Advancing sustainable development through LIHTC innovation
New Year Investments, a woman-owned developer in Madison, partnered with Baker Tilly to lead a sustainable redevelopment of the Triangle neighborhood. Through HUD repositioning and LIHTC structuring, the team secured $1.2 million in state tax credits to replace aging public housing with vibrant, community-focused homes.
Client background and need
New Year Investments (NYI) is a dynamic, woman-owned real estate development and brokerage firm in Madison, Wisconsin. They focus on sustainable and community-oriented development, revitalizing neighborhoods and fostering economic growth.
Baker Tilly's solution
In June 2021, the Community Development Authority (CDA) of Madison sought a development partner for the Triangle sites, which include Brittingham (164 units), Gay Braxton (60 units), Karabis Apartments (20 units) and Parkside Highrise and Townhouses (95 units). NYI was selected to redevelop these aging properties, originally built between 1965 and 1978, into modern, sustainable communities. This presented a unique opportunity to reimagine the area as a vibrant, sustainable community that promotes health, wellness and social connection.
The first phase, Taking Shape B1, aims to replace the existing Brittingham Apartments with new, vibrant housing, ensuring a one-for-one replacement while enhancing the area’s potential.
NYI faced executing a large-scale, publicly funded redevelopment project, requiring deep expertise in HUD repositioning, low-income housing tax credit (LIHTC) structuring, and stakeholder coordination. Baker Tilly served as a strategic consultant to NYI, offering guidance throughout the financial feasibility, compliance and closing phases of their Rental Assistance Demonstration (RAD) and LIHTC project. Their collaboration helped ensure the project remained aligned with NYI’s mission of sustainable, community-focused development, providing critical support during a pivotal initiative.
Results and impact
NYI engaged Baker Tilly for financial analysis, LIHTC consulting, closing services and repositioning strategy for the Taking Shape B1 project. After evaluating numerous financing strategies, the team decided to move forward with a 4% State LIHTC application and utilize the RAD/Section 18 Blend to reposition the existing public housing units. The project was awarded $1.2 million in State LIHTC in May 2024. Following the tax credit award, Baker Tilly worked with NYI and the CDA to secure a lender and tax credit investor.
The team simultaneously worked through the HUD RAD/Section 18 conversion process which included resident consultation, and various approvals and coordination from HUD and the Special Applications Center (SAC).
Taking Shape B1 closed in mid-July 2025. Construction is anticipated to be completed in mid-2027. Following the completion of Taking Shape B1, Baker Tilly will continue working with NYI and the CDA on the next phases of the project, Taking Shape B2 and B3.
New Year InvestmentsNew Year Investments, in partnership with the CDA of Madison, is continuing our work with the Baker Tilly Team on our historic public housing redevelopment project, Taking Shape, Our Triangle. The Baker Tilly team has been an invaluable partner assisting in securing LIHTC, honing financing strategies, securing RAD / HUD approvals and assisting with a complex closing. With many moving parts, on a complex transaction, we are grateful to have a partner like Baker Tilly, who has expertise in this industry and is willing to jump in and roll up their sleeves to get us over the finish line.
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