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Home My WebLink AboutOshkosh_ARPA_Application_2024_City and Habitat FINAL DOCUMENTS 1 American Rescue Plan Act (ARPA) Funding Application for Non-Profit Entities, Community Groups, and Neighborhood Associations Due Date: March 1, 2024, 4:30 PM Application must be completed in full to be considered. Submit complete application & budget sheet electronically to citymgr@oshkoshwi.gov -or- Mail - City Manager’s Office, 215 Church Ave – PO Box 1130, Oshkosh WI 54903-1130 -or- Place in City Hall Dropbox Attachments, brochures or other materials may be included as part of the application packet. Application Review Criteria The electronic version (including email message and all attachments) cannot exceed 10 MB GENERAL INFORMATION 1. Name of Project/Program: 2. Organization Name: 3. Address: 4. Primary Contact Person: 5. Title: Phone: 6. E-mail 7. If applicable: Federal Tax Identification Number: 8. If applicable: DUNS number: Provide Mission Statement/Purpose: PROPOSAL OVERVIEW – must match Budget Overview sheet Funds Requested Total Project Cost Annual Organizational Budget $ $ $ 2 PROPOSAL DETAILS (Please limit to 700 words) 1. PROGRAM/PROJECT APPROACH – include the following details, as applicable: a) Briefly describe the program/project you are requesting funds for. b) Describe the need for your program/project. c) Identify any other organizations in Oshkosh that address this need. d) Describe your level of collaboration with other agencies on this project. e) Is this a new, existing, or changed program? f) Specifically, what will you use ARPA funds for? g) Who will benefit and how? h) How will you prevent the duplication of benefits to end users? i) How many individuals/families will be served by this program/project? j) How will these funds help you respond to, or recover from COVID-19? k) For existing programs: How many people were served during the last program year? How many were from the City of Oshkosh? l) If existing, describe measurable impact has the program achieved to date (with examples) 2. PROJECT OUTCOMES a) If this is a continuing activity, describe a measurable outcome of your previous year's work regardless of funding source. b) Describe two anticipated measurable outcomes for your proposed project/program. c) Describe (if applicable) how proposed use of funds may achieve sustainability objectives as described in the City’s Sustainability Plan. d) Describe (if applicable) how project and proposed use of funds will benefit underrepresented or marginalized individuals/groups, and/or achieve objectives contained in the City’s Diversity, Equity and Inclusion Plan. 3. DESCRIBE THE AGENCY'S AUDITING AND FISCAL CONTROLS a) Briefly describe your agency's fiscal oversight / internal controls to minimize opportunities for fraud, waste and mismanagement. b) How does your agency plan to segregate ARPA funds from other agency funds for purposes of identification, tracking, reporting and audit? 4. CONTINGENCY PLAN a) If your grant request is not fully funded, what adjustments are you prepared to make? 5. PROJECT BUDGET a) Briefly explain project revenues and expenses related to this proposal. This should match with the Budget Overview sheet. b) Be specific about how ARPA dollars would be spent. c) Provide details about how funds would be used by December 31, 2024. PLEASE COMPLETE THE ATTACHED BUDGET OVERVIEW AND SUBMIT WITH YOUR APPLICATION. 3 BUDGET OVERVIEW / INCOME AND EXPENSES ORGANIZATION NAME: ____________________________________________________ REVENUE SOURCE PROJECTIONS Estimated Funding for this Project/Program Proposed ARPA Funding Other Government Grants - list: OACF Funding OAUW Funding Donations/Other Fundraising Internal/Self-Funding Other – list: TOTAL REVENUES $ EXPENSES REGULAR OPERATING EXPENSES Project/Program Budget (PROPOSED) Salaries/Benefits Occupancy Professional Fees/ Contracted Services Program/Office Materials Marketing/Printing Professional Development Supplies/Materials Other – list: Other – list: Other – list: COVID RELATED EXPENSES (please identify) Other Other Other TOTAL EXPENSES $ NOTE: Revenues and Expenses must balance 4 THE APPLICATION CERTIFIES TO THE BEST OF ITS KNOWLEDGE: 1. The information submitted to the city of Oshkosh (“City“) in this application, and substantially in connection with this application, is true and correct. 2. The applicant is in compliance with applicable laws, regulations, ordinances and orders applicable to it that could have an adverse material impact on the project. Adverse material impact includes lawsuits, criminal or civil actions, bankruptcy proceedings, regulatory action by a governmental entity or inadequate capital to complete the project. 3. The applicant is not in default under the terms and conditions of any grant or loan agreements, leases or financing arrangements with its other creditors that could have an adverse material impact on the project. 4. The applicant has to close, and will continue to disclose, any occurrence or event that could have an adverse material impact on the project. THE APPLICANT UNDERSTANDS: 1. This application and other materials submitted to the City may constitute public records subject to disclosure under Wisconsin’s Public Records Law. The applicant may mark documents “confidential” if the documents contain sensitive information. 2. Submitting false or misleading information in connection with an application may result in the applicant being found ineligible for financial assistance under the funding program, and the applicant or its representative may be subject to civil and/or criminal prosecution. YES NO (circle one) I certify that the requested funding is needed to ensure this project will happen in the City of Oshkosh. Signature Date Authorized representative of Applicant/Organization PRINTED NAME: TITLE OF APPLICANT: ORGANIZATION NAME: Kay M. Qualley City of Oshkosh Community Development (City) and non-profit Habitat for Humanity of Oshkosh (Habitat) identified the Washington School site for redevelopment to create nineteen shovel-ready lots for single-family workforce housing. The project fulfills a key Housing Study strategy (https://www.oshkoshwi.gov/PlanningServices/Documents/2022_03_Oshkosh_Housing_Needs_Assess ment_low_res.pdf), creating long-term community impact as an investment yielding workforce housing in proximity to downtown businesses. It aligns with the new More Housing Wisconsin initiative. Lack of workforce housing was compounded by COVID-19-related economic challenges. Those struggling with severe housing cost burdens prior to the pandemic, have seen buying power further erode with inflation, increased interest rates and housing price affordability which sagged 7.10% in Wisconsin in 2023. Housing Study identified gaps in a continuum of price points, including a need to increase owner- occupied units for low to moderate-income people. Project will remove a decommissioned school, provide environmental abatement and utility work, toward future construction of single-family workforce housing units for 19 families. No other organization besides Habitat for Humanity Oshkosh currently addresses this need. City is partnering with Habitat for Humanity Oshkosh for the project. Habitat has built 45+ homes locally through its volunteer-based programs. With outside contributions, it is a well-positioned partner, while being unable to obtain the capital necessary for this large project alone. This is a new time-sensitive infill opportunity that fits the Housing Study, Community Development Block Grant (CDBG) and City implementation goals. 2024 is the last school year for Washington; school officials want it sold by fall 2024. ARPA will be used for site acquisition, demolition (including environmental remediation), and utility work on the decommissioned school site, for conversion into residential lots. Stormwater management is an eligible cost (U.S. Treasury guidance: Coronavirus State & Local Fiscal Recovery Funds). Affordable shovel-ready lots are created and readied for construction of 19 low to moderate-income housing units (one, 1.5, and two-story). Project ensures that central city Stevens Park Neighborhood remains dynamic. Habitat has Winnebago County (non-ARPA/Spirit) funds received for neighborhood work. They will be utilized for acquisition, and are not duplicated with this application. No CDBG-CV or ARPA funds have been requested or received by the City for this project. 19 families will be served by this project. Affordable housing needs were aggravated by pandemic effects: supply chain costs, joblessness and inflation. Wisconsin Dept. of Revenue’s Final Rule Overview for use of these Treasury funds, states that low to moderate-income households were disproportionately impacted. Adding workforce homes builds community resilience by increasing supply, supports Stevens Park Neighborhood, and reduces disparities in housing by creating budget-friendly choices, during pandemic recovery. Community Development coordinated blight removal, and housing infill projects between 2022-2024, building organizational capacity. Oshkosh Habitat is completing 6th single family home from 2020-2024 on Grove Street and previously built homes in this neighborhood. City advances Housing Study implementation by creating residential infill lots for 19 homes at affordable price points. Project achieves key goal from City’s Sustainability Plan for Affordable and Socially- Sustainable Housing “Work with public and private housing providers to offer a mix of housing types affordable to low and moderate-income owners and renters.” Project aligns with City’s adopted Diversity, Equity, and Inclusion Committee’s Strategic Plan goal to remove barriers to housing ownership. A decommissioned school will be demolished, halting deterioration and negative impacts for Stevens Park Neighborhood. Tax-exempt property converts to assessable residential housing, adding to City tax base. City policies will be followed to ensure that all aspects of the project are equitable. Deliverables will be executed in professional services agreements. Habitat’s annual audit will be available. ARPA project time will be tracked separately for reporting and future audits. Decreasing work scope is unrealistic for Washington School acquisition, demolition/remediation work. City would combine ARPA funds ($150,000), CDBG Funds ($325,000) and CIP ($200,000) for site acquisition, school demolition and environmental remediation. Habitat would use ARPA City funds ($150,000) for demolition/utilities, Winnebago County grant funds ($75,000) for acquisition, and $200,000 from private donors (utilities/contingencies). City requests $75,000 for acquisition, and $75,000 for utilities/project contingencies. Habitat requests $75,000 toward demolition and $75,000 for utility work. Total ask is $300,000 for ARPA funds. City staff will negotiate purchase of Washington School with School District, coordinate competitive bids for demolition/pre-construction work prior to 12/31/24, to create 19 shovel-ready lots. Washington School Acquisition, Demolition and Site Prep for 19 Shovel-Ready Lots ARPA CDBG Habitat Grant Funds from Winnebago County Habitat Funds and Private Donors Existing CIP Individual Organization Responsibility Overall Task Total Acquisition- City $75,000 $75,000 $150,000 Acquisition- Habitat $75,000 $75,000 Demo-City $325,000 $325,000 $400,000 Demo-Habitat $75,000 $75,000 Utilities- City $50,000 $175,000 $225,000 $450,000 Utilities-Habitat $75,000 $150,000 $225,000 Contingency- City $25,000 $25,000 $50,000 $100,000 Contingency- Habitat $50,000 $50,000 TOTAL $300,000 $325,000 $75,000 $200,000 $200,000 $1,100,000 City: $675,000 Habitat for Humanity: $425,000 •The availability and aordability of the housing market will continue to limit the growth of the city. Aordability Supply Interest Rates • Major need for new development in the $200-300K range. With other factors raising the cost of construction, people see the need and feel new housing in the middle price ranges becoming hard to produce. • Underproduction of Single-Family Units MEDIAN PRICE IN WI $265,000January 2024 MEDIAN PRICE IN WI $250,000January 2023 6.0%from Jan. 2023 $259,900MEDIAN PRICE NORTHEAST REGION 7.13% for a 30-year xed on March 1, 2024 355 units needed in the $150-$225K range in the City of Oshkosh *City of Oshkosh Housing Needs Assessment Workforce Housing Need - City of Oshkosh Prices Housing Aordablity Index is 145 down 7.10% from Jan. 2023 A Value of 100 means a family with the median income has exactly enough to qualify for a mortgage on a median-prices home. Homes Sold by price range in the State of Wisconsin Previous 12 Months $500,000 and higher 5,000 10,000 15,000 20,000 25,000 30,000 $350,000 - $499,999 $200,000 - $349,000 $125,000 - $199,000 $0 - $124,999 5,129 12,941 24,162 13,414 8,930 PAGE 2 more hOUSING WISCONSIN More Housing Wisconsin Wisconsin is experiencing a significant housing shortage. A recent study estimates Wisconsin will need to build over 200,000 housing units by 2030 to accommodate all the people who want to live and work here.[i] More Housing Wisconsin, a collaboration between the Wisconsin Realtors Association, the Wisconsin Builders Association, and the League of Wisconsin Municipalities, seeks to educate and inform Wisconsin city and village leaders and staff about zoning changes and other strategies communities can use to help address this state’s housing shortage. Our goal is to bring tools, resources, and best practices to municipalities to help communities initiate housing solutions that meet their unique needs and strengthen our economy. PAGE 3 Housing Ready Checklistfor Municipalities[ii] This briefing paper is the first in a series designed to educate and inform municipal officials and interested citizens about actions local governments can take to help increase the number and types of housing available in their communities. This project is sponsored by the Wisconsin REALTORS® Association, the Wisconsin Builders Association, and the League of Wisconsin Municipalities. This housing ready checklist is a tool to help municipal officials and staff review and evaluate their zoning and subdivision regulations, land use plans, permitting process and fees, communications with developers, use of tax incremental financing, and other policies and procedures related to housing to ensure they are aligned with the goal of creating more workforce housing for the community. THISMONTH’S TOPICMARCH 2024 PAGE 4 HELPING COMMUNITIES DEVELOP HOUSING SOLUTIONS. Housing ReadyChecklist for Municipalities[ii] more hOUSING WISCONSIN Few communities will be able to answer “yes” to every question on this checklist- and not every community will want to. Each community’s plans, policies, zoning codes, and procedures are unique to local circumstances. The checklist can serve as a conversation starter among policymakers, staff, and interested citizens about what code changes, tools, and strategies your community may want to consider implementing to help create more housing options.iii. HOW TO USE THIS CHECKLIST Has your community taken steps to understand local housing needs and affordability? Has your community updated the housing element of its comprehensive plan under Wis. Stat. § 66.1001(2) (b) within the last 5 years? Has your community conducted a housing needs assessment? Has your community conducted a survey of the community’s existing housing stock? Has your community prepared a “Housing Affordability Analysis” as described in Wis. Stat. § 66.10013.? (Municipalities over 10,000 in population are required to prepare such a report annually and post it on the community’s website. Smaller communities may also benefit from such an exercise.) Yes No Yes No Yes No ASSESSING AND ANALYZING COMMUNITY HOUSING NEEDS Yes No PAGE 5 HELPING COMMUNITIES DEVELOP HOUSING SOLUTIONS. Business Leaders & Major Employers School Districts Local Residents Public Housing Authorities Nonprofit Housing Developers & Housing Advocates Groups Representing REALTORS® Home Builders and Landlords Mortgage Lenders Economic Development Associations Senior Citizen Groups Has your community adopted a local housing strategy? Has your community reached out to the following stakeholders and sought their opinion about the need for more workforce housing through surveys, public meetings, focus groups, or other methods? Yes No Yes No ZONING STRATEGIES While most zoning regulations are implemented to serve specific health, safety, and welfare needs, they may unintentionally adversely impact housing availability and affordability. Zoning can be a barrier, preventing the construction of many types of in-demand housing, increasing development costs, or requiring complex and lengthy approval processes. An updated zoning code can create a clear, predictable path for developers to follow, resulting in more of the type of housing that a community wants and needs.iv. Does your community’s zoning and subdivision ordinance include/allow the following: Allow multi-unit housing (e.g. triplex and fourplex) as permitted uses in single-family residential districts that have historically included two-family and multi-family structures. Permit residential uses, including multi-family, within downtown and Main Street zoning districts. Yes No Yes No PAGE 8 Facilitating adaptive reuse of surplus and/or outmoded buildings, such as strip malls, factories, warehouses, or schools, to housing by developing more flexible ordinances, arranging for possible property transfers of publicly owned buildings, and providing assistance in obtaining sources of funding to help cover cost of conversion? Entering into partnerships with major employers, nonprofits, or private developers to acquire land and advance workforce housing development? When building workforce housing, there is almost always a “gap” between the costs of construction and a price that’s affordable to the end buyer or renter. Builders and partners must find a way to fill that gap, often with grants, low-interest loans, donations of land, tax credits, reduced impact fees or infrastructure costs. Local governments can help through the use of tax incremental financing and other tools.v. Has your community considered or implemented: Taking advantage of the affordable housing extension provided in the tax incremental financing law (Wis. Stat. § 66.1105(6)(g)), which allows a community to extend a TIF district for an additional year before it terminates and use the extra tax increments to “benefit affordable housing” within the community. Using tax increment financing to assist in the building or rehabilitating of affordable housing for middle- and lower- income households. Entering into a public- private partnership to develop workforce housing for the community. Yes No Yes No FUNDING & FINANCING Yes No Yes No Yes No HELPING COMMUNITIES DEVELOP HOUSING SOLUTIONS.. more hOUSING WISCONSIN Summary of Wisconsin Housing Statistics January 2024 Report Card Report Criteria: Reflecting data for: January 2024 | State: WI | Type: Residential $125,000 - $199,999 12,941 $200,000 – $349,999 24,162 $350,000 - $499,999 13,414 $500,000 and higher 8,930 January 2023 MONTHS OF INVENTORY MONTHS MONTHS January 2024 January 2024 HOMES SOLD BY PRICE RANGE PREVIOUS 12 MONTHS HOME SALES BY REGION 19.0% Please note: each % represents the share of the statewide total. MEDIAN HOME PRICE January 2024 from last year TOTAL STATEWIDE LISTINGS January 2023 ACTIVE LISTINGS from last year from last year 2.0%7.4% HOMES SOLD ACTIVE LISTINGS 3,436 January 2024 January 20233,200 MONTHLY HOME SALES January 2024 HOMES SOLD from last year 13,087January 202413,352 MEDIAN PRICES BY REGION January 2023$265,000 $250,000 6.0% MEDIAN PRICE IN WI MEDIAN PRICE IN WI 2.50 2.10 3,436 3,200 0 1,000 2,000 3,000 4,000 5,000 6,000 JAN-24 JAN-23Monthly Home SalesMonth / Year $250,000 $265,000 JAN-23JAN-24 Median Home PriceYear TM 5,219 12,941 24,162 13,414 8,930 0 5,000 10,000 15,000 20,000 25,000 30,000 $0-$124,999 $125,000 - $199,999 $200,000 –$349,999 $350,000 - $499,999 $500,000 and higher $217,800 $226,100 $259,900 $322,000 $267,000 $265,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Central2617.6% North 3038.8% Northeast 67319.6% South Central 67719.7% Southeast 1,23836.0% West284 8.3% Central North Northeast South Central Southeast West 2.5 2.1 1.5 2 2.5 3 JAN-24 JAN-23 $265.0K $250.0K $150K $170K $190K $210K $230K $250K $270K $290K JAN-24 JAN-23Median Home PriceMonth / Year 13,352 13,087 3,000 5,000 7,000 9,000 11,000 13,000 15,000 JAN-24 JAN-23Total Statewide ListingsMonth / Year January 2024 WI Real Estate Report Report Criteria: Reflecting data for January 2024 | State: WI | Type: Residential Wisconsin REALTORS® Association Wisconsin REALTORS® Association | 4801 Forest Run Road | Madison, WI 53597 | 608.241.2047 | wra.org January 2024 WI Real Estate Report Report Criteria: Reflecting data for January 2024 | State: WI | Type: Residential Wisconsin REALTORS® Association Wisconsin REALTORS® Association | 4801 Forest Run Road | Madison, WI 53597 | 608.241.2047 | wra.org Metropolitan counties include: Brown, Calumet, Chippewa, Columbia, Dane, Douglas, Eau Claire, Fond du Lac, Green, Iowa, Kenosha, Kewaunee, La Crosse, Lincoln, Marathon, Milwaukee, Oconto, Ozaukee, Outagamie, Pierce, Racine, Rock, Sheboygan, St. Croix, Washington, Waukesha and Winnebago. Micropolitan counties include: Dodge, Dunn, Florence, Grant, Jefferson, Manitowoc, Marinette, Menominee, Portage, Sauk, Shawano, Walworth and Wood. Rural counties include: Adams, Ashland, Barron, Bayfield, Buffalo, Burnett, Clark, Crawford, Door, Forest, Green Lake, Iron, Jackson, Juneau, Lafayette, Langlade, Marquette, Monroe, Oneida, Pepin, Polk, Price, Rusk, Richland, Sawyer, Taylor, Trempealeau, Vernon, Vilas, Washburn, Waupaca and Waushara. The Wisconsin Housing Affordability Index shows the portion of the median-priced home that a qualified buyer with median family income can afford to buy, assuming 20% down and the remaining balance financed with a 30-year fixed mortgage at current rates. Summary of Wisconsin Housing Statistics January 2024 Report Card Report Criteria: Reflecting data for: January 2024 | State: WI | Type: Residential Data based on Freddie Mac, 30 year fixed-rate mortgage rates 0 0 0 0 0 0 0 0 Index Down 7.10% from Jan. 2023 January 2023January 2024 37 AVG 30 YR. FIXED HOMES SOLD THRU 1/24 HOUSING AFFORDABILITY INDEX A value of 100 means a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. AVG DAYS ON MARKET MONTHS OF INVENTORY BY URBAN CLASSIFICATION 6.64%January 20236.27% HOMES SOLD THRU 1/23 from last year from last year 7.4% AVG 30 YR. FIXED 3,200Year-to-Date 20233,436 MORTGAGE INTEREST RATES January 2024 YEAR-TO-DATE HOME SALES Year-to-Date 2022 January 2024 January 20237880 -2.5% DAYS ON MKT DAYS ON MKT from last year 6.64%6.27% 2% 4% 6% 8% JAN-24 JAN-23Monthly AVG Rate (30 year fixed)Month / Year 2.2 2.6 3.4 2.5 0 1 2 3 4 Metropolitan Counties Combined Micropolitan Counties Combined Rural Counties Combined All Wisconsin Counties 145 156 0 50 100 150 200 250 UNAFFORDABLE AFFORDABLE MEDIAN # MONTHS 78 80 77 78 79 80 81 JAN-24 JAN-23 TM 3,436 3,200 0 1,000 2,000 3,000 4,000 JAN-24 DEC-22YTD Home SalesMonth / Year BASIS POINTS 8 Chapter 3: Market Assessment TAKEAWAYS FOR SUCCESS: 1. Consider Oshkosh’s potential to satisfy regional needs The Fox Valley is growing rapidly, and even though Oshkosh is growing at a more moderate pace, the city provides valuable employment, educational, civic, and housing opportunities to the region. As such, the region offers these and other amenities to Oshkosh. Satisfying demand for housing takes a holistic approach. The forecast in this study show Oshkosh to grow by over 3,200 permanent residents by 2030. To accommodate this population, Oshkosh will need to produce almost 1,700 new housing units. This demand equates to about 160 units annually. 2. Production must be balanced across price points to prevent further affordability issues However, housing construction must be balanced across price points to ensure that Oshkosh does not continue its shift toward becoming unaffordable. To achieve a healthy balance of housing opportunities, the most significant number of owner-occupied units should target the middle- income price-points, with owner units being sixty percent of all new units. 3. Production must be balanced across ownership and rental types Permit data shows that Oshkosh is under- producing single-family housing units compared to peer cities in the region. This means more options for homeowners in other cities looking to move to or within the region. Therefore, the program in this chapter targets sixty percent of new homes as owner-occupied, and 40% as renter-occupied. This ratio will favor owner units in the market over what exists today as a 55%/45% owner/renter split. Additionally, an emphasis should be placed on generating various owner and renter housing types such as small, medium, and large single- family homes, duplexes, townhomes, and condominiums in addition to apartments and independent senior living options. 4. The availability and affordability of the housing market will continue to limit the growth of the city The economy is limited by the ability to recruit and retain employees for jobs at all economic levels. It may be necessary to provide incentives to encourage the development of the workforce and entry-level housing. The housing market is limited by the shortage of housing units which drive-up the cost of housing without driving an increase in the quality of existing housing. The addition of new units - both ownership and renter options - would increase housing quality. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 9 Chapter 5: Housing Program QUESTIONS FOR SUCCESS: • How do we build the capacity to develop “affordable, attainable” housing and a healthy housing market? • How do we encourage housing products and options that retain our households? • How do we conserve our neighborhoods and preserve their housing fabric? • How do we address the needs of people who are unhoused or inadequately housed? Policy Directions Based on Affordability • Overall Policy Direction: Public policy should focus on encouraging development of affordable moderate and medium-cost housing, where financing gaps and challenges are more likely to keep the market from satisfying the need. Policy Directions Based on Location and Retention • Overall Policy Direction: Policy should encourage development that 1) provides options for people now moving outside Oshkosh to find their place in the city and 2) that uses infill sites or contiguous greenfield sites effectively to provide these options. Policy Directions Based on Innovation and New to Market Products • Overall Policy Direction: Policy should encourage and moderate the risks of non- conventional or emerging forms of residential development that accommodate emerging markets but are unfamiliar to many conventional developers and builders. Policy Directions Based on Reinvestment • Overall Policy Direction: Policy should provide strong, positive incentives for housing and mixed use investment in targeted reinvestment areas. Chapter 4: Opportunity Assessment HOUSING ASSETS AT A GLANCE • Emerging developer interest in new housing types • Consumer interest in alternative forms of housing • Employers understanding the need to engage in workforce housing • General community support • Neighborhoods and urban housing quality • Opportunities to develop • Opportunities on the waterfront for density • Downtown and community character • Demand for older adult communities HOUSING CHALLENGES AT A GLANCE • Lack of existing inventory on the market • The cost of construction • Infrastructure development • Township and urban service areas • Infill opportunities • Housing conditions • Program diversity and funding • Nonprofit development capability • Unseen homelessness • Shortage of builders and workers OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 15 THEMES The public engagement process revealed important themes that became the guide for the development of the Oshkosh Housing Study. These themes were distilled from input received from the stakeholder listening sessions, committee discussions, and the community and landlord surveys. In summary, overall qualitative themes fell into: 1. Lack of existing inventory on the market • A point the market data in the next chapter validates. 2. Rental gaps at less expensive ends of the scale • Not surprising as these are units that cannot be produced by the private market alone, also validated in the next chapter. 3. Influence of 2020-2021 material costs on affordability • A point made more in the qualitative listening sessions and concern about the uncertainty these price increases bring for future housing production. 4. Major need for new development in the $200-300K range • With other factors raising the cost of construction, people see the need and feel new housing in the middle price ranges becoming hard to produce. 5. Generational issues in the building community • Expressed in the listening sessions as a main factor for housing supply lagging behind housing demand. 6. Maintenance provided communities/”condos” are in demand • There is value and opportunities in Oshkosh for a variety of ownership options beyond traditional single-family homes. 7. Interest in alternative housing types – owner-occupied duplexes as an example • People are open to moving into “different” housing models to achieve the price points they want a lifestyle they seek - either by necessity or choice. 8. Development still runs into neighborhood opposition even when most people are aware of the need for more affordability • People know the amount of “house” people can afford is getting less but when other options are proposed, people voice opposition. 9. Executive housing happening more in rural surroundings • Many express a desire to have more land and live in rural areas, and thus the feeling of higher- end options only being available outside of the city. 10. Employers understand the need and may be willing to engage in housing market development • However, none appear to be devoting resources to help solve housing challenges quite yet. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 25 5. Lower Home Values versus Median Incomes Housing values in Oshkosh are generally self- sustaining to support new development. Housing in other cities is valued higher, but median incomes are also higher. For example, the value of homes over $200,000 as a percent the populations in Neenah and the rest of the MSA are higher than Oshkosh which may mean higher income households are choosing to live outside of Oshkosh. This could be because of community preferences or simply lack of options in Oshkosh. 6. Low Inventory of Homes for Sale The supply of available homes for sale is at historic lows, a trend not unique to Oshkosh. The effects in Oshkosh may mean more demand for home rehabilitation or living in substandard units. 7. Underproduction of Single-Family Units Oshkosh’s overall single-family unit production remains low for a community over 65,000 people. Between 2010 and 2020, the market produced some 263 new single-family units at an average rate of about 24 new units per year. This is similar to Neenah, which is about a third the size of Oshkosh. CHAPTER 2: AT A GLANCE TAKEAWAYS TAKEAWAYS: 1. Steady Growth, Lagging the Region Oshkosh continues to add population. However, when compared to growth in Winnebago County, the percent of people living in Oshkosh is trending downward. Its regional peers are also growing faster. 2. Dropping Vacancies The total vacancy rate of rental and owner- occupied housing is falling in Oshkosh, generally a good thing for a community. The current rate is healthy at between 5%-6%. This likely reflects lower new construction and inventory since the 2008 recession as people fix up homes or dilapidated homes get demolished. 3. Affordability Burden on Renters Renters continue to be more cost burdened than owners, a situation in nearly all communities. However, in Oshkosh more renters are cost burdened than peer cities. This is partially related to the student population, but also an indication of low supply. 4. Competition for Same Housing Products and Price Points A shortage of homes exists for the lowest income households in Oshkosh and households making more than $75,000, likely indicating that these upper income households are out-competing middle income households for the same housing products. Middle income households are then faced with more affordability challenges while upper income households may prefer to live in housing that better matches their income and amenity preferences, if available. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 37 The definition of ‘affordable housing’ is determined by a household’s income. What is affordable to one income bracket is not necessarily affordable to another. AFFORDABILITY BALANCE Figure 2.17 breaks down the number of households by income and the number of owner and renter units available based on affordable ranges requiring households to pay no more than 30% of income towards housing. • A large deficit of units is for households making less than $25,000. These needs cannot be met through new construction. ›This price point is not usually supplied by the market and requires additional subsidies to construct. ›It is important to note households making less than $25,000 includes some retirees living on fixed incomes with no mortgages remaining and students receiving assistance with housing from family, loans, or grants. • There are many units affordable to households making between $25,000 and $49,999. This correlates to the older housing stock in the city. ›Some of these rental units are designed and marketed to students. Young professionals might have difficulty finding units affordable that met their specific needs. • Gaps exist for households making more than $75,000, especially the $75,000-$150,000 range. These households are living in homes less expensive than their income would suggest. This completely understandable desire to minimize housing burden and stay in their homes, helps explain the deficit of owner-occupied housing in lower price points. Expanding the supply of higher priced housing might encourage some of these households to “move up.” However, some may not be able to move up due to other expenses such as school loans or other personal debt. However, greater product variety that meets their evolving lifestyle needs may have an impact. Figure 2.17: Housing Affordability & Availability Analysis INCOME RANGE % OF HHS # HHS IN EACH RANGE AFFORDABLE RANGE FOR OWNER UNITS # OF OWNER UNITS AFFORDABLE RANGE FOR RENTER UNITS # OF RENTER UNITS TOTAL AFFORDABLE UNITS BALANCE $0-$25,000 22.4%5,968 >$60,000 902 $0-$499 2,642 3,544 -2,424 $25k-$49,999 26.7%7,116 $60k-$124,999 6,429 $500-$999 8,296 14,725 7,609 $50k-$74,999 20.3%5,396 $125k-$199,999 5,250 $1,000-$1,499 778 6,028 632 $75k-$99,999 13.5%3,595 $200k-$249,999 1,110 $1,500-$1,999 214 1,324 -2,271 $100k-$150,000 13.1%3,479 $250k-$399,999 727 $2,000-$2,999 43 770 -2,709 $150k-$199,999 2.8%753 $400k-$600,000 116 $3,000-$3,499 8 124 -629 $200,000+1.2%327 $600,000+119 $3,500+0 119 -208 Median $125,000 $641 Source: 2019 American Community Survey 5-year estimates; RDG Planning & Design 38 Figure 2.18: Households Paying >30% Income on Mortgage, 2019COST BURDENED OWNERS AND RENTERS A cost burdened household is defined by HUD as one that spends more than 30% of their adjusted gross income on housing (including utilities, taxes, insurance), either for a mortgage or rent. Figures 2.18 and 2.19 shows the percent of households paying more than 30% of their incomes to housing in Oshkosh. • For homeowners, the neighborhoods northeast of the University of Wisconsin - Oshkosh and near I-41 near West High School have the highest percentage of cost burdened residents (<31%). • Citywide, about 21% of households with a mortgage pay more than 30% of their income for housing. • Comparing to 2010 in Figure 2.19, there appears to fewer cost burdened homeowners citywide. The decrease in the number of owner-occupied households that are cost burdened likely reflects: ›The change in lending practices following the 2008 housing crash. ›The recovery from the 2008 recession. ›Low mortgage interest rates from 2010-2019. (as low as a 3.65% average in 2016 for a 30-year fixed rate). Figure 2.19: Households Paying >30% Income on Mortgage, 2010-2019 2010 2019 Housing units with a mortgage 10,128 9,146 Pay less than 20% of income 36.9%55.3% 20% to 24.9% of income 20.1%14.2% 25% to 29.9% of income 15.8%9.5% 30% to 34.9% of income 7.2%6.3% 35% or more of income 20.0%14.7% Total paying >30%27.2%21% Source: 2019 American Community Survey 5-year estimates Under 10%10% - 15% 15.1% - 20%20.1% - 25%Over 25% % Owners Paying Over 30% of Income on Mortgage OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 39 Figure 2.20: Households Paying >30% Income on Gross Rent, 2019• For renters, the higher share of cost burdened households varies between areas around the University and downtown (Figure 2.20). Generally, these Census tracts align with where students are living. Other areas seem large on the map but have a less dense population. • Citywide, about 42% of renter households pay more than 30% of their income on gross rent. • Like homeowners, there appears to be fewer cost burdened renters than in 2010 (Figure 2.21). 0% 10% 20% 30% 40% 50% 60% Oshkosh Appleton Fond du Lac Green Bay Neenah La Crosse Chart Title Renter 2010 Renter 2019 Owner with mortgage 2010 Owner with mortgage 2019 Figure 2.21: Households Paying >30% Income on Gross Rent, 2010- 2019 2010 2019 Occupied units paying rent 9,972 11,575 Pay less than 15% of income 11.6%16.5% 15% to 19.% of income 17.3%16.4% 20% to 24.9% of income 12.4%14.4% 25% to 29.9% of income 13.1%10.7% 30% to 34.9% of income 7.6%8.0% 35% or more of income 37.9%33.9% Total paying >30%45.5%41.9% Source: 2019 American Community Survey 5-year estimates Figure 2.22: Households Paying >30% Income on Housing, Peer Cities % Renters Paying Over 30% of Income on Rent Under 20% 20.1% - 40% 40.1% - 60% 60.1% - 80%Over 80% As Figure 2.22 shows, Oshkosh generally has more cost burdened renter and owners compared to peer cities except for Green Bay and La Crosse. 40 VALUE TO INCOME A traditional metric to evaluate whether a home is affordable to a home-buyer is by comparing their household income to the value of the home. This metric can be adapted to evaluate the affordability of housing markets in different cities. Generally, ratios above 3.0 start to indicate significant affordability issues. Figure 2.23 illustrates these ratios. • Even with the lower incomes of off-campus students, Oshkosh has a median house value to median income ratio of 2.46, which is lower than often seen for cities with a sizable university. • All peer cities have similar value to income ratios, except for La Crosse, and are considered healthy markets to support new construction of owner-occupied homes. Figure 2.23: Value to Income Ratios, 2019 Source: 2019 American Community Survey 5-year estimatesHome ValueV/I Ratio• Figure 2.24 shows the ratio spatially in Oshkosh. Understandably, the ratio is higher around the University because of the low incomes driven by the high number of University students. Other neighborhoods have stable ratios Note, the value to income ratio indicates that the housing market is not significantly out of sync with the population but may still present affordability and availability issues in certain segments of the population, explored in the following sections. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 41 RENTS AND ASSOCIATED COSTS As Figure 2.25 shows, median contract rents are comparable to peer cities outside of La Crosse, but Oshkosh has a higher percent of median rent to median household income. Contract rent is the base rent and does not include other cost a landlord may charge in gross rent like utilities or trash service. • The landlord survey in August of 2021 showed most one bedroom apartments renting between $401-$600 a month and a 2 bedroom $601-$800 a month. ›These rents are about $200 high if the unit is a house (i.e. duplex or rental home). ›About half of landlords responding to the survey said they rent mostly single-family homes. • Most landlord include trash and water/sewer in the rent price. Full results of the landlord survey are in the Appendix. Figure 2.24: Value to Income Ratio by Census Block Group, 2019 Source: 2019 American Community Survey 5-year estimates Figure 2.25: Affordability Comparison, 2019 MEDIAN HOUSEHOLD INCOME MEDIAN HOUSE VALUE VALUE / INCOME RATIO MEDIAN CONTRACT RENT MEDIAN RENT AS PCT OF MEDIAN INCOME Oshkosh $50,892 $125,000 2.46 $641 15.1% Winnebago County $58,543 $152,500 2.60 $645 13.2% Fond du Lac $52,724 $126,200 2.39 $632 14.4% Neenah $59,820 $141,100 2.36 $616 12.4% Appleton $58,112 $147,800 2.54 $651 13.4% Green Bay $49,251 $135,900 2.76 $628 15.3% La Crosse $45,233 $142,500 3.15 $688 18.3% 48 INTRODUCTION This chapter uses qualitative and quantitative data from the survey, listening sessions, and demographic atlases to forecast population and housing demand. The forecast includes a program of housing demand by housing type and price point to match what households can reasonably afford in Oshkosh. CHAPTER 3: AT A GLANCE TAKEAWAYS FOR SUCCESS SUMMARY Ideally, the housing supply will generally meet the demand and adjusts naturally over time to reach a balance. Higher demand often triggers the market to supply more housing as builders and developers recognize profits to be made. However, this is not the case in Oshkosh and much of the country. Challenges, barriers, and inefficiencies in the local market lead to an unbalanced market. The next chapter summarizes these challenges and areas that can stimulate development which lays the groundwork for strategic actions. TAKEAWAYS FOR SUCCESS: 1. Consider Oshkosh’s potential to satisfy regional needs The Fox Valley is growing rapidly, and even though Oshkosh is growing at a more moderate pace, the city provides valuable employment, educational, civic, and housing opportunities to the region. As such, the region offers these and other amenities to Oshkosh. Satisfying demand for housing takes a holistic approach. The forecast in this study show Oshkosh to grow by over 3,200 permanent residents by 2030. To accommodate this population, Oshkosh will need to produce almost 1,700 new housing units. This demand equates to about 160 units annually. 2. Production must be balanced across price points to prevent further affordability issues Housing construction must be balanced across price points to ensure that Oshkosh does not continue its shift toward becoming unaffordable. To achieve a healthy balance of housing opportunities, the most significant number of owner-occupied units should target the middle- income price-points for household making between $50,000-$100,000, with owner units being sixty percent of all new units. 3. Production must be balanced across ownership and rental types Permit data shows that Oshkosh is under- producing single-family housing units compared to peer cities in the region. This means more options for homeowners in other cities looking to move to or within the region. Therefore, the program in this chapter targets sixty percent of new homes as owner-occupied, and 40% as renter-occupied. This ratio will favor owner units in the market over what exists today as a 55%/45% owner/renter split. Additionally, an emphasis should be placed on generating various owner and renter housing types such as small, medium, and large single- family homes, duplexes, townhomes, and condominiums in addition to apartments and independent senior living options. 4. The availability and affordability of the housing market will continue to limit the growth of the city The economy is limited by the ability to recruit and retain employees for jobs at all economic levels. It may be necessary to provide incentives to encourage the development of the workforce and entry-level housing. The housing market is limited by the shortage of housing units which drive-up the cost of housing without driving an increase in the quality of existing housing. The addition of new units, both ownership and renter options, would increase housing quality. 52 Housing Development Program To translate overall demand into a practical program for what types of housing are needed, the housing development program delves into price points and the proportion of units that will be owner-occupied and renter-occupied. The following assumptions are made to create the program: • The demand for future housing in the city (Figure 3.3) differs if considering Oshkosh’s existing household incomes versus household incomes in the broader MSA. Two programs show a distribution based on the current estimated income distribution in Oshkosh and the MSA (by percent of households). The demand for lower price points could be smaller if incomes rise. • Over the next several years, greater production of ownership options should focus on pent-up demand and the need to offer more affordable housing options. Therefore, the Housing Development program has a greater portion of the city’s future demand for owner-occupied options. • The lowest-priced units will not be produced by the private market. • Most low-income residents will be accommodated in rental units. Market Definitions • Affordable-Low Ownership Demand. Often the best source of affordable housing is the existing housing stock in older neighborhoods. Many higher-income households compete for the same housing stock as lower-income households. The low-income ownership market demand can be met, in part, by providing opportunities for moderate-income households to move- up in the market. • Affordable-Low Rental Demand. Production of rental units under $700 will likely need assistance programs like low- income housing tax credits and project- based Section 8, but some may result from market adjustments due to new higher- quality rental units creating competition in the market. It will also be essential to preserve the units existing in this price range today. • Affordable Moderate Ownership Demand. It will be challenging for the private market to produce housing in this price range in Oshkosh. Most will need to come from the existing market and individuals moving up or to other product times freeing up homes in this price range or produced through assistance programs like Habitat for Humanity or through a filter effect created by the production of move-up housing. • Market and High Market. The private market has been successful in producing market-rate housing, although not at the level needed. The development community should be encouraged to continue its work in market-rate housing development. These developments should be encouraged to employ innovative practices to create high- quality neighborhoods and new housing products. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 55 Product Definitions Conventional Single-Family Detached Conventional single-family detached housing, with gross density at or below four units per acre, corresponding to a typical lot size of at least 8,000. Small Lot Single-Family Detached/ Attached A gross density of about 6-8 units per acre. For single-family homes, this suggests a lot size range of between 4,000 to 6,000 square feet. This category may also include single-family homes with accessory dwelling units, duplexes, and twin homes Single-Family Attached, Low- Density Townhomes, and Multiplexes Various configurations, including row houses, townhomes, and small multiplexes with a gross density of between 8 to 12 units per acre. High Density Townhomes and Multi-Family Typically with a gross density of 16 units per acre and above. These would be most traditional apartments and mixed- use buildings in downtown or other compact settings. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 59 Special Issues These perspectives, along with the analysis of the first three chapters, help explain several other challenges in the Oshkosh market. These in turn frame housing policy priorities, explored in concept here and in detail in Chapter Five. Housing Types For logical reasons, builders tend to build types of houses and at price ranges that they are familiar with. Thus, single-family homebuilders generally continue to build single-family houses; and apartment builders who are used to building a specific type of building continue doing just that. These are tested products for them that work physically and economically. But other housing types that meet specific needs (including affordability) for markets such as young families, small households, or active older adults, such as small-lot single family units, semi-attached and attached single-family, duplexes, townhouses, rowhouses, and innovative multi-family designs, are less frequently built. As a result, the so-called “missing middle” continues to be largely missing from the housing inventory. Infill development Oshkosh has had an active City Lot program that markets lots for development acquired through tax foreclosures and demolitions. But infill construction on these sites and other neighborhood sites also faces economic challenges. Oshkosh’s urban neighborhoods are a distinct community asset, but prevailing home prices have generally been moderate, mostly in a range from $140,000 to $180,000. At the $210/ square foot construction price cited by builders during this planning process, a modestly-sized 1,400 square foot, three-bedroom home will cost nearly $300,000, well above the typical price of surrounding properties. This clearly creates concerns for both the builder and buyer. Construction Risk Exposure With the exception of individual builder efficiency, the one technique proven to reduce unit construction cost is economy of scale. Mass builders in high absorption markets like large metropolitan areas who can build large numbers of homes at one time cut initial mobilization costs, use crews very efficiently, have a more competitive labor force, establish uniform designs and components, and order materials in large quantities, all of which help reduce construction cost per square foot. Oshkosh in the Fox Valley region is theoretically part of a large enough region to attract mass builders but this population is spread out over six cities and three metropolitan area. That, combined with the size of Oshkosh’s local population and typical annual output probably precludes very large speculative development. But construction of even five to ten homes at a time achieves some economy. However, this brings the issue of risk into focus – building this number of units simultaneously entails a speculative inventory that might expose a small builder or a nonprofit developer to considerable financial exposure. 62 HOUSING ASSETS AT A GLANCE General community support Housing policy is clearly important to the Oshkosh community and the array of programs and organizations involved in housing are testimony to this awareness. Residents are experiencing rising prices and a lack of options. While neighborhood concerns can complicate larger developments, it does not appear to be pervasive. Many of Oshkosh residents live in mixed use, mixed density urban neighborhoods and their value has been demonstrated. Neighborhoods and urban housing quality As mentioned above, Oshkosh’s neighborhoods are a distinct asset, with well-kept houses and properties, an attractive city streetscape, interesting building types, and institutional strengths. Older neighborhoods have areas of structural distress, but these tend to be somewhat isolated and can be addressed. Engaged neighborhood associations the Healthy Neighborhoods Initiative, Habitat for Humanity, cost-effective programs like Rock the Block, and supportive City policy support stable neighborhoods. Opportunities to develop While Oshkosh is generally built up and contiguous, it has significant growth opportunities. Especially notable are the East Main redevelopment area, Pioneer Island, River East south of Ceape Avenue, the riverfront north of West 6th Avenue, and the North Jackson corridor. The city does have significant room to grow on west side sites contiguous to urban development which require annexation. Coordination with the township to establish logical jurisdictional boundaries will be important. 64 Lack of existing inventory on the market In 2021, Oshkosh, like most American cities, is experiencing very high demand for existing housing. There are a number of reasons for this, some of which might be specific to this period. They include supply chain problems and high material costs that have slowed new construction and the COVID pandemic that has tended to keep many residents (including older households) in their homes. The seller’s market also tends to drive prices up, at least on a temporary basis. But the high cost of new construction will continue to ensure that movement in the existing market is vital to maintaining access to affordable housing. The cost of construction Again, this is not a problem unique to Oshkosh, but construction cost, combined with buyer expectations, produce new development prices that are out of the affordable range for the average citizen of Oshkosh. Single-family construction costs are placed in a typical range of $210 to $230 per square foot, virtually guaranteeing a base cost of $300,000 for a typical detached home. Rental development for quality construction requires a projected rent of about $1.80/square foot per month. This is achievable at the top of the market but about $.60 above typical rent levels. It is interesting to note that current low interest rates are taken for granted, but have in fact created an unprecedented subsidy for homebuyers compared with earlier periods. Infrastructure development Infrastructure is a significant cost in both greenfield development and redevelopment of urban sites. According to Wisconsin law, Tax Increment Financing (TIF) can be used to finance infrastructure and public improvements for projects that are located in blighted areas; propose rehabilitation, conservation, or mixed HOUSING CHALLENGES AT A GLANCE 68 How do we build the resource capacity to develop “affordable, attainable” housing and mobility? How do we encourage housing products and options that retain our households? A HOUSING POLICY AGENDA 1. Share risks with the private market when appropriate Specific areas of risk-sharing to consider are: • Front-end financing of infrastructure and public improvements where the City or other organization helps share the cost of initial project set-up instead of the entire financial burden being placed on the developer. • Unusual or relatively new to the market project types. • Gap financing of neighborhood and infill reinvestment and redevelopment. • Construction period financing to help create inventory and critical mass. • Increased capacity of nonprofit development partners. POSITIVE SHIFTS WOULD INCLUDE: • A focus on neighborhood infill development. • More new and affordable housing options for owner-occupants and renters. • Greater housing production across the spectrum of price points, including higher-end options. TO ENCOURAGE THE PRIVATE MARKET AND ASSIST NON-PROFITS IN CREATING THESE SHIFTS, IT MAY BE NECESSARY TO: • Assist with the development of a demonstration product (a particular housing product, development configuration, or price-point). • Create a housing partnership designed with the express purpose of supporting housing projects including funding pools, organizational resource sharing, public/private/nonprofit development partnerships. • Provide a front-end cost sharing mechanism for infrastructure development linked to achieving major housing objectives. • Review of development regulations and removal of obstacles where they occur. • Renegotiate city/township boundary based on extent of urban services area to permit logical growth and annexation for Oshkosh. • Maximize use of waterfront resources through redevelopment incentives and possible site assembly. 2. Increase the variety of product types, especially in higher-end ranges and for older adults. Issues of affordability and availability are tied directly to the limited mobility within the housing market: a shortage of dwellings for new entrants to the market and a shortage of units for existing residents to move-up or downsize. This creates a stalemate. Current development is highly focused on apartments and conventional high- cost, single-family detached homes. A variety of housing products at various price points would drive additional mobility that would help free up more affordable, existing housing. Recent interest in high-end condo development is one OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 69 How do we conserve our neighborhoods and preserve their housing fabric? feasible direction to generate mobility, as well as development in corridors like Jackson Street or on redevelopment sites. POSITIVE SHIFTS WOULD INCLUDE: • Greater housing variety including maintenance provided options for older adults seeking alternatives to single-family homes. • A more fluid and effective housing market with greater inventory of existing homes on the market. • Increased share of Winnebago County development occurring within Oshkosh’s municipal limits. TO CREATE THESE SHIFTS, IT MAY BE NECESSARY TO: • Recognize that a focus on affordable housing does not mean disregarding higher-end markets. • Similarly understanding that, to at least some degree, new housing products that are attractive to high-resource households can indirectly open housing opportunities for younger households of more moderate means. • Provide carefully focused and strategic front- end assistance on key infrastructure elements. • Renegotiate city/township boundary based on extent of urban services area to permit logical growth and annexation for Oshkosh. • Incorporate a mix of incomes and products within new redevelopment areas, including waterfront sites. • Incorporate Universal Design standards into redevelopment and rehabilitation projects when possible. Universal Design is the process of creating products that are accessible to people with a wide range of abilities, disabilities, and other characteristics. Single-level homes, accessible living communities, or universal design rehabilitations are an opportunity to offer a needed product in Oshkosh. 3. Preserve and rehabilitate existing affordable housing in strategic neighborhood areas Neighborhoods at their best are where people build community and personal networks. Oshkosh’s neighborhoods are strong and cohesive - efforts like Rock the Block and Good Neighbors add to that cohesion, as do neighborhood businesses and parks. Although some show their age more than others, reinvestment is evident from property maintenance and home improvement activity. Existing homes help define the city’s character and will always be the most affordable housing options in Oshkosh. While existing programs are available for their preservation, better targeting and higher investments are needed. In addition to the development initiatives described previously, specific areas to consider include: • Examining the structure and use of existing housing and community development programs to increase clarity and ease of use. • Expanding the development and investment capabilities of GO-HNI or other organizations with this capability. • Developing reasonable design guidelines to provide architectural compatibility between existing housing and infill development. • Revisiting and retooling current and previous rental registration and code enforcement programs to create a consensus driven approach to rental property maintenance and code compliance. • Working with the University of Wisconsin- Oshkosh on student housing standards and referrals. 70 • Investing in neighborhood parks, street rehabilitation, greenways, and other projects that sustain neighborhood value. • Maintaining existing proven programs like Rock the Block that involve citizens and volunteers in small acts that do big things. • Support and enhance small scale commercial establishments in traditional neighborhoods. POSITIVE SHIFTS WOULD INCLUDE: • Increased use and focus of community development programs. Introduction of new programs that enhance equity building, homeownership, and preservation of homes capable of rehabilitation. • Infill development consistent with neighborhood context and less likely to be branded as a product of a specific program. • Agreement of all parties on strategic rental property standards and means of enforcement, with involvement of the University in this process. • Firmer, more predictable funding for key neighborhood support programs. • Strategic amenity and infrastructure projects to support housing conservation and development efforts. TO CREATE THESE SHIFTS, IT MAY BE NECESSARY TO: • Provide small commercial rehab loans and neighborhood commercial zoning to support local small business in neighborhoods. Ensure that standards insulate surrounding homes from negative operating characteristics. • Ensure programs are fully accessible to households that need them most – simple applications, targeted advertising/notice. • Ensure developers and builders know the resources available when creating their development proformas. • Connect resources across all organizations and entities; combine resources (funding) into one program for higher incentives when multiple programs target the same issue. • Educate about maintaining the housing stock. An education program for rentals should have two focuses: ›How to be a good tenant and what it means to be a good neighbor. ›What are your rights as a tenant, what are the leasing laws in Wisconsin, and what are your responsibilities as a tenant? 72 NEIGHBORHOOD OPPORTUNITIES While Oshkosh has development corridors like North Jackson Street, redevelopment areas, and some opportunities for continued westward development, it is fundamentally a city of neighborhoods. And, as we have said before, the city’s main source of affordable housing is in these neighborhoods, despite keen interest in new development. Existing neighborhoods in Oshkosh each have individual character and needs. A viable neighborhood strategy builds on existing assets- framework elements like parks, greenways, natural features, community places, and proximity to other major civic features. These features provide an anchor and identity for the surrounding neighborhoods that in turn support property values, reinvestment, and property maintenance. City policy has clearly recognized the importance of neighborhoods through its robust support programs. An indispensable component of this policy is encouragement and support of neighborhood associations. These associations and the neighborhoods that they operate within form the foundation of protecting the integrity and life of existing housing and adding strategic new resources where possible. In recognition of this role, this section of the Strategy Plan reviews each of the neighborhoods covered by associations. It includes a location map, vital statistics for the area and its immediate surroundings, photographs illustrating their character, and policy directions to guide future development. All sources are the Census and American Community Survey unless otherwise specified. General note on Vital Statistics tables: Because neighborhood boundaries and census enumeration block groups do not coincide, counts displayed on tables in the following discussions of neighborhoods include all block groups that contain the individual neighborhood. Thus, these counts are higher than the neighborhood boundaries, but do reflect the character of that area and its immediate surroundings. Additionally, Brent Woods is a new neighborhood in 2021 and vital statistics are not included in this chapter. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 73 Lake Winnebago MillersBay Bay Asylum South North Bay Asylum F o x Butte Lake des Morts Sa C rrekeeyw RoePoint BraysPoint DoemelPoint LibbyPoint SunsetPoint Shangri-LaPoint R i v e r Marina District North Park Sawyer-Paine Sacred Heart River East Stevens Park Woodland Park Northshore Congress Field Millers Bay Fox Chase Menominee North Menominee South Ferry Crossing Midtown Middle Village Historic Fourth Ward Lumber River Historic Jackson Bent Woods City of Oshkosh Neighborhood Associations City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GISdisclaimer Established Neighborhood Associations in Oshkosh Source: City of Oshkosh 74 Stevens Park Vital Statistics 2019 Population 3,140 2010 Population 3,062 2010-2019 Change +78 2019 Population Density/ sq. mi. 5,184 Median Household Income $64,198 Median Sales Value $117,000 Value/Income Ratio 1.8 Total Occupied Units 1,469 % Owner 61% % Renter 39% Stevens Park Washington BowenCharacteristics • Solid primarily single-family neighborhood. • Stevens Park as a neighborhood focus. • Historic architecture. • Extensive water views and access. • Typical value range of $300,000-$500,000 along lakefront, $140,000-$200,000 inland. • Spot/minor deterioration issues. • Mixed use along Bowen Street. • Some 2-unit structures. Policy Directions • Spot rehabilitation of scattered problem structures. • House values support acquisition/rehab/resale concept. • Rental rehabilitation. • Commercial rehabilitation and support for mixed uses on Bowen Corridor. • Shared equity and rent to own programs would reinforce stable ownership pattern. • Strong neighborhood character supports an effective neighborhood marketing program. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 75 Stevens Park 104 Moderate-cost ($200-300,000) or low market rate rentals($0.80-$1.20/square foot). This type of development represents about 30% of the ten-year demand for both types of tenure. Development at the upper end of this scale typically occurs in subdivisions, or increasingly in higher-density small lot or attached developments that are still rare in Oshkosh. The lower part of this range addresses workforce housing needs but construction costs alone, projected at $210 to $230/square foot make it difficult for builders to deliver a marketable product. This price category has difficulty supporting the cost of new infrastructure in conventional development. Infill development on sites or lots that use existing infrastructure and higher-density housing forms that reduce the unit cost of public improvements are viable approaches, but infill faces the various obstacles discussed above. Most development in this range can be accomplished privately with public incentives, but some project types may require participation of a community partnership, the second point in the strategic approach. POLICY DIRECTION: • Base policies on the recognition that this cost range can largely be satisfied by the private sector, with incentives as required to create economic feasibility. • Use public incentives such as the examples in the following section to support private development in this range and community partnerships for more untested housing types. Incentives may include: • Adjustments to zoning regulations to encourage moderately priced housing forms in new developments and on infill lots. These forms include small lot single-family development, duplexes or two-unit structures that may include an owner-occupant, auxiliary dwelling units on appropriately sized lots, and smaller townhome or rowhouse structures. • Tax-based incentives like tax increment financing and tax abatements, coupled with agreements in rental project to manage rent increases and tie them specifically to increases in maintenance and operations cost. • Front-end public participation in infrastructure and public improvements, with level and terms of participation linked to the percentage of units provided within moderate price ranges or rents. Infrastructure might be recovered at future sale or other ownership transition. Later in this chapter presents more detailed consideration of several of these policies. Low-cost (under $200,000) or below market rate rentals ($0.80/square foot). This type of development represents 37% of the ten- year demand for ownership and 30% for rental occupancy. It is virtually impossible for new construction to serve this significant market category without deep assistance that includes land assembly, infrastructure, development financing, and in some cases mortgage assistance. Program approaches that preserve and rehabilitate existing housing stock or build alternatives for demographic groups like seniors can be effective in addressing this price category. These techniques may be necessary to encourage rental housing, in conjunction with existing tax policy incentives like Low Income Housing Tax Credits and New Market Tax Credits. Delivery will require a public/private partnership, discussed later, that includes an effective community development corporation, financial institutions, builders, Realtors, and city government. POLICY DIRECTIONS: • Base policies on the understanding that delivery of new units in this category requires substantial public or community-based assistance to achieve economic feasibility. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 105 • Create a delivery infrastructure that can develop new units or execute rehabilitation programs that includes both development capacity and a financing consortium. • Use a variety of public sector tools, including tax increment financing, low-income housing tax credits (LIHTC) for appropriate projects, and land assembly and conveyance. • Create incentives for including lower cost units in market rate housing developments. These may include some form of public financing or subsidy for these specific units. Require inclusion of lower-cost units in projects benefiting from other public financing incentives such as TIF. • Introduce programs like acquisition/rehab/ resale of existing homes in reinvestment areas or rent to own development to increase affordable ownership and equity-building opportunities. This chapter presents greater detail on policies and programs that address this cost category. Policy Directions Based on Location and Retention Overall Policy Direction: Policy should encourage development that 1) provides options for people now moving outside Oshkosh to find their place in the city and 2) that uses infill sites or contiguous greenfield sites effectively to provide these options. Oshkosh under-performs in ownership housing production in Winnebago County and even lags behind other Fox Valley cities in per capita single-family development. Encouraging new development within the city limits and areas contiguous to existing urban growth with direct and feasible infrastructure is strongly in Oshkosh’s public policy interest. Beyond the efficiencies of contiguous growth in using public services and infrastructure most effectively, retaining people in Oshkosh who are contemplating moving outside is a very important civic and economic imperative. In many of these areas, infrastructure and public improvements are critical to private development. Policies related to location and retention have their base in the comprehensive plan, and may be placed in the following categories: • Areas that are identified for growth and are contiguous to the city but require significant infrastructure development; or are in the potential urban services area of Oshkosh (areas that can feasibly be provided with municipal wastewater and water service). For these areas, agreements between the City and townships to define the future urban service area and reserve those areas for urban development and eventual annexation by Oshkosh will be important. • Non-contiguous greenfield development in these areas may be premature, but long-term community growth will require them. • Contiguous greenfield development that require incremental utility extensions or in some cases, “pioneer” facilities that open the area to development. Areas that appear to fit this category include: ›The North Jackson development area, identified with potential development concepts in the previous North Jackson Development Plan. This includes an extension of Fernau Avenue corridor to Vinland Street. ›The area west of Vinland and south of the Canadian National’s east-west industrial spur, extending the Ferry Crossing neighborhood north. ›Contiguous areas west of the existing limit of development toward Clairville Road. ›Northwest Oshkosh off I-41/US Hwy 45 and Ryf Road. 106 Again, some of these areas will require jurisdictional negotiations with the townships. Public front-end financing can encourage the desirable goal of residential development with the city, even for higher end housing that would not normally need incentives. POLICY DIRECTION: Public financing, including special assessments can be used to meet the demand for new construction of higher end homes, necessary to support higher end job growth and to open lower price point housing. Infill development. While development within the built-up city typically uses pre-existing infrastructure, some sites within reinvestment areas may lack urban services entirely, or may have existing utilities that require reconstruction or relocation. In most cases, these necessary changes should be publicly funded, utilizing TIF, CDBG, municipal bonds, or other direct public/ private financing. Projects may also require other forms of development or financing assistance, but investments that create buildable sites are the first priority. In Oshkosh, these sites include the waterfront, South Main, and future brownfield redevelopment sites like the quarry after industrial operations end. POLICY DIRECTION: Use necessary public financing tools and partnerships to create buildable sites. Policy Directions Based on Innovation and New to Market Products Overall Policy Direction: Policy should encourage and moderate the risks of non-conventional or emerging forms of residential development that accommodate emerging markets but are unfamiliar to many conventional developers and builders. Significant emerging markets are not being accommodated by current development products in most American cities. New products, like higher- density urban family development, appeal to households with young children who need outdoor space and single-family character, but value the walkability and urban benefits that a city like Oshkosh offers in unusual quantity. At the other end of the scale, independent and active older adults seek settings that provide these same urban features, but without the problems of climbing stairs and maintaining yards. The development and housing financing structure should encourage introduction of housing forms or project designs that incorporate: • Higher-density products like small-lot single- family detached or attached configurations, townhomes, and street-oriented, small footprint multi-family development. • Mixed housing environments that integrate different types and price points into coherent developments. • Mixed use projects that integrate housing, services, retail, and/or employment. • Living environments for independent older adults that offer urban amenities and provide maintenance. Policy Directions Based on Reinvestment Overall Policy Direction: Policy should provide strong, positive incentives for housing and mixed use investment in targeted reinvestment areas. Reinvestment in existing areas is important to a community on many levels. Protection of the existing tax base, protecting community image and livability, and ensuring a variety of housing styles and price points are just a few of the reasons. Most of Oshkosh’s neighborhoods have successfully retained their fabric and integrity, areas with large areas of vacant lots and deteriorated properties do not exist. However, opportunities at the neighborhood level are present in some areas, and projects can develop that strengthen the quality and value of their surroundings. Special programs and partnerships will be required to execute these projects, which include: • Specific neighborhood studies, and corridor and project plans. Examples of these include corridors like 9th Avenue, South Oregon, South Ohio, and North Jackson. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 107 Figure 5.1. Development Policy Sample Market Drivers Price Range Price Point Alone Location and Retention Innovation and New Products Reinvestment High ($400,000+ and rents above $1.50/SF) Private • Partial special assessment if contiguous (50% of development cost) Full special assessment if mixed with other housing price points and/or uses Full development incentive package in reinvestment areas Market ($300,000-$400,000 & rents $1.20-$1.50/SF) Private • Full special assessment if contiguous or on infill sites Full special assessment if mixed with other housing price points and/or uses Full development incentive package in reinvestment areas Moderate ($200,000-$300,000 rents $0.80-$1.20) Full special assessment Consideration of public infrastructure financing depending on context • Full special assessment• with direct public infrastructure financing• Development incentives (TIF)• Direct development assistance No additional requirement Full development incentive package in reinvestment areas Low (Under $200,000 and below $0.80/SF) Full special assessment Consideration of public infrastructure financing depending on context • Full special assessment • Direct public infrastructure financing • Development incentives (TIF) • Direct development assistance No requirement Full development incentive package in reinvestment areas Notes: Special assessment: Public front-end financing through a revenue bond issue, with debt repaid by an assessment on properties, paid as part of annual property taxes. Direct infrastructure financing. Financing of all or part of costs through the city through a bond issue or special infrastructure fund. Financing could include a payback provision. An example would be an “infrastructure bank” where the percentage of total house cost accounted for by infrastructure investment is repaid at sale of the property. TIF: Tax Increment Financing, available in designated Tax Incremental Districts for mixed use projects, projects in blighted areas, or involving environmental remediation. Direct development assistance: Publicly funded grant or loan from local, state, or federal source as a project subsidy. • Site acquisition, assembly, and conveyance to potential developers. • Continuation, some redesign, and additions to rehabilitation and housing conservation programs, with ideas addressed later in this plan. • Continued investment in effective neighborhood engagement programs involving partnerships of the City, Habitat for Humanity, and GO-HNI, including expansions of their development roles as discussed below. Continued support for and development of new neighborhood associations, with a probable focus on south side neighborhoods. • Commercial revitalization, including along continuous commercial corridors and a commercial corner or iconic business offers a distinctive activity center to an otherwise residential area like Bowen Street. • Public infrastructure construction and rehabilitation. • Housing condition code enforcement. Figure 5.1 summarizes financing and incentive approaches for each of these policy contexts, but uses fundamental housing affordability, as the starting point. It is intended to provide the basic structure for more detailed recommendations that follow in this section. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 121 Initiative: Housing Variety and Review Processes The need for greater housing diversity pattern expressed throughout this study. Housing choice is vital to a diverse community, economic growth, and quality of life. Diversifying the housing stock also addresses housing demand indirectly by encouraging movement in the housing market, freeing up homes like those lived in by older households who are not moving from their older (but affordable) two-story, 3-4 bedroom house. Recommended strategies include: • Expanding Program options. • Pattern books for infill possibilities. • Increasing mobility in the market – Empty- nester and retiree housing. • Leverage older commercial corridors for higher density residential development. During the study process, builders and developers seemed overall satisfied with the City approval process. However, there are ways to accelerate approval for more desired products – a possible incentive to reduce development costs. This can come from a coordinated departmental review where administrative approval criteria are agreed. Many departments partake in review processes, and open communication between departments is critical for efficient approvals (public works, engineering, stormwater, inspections). Better departmental communication means education on how departments impact housing costs and how to make changes without sacrificing public health and safety. Even after amending codes to fast-track approvals with guidance, developers may still be cautious of changing their building model. Therefore, the tools in this study should be leveraged as incentives and financing mechanisms targeting these missing product types. There are few developers building anything beyond single-family homes or large apartment complexes. That is understandable because historical consistency in profits and evidence of past local approvals reduces the risk of a project falling through. Two methods below are straightforward ways to eliminate approval risks. By creating a package of example site plans and products that will get approved, the builder has less risk. Oshkosh is starting down this path by releasing Requests for Proposals (RFP) to develop assembled sites under specific criteria and standards. MISSING MIDDLE FOR CHATTANOOGA, TN With help from the Incremental Development Alliance, Chattanooga leaders and stakeholder undertook an intensive developer workshop to identify solutions for missing middle housing types. The process resulted in a development packet that lays the framework for a developer to pursue these projects including: • Picking a building type based on the developer’s financing options and site circumstances. • Guides and site plans for good urban design amid traditional single-family neighborhoods. • Technical considerations for packaging development applications. • Bank packages for different building types to show how to bring the project to life by proving profits for lenders. https://www.incrementaldevelopment.org/ https://www.cneinc.org/creating-homes 122 Subordinate payments A city front-ends a portion of public improvements, repaid over an extended period through a second mortgage on the property. This reduces payments over special assessments by extending the loan term and reducing the principal. Infrastructure standards Besides cost-sharing, a review of improvement standards should be made across city departments to ensure cost efficiency while retaining quality. Not all departments understand the impact that standards have on the price of housing. Like zoning ordinances, infrastructure standards and design possibilities change frequently but are often not updated regularly at the city level. Additionally, requirements are spread across many organizations that may conflict with each other such as utility providers, county government, and federal agencies. Beginning to evaluate infrastructure standards includes: • Planning department understanding how existing standards conflict with city policies. • Understanding that city review processes and multiple reviews between departments cost money which is passed on to the cost of housing. • A step further includes how building and fire code requirements align with housing products encouraged in certain zoning districts. For example, unit thresholds that trigger high-cost development requirements like fire sprinklers. Initiative: Reducing Site Costs Reducing the cost to develop a site leads to lower lot costs and subsequently lower costs per housing unit when tied to incentives for including certain price points or housing products. Examples for developing new subdivisions include: Shared costs Cities can share new infrastructure costs depending on the development location and type. The public share might be from 30% to 50% of the construction cost for cities experiencing consistent subdivision development. Repayment is from the added property taxes created by new development. Oshkosh should require these developments to include various housing types and smaller lots to balance future infrastructure maintenance and tax revenue. Lot variety and housing variety should also be allowed outright. Special assessments Special assessments are used to finance infrastructure. While assessments reduce the initial purchase price of the house, they are repaid through monthly payments and add to the monthly and overall cost of the house. Thus, special assessments are not useful tools to target the lowest income households but rather those that have adequate monthly funds. The City could waive the special assessments on a certain percentage of lots to support more affordable housing. These households may have trouble saving for a downpayment because of student loans or high current rent costs. This tool requires working with the developer on the type and price of these units, likely below $250,000 to waive the special assessment.