A funding challenge for support services

To pay for Rethke Terrace's support services such as mental health and substance abuse treatment, Heartland Health Outreach counted on Dane County Comprehensive Community Services (CCS), a voluntary, community-based program funded by the state using federal Medicaid funds.

But many of Rethke's veterans get services through the Veterans Administration, and there are barriers to getting on CCS, city and Heartland officials said.

As a result, just 15 residents get services through CCS, meaning more funds are needed to provide a full complement of support services, not just for Rethke but for future projects. The city and county are unlikely to provide funds for operations, officials said.

"That's the biggest challenge ahead of us," city community development director Jim O'Keefe said.

The city will do a financial review for all Rethke Terrace operations and explore opportunities to fund services, Mayor Paul Soglin said.

Heartland is now building its $11 million Madison Family Supportive Housing project with 45 units for homeless families at 7933 Tree Lane on the Far West Side, opening in 2018. The funding challenge will be less severe there because families have fewer mental health or addiction challenges and multi-bedroom units produce more rental income, O'Keefe said.

Heartland proposed a $10.9 million project with 58 units for single adults and some units for couples at 1202 S. Park St., but it is on hold because WHEDA recently denied tax credits. That development will have fewer veterans, meaning more opportunities for CCS, O'Keefe said.