Housing prices continue to rise, which has prompted the city of Shawano to discuss how to bring more affordable housing in the community.
Alderman Jack Young brought the matter to the attention of the city industrial and commercial development committee during its March 19 meeting, noting that there’s a high demand, but there’s limited incentive for developers to provide it.
“I don’t have anything specific to propose today,” Young said. “I just wanted to start a general discussion among all of us for potential initiatives in the affordable housing area.”
The thought among committee members was having rents in the $800-$900 per month range, but prior to the agenda item, the committee listened to a presentation about condo units proposed for the northern end of the city that would be $1,700 per month for a unit with three bedrooms and two bathrooms.
City Administrator Eddie Sheppard said the skyrocketing home prices in the last few years have been surprising — not only the prices themselves, but the fact that people are willing to pay them.
“What a lot of communities are doing, and we’re starting to do this, is to change their zoning requirements to allow for higher-density developments so there are smaller yards — almost no yards — and packing things in,” Sheppard said. “The key is to get developers’ costs down so they can charge less.”
Sheppard said there is a project in Hobart where 800-square-foot homes with two bedrooms and two bathrooms are being built that are selling for $250,000. He noted that price point is still above what many can afford to pay, but he said there are homes needing work that are selling for $400,000 in some places.
“If you look at the listing for houses in Shawano and compare that with five years ago, it is shocking,” Sheppard said. “It’s a struggle. All communities are struggling with this, but what I think we can do from a city perspective is to make ourselves open as much as possible to people who have creative ideas to basically condense things.”
The city was in talks with someone to provide more affordable housing, but the person backed out of the project, according to Sheppard. However, he remains hopeful that others will come forward.
“There’s going to be such demand for it, there will be someone who comes up with a concept for it that can really pack it in,” Sheppard said. “I would jump at that when that presents itself, but right now we don’t have anything.”
Committee member Jim Meyer said it would take developers who are willing to make less profit on housing projects than they’re used to.
“There is a way to do it, but it would take an altruistic developer who says, ‘I’m willing to take half of what I could make,’” Meyer said.
Sheppard said there are state and federal incentives for workforce housing, but developers would need to figure out the hoops and red tape to make it happen. He noted that the Wisconsin Legislature has just passed a bill that would allow municipalities to create tax increment districts for housing like they currently do with commercial development.
“It’ll be capped at 3% of your total equalized value, but that’s a lot,” Sheppard said. “The city’s going to have the ability to create these smaller housing TIDs that we can do around the community, and I think this will help with what we’re talking about here.”
Sheppard added the bill just passed the Wisconsin Senate on March 17, so he still needs to get further details on the requirements and restrictions for municipalities to form housing TIDs.
Meyer questioned whether affordable housing would be under the purview of the city’s housing authority, which is independent from the city itself.
Young, who also serves as a council liaison on the city housing authority, noted that the federal government has cut funding for housing authorities, so more effort is spent on maintaining the existing properties owned than finding new places to purchase. He added the Shawano County Housing Authority has a year-long waiting list.
“There really isn’t any initiative to add or build anything right now,” Young said, noting he has brought the issue to the housing authority as well, but discussions have come to a “dead stop.”
lpulaski@newmedia-wi.com
