MADISON, WI – Construction is underway on The Bankston Apartments, a 40-unit workforce housing development in downtown Madison. The $11.2 million project is supported by SSM Health and the Dane Workforce Housing Fund II, LLC, with primary financing from Lake Ridge Bank. The project is being developed by Madison Development Corporation (MDC).
The Bankston Apartments will help address Madison’s growing shortage of workforce housing downtown — stable, affordable homes for middle-income workers who are essential to the community but increasingly priced out of the housing market. These workers include firefighters, police officers, teachers, nurses, and others who help make Madison and Dane County a strong place to live.
Housing and other social factors shape about 80% of health outcomes. SSM Health believes increasing access to safe, stable housing close to work leads to healthier individuals and stronger communities.
“Having access to a safe, warm home is critical to the mental, emotional, and physical health of every person,” said Megan Timm, Wisconsin Director of Community Health Improvement at SSM Health. “We are honored to support our community’s health in a new way by investing in workforce housing.”
Housing costs in Madison have risen sharply since 2020. The average cost to build multi-family housing has increased from $185,000 to $300,000 per unit, driving higher rents and increased financial strain for local residents.
Located at 429 W. Mifflin Street, The Bankston Apartments will dedicate 30 units to households earning at or below 80% of the Area Median Income (AMI) for Dane County. The remaining 10 units will be rented at market rates.
“This project would not be possible without the support of SSM Health and the Dane Workforce Housing Fund II,” said Abigail Wallhuas, Vice President of Finance at MDC. “Their investments — including a $250,000 loan from SSM Health, and a $750,000 loan from DWHF II — filled a critical financing gap we had after we secured our Primary financing from Lake Ridge Bank.”
Dane Workforce Housing Fund II is supported by local employers who recognize that housing stability strengthens the workforce, economy, and overall community health.
“The Dane Workforce Housing Fund II helps make projects like this feasible by filling financing gaps,” said Cari Anne Renlund, Fund Chair of DWHF II and Vice President General Counsel and Secretary at Madison Gas and Electric (MGE). “MGE is proud to support this effort alongside other local employers, including SSM Health.”
Founded in 1977 by the City of Madison, MDC is a nonprofit organization that develops and owns affordable housing to support socially responsible economic development. The Bankston Apartments will bring MDC’s housing portfolio to nearly 360 units.
“We are grateful for the support of our partners, especially Lake Ridge Bank, SSM Health, and the Dane Workforce Housing Fund II,” said Lorrie Heinemann, President of MDC. “Workforce housing isn’t just our mission—it’s our passion.”
The project is named in honor of Vicki Bankston, a longtime MDC board member and the organization’s first Emeritus Member. The building was designed by Knothe Bruce Architects and is being constructed by Connery Construction. The Bankston Apartments are expected to open in August 2026.
