Two new state programs aimed at spurring the development of affordable housing in small municipalities are now available for developers to utilize, state officials announced Thursday.
Dubbed the Restore Main Street and Vacancy-to-Vitality and administered by the
Wisconsin Housing and Economic Development Authority (WHEDA) the loan programs were created earlier this year with the passage of the 2023-2025 biennial state budget, which allocated one of the largest sums in state history – $525 million – dedicated toward workforce housing investments.
The Restore Main Street Loan Program provides loan funding for building owners to cover the costs to improve housing located on the second or third floors of an existing building with commercial space on the ground level. Borrowers can apply for up to $20,000 per housing unit or 25 percent of the total rehabilitation cost. The interest rates for the loan are 1-3%, and available to developers in municipalities with populations of less than 10,000.
The Vacancy-to-Vitality Loan Program allows a developer to apply for a loan to cover the costs of converting a vacant commercial building to workforce or senior housing. Developers can apply for up to $1 million or 20% of the total project cost. Interest rates for the loans will be 1-3%. This program is also only available for projects in communities with less than 10,000 people.
Only about half a dozen cities in southeastern Wisconsin have populations of less than 10,000, according to the 2020 census. They include St. Francis, Plymouth, Delavan, Lake Geneva, Sheboygan Falls, and Delafield. But the counties of Washington, Waukesha Ozaukee, Racine and Kenosha are still home several towns and villages with populations well below 10,000. Milwaukee County is home to four villages with populations less than 10,000 – River Hills, West Milwaukee, Fox Point and Hales Corners.
Both programs require municipalities to take steps to reduce the cost of the eligible project by voluntarily revising ordinances or regulations that affect the project. Municipalities must also have updated the housing element of their comprehensive plans within the last five years.
“Expanding access to safe, reliable, affordable housing statewide in Wisconsin is critical to addressing our state’s pressing workforce challenges while connecting the dots to ensure our kids, workers, and families can be successful and thrive,” Evers said. “As we revitalize main streets and turn vacant commercial spaces into affordable residential units, we are building a brighter future for our workforce, our economy, and our state. I am proud that, through these new programs and investments we made in the budget, we are able to help Wisconsinites.”
Despite the population limits on the grants, WHEDA executive director Elmer Moore Jr., said the new programs give the state “even more opportunities to add much-needed affordable housing in both urban and rural areas of our state that are desperate for safe, stable homes for working individuals, families, and seniors.”
