer, there is a QR code that can be scanned to tell us more about what you would like to do and how we can help you achieve your goal.
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Please visit our links below to gain the most up-to-date information pertaining to affordable housing providers and managers.
Rural Development - Wisconsin - link
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Mark Your Calendars - 2023/2024 Dates |
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September 19, 2023: Board Meeting at the Wisconsin Management Company
November 8-9, 2023: 24th Annual WI-CARH Conference & Board Meeting, Wilderness Territory, Wisconsin Dells
April 24-25, 2024: Spring Training at the DoubleTree by Hilton Madison East, 4402 E. Washington Avenue, Madison
October 24-25, 2024: 25th Annual WI-CARH Conference & Board Meeting, Wilderness Territory, Wisconsin Dells
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Do you have news to share?
We would love to hear about it!
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