Madison Development Corporation

What Madison Development Corporation does

Madison Development Corporation (MDC) is a Wisconsin-incorporated non-profit economic development organization founded in 1977 by then-Mayor Paul Soglin with $500,000 in federal Community Development Block Grant funds. The organization operates two distinct lines of business in Madison and Dane County, Wisconsin: (1) ownership and direct management of a portfolio of 348-353 affordable workforce housing units ranging from studios to five-bedroom single-family homes, with rents calculated on an income-based sliding scale; and (2) small-business lending programs that provide gap financing, venture debt, and Tax Increment District (TID) loans to businesses that cannot meet traditional bank underwriting standards, along with a separate Dane Workforce Housing Fund that invests in workforce housing development across the county.

MDC owns and operates all its properties directly rather than contracting third-party managers, and it maintains a 13-member Board of Directors (8 appointed by the Mayor of Madison, 5 elected by membership). Capital for both property acquisition and lending comes from a blended stack of municipal, utility, and local-bank investors, including the Cities of Madison, Middleton, and Fitchburg, Madison Gas & Electric, and a network of local banks and credit unions participating in the Venture and Housing Funds. Loan pricing is generally market-rate based on prime. Since 1977 the organization has financed over 450 businesses totaling more than $35 million and reports supporting the creation of over 5,000 quality jobs in Dane County.

The business model combines recurring rental income (subscription-style, monthly, with income restrictions) with transactional interest income from business lending and fund management fees on the Dane Workforce Housing Fund. Named properties include The Mifflander, Bassett Street Warehouse, and Terrace View Apartments in operation, The Lillian Apartments (opened December 2023), and The Bankston Apartments (40 units, opening August 2026) developed in partnership with SSM Health, Workforce Housing Fund II, and Lake Ridge Bank. MDC is not a technology company and operates a small staff of roughly 11-50 people led by President & CEO Lorrie Heinemann, with no public equity listing, no parent company, and no subsidiaries disclosed.

Name

Madison Development Corporation

Legal name

Madison Development Corporation

Website

https://mdcorp.org

Company type

Private

Founded year

1977

Operating status

Operating

Headcount range

11–50 employees

Short description

Madison Development Corporation is a Wisconsin non-profit that owns and manages roughly 350 affordable workforce housing units in Madison and Dane County and provides gap financing and venture debt to local businesses, serving working residents and small businesses since 1977.

Ownership category

akta.pro rank

Product category

Affordable Housing & Community Development Lending

NAICS

Administration of Housing Programs (925110), Administration of Urban Planning and Community and Rural Development (92512)

SIC

Services-To Dwellings & Other Buildings (7340)

akta.pro primary industry

Economic Development & Business Licensing (Local) (BPAIACAN)

akta.pro secondary industry

Construction & Development (C&D) Lending — Commercial/Multifamily (FSALADAH)

Keywords

• Affordable housing management
• Community development lending
• Venture debt financing
• Workforce housing development
• Small business lending

Headquarters

HQ city

Madison

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Supply Chain, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Rental Income: MDC generates revenue through rental income from 348 affordable workforce housing units in the Madison area. Rents are calculated on a sliding scale based on tenant household income.
2. Business Lending Interest: MDC provides gap financing and venture debt to businesses in Dane County, generating interest income on loans. Loans are typically market-rate based on prime rate with flexible terms.
3. Dane Workforce Housing Fund: Investment fund that has reached $11.85 million in investment to finance workforce housing development in Dane County.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Madison Development Corporation (MDC) is a non-profit economic development organization that owns and manages 348-353 affordable workforce housing units across the greater Madison and Dane County region, offering rentals from studio/efficiency apartments to five-bedroom single-family homes with rents calculated on a sliding scale based on tenant household income. Concurrently, MDC originates gap financing, venture debt, and Tax Increment District (TID) loans directly to Dane County businesses — including neighborhood firms, startups, and high-tech growth companies — that do not meet traditional commercial bank underwriting standards, with the explicit objective of creating quality local jobs.

Product overview

Madison Development Corporation is a non-profit organization operating two core service lines: (1) an Affordable Housing Portfolio comprising 348-353 workforce housing units across the Madison/Dane County region, including named properties like The Mifflander Apartments, The Bankston Apartments (opening 2026), Bassett Street Warehouse Apartments, and Terrace View Apartments; and (2) Business Lending Programs including the Venture Debt Fund, Business Loan Program, TID Loan Program, and Dane Workforce Housing Fund. The housing portfolio offers units ranging from studios to 5-bedroom homes with income-based rent calculations, while the lending programs provide gap financing to businesses that cannot meet traditional bank underwriting standards, targeting job creation in Dane County.

Differentiator

Problem solved

Functional benefit

Products and services

• Affordable Housing Portfolio MDC-owned and managed portfolio of 348-353 affordable workforce housing units across the greater Madison region, ranging from studio/efficiency apartments to five-bedroom single-family homes, with rent calculated on a sliding scale tied to tenant gross household income and income restrictions on most units.
• The Mifflander Apartments Downtown Madison apartment complex at 431 W. Mifflin Street offering efficiency to 2-bedroom units with water, trash, and sewer utilities included, off-street parking, and a fitness center.
• The Bankston Apartments 40-unit workforce housing project at 429 W. Mifflin Street, opening late summer 2026, with off-street parking, fitness center, community room, and pet-friendly units. Developed with SSM Health, Workforce Housing Fund II, and Lake Ridge Bank.
• Bassett Street Warehouse Apartments Apartment complex at 1 N. Bedford Street offering efficiency to 2-bedroom units with water, sewer, and trash utilities included, plus off-street parking available for $75/month.
• Terrace View Apartments 2-bedroom apartments at 5021 Old Middleton Road in Middleton, WI. All utilities included (heat, water, gas, hot water), with off-street parking and pet-friendly units.
• The Lillian Apartments 24-unit workforce housing building at 1959 E Mifflin Street in Madison, WI, opened December 1, 2023.
• Venture Debt Fund MDC-provided gap financing to Dane County businesses that may not meet traditional bank underwriting standards; loans are typically market-rate based on the prime rate with flexible terms, targeting neighborhood businesses, startups, and high-tech firms with high-growth potential.
• Business Loan Program Capital financing for businesses deemed hard-to-finance by other lenders, focused on creating jobs in Madison and Dane County. Since 1977, MDC has provided loans to more than 450 businesses totaling over $35 million, helping create over 5,000 quality jobs.
• TID Loan Program Tax Increment District (TID) business loan program administered on behalf of the City of Madison to support economic development in designated TID areas.
• Dane Workforce Housing Fund Workforce housing investment fund that reached $11.85 million in committed investment, with the Cities of Madison, Middleton, and Fitchburg; Madison Gas & Electric; and local banks participating. The fund finances workforce housing development projects in Dane County, including partnerships such as the 40-unit Bankston Apartments with SSM Health and Lake Ridge Bank.

Quantifiable outcome

• 5,000+ quality jobs created in Dane County since 1977
• +3 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• SSM HealthmajorStrategic or Co-development Partner · 23 March 2026Healthcare partner on 40-unit workforce housing project (The Bankston) at 429 W. Mifflin Street, opening August 15, 2026. Partnership includes SSM Health, Workforce Housing Fund II, and Lake Ridge Bank.

Scale indicators7 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Wisconsin Women's Business Initiative Corporation (WWBIC): Wisconsin CDFI providing loans and business education to entrepreneurs, including those unable to access traditional bank financing. Direct overlap with MDC's Venture Debt and Business Loan programs serving Dane County SMBs.
• Impact Seven: Wisconsin-headquartered nonprofit CDFI providing affordable housing development and community lending across rural Wisconsin and the upper Midwest. Highly comparable mix of multifamily affordable housing and gap-financing business lending.
• Forward Community Investments: Madison-based CDFI deploying capital into affordable housing and community economic development across Wisconsin. Overlapping geography and mission with MDC's affordable housing and small-business lending programs.
• Wisconsin Housing Preservation Corporation: Wisconsin-based nonprofit focused on preserving and developing affordable rental housing. Directly comparable to MDC's housing portfolio strategy; notably represented on MDC's own board (Joe Carpenter), indicating an active peer relationship.

Broad incumbents

• Wisconsin Housing and Economic Development Authority (WHEDA): Statewide housing finance authority providing multifamily financing, affordable housing tax credits, and homebuyer programs across Wisconsin. Operates at much greater scale than MDC and serves as a broader incumbent in MDC's same housing-finance niche.
• Capital Impact Partners: National nonprofit CDFI providing financing for affordable housing, healthy food access, and community development. Direct overlap with MDC's community-development lending and housing development model, though at a national scale.
• Local Initiatives Support Corporation (LISC): National CDFI supporting affordable housing, economic development, and small business lending with a local presence in Wisconsin. Comparable model at significantly greater scale and geographic breadth than MDC.

Emerging players

• Eminent Development Corporation: Wisconsin-based affordable housing developer represented on MDC's board (Julian Walters). Comparable mission in affordable housing delivery and a logical operating peer in the regional affordable housing ecosystem.

Regional players

• Madison Housing Authority: Local public housing agency administering federal public housing and Housing Choice Vouchers in Madison. Operates in the same affordable housing market as MDC, though focused on public-housing/Section 8 rather than MDC's workforce housing model.
• City of Madison Community Development Authority: Municipal authority administering CDBG, HOME, and TIF programs that flow in part through MDC. Acts as both a partner and adjacent provider of affordable housing and economic development programs in the same Madison footprint.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/madisonparkdc

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles23 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments9 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Madison Development Corporation