New project made possible through one of the largest investments in affordable housing in state history enacted by Gov. Evers

MADISON — Gov. Tony Evers this week joined Wisconsin Housing and Economic Development Authority (WHEDA) CEO and Executive Director Elmer Moore Jr., local leaders, and project partners to celebrate the grand opening of The Derby Apartments. This new 70-unit, four-story, affordable housing development in Madison received $1 million in funding through the Vacancy-to-Vitality Loan Program, which was created as part of one of the largest investments in affordable housing in state history—$525 million—as enacted by Gov. Evers in the 2023-25 biennial budget.   

“Access to safe and affordable housing is a critical part of our economy and our workforce, and connecting the dots to make sure our kids can bring their best selves to the classroom, families have safety and stability, and that we can recruit and retain talented folks in communities across our state to help address Wisconsin’s generational workforce challenges,” said Gov. Evers. “I’m proud of our administration’s efforts to expand access to affordable housing in communities across Wisconsin, much like this important project right here in Madison.”  

Access to safe, reliable, and affordable housing is a critical part of helping address the generational workforce challenges facing the state, ensuring kids can bring their best and fullest selves to the classroom, and supporting families so they can be well. For years, Gov. Evers has proposed robust provisions and investments in expanding access to housing statewide, including in the 2023-25 biennial budget. The governor was glad to have the Wisconsin State Legislature join him in supporting this critical effort, and the budget signed by Gov. Evers provided one of the largest state investments in workforce housing in state history with a $525 million investment, including funding the Vacancy-to-Vitality Loan Program.   

The Derby Apartments was one of the first projects to receive $1 million from the new Vacancy-to-Vitality Loan Program administered through WHEDA. The program was created in 2023 as part of a bipartisan package of bills signed by Gov. Evers to help expand access to safe, affordable housing for working families statewide. The final 2023-25 biennial budget signed by Gov. Evers allocated $100 million for the program, which allows a developer to apply for a loan to cover the costs of converting a vacant commercial building into workforce or senior housing.   

Additionally, Gov. Evers declared 2025 the Year of the Kid in Wisconsin, and as part of his work to do what’s best for kids, the governor’s 2025-27 Executive Budget builds on efforts of the Evers Administration to increase the number of affordable housing units available in Wisconsin, including measures to improve programs like Vacancy-to-Vitality and encourage greater use by local governments and Tribal Nations.  

“Housing is truly an everything issue. We know that housing quality, stability, and affordability can significantly improve a child’s well-being and ability to thrive,” said WHEDA CEO and Executive Director Moore. “As we join with Governor Evers during the Year of the Kid, we are proud to continue providing the resources necessary to create more affordable housing throughout the state.”  

The Derby is a 70-unit affordable housing complex in Madison, redeveloping the former Fast Forward Skating Rink site. The unit mix comprises a wide range of income bands, including 30 percent area median income (AMI), 50 percent AMI, 60 percent AMI, market-rate units, and opportunities for local veterans with the Dane County Veterans Service Office. 

“We are thrilled to officially open The Derby to working individuals and families in Madison,” said Kevin McDonell, vice president and regional project partner of Lincoln Avenue Communities. “The Derby will provide high-quality, affordable homes to renters facing rising costs in one of Wisconsin’s fastest-growing communities.” 

The four-story midrise building features a two-story lobby space, which ties into a community room, management office, package room, and fitness center. Through a partnership with the Allied Wellness Center, the Derby Apartments also includes a basis-eligible Community Service Facility Space that will provide empowerment services for residents and the surrounding neighborhood in the on-site classroom.